03:40 PM EST, 12/12/2024 (MT Newswires) -- Artis Real Estate Investment Trust (AX-UN.TO) Thursday announced that it has concluded a near 16-month strategic review process and in the end will "continue to purse the REIT's existing business strategy" while turning its attention to unspecified growth opportunities that it believes will produce above average risk-adjusted returns and grow net asset value per unit.

Artis in a statement said that since the announcement of the Strategic Review in August 2023 it has "significantly improved its balance sheet" and finalized terms on new three-year senior secured credit facilities in an aggregate amount of C$520 million.

The company also said it has made "substantial progress" with its disposition strategy, while "navigating a very challenging interest rate environment."

Samir Manji, President and Chief Executive Officer, in a statement said: "Despite the significant headwinds we faced, the quality and resilience of Artis's portfolio enabled us to monetize $1.1 billion of real estate and, through this active disposition exercise, we have been able to materially reduce leverage and de-risk Artis's balance sheet."

To refinance debt and improve the REIT's risk profile, Artis finalized terms on new three-year senior secured credit facilities in an aggregate amount of $520 million, which include a $350 million revolving credit facility and a $170 million non-revolving credit facility.

Artis said in addition to it having made substantial progress with its disposition strategy, strengthening its balance sheet and improving its risk profile related to upcoming debt obligations, at a macro level, the interest rate environment has "improved significantly" in recent months. "In light of these factors, the board believes it is in the best interest of Artis and its unitholders to continue to pursue the REIT's existing business strategy."

Artis is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States.

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