- Automotive Properties REIT (TSX:APR.UN) will acquire a Tesla-tenanted collision center property in Dublin, Ohio, from a third party for US$17.8 million
- The property will be the seventh in the company’s portfolio occupied by Tesla
- Automotive Properties REIT owns and acquires income-producing automotive and other OEM dealership and service properties in Canada and the United States
- Shares of Automotive Properties REIT have given back 5.14 per cent year-over-year and 22.5 per cent since 2020
Automotive Properties REIT (TSX:APR.UN) will acquire a Tesla-tenanted collision center property in Dublin, Ohio, from a third party for US$17.8 million.
Management expects the acquisition, tenanted by Tesla under a mid-term net lease, to increase adjusted funds from operations per unit. Funding will stem primarily from existing revolving credit facilities.
The 94,000-square-foot property, situated on 6.32 acres of land, is located along a commercial corridor at 5600 Britton Parkway adjacent to a large retail shopping center. Interstate 270 is in close proximity, providing access to the growing Columbus Metropolitan Area.
The parties expect the acquisition to close in Q1 2025.
Automotive Properties’ operations at a glance
The REIT’s portfolio currently includes 78 income-producing commercial properties spanning 2.9 million square feet of gross leasable area across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec.
It posted five-year revenue growth of 36 per cent to C$92.48 million in 2023 and is on track for a year-over-year increase in 2024. This slow and steady upward trajectory has been delivered alongside positive net income over the past four years, with a high of C$85.42 million in 2021 and over C$60 million generated through Q3 in 2024.
Leadership insights
“This acquisition will further increase our exposure to Tesla and the electric vehicle market in North America. We currently own six automotive properties in urban markets in Canada that are tenanted by Tesla,” Milton Lamb, president and chief executive officer of Automotive Properties REIT, said in a statement. “This acquisition is consistent with our focus on owning and acquiring attractive automotive properties in growing metropolitan markets.”
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring income-producing automotive and other OEM dealership and service properties in Canada and the United States.
Shares of the REIT (TSX:APR.UN) opened with a loss of 1.24 per cent trading at C$10.33 per share. They have given back 5.14 per cent year-over-year and 22.5 per cent since 2020.
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(Top photo of a Tesla body shop: Tesla)
