This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts are in Canadian dollars unless otherwise indicated.
Dream Industrial Real Estate Investment Trust (DIR.UN-TSX) (the “Trust” or “Dream Industrial REIT” or “Dream Industrial” or “we” or “us”) today announced receipt of its issuer rating and senior unsecured debentures credit rating upgrade to BBB (high) with Stable xtrends, from BBB, assigned by Morningstar DBRS (“DBRS”).
“We are proud to announce an upgrade in our credit rating to BBB (high),” said Alexander Sannikov, President & Chief Executive Officer of Dream Industrial REIT. “This rating upgrade reflects the strength of our urban industrial portfolio and ongoing resilience of our business. We remain firmly committed to disciplined capital allocation, maintaining a conservative balance sheet while pursuing accretive opportunities that maximize long-term value for our Unitholders.”
Following the upgrade, the Trust expects to achieve a reduction in the cost of borrowing on its existing $750 million unsecured syndicated revolving credit facility, its existing US$250 million unsecured term loan and €153 million unsecured term loan, effective upon the next drawdown. The rate of reduction in the cost of borrowing will vary by facility up to 25 basis points (“bps”) per annum in addition to an immediate 5 bps reduction in its standby fee pricing on the revolving credit facility.
“Representing one of the highest credit ratings currently granted within the Canadian REIT universe by DBRS, this upgrade is recognition of and reinforces confidence in the REIT’s balance sheet strength and credit quality, which we expect will translate into lower borrowing costs going forward,” said Lenis Quan, Chief Financial Officer of Dream Industrial REIT. “As we look to refinance our upcoming debt maturities, we expect the lower cost of debt to positively impact our annualized FFO per unit on a pro forma basis.”
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