AIP Realty Trust Announces First Quarter 2024 Results

Core Insights - AIP Realty Trust reported a significant decline in investment property revenue and net rental income for Q1 2025 compared to Q1 2024, primarily due to lease expirations and increased operating expenses [3][4]. Financial Performance - Investment property revenue for Q1 2025 was $124,232, down from $151,042 in Q1 2024, representing an 18% decrease [3][4]. - Investment property operating expenses increased to $64,742 in Q1 2025, a rise of 33% from $48,602 in Q1 2024, largely due to maintenance and repair costs during scheduled vacancies [3][4]. - Net rental income fell to $59,490 in Q1 2025, down 42% from $102,440 in Q1 2024 [3][4]. Financing Activities - The Trust completed a fourth tranche of a non-brokered private placement, issuing 5,200,000 Preferred Units at $0.50 each, raising $2,600,000 [4]. - A senior first mortgage credit facility of $300,000,000 was arranged, with an initial draw of $100,000,000 and an accordion option for an additional $200,000,000 [4]. Strategic Partnerships and Developments - AIP Realty has an exclusive right to purchase AllTrades' completed and leased facilities, including 13 properties under forward purchase agreements [7]. - The Trust is engaged in advanced discussions for the AllTrades Transaction, expected to close by Q3 2025, with interest from leading banks for financing [8]. Market Outlook - The demand for light industrial flex facilities is driving rental rate increases, with new leases at Eagle Court showing a 19% increase in suite revenue per square foot [4]. - The Trust aims to minimize vacancies and capitalize on unit turnover to align revenue with current market conditions [4]. Asset Overview - As of March 31, 2025, total investment property was valued at $6,092,924, an increase from $5,992,598 at the end of 2024 [5]. - Cash reserves increased to $664,650 from $519,601, while project debt slightly decreased to $2,896,346 [5]. Management and Structure - The executive management team of AIP Realty Trust is the same as that of AllTrades, indicating a close operational relationship [6]. - The Trust focuses on small businesses and trades sectors, with plans for national rollout of its property offerings [9].