VANCOUVER, British Columbia, Aug. 28, 2025 (GLOBE NEWSWIRE) -- AIP Realty Trust (the "Trust" or "AIP Realty") (TSXV:AIP.U) today announced its financial results for the three and six months ended June 30, 2025. All dollar amounts are stated in U.S. dollars.
Q2 2025 Highlights
- Investment property revenue for the three ended June 30, 2025 was $150,403, compared to $152,591 in the same period in 2024, a decrease of $2,188, or 1%. The decline in investment property revenue was mainly due to a decline in parking revenue from a 2024 lease expiration that included a large parking agreement component and normal turnover that resulted in the vacancy of one unit starting in mid April 2025, partially offset by increased other revenue generated by tenant move-out charges.
- Investment property operating expense for the three months ended June 30, 2025 decreased to $46,316, compared to $53,583 in the same period in 2024, a decrease of $7,267, or 14%. The decrease in investment property operating expense was primarily driven by less maintenance and repair expense in the second quarter of 2025, as these expenditures are variable by nature.
- Overall investment property net rental income for the three months ended June 30, 2025 was $104,087, compared to $99,008 in the same period in 2024, an increase of $5,079, or 5%.
- Trust expenses for the three months ended June 30, 2025 were $1,341,315, compared to $1,527,726 in the same period in 2024, a decrease of $186,411, or 12%. The decrease was primarily due to a second quarter 2024 one-time, non-cash property exclusivity fee related to the issuance of Trust units to satisfy an outstanding debt. This was partially offset in the second quarter of 2025 by increased interest and finance expense, driven by the amortization of the Series A-1 preferred share liability debt discount and issuance costs, and increased professional fees related to the AllTrades Transaction.
- On June 9, 2025, the Trust announced a non-brokered private placement (the "Financing") in which the Trust intends to issue up to 14,000,000 Preferred Units - Series B Convertible (each, a "Preferred Unit"), at a price of US$0.50 per Preferred Unit for aggregate gross proceeds of up to US$7,000,000. This will be the fifth tranche of the Financing. Completion of the Financing remains subject to approval from the TSX Venture Exchange (the "TSXV"). The Trust may pay finder's fees on a portion of the Financing, subject to compliance with the policies of the TSXV and applicable securities legislation. Between April 2024 and February 2025, the Trust completed four tranches of the Financing and issued 8,890,000 Preferred Units for aggregate gross proceeds of $4,445,000.
- On June 11, 2025, the Trust announce that it has entered into an engagement letter with Desjardins Capital Markets (the "Agent") setting forth the commercial terms under which the Agent has agreed to act as the sole lead agent and bookrunner in respect of a best efforts fully marketed offering of approximately US$100,000,000 or such other amount agreed by the Agent and the Trust of securities of the Trust ("Offered Securities") at a price per Offered Security to be determined. The terms and ultimate structure of the offering remain under consideration and subject to negotiation with the Agent. The net proceeds of the offering will be used in support of the Trust's proposed business combination (the "AllTrades Transaction") with 2024 ATIP, Inc., as previously disclosed by the Trust in a news release dated November 14, 2024, for the purchase of six completed AllTrades Serviced Industrial Business Suites facilities, as well as for other general working capital purposes.
Selected Financial Information
| Three Months Ended | Six Months Ended | |||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||
| Investment property revenue | $ | 150,403 | $ | 152,591 | $ | 274,636 | $ | 303,633 |
| Investment property operating expenses | (46,316) | (53,583) | (111,058) | (102,186) | ||||
| Investment property net rental income | 104,087 | 99,008 | 163,578 | 201,447 | ||||
| Trust expense | (1,341,315) | (1,527,726) | (2,821,742) | 2,009,010 | ||||
| Fair value adjustment to investment property | 8,073 | 1,375 | 99,476 | 2,750 | ||||
| Net loss and total comprehensive loss | $ | (1,229,155) | $ | (1,427,343) | $ | (2,558,688) | $ | (1,804,813) |
| June 30, 2025 | December 31, 2024 | |||
| (unaudited) | (audited) | |||
| Investment property | $ | 6,100,024 | $ | 5,992,598 |
| Cash | $ | 30,776 | $ | 569,601 |
| Project debt (net of debt discount) | $ | 2,874,808 | $ | 2,920,352 |
| Accounts payable and accrued expenses | $ | 7,733,409 | $ | 6,670,515 |
| Units outstanding | 4,924,448 | 4,924,448 | ||
The foregoing is a summary of selected information for the three and six months ended June 30, 2025 and 2024 and is qualified in its entirety by, and should be read in conjunction with, the Trust's condensed interim consolidated financial statements and management discussion and analysis for the three and six months ended June 30, 2025 and 2024. These documents are available on SEDAR+ at www.sedarplus.com, and on the Trust's website at www.aiprealtytrust.com.
Related party disclosures
The executive management team of the Trust is the same executive management team as AllTrades.
Outlook and Subsequent Events
Through its agreement with AllTrades, the Trust has been granted an exclusive right to purchase all AllTrades' completed and leased facilities, as well as any facilities in development. This includes 13 properties subject to forward purchase agreements, including six DFW-area facilities already completed or nearing completion, and seven additional facilities on which development has commenced or is ready to commence. Development on these facilities was funded with equity capital from AllTrades and Trinity Investors, a $7 billion Dallas-based real estate private equity investor. In addition, AllTrades is actively planning the next tranche of facilities in DFW and Houston, TX.
As previously disclosed in March 2024, the Board of Trustees continues to explore the execution of its business plan and relationship with AllTrades and anticipates closing the AllTrades Transaction by the end of the third quarter 2025.
About AIP Realty Trust
AIP Realty Trust is an unincorporated, open ended mutual fund trust with a growing portfolio of AllTrades branded SIBS light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, LLC. For more information, please visit www.aiprealtytrust.com.
For further information from the Trust, contact:
Leslie Wulf
Executive Chairman
(214) 679-5263
les.wulf@aiprealtytrust.com
Or
Greg Vorwaller
Chief Executive Officer
(778) 918-8262
greg.vorwaller@aiprealtytrust.com
Cautionary Statement on Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the commencement of development on certain of the AllTrades facilities, receipt of final approval from the TSXV for the Financing and the Unit Issuance, proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. These forward-looking statements are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.
Source: AIP Realty Trust
