Adventus Realty Trust Announces Offering of Convertible Debentures and Provides COVID-19 Business Update

August 28, 2020

Adventus Realty Trust by its Trustee, Adventus Realty Services Inc. (the “Trust” or the “Company”) announces an offering of convertible debentures (the “Offering”) and provides an update on the impact of the novel coronavirus (COVID-19) pandemic on its business.

Convertible Debentures

The Trust is pleased to announce an offering of up to US $20 million of convertible debentures.  The Offering is available to all existing holders of units of Adventus Realty Trust, provided that they qualify as an “Accredited Investor” under applicable securities laws. These convertible debentures are not eligible for investment by registered accounts (e.g. RRSP’s). Other material terms of the Offering include the following:              

  • Interest rate of 8%, payable monthly;
  • Maturity date of December 31, 2023, callable at par from January 1, 2022 at the option of the Trust;     
  • Convertible into units of Adventus Realty Trust at US $16.75 per unit; and
  • Minimum investment of US $50,000 by Accredited Investors in Canada, pursuant to National Instrument 45-106 – Prospectus Exemptions.

Purchases of the convertible debentures may close in one or more tranches until December 31, 2020.  Eligible investors who are interested in participating in the Offering should contact their broker or submit their expression of interest to the Trust at info@adventusrealty.com, Attention: Mike Iannacone.

Rent Collections
The table below summarizes our Stress Test results, actual rent collections received to date, and revised estimate of rent collections for each respective month:

 

July 2020

August 2020

September 2020

Rent Collections – Original Stress Test (1)

85%

85%

85%

Rent Collections – Actual to Date (2)

96%

97%

34%

Rent Collections – Revised Estimate (2)

96%

98%

96%

(1)  as communicated in our April 14, 2020 News Release and April 23, 2020 Investor Conference Call
(2)  as of August 28, 2020

We are constantly monitoring these collections and are carrying out a comprehensive review of tenant rents to estimate the amount which may not be collected.  We have been proactively managing collections to meet or exceed our 85% stress testing and will continue to update investors of our rent collections as we maintain our enhanced communication during this time.

While rent collections to date during the COVID-19 pandemic have been encouraging, the immediate future remains uncertain, and management continues with its comprehensive review of tenant rents to evaluate how changes in market conditions could adversely impact the Trust. Notwithstanding that our portfolio has a large percentage of Fortune 500 companies, we do anticipate some of our tenants will have financial challenges if the timeline for COVID-19 is extended.

About Adventus
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, in the suburban office markets of Chicago, Illinois and Atlanta, Georgia. For more information on Adventus, including our team, corporate strategy, photo gallery, details of our portfolio and press releases, we invite you to visit our website at www.adventusrealty.com.

Cautionary Statements Regarding Forward-Looking Statements
This press release may contain forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the previously disclosed acquisitions and future acquisitions of properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of the REIT and the acquisitions discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf.

Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

ADVENTUS REALTY TRUST          
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, FCPA, FCA           
President and Chief Executive Officer

Investors News Releases Adventus Realty Trust Announces Offering of Convertible Debentures and Provides COVID-19 Business Update