At Adventus, our first priority is the well-being of our tenants and their employees, our Property Management and Leasing teams across our portfolio and our employees.
Through this trying time, we will be monitoring our assets closely to respond quickly to events that occur at our properties. Adventus will keep our office buildings open; however, it is up to our tenants to determine their operating hours based on the needs of their business. We have instituted the following actions to ensure the health and safety of everyone interacting in our buildings. They are as follows:
- Our janitorial teams have implemented extra cleaning of common areas in our office buildings.
- We have ongoing communication with all tenants and employees advising them of our protocols, policies and recommended practices to keep them safe and mitigate transmission.
- The employees of Adventus and our Property Management teams are utilizing work from home protocols for non-essential staff; and rotating shifts for building engineers and security to ensure the buildings are functioning safely and securely.
- In the event of a confirmed case of COVID-19, we have protocols in place which follow both the CDC and OSHA guidelines
We monitor updates on a daily basis. With the assistance of our Property Management teams we monitor direction provided by
Governments, the World Health Organization and the Public Health Agencies. We remain committed to implement appropriate actions and provide updates to all tenants, employees and stakeholders as they become available. Our primary goal in these times is to protect our people, assets, investors and the financial strength of Adventus.
Business Continuity has always been an important aspect of our business. We split business continuity into two focuses, the first is at the Asset Level, the second is specific to the Adventus Head Office Level.
A. Asset Level
The business continuity at the asset level involves co-ordination with all our Property Management and Leasing teams and addresses (but is not limited to) the following:
- Staffing and protection – All of our buildings are managed and leased by third party providers such as Avison Young and Cushman Wakefield. Each of these groups employs Property Managers and Building Engineers at all of our properties. All buildings have redundancy within them and coverage from senior people that support the front-line teams. Staff have been directed to work remotely unless they are deemed essential personnel.
- Building Security and Operations – Building engineers (essential personnel) can and are managing the building systems remotely with rotating shifts at the properties to ensure the security and operational integrity of the assets.
- Lease Review – Adventus has reviewed our lease agreements to clearly understand the Force Majeure and Insurance requirements for the tenants in this crisis.
- Legal Advice – In addition to our own internal lease review we have had, and will continue to utilize our legal counsel to review key leases and our standard lease form to confirm our interpretation of various clauses.
- Insurance Review – We have had and continue to have discussions with our insurance broker regarding our building insurance and tenant insurance requirements. We are focused on meeting all insurance requirements to properly operate and secure our buildings and ensure proper insurance coverage.
- Risk Assessments – Adventus has reviewed our tenant roster and have identified tenants that may be at financial risk from the COVID-19 pandemic based upon their industry and financial performance. The list of tenants is only a watch list where we have identified ‘at risk’ tenants; this equates to less than 12% of our portfolio by revenue. We will be continuing to review and assess our watch list throughout the COVID-19 pandemic.
- Financial Implications (Asset Level) – Adventus continues to monitor our portfolio and all our financial obligations to ensure the financial strength at each asset, including the monitoring of liquidity and communication with our project debt lenders.
- Rent Relief – To date only four of our tenants (0.1% of the portfolio) have requested rent relief. All instances are based upon small tenants that are service providers in amenity space in our buildings. We have a defined process to assess each request on its own merits.
- Communication – During this crisis, the Adventus Asset Management team communicates through video conferencing, conference calls and email with all of our service providers on a daily basis to ensure the portfolio is secure and operating. In the event of a COVID-19 confirmed case we will be on the phone several times a day to ensure proper handling of the situation and communication with our tenants.
B. Adventus Head Office Level
Our business continuity for Adventus focuses primarily on:
- Succession Planning – Each role and/or skill set has a level of redundancy within our organization. That includes personnel that have been hired or cross trained to step into various roles or functions as needed.
- Staff protection – During this crisis all staff have been directed to work remotely. We have also recommended staying at home when not working and following the WHO guidelines on safe distancing and cleanliness.
- Insurance Review – We have reviewed our business insurance to ensure that we have appropriate coverage.
- IT Protection – Adventus utilizes a third-party IT provider for storage and backup of data. This enables us to access the information remotely at any time with proper protection.
- Financial Implications – Adventus continues to monitor the portfolio and all of our financial obligations to ensure the financial strength of the company, including monitoring of liquidity.
- Communication – Adventus will be providing as frequently as considered necessary investor communications along with a quarterly presentation through this current crisis. Once the crisis is under control, we will be communicating with our investors with monthly investor updates and quarterly presentations.
As mentioned above, Adventus will be sending out investor updates as necessary and we will be holding a quarterly presentation. A notice regarding the next quarterly presentation will be sent out in the next few days.
Adventus wants to thank all of our investors, stakeholders and partners for your support through this crisis. If you have any questions, please contact us at firstname.lastname@example.org.
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 forwardlooking 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 and Richard B. Charlton, CPM
President and Chief Executive Officer Chief Operating Officer