DBRS Morningstar Assigns Rating of BBB (low), Stable, to Summit Industrial Income Real Estate Investment Trust's $200 Million 1.82% Series B Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to Summit Industrial Income Real Estate Investment Trust’s (Summit or the REIT) $200 million 1.82% Series B Senior Unsecured Debentures, due April 1, 2026 (the Series B Debentures). The assigned rating is based on the rating of the already-outstanding series of Senior Unsecured Debentures.

The Series B Debentures are direct senior unsecured obligations of Summit, and rank equally and rateably with all other senior unsecured debt securities as well as all other unsecured and unsubordinated indebtedness of the REIT, except to the extent prescribed by law. The Series B Debentures are guaranteed, on an unsecured basis, by Summit’s subsidiaries that are guarantors under its unsecured credit facility, which initially include Summit Industrial Income Operating Limited Partnership, Summit Industrial Income Corp., and Summit Industrial Income Holdings GP Ltd.

DBRS Morningstar understands that the REIT will use the net proceeds from the offering to repay existing indebtedness, to fund future acquisitions, and for general trust purposes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Entities in the Real Estate Industry (June 4, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 2, 2020), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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