DBRS Morningstar Assigns Rating of BBB (low), Stable, to Summit Industrial Income Real Estate Investment Trust’s $250 Million 2.25% Series C 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) $250 million 2.25% Series C Senior Unsecured Debentures, due January 12, 2027 (the Series C Debentures). The rating assigned to this newly issued debt instrument is based on the rating of an already-outstanding debt series of the above-mentioned debt instrument.

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

DBRS Morningstar understands that the REIT intends to allocate the net proceeds from the offering to fund the financing and/or refinancing of eligible green initiatives as described in its Green Financing Framework. DBRS Morningstar further understands that, prior to allocation of the offering’s net proceeds to eligible green initiatives, the REIT intends to use the net proceeds of 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 can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodologies are Rating Entities in the Real Estate Industry (June 4, 2020; https://www.dbrsmorningstar.com/research/362015) and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 14, 2021; https://www.dbrsmorningstar.com/research/372344), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

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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