GRANITE REAL ESTATE INVESTMENT TRUST
For the period ended Dec 31, 2023. Filed Feb 28, 2024.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2023 · Filed Feb 28, 2024
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Contents
EX-3 · Construction and Development Commitments
Construction and Development Commitments
Granite had the following construction and development commitments as at December 31, 2023:
| Commitments · Accruals/Payments/ Deposits Made · Year-One Stabilized Yield (2) | |||||
|---|---|---|---|---|---|
| (in millions, except as noted) | |||||
| Property Location · Additional sq ft · Future Commitments (1) · Total Cost | |||||
| As at December 31, 2023: | |||||
| Development, construction or expansion: | |||||
| Property under development in Brantford, ON | 0.4 | $50.3 | $18.8 | $69.1 | 6.8% |
| Site plan approval for a development in Brantford, ON | 0.7 | 3.3 | 2.6 | 5.9 | —% |
| Site plan approval for a development in Houston, TX | 1.3 | 0.5 | 2.9 | 3.4 | —% |
| Expansion of 555 Beck Cres., Ajax, ON | 0.1 | 10.7 | 4.2 | 14.9 | 5.6% |
| Expansion of Oude Graaf 15, Weert, NL | 0.1 | 0.2 | 5.9 | 6.1 | 8.7% |
| Other construction commitments | — | 0.5 | 22.0 | 22.5 | —% |
| 2.6 | $65.5 | $56.4 | $121.9 | 6.7% | |
(1)Includes signed contracts and future budgeted expenditures not yet contracted.
(2)Yield based on total cost including land (see “Development and Expansion Projects”).
During the fourth quarter of 2023, construction continued on its 0.4 million square foot, 40’ clear height, state-of-the-art modern distribution facility in Brantford, Ontario. The build-to-suit facility, being constructed for a global chocolate producer, was contractually completed in the first quarter of 2024 and the lease commenced with an approximate 19-year term. In June 2023, Granite commenced the site plan approval process for a second phase of development at its site in Brantford, Ontario which is ongoing.
In the fourth quarter, Granite continued the site plan approval process for the third phase of its site in Houston, Texas for up to 1.3 million square feet.
During the fourth quarter of 2023, construction continued at Granite’s speculative expansion of 555 Beck Crescent in Ajax, ON. The approximately 50,000 square foot, 32’ clear height expansion is expected to complete in the second quarter of 2024. Subsequent to quarter end, Granite signed a lease for approximately 30,000 square feet of the expansion for a 10-year term with annual escalations.
Granite has signed an agreement with its tenant at Oude Graaf 15, Weert in Netherlands to expand the existing logistics building. In the fourth quarter of 2023, Granite received the building permit to expand the building by approximately 52,000 square feet. As part of the agreement, the tenant has committed to a new 10-year term for the entire (expanded) building from the date of completion of the expansion, which is estimated to occur in the third quarter of 2024.
10 Granite REIT 2023
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