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 · Development and Expansion Projects
Development and Expansion Projects
The attributes of Granite’s properties under development and expansion projects as at December 31, 2023 were as follows:
| Development and Expansion Projects | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land acreage (in acres) | Expected sq ft of construction(in millions) | Start date of construction | Target completion date | Actual construction costs as at December 31, 2023 | Expected total construction cost(1) | Cost of Land | Total Expected Cost | Year-One Stabilized Yield (2) | |
| Properties under development | |||||||||
| 4 Bowery Rd., Brantford, ON | 22.3 | 0.4 | Q2 2022 | Q1 2024 | 50.3 | 69.1 | 15.4 | 84.5 | 6.8% |
| 12 Wright St., Brantford, ON | 33.9 | 0.7 | Q2 2023 | TBD | 3.3 | 5.9 | 26.1 | 32.0 | N/A |
| Houston, TX (Phase III) | 101.5 | 1.3 | Q3 2023 | TBD | 0.5 | 3.4 | 16.3 | 19.7 | N/A |
| Expansion projects | |||||||||
| 555 Beck Cres., Ajax, ON | 7.6 | 0.1 | Q1 2023 | Q2 2024 | 10.7 | 14.9 | — | 14.9 | 5.6% |
| Oude Graaf 15, Weert | 9.0 | 0.1 | Q4 2023 | Q3 2024 | 0.2 | 6.1 | — | 6.1 | 8.7% |
| 174.3 | 2.6 | $65.0 | $99.4 | $57.8 | $157.2 | 6.7% | |||
(1) Construction cost excludes cost of land.
(2) Yield based on total cost including land.
During the fourth quarter of 2023, construction continued at Granite’s approximately 410,000 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.
Granite continues to advance the site plan approval processes for a second phase of its site in Brantford, Ontario and for the third phase of development at its site in Houston, Texas.
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.
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