Last week, Summit Industrial Income REIT announced it would issue C$250 million of aggregate principal amount of series C senior unsecured debentures. The company announced on April 12 that it has completed the previously announced offering.
The debentures will carry interest at a rate of 2.25% per annum and will mature on January 12, 2027. A short first coupon will be payable on July 12, 2021.
Summit Industrial Income REIT’s (SMU.UN) COO Dayna Gibbs said, “We appreciate the opportunity to participate in the green financing market, aligning our ESG initiatives and values of corporate responsibility with attractive sustainable financing terms. The offering will continue to increase our proportion of unsecured debt to total debt, as well as our pool of unencumbered assets while furthering our strategic goal of investing with impact through our Green Financing Framework.”
National Bank Financial Inc. DBRS Limited has given the debentures a final rating of “BBB (low)” with a “Stable” trend. (See Summit Industrial Income REIT stock analysis on TipRanks)
In March, Raymond James analyst Brad Sturges initiated coverage of the stock with a Buy rating and a price target of C$15.75 (5.7% upside potential).
Sturges said in a research note that he believes Summit offers investors attractive, focused pure-play exposure to the high-growth industrial rental markets of Toronto and Montreal.
Two months ago, National Bank analyst Matt Kornack reiterated a Buy rating and a price target of C$16 on the stock (7% upside potential).
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating, based on 4 Buys and 3 Holds. The average analyst price target of C$15.18 implies upside potential of about 1.9% to current levels.
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