Pure Industrial Real Estate Trust (PIRET) has been formed to acquire, own and operate a diversified portfolio of income producing industrial properties in both primary and secondary industrial markets across Canada. PIRET is Canada's only pure-play industrial REIT.

Business Strategy

Long-Term Objectives

1. to generate stable and growing cash distributions
2. to maximize the long-term value of PIRET's properties through active management
3. to grow in size and increase distributable income through accretive acquisitions

Acquisition Strategy

• target properties in both primary and secondary markets
• diversify geographically across Canada
• buy in clusters and asset sizes that will ensure regional economies of scale
• acquisitions in the $3 to $20 million range per property
• acquire properties with strong tenant bases, low vacancy rates and existing long-term leases
• good to superior physical condition with little to no deferred maintenance

Financing Strategy

• maximize return on equity while mitigating financial risk and maintaining stable cash flows
• primarily 5 and 10 year fixed rate property level amortizing debt
• interest only and floating rate loans to be used in certain circumstances
• 70% maximum overall indebtedness permitted under PIRET's Declaration of Trust
• PIRET intends to prudently manage the REIT's overall financial leverage within a range of 60% to 65%

Portfolio Management Strategy

• maintain strong tenant relations and re-lease premises as leases expire
• enhance property values through strategic management, upgrades and re-leasing, if applicable
• acquire assets with medium to long term leases to high quality tenants
• stagger lease termination dates across the portfolio to minimize rollover risk
• internalize third-party property management at the appropriate time