Artis REIT sold $972.9 million worth of assets in 2024 as part of its strategy to strengthen its balance sheet.

The Winnipeg-based REIT’s divestments included office, retail, industrial properties, parking lots, and development land across Canada and the U.S. The sell-off occurred during a strategic review between 2023 and 2024 that was designed to improve the balance sheet reduce debt and increase the REIT’s unit price.

Artis had considered a complete sale of its business as part of the review but opted against that idea.

“Over the course of 2024, we made significant progress towards our objective of strengthening our balance sheet and reducing leverage,” said Samir Manji, president and CEO of Artis.

As a result of the “active disposition exercise,” Artis was able to reduce leverage from 50.9% year-over-year, he added.

The REIT sold seven office properties, seven retail properties, one industrial property, two parking lots, and a parcel of development land in Canada, along with 14 industrial properties and three office properties in the U.S. Additionally, Artis entered into unconditional agreements to sell two industrial and two retail properties in Canada for a total of $70.5 million, with those transactions closing after year-end.

Alongside its divestment strategy, Artis made selective acquisitions, including an additional 50% interest in the Kincaid Building, an office property in the Greater Vancouver Area, for $22.5 million. The REIT also acquired an additional 5% interest in Park 8Ninety V, an industrial property in the Greater Houston Area, for US$4 million. Artis later sold the entire 12-building Park8Niney for US$234.2 million.

Artis did not disclose the buyer, but published reports identified the purchaser as U.S. public-equity firm KKR.

Meanwhile, Artis entered into a new three-year senior secured credit facility totalling $520 million during the fourth quarter to refinance debt and improve its financial position. The REIT also reported a net asset value per unit of $13.75 as of December 31, 2024, compared to $13.96 a year earlier.

With a healthier liquidity position and favourable interest rate trends, Artis says it will now focus on pursuing opportunities to maximize value for unitholders.

Pictured: Park 8Ninety industrial buildings in the Greater Houston Area.

Image: Trammell Crowe