Artis REIT continued a massive asset sell-off in the first quarter of 2024 by disposing of three assets for $38.4 million.

Winnipeg-based Artis said the divestments included one industrial property, one office property and one retail site located in Canada. The deals were disclosed in the REIT’s quarterly report.

“Our focus on liquidity continues to drive our disposition strategy,” said Samir Manji, the REIT’s president and CEO, during a conference call with analysts and reporters.

Artis has unlocked $174.3 million through asset dispositions in 2024, noted,m adding that the deals demonstrate ongoing demand quality real estate despite the challenging interest-rate environment. 

Artis announced that it has entered into an unconditional agreement to sell a 12-property industrial portfolio in the Greater Houston Area for $234.2 million. The REIT entered into an unconditional agreement this week after previously stating that it had agreed to a conditional sale of the portfolio, which is known as Park 8Ninety.

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

Manji said the sale, which is expected to close in the second quarter of 2024, represents a significant milestone and adds to a list of unconditional asset sales expected to close in the near term.

He said Artis has C$184.4 million of unconditional Canadian asset sales and US$272.9 million of unconditional U.S. asset sales scheduled to close in coming months. 

“These dispositions are vital to accomplishing our primary near-term goal: Strengthening the balance sheet by enhancing liquidity and reducing debt,” Manji added.

The sell-off began shortly before Artis officially launched a strategic review in September 2023 to increase its unit value and reduce debt.

The REIT has sold $760.7 million worth of assets since August 2023.

Pictured: Park 8Ninety industrial property portfolio in the Greater Houston Area.,

Photo: Artis REIT