Automotive Properties Real Estate Investment Trust (TSE: APR.UN) has completed its acquisition of two Tesla automotive service properties.
Automotive Properties REIT is a real estate investment trust focused on Canadian car dealership properties.
Owning 5 Properties Leased by Tesla Canada
Leased by Tesla Canada, the properties are located at 2180/2200 Cyrille-Duquet Street in Quebec City, Quebec, and 2474 Doral Drive in Innisfil, Ontario. The addition of the properties is expected to be immediately accretive to the REIT’s Adjusted Funds From Operations (AFFO) per unit on a leverage-neutral basis.
The combined purchase price of the two properties is approximately C$25.9 million ($16 million for the Cyrille-Duquet Street Property and $9.9 million for the Doral Drive Property).
The REIT financed the respective purchase prices of the Cyrille-Duquet Street Building and the Doral Promenade Building using its revolving credit facilities.
CEO Commentary
“We continue to increase the electric vehicle component within our portfolio. We now own five properties tenanted by Tesla Canada in urban markets across Canada,” said Milton Lamb, CEO of Automotive Properties REIT.
Wall Street’s Take
Last month, Raymond James analyst Brad Sturges kept a Buy rating on APR.UN and C$15.5 price target. This implies 9.2% upside potential.
The rest of the Street is bullish on BNS with a Strong Buy consensus rating based on three Buys. The average Automotive Properties price target of C$16 implies 12.7% upside potential to current levels.
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