AIP Realty Trust Announces Second Quarter 2025 Results
VANCOUVER, British Columbia, Aug. 28, 2025 (GLOBE NEWSWIRE) -- AIP Realty Trust (the "Trust" or "AIP Realty") (TSXV:AIP) today announced its financial results for the three and six months ended June 30, 2025. All dollar amounts are stated in U.S. dollars.
Q2 2025 Highlights
Investment property revenue for the three ended June 30, 2025 was $150,403, compared to $152,591 in the same period in 2024, a decrease of $2,188, or 1%. The decline in investment property revenue was mainly due to a decline in parking revenue from a 2024 lease expiration that included a large parking agreement component and normal turnover that resulted in the vacancy of one unit starting in mid April 2025, partially offset by increased other revenue generated by tenant move-out charges.
Investment property operating expense for the three months ended June 30, 2025 decreased to $46,316, compared to $53,583 in the same period in 2024, a decrease of $7,267, or 14%. The decrease in investment property operating expense was primarily driven by less maintenance and repair expense in the second quarter of 2025, as these expenditures are variable by nature.
Overall investment property net rental income for the three months ended June 30, 2025 was $104,087, compared to $99,008 in the same period in 2024, an increase of $5,079, or 5%.
Trust expenses for the three months ended June 30, 2025 were $1,341,315, compared to $1,527,726 in the same period in 2024, a decrease of $186,411, or 12%. The decrease was primarily due to a second quarter 2024 one-time, non-cash property exclusivity fee related to the issuance of Trust units to satisfy an outstanding debt. This was partially offset in the second quarter of 2025 by increased interest and finance expense, driven by the amortization of the Series A-1 preferred share liability debt discount and issuance costs, and increased professional fees related to the AllTrades Transaction.
On June 9, 2025, the Trust announced a non-brokered private placement (the "Financing") in which the Trust intends to issue up to 14,000,000 Preferred Units, Series B Convertible (each, a "Preferred Unit"), at a price of US$0.50 per Preferred Unit for aggregate gross proceeds of up to US$7,000,000. This will be the fifth tranche of the Financing. Completion of the Financing remains subject to approval from the TSX Venture Exchange (the "TSXV"). The Trust may pay finder's fees on a portion of the Financing, subject to compliance with the policies of the TSXV and applicable securities legislation. Between April 2024 and February 2025, the Trust completed four tranches of the Financing and issued 8,890,000 Preferred Units for aggregate gross proceeds of $4,445,000.
On June 11, 2025, the Trust announce that it has entered into an engagement letter with Desjardins Capital Markets (the "Agent") setting forth the commercial terms under which the Agent has agreed to act as the sole lead agent and bookrunner in respect of a best efforts fully marketed offering of approximately US$100,000,000 or such other amount agreed by the Agent and the Trust of securities of the Trust ("Offered Securities") at a price per Offered Security to be determined. The terms and ultimate structure of the offering remain under consideration and subject to negotiation with the Agent. The net proceeds of the offering will be used in support of the Trust's proposed business combination (the "AllTrades Transaction") with 2024 ATIP, Inc., as previously disclosed by the Trust in a news release dated November 14, 2024, for the purchase of six completed AllTrades Serviced Industrial Business Suites facilities, as well as for other general working capital purposes.
Selected Financial Information
Three Months Ended
Six Months Ended
June 30, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Investment property revenue
$
150,403
$
152,591
