NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW. CALGARY, Alberta, May 14, 2024 (GLOBE NEWSWIRE) -- Alaris Equity Partners Income Trust (the "Trust") (TSX:AD) is pleased to announce that its subsidiary, Alaris Equity Partners USA Inc. (collectively, with the Trust and its other subsidiaries, "Alaris") has made an investment into Cresa LLC ("Cresa") (the "Cresa Investment"). The Trust is also pleased to announce a total of US$27.5 million of funding to The Shipyard, LLC ("The Shipyard" or "TSY"). Cresa Investment Cresa is in an active growth phase and sought an equity partner to help it achieve its goals. Alaris was selected as an ideal equity partner given its focus on collaboration and ability to support a growth plan. Alaris and Cresa have a shared vision and values, and the investment is a strong endorsement of Cresa's occupier focus model on the commercial real estate industry. "Alaris is excited to be partnering with Cresa. Cresa has an excellent reputation in the industry and a strong growth profile which makes it a perfect fit for Alaris. We look forward to growing with Cresa over the course of our partnership", said Steve King, Chief Executive Officer, Alaris. "Alaris has a distinguished track record of partnerships and we are delighted to welcome them as a minority investor in Cresa. Their partnership is a testament to the strength of our business model. This investment will accelerate Cresa's robust growth plans", said Tod Lickerman, Chief Executive Officer, Cresa. In exchange for an initial US$20.0 million investment, Alaris will receive preferred equity with an initial annual distribution of US$2.8 million resetting annually, up to a maximum of +/- 7%, based on changes in Cresa's revenue. Cresa may pay-in-kind up to a specified percentage of the total annual pre-tax yield ("PIK Distribution"), which Cresa must fully pay on the earlier of the 5th anniversary of the initial investment or redemption of Alaris' preferred equity. Alaris' management believes that Cresa will have an earnings coverage ration above 2.0x based on: (a) Cresa's pro forma financial results for the most recent trailing twelve-month period, (b) certain other changes to Cresa's capital structure, and (c) the preferred equity distributions payable to Alaris. To further accelerate Cresa's growth plans, the Cresa Investment includes a commitment to fund two follow-on investments of US$10.0 million and US$15.0 million, for which Alaris will receive additional preferred equity. Each tranche of the Cresa Investment will have the same metrics as the initial tranche. The Cresa Investment will be used to fund Cresa's growth initiatives, including mergers & acquisitions. About Cresa: Cresa is a leading global commercial real estate advisory firm dedicated to exclusively representing tenants, with 50 offices across North America. With a unique approach that integrates full-spectrum real estate solutions, Cresa advocates for tenants without conflicts of interest, ensuring tenant business environments align with corporate strategies. Cresa emphasizes strategic partnership, innovation, and client-centric services to enhance business operations and real estate efficiency. Shipyard Follow-On Investments Alaris has invested an additional US$22.0 million in The Shipyard with proceeds being used to make a strategic acquisition. Alaris is also pleased to announce it has completed its commitment to invest a second tranche of US$5.5 million in The Shipyard. The Shipyard achieved the performance targets agreed to in the original investment (announced by Alaris on August 31, 2023), which resulted in the funding of the TSY Second Tranche. The follow-on investments in The Shipyard collectively increase Alaris' preferred equity investment to US$70.0 million and the annualized distribution from US$6.0 million to US$9.8 million. Alaris also has US$17.0 million of common equity in TSY. Alaris' management believes that The Shipyard will have an earnings coverage ration between 1.2x and 1.5x based on: (a) Alaris' review of TSY's pro forma financial results for the most recent trailing twelve-month period, (b) certain other changes to TSY's capital structure, and (c) the preferred equity ...