Business
DIRTT Confirms Early Termination of Lease Agreement for Former Rock Hill Facility
CALGARY, Alberta, Jan. 05, 2026 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (“D...
About this update from Dirtt Environmental Solutions Ltd
[{"type":"text","content":"DIRTT Confirms Early Termination of Lease Agreement for Former Rock Hill Facility\nCALGARY, Alberta, Jan. 05, 2026 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (“DIRTT”, the “Company”, “we”, “our”, “us” or “ours”) (TSX: DRT; OTCQX: DRTTF), a leader in industrialized construction, announced today that it has entered into an agreement for an early termination of the lease at its former Rock Hill, South Carolina manufacturing facility, effective December 30, 2025. In September 2025, PDM US, LLC (“PDM”) entered into a purchase and sale agreement with the landlord, SP Rock Hill Legacy East #1, LLC, for the facility. In connection with that transaction, DIRTT entered into a Lease Termination and Release Agreement with PDM, contingent upon the closing of the purchase and sale agreement. With this agreement finalized, DIRTT has been relieved of all future rent obligations in exchange for a reduced early termination fee of $1.0 million. DIRTT originally executed a 15-year build-to-suit lease for the Rock Hill facility in 2019. As part of broader operational initiatives, the Company permanently closed the facility in September 2023, shifting capacity to its Calgary manufacturing facilities. As of November 30, 2025, DIRTT’s remaining rent obligations under the lease were estimated at approximately $10.5 million on an undiscounted basis. “This action represents an important step in rationalizing DIRTT’s real estate footprint and is expected to deliver recurring annual cost savings of $1.6 million beginning in January 2026,” said Benjamin Urban, CEO of DIRTT. “As part of our volume- and margin-focused transformation, we remain committed to revisiting and optimizing all aspects of our business.” As of September 30, 2025, the right-of-use asset related to this lease was $5.9 million and the lease liability was $7.7 million. The Company expects to recognize a one-time, non-cash impairment expense related to leasehold improvements of approximately $2.3 million. While this charge is expected to negatively impact reported results in the current period, the lease termination is expected to reduce ongoing operating expenses and be accretive to earnings in future periods. DIRTT operates a multi-facility...