CNSREIT-AR-2024 Final - Flipbook - Page 47
In addition, third parties may sue the owner or manager of a property for damages based on personal injury, natural
resources, or property damage and for other costs, including investigation and clean-up costs, resulting from the
environmental contamination. The presence of contamination on one of our properties, or the failure to properly remediate
a contaminated property, could give rise to a lien in favor of the government for costs it may incur to address the
contamination, or otherwise adversely affect our ability to sell or lease the property or borrow using the property as
collateral. In addition, if contamination is discovered on our properties, environmental laws may impose restrictions on the
manner in which the property may be used or businesses may be operated, and these restrictions may require substantial
expenditures or prevent us from entering into leases with prospective tenants. There can be no assurance that future laws,
ordinances or regulations will not impose any material environmental liability, or that the environmental condition of our
properties will not be affected by the operations of the tenants, by the existing condition of the land, or by operations in the
vicinity of the properties. There can be no assurance that these laws, or changes in these laws, will not have a material
adverse effect on our business, results of operations or financial condition. We could also suffer losses if reserves or
insurance proceeds prove inadequate to cover any such matters.
The cost to perform any remediation, and the cost to defend against any related claims, could exceed the value of the
relevant investment, and in such cases we could be forced to satisfy the claims from other assets and investments. We may
have an indemnity from a third party purporting to cover these liabilities, but there can be no assurance as to the financial
viability of any indemnifying party at the time a claim arises. In addition, some environmental laws create a lien on a
contaminated asset in favor of governments or government agencies for costs they may incur in connection with the
contamination.
Our costs associated with complying with the Americans with Disabilities Act of 1990 (the
