Allied Properties REIT Announces Offering of an Additional $75 Million of 3.748% Series a Senior Unsecured Debentures

TORONTO, ONTARIO–(Marketwired – Aug. 13, 2015) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Allied Properties REIT (TSX:AP.UN) (“Allied“) announced today that it has agreed to issue $75 million aggregate principal amount of series A senior unsecured debentures (the “Debentures“), which is a re-opening of this series of debentures, the original issuance of which was completed on May 13, 2015. The Debentures will bear interest at a rate of 3.748% per annum and will mature on May 13, 2020. The Debentures will be issued at a price of $100.974 per $100 principal amount plus accrued and unpaid interest for the period from and including May 13, 2015 to but excluding the date of closing of the offering, with an effective yield of 3.522% if held to maturity. The Debentures are being offered on an agency basis by a syndicate of agents co-led by BMO Capital Markets, Scotia Capital Inc. and TD Securities Inc. The offering is expected to close on or about August 18, 2015. DBRS Limited has provided Allied with a provisional credit rating of “BBB” (low) with a “Stable” trend relating to the Debentures.

Allied intends to use the net proceeds from this offering: (a) to repay amounts drawn on Allied’s unsecured credit facility used for general capital funding related to Allied’s capital improvements, acquisitions and intensification projects; and (b) the balance for general working capital purposes.

The offering is being made pursuant to Allied’s base shelf prospectus dated November 28, 2014. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of Allied discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under “Risk Factors” in Allied’s Annual Information Form, which is available at www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on Allied’s behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.

Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada’s major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.