TORONTO, Sept. 12, 2024 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that, since its last transaction press release on August 1, 2024, it has closed on, or has entered into an agreement to close on, four non-core dispositions for combined gross proceeds of $210.1 million. All amounts disclosed herein exclude transaction costs and other customary adjustments.
In August, CAPREIT completed the sale of one 214-suite property in Québec City, Québec, for $35.6 million in gross consideration, with proceeds used in part to repay the outstanding $11.5 million mortgage.
CAPREIT further announced that in September, it has closed on two additional dispositions:
- one unencumbered 42-suite property in Cornwall, Price Edward Island, for $8.0 million; and
- another 370 suites in Toronto, Ontario, for $133.0 million in gross proceeds, with the buyer having assumed the $80.2 million in mortgage principal outstanding. The net purchase price was satisfied in part through an interest-only vendor take-back loan of $21.0 million, bearing interest at a rate of 3.0% per annum for a three-year term.
CAPREIT has also entered into an agreement to sell an off-strategy property, with closing anticipated in the third quarter of 2024. The property contains 110 suites located in Newmarket, Ontario, and is expected to be sold for a gross price of $33.5 million, with part of the proceeds to be used for repayment of the $22.8 million mortgage.
Net proceeds from the dispositions are primarily being used to pay down amounts drawn on CAPREIT’s revolving credit facility to temporarily fund purchases of strategically aligned, newly built rental properties in Canada acquired in past quarters.
A Media Snippet accompanying this announcement is available by clicking on this link.
“We’re proud of the steady progress being made on our strategy, with consistent and disciplined execution on our stated objectives,” commented Mark Kenney, President and Chief Executive Officer. “These transactions bring our total disposition volume this year to $385 million worth of non-core properties in Canada, and combined with the upcoming sale of our MHC portfolio, that puts us at over $1.1 billion in off-strategy Canadian divestments in 2024. We’re determined to continue delivering on the goals we’ve prescribed for CAPREIT, and we’re looking forward to seeing the quality of our portfolio perpetually improve along the way.”
“We’re again completing these non-core dispositions at prices that are at or above their previously reported IFRS fair values, generating meaningful capital for us to reallocate into highest value, strategically aligned alternatives,” added Julian Schonfeldt, Chief Investment Officer. “To that end, we’re redeploying part of the net proceeds to repay recently elevated amounts outstanding on the revolving credit facility, which incurs higher interest, but allows us to act on market opportunities to acquire on-strategy properties. Moving ahead, we remain committed to executing on our proven capital recycling program and enhancing long-term value for our Unitholders.”
ABOUT CAPREIT
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at June 30, 2024, CAPREIT owns approximately 64,200 residential apartment suites, townhomes and manufactured home community sites well-located across Canada and the Netherlands, with approximately $16.6 billion of investment properties in Canada and Europe. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosure which can be found under our profile at www.sedarplus.ca.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect CAPREIT’s current expectations and projections about future results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “consider”, “should”, “plans”, “predict”, “estimate”, “forward”, “potential”, “could”, “likely”, “approximately”, “scheduled”, “forecast”, “variation” or “continue”, or similar expressions suggesting future outcomes or events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Any number of factors could cause actual results to differ materially from these forward-looking statements. Although CAPREIT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward looking statements in this press release are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR+ at www.sedarplus.ca.
Except as specifically required by applicable Canadian securities law, CAPREIT does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements should not be relied upon as representing CAPREIT’s views as of any date subsequent to the date of this press release.
For more information, please contact:
CAPREIT | CAPREIT |
Dr. Gina Parvaneh Cody | Mr. Mark Kenney |
Chair of the Board | President & Chief Executive Officer |
(437) 219-1765 | (416) 861-9404 |
CAPREIT | CAPREIT |
Mr. Stephen Co | Mr. Julian Schonfeldt |
Chief Financial Officer | Chief Investment Officer |
(416) 306-3009 | (647) 535-2544 |