CAPREIT Announces Disposition of Non-Core Assets in Ottawa
26 January 2023 - 9:00AM
Canadian Apartment Properties Real Estate Investment Trust
(“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the
disposition of its 50% non-managing interest in three jointly owned
properties located in Ottawa, Ontario.
The off-strategy, value-add assets were built
between 1969 and 1981 and require ongoing capital expenditure to
support their current growth profiles. CAPREIT’s 50% share in the
aggregate 1,150 residential suites was sold for consideration of
$136.25 million (excluding disposition costs). CAPREIT also
transferred the mortgages associated with the properties, with its
portion having a combined outstanding principal balance of $38.7
million. Net cash proceeds are intended for redeployment into
accretive new-build opportunities in attractive markets and
CAPREIT’s value-enhancing NCIB program.
A Media Snippet accompanying this announcement
is available by clicking on the image or link below:
“CAPREIT’s disposition of its non-managing share
in these three mature properties provides the means to act on more
accretive, strategically-aligned opportunities that will maximize
value for our Unitholders,” commented Mark Kenney, President and
CEO. “We are selling at a strong capitalization rate in the mid 3%
range, while also progressing on our asset and market repositioning
objectives.”
“We continue to make active strides on CAPREIT’s
capital refresh and asset management initiatives, comprised of
selling non-strategic properties at or above IFRS fair values, and
redirecting proceeds toward the acquisition of our Trust Units at
significant discounts to IFRS fair value,” added Julian Schonfeldt,
Chief Investment Officer. “In 2022, we invested $245 million in our
NCIB program at an attractive weighted average purchase price of
$45 per Trust Unit, crystallizing the meaningful disconnect between
our disposition values and our Trust Unit prices, that we will
continue to arbitrage for as long as it remains accretive to net
asset value.”
ABOUT CAPREITCAPREIT is
Canada’s largest publicly-traded provider of quality rental
housing. CAPREIT currently owns or has interests in approximately
65,000 residential apartment suites, townhomes and manufactured
housing community sites well-located across Canada and the
Netherlands, with approximately $17 billion of assets under
management globally. 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.sedar.com.
CAUTIONARY
STATEMENTS REGARDING FORWARD-LOOKING STATEMENTSAll
statements in this press release that do not relate to historical
facts constitute forward-looking statements. These statements
represent CAPREIT’s intentions, plans, expectations and beliefs and
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.sedar.com.
For more information, please contact: |
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|
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CAPREIT |
CAPREIT |
CAPREIT |
Mr. Mark Kenney |
Mr. Stephen Co |
Mr. Julian Schonfeldt |
President & Chief Executive Officer |
Chief Financial Officer |
Chief Investment Officer |
(416) 861-9404 |
(416) 306-3009 |
(647) 535-2544 |
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