CAPREIT Announces $216MM in Strategic Transactions - Seite 2

“We’re very pleased with the progress we’ve made on the execution of our strategy in the first quarter of 2024, including our initiatives surrounding the resolution of the Canadian housing supply and affordability crises,” commented Mark Kenney, President and CEO. “These transactions exemplify all facets of that strategy in action. We are proud to have sold two properties to a non-profit organization that will be able to preserve the long-term affordability of those suites, which are situated in one of Canada’s least affordable markets. We are very happy to have been able to work with the BC RPF on these important transactions. Simultaneously, we are supporting the supply of new housing for Canadians by investing in purpose-built rental apartments, such as the buildings we’ve just acquired in an attractive and growing region in southwestern Ontario. In turn, this is encouraging incremental residential development in key metropolitan areas throughout Canada.”

“Preservation of our existing housing stock is one of the most effective strategies to address the affordability crisis in British Columbia and across Canada,” shared Katie Maslechko, CEO of the Rental Protection Fund. “It is a transformative model that is already delivering results and protecting renters, and this transaction between CAPREIT and New Vista Society is an excellent example with the potential to be replicated across Canada. With the support of the Rental Protection Fund, this acquisition will ensure these homes remain affordable in perpetuity, while growing the capacity of the Community Housing sector, and freeing up capital that can be redeployed into new supply.”

“We were able to purchase these well-located concrete new build properties for only $385 per leasable square foot, representing a steep discount to replacement cost, with favourable in-place debt financing. The mid-4% cap rate for these luxury towers exceeds the weighted average cap rate on our first quarter dispositions, which were sold at a premium to their previously reported IFRS fair values,” continued Julian Schonfeldt, Chief Investment Officer. “Additionally, in Q1, we’ve so far sold $58 million of equity in Irish Residential Properties REIT plc, reducing CAPREIT’s ownership from 18.7% to 11.3%. We’ve used the proceeds to accretively repurchase $27 million of CAPREIT units, at a discount to NAV, with the remainder of the proceeds used to repay debt. We’re excited about the ground we’ve covered on our strategic priorities to start 2024, and going forward, we remain focused on newly constructed Canadian rental apartments and the ongoing creation of value for our Unitholders.”