InterRent REIT Announces $200 Million Equity Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

OTTAWA, May 26, 2020 (GLOBE NEWSWIRE) -- InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) announced today that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by Scotiabank, BMO Capital Markets and Desjardins Capital Markets, as joint bookrunners, to purchase 13,660,000 trust units (the “Units”) of the REIT on a bought deal basis at a price of $14.65 per Unit (the “Offering Price”) for gross proceeds of approximately $200 million (the “Offering”).

InterRent has also granted the Underwriters an over-allotment option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the Offering, to purchase up to an additional 2,049,000 Units at the Offering Price for additional gross proceeds of approximately $30 million, to cover over-allotments, if any.

Closing of the Offering is anticipated to occur on or about June 4, 2020 and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange. The Units will be offered in all provinces and territories of Canada by way of a prospectus supplement.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The net proceeds from the Offering will be used to repay existing indebtedness and for working capital purposes, creating additional liquidity to fund future potential acquisitions. After giving effect to the Offering, and prior to any future acquisitions, InterRent’s debt to GBV ratio will be approximately 26.8%.

“Our portfolio is resilient and continues to perform extremely well. This equity offering further strengthens our balance sheet and increases liquidity. The current economic conditions as a result of the pandemic are likely to surface attractive acquisition opportunities that may not have otherwise come available, and following closing of the Offering, InterRent will be exceptionally well positioned to capitalize on those opportunities. Our management team has an established track record of creating value from periods of significant volatility and market dislocation, having acquired and operated apartments through the early 90’s and again when we joined InterRent during the global financial crisis. Through that difficult period and in the ensuing years, we grew the REIT, improved the portfolio and created significant value for unitholders.” said Mike McGahan, CEO.