CAPREIT Provides Strategic Update with $210 Million in Non-Core Dispositions

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.”