Market Overview

Canadian Apartment Properties Real Estate Investment Trust Announces Public Unit Financing of $150MM



TORONTO, Feb. 22, 2018 (GLOBE NEWSWIRE) -- (TSX:CAR) – Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") of Toronto, Ontario announced today that it has agreed to sell, subject to regulatory approval, 4,270,000 units at a price of $35.15 per unit for aggregate gross proceeds of $150,090,500 (the "Offering") to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. CAPREIT has granted the underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part up to 30 days after closing of the Offering, to purchase up to an additional 640,500 units to cover over-allotments, if any.

CAPREIT will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, a preliminary short form prospectus relating to the issuance of the units. Closing of the Offering is expected to take place on or about March 15, 2018.

CAPREIT intends to use the net proceeds of the Offering: 

  1. first to partially repay the approximately $450 million drawn as of December 31, 2017 on CAPREIT's acquisition and operating facility in the amount of approximately $143 million, which was utilized by CAPREIT to, among other uses, partially fund previous acquisitions; and
  2. the remainder, if any, for future acquisitions, capital expenditures and for general trust purposes.

Upon closing of the Offering, and excluding the effect of the Over-Allotment Option, the partial repayment of approximately $143 million of the currently drawn acquisition and operating facility with the net proceeds of the Offering will reduce CAPREIT's total debt to gross book value ratio to 42.0% from 43.6%, as at December 31, 2017. CAPREIT's acquisition capacity is expected to be approximately $660 million, based on the remaining liquidity available under the acquisition and operating facility, and assuming 65% loan-to-value mortgage financing.

David Ehrlich, President & Chief Executive Officer of CAPREIT, added, "CAPREIT is very excited about the acquisition and development opportunities that we are seeing in the market. This equity offering will allow CAPREIT to lower its leverage, to create greater capacity to continue capitalizing on future growth opportunities. We are very pleased with the continued growth of CAPREIT's portfolio through selective high-quality acquisitions in desired markets. Since our last equity offering in July 2016, we've grown our portfolio through the acquisition of 2,653 suites and sites, at an aggregate acquisition cost of approximately $606 million."

CAPREIT intends to make monthly cash distributions to unitholders of record on each record date, on or about the 15th day of the month following the record date. CAPREIT's current monthly cash distribution is $0.10667 per unit ($1.28 annually). The first cash distribution to which purchasers of the units under this Offering will be entitled to participate will be for the month of March, with a record date of March 30, 2018 and a payment date of April 16, 2018.

CAPREIT is scheduled to release its fourth quarter 2017 results after the market on February 27, 2018 to be followed by a conference call on February 28, 2018 at 10:00am. The preliminary short form prospectus relating to the issuance of units pursuant to this Offering will incorporate CAPREIT's Q4 2017 results by reference. CAPREIT anticipates that its Q4 2017 results will be in line with its expectations and current market expectations, after adjusting for some one-time expenses relating primarily to severances and consulting fees.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be 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 pursuant to applicable exemption from registration.

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 50,624 residential units, comprised of 44,168 residential suites and 31 manufactured home communities comprising 6,456 land lease sites, located in and near major urban centres across Canada and The Netherlands.  Since its Initial Public Offering in May 1997, CAPREIT has grown monthly cash distributions per Unit by 79%.  For more information about CAPREIT, its business and its investment highlights, please refer to our website at or and our public disclosure, which can be found under our profile at

All 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

Mr. Michael Stein, Chairman, (416) 861-5788 or
Mr. David Ehrlich, President & CEO, (416) 861-9404 or
Mr. Scott Cryer, Chief Financial Officer, (416) 861-5771

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