Canadian Apartment Properties Real Estate Investment Trust Announces Public Unit Financing of $250MM

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, Dec. 11, 2018 /CNW/ - (TSX:CAR.UN) ? Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") of Toronto, Ontario announced today that it has agreed to sell, subject to regulatory approval, 5,500,000 units at a price of $45.50 per unit for aggregate gross proceeds of $250,250,000 (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 825,000 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 January 4, 2019.

CAPREIT intends to use the net proceeds of the Offering: 

Upon closing of the Offering, and excluding the effect of the Over-Allotment Option, the partial repayment of approximately $239 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 39.9% from 42.2%, as at September 30, 2018, adjusted to include the approximately $347 million of Netherlands acquisitions CAPREIT closed in December. CAPREIT's acquisition capacity is expected to be approximately $880 million, based on the remaining liquidity available under the acquisition and operating facility, and assuming 65% loan-to-value mortgage financing.

Mark Kenney, President & Chief Operating Officer of CAPREIT, added, "CAPREIT has a strong pipeline of potential Canadian acquisitions, some of which are in the advanced stages of negotiation.  This equity offering will provide CAPREIT with additional financing capacity to capitalize on these exciting opportunities, while lowering CAPREIT's already conservative leverage metrics. Since our last equity offering in February 2018, we've grown our portfolio through the acquisition of 1,755 suites and sites, at an aggregate acquisition cost of approximately $482 million, and we look forward to continuing to grow the portfolio."

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 $0.11083 per unit ($1.33 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 January, with a record date of January 31, 2019 and a payment date of February 15, 2019.

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.

ABOUT CAPREIT
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 51,743 residential units, comprised of 45,151 residential suites and 32 manufactured home communities comprising 6,592 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 86%.  For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net and our public disclosure, which can be found under our profile at www.sedar.com.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
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 www.sedar.com.

SOURCE Canadian Apartment Properties Real Estate Investment Trust (CAPREIT)