CAR.UN Canadian Apartment Properties Real Estate Investment Trust

Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has closed on the acquisition of three recently constructed rental apartment properties in Canada, and has entered into a firm agreement to acquire a fourth strategically aligned property, for combined gross consideration of $192.0 million. CAPREIT also announced that it has deployed approximately $120.7 million into its Normal Course Issuer Bid (“NCIB”) program. All amounts disclosed herein exclude transaction costs and other customary adjustments.

In November, CAPREIT completed the purchase of two properties containing a total of 253 residential suites, and it entered into a firm agreement to acquire another 102-suite building, with closing expected in the first quarter of 2025. The three premium, concrete, purpose-built rental properties were constructed between 2016-2020, all within 15 minutes walking distance of each other in the heart of Ville-Marie, a central neighbourhood in Montréal, Québec. The buildings are strategically positioned between René Lévesque Boulevard and Saint Catherine Street, two major thoroughfares in Montréal that allow for easy access to various bus routes and Highway 136, facilitating excellent connectivity across the city and efficient transportation amongst CAPREIT’s other properties in the region. The 355-suite portfolio is being acquired for an aggregate $144.0 million, which represents a purchase price of $543 per leasable residential square foot. CAPREIT closed on the acquisition of the first two buildings for an aggregate $104.3 million, funded in part through the assumption of $63.6 million in total mortgage debt, which carries interest at a blended stated rate of 2.2% per annum for a weighted average term to maturity of just over two years. The third property is expected to be acquired for $39.7 million, and CAPREIT plans to assume the outstanding mortgage debt of approximately $22.9 million as of today, carrying interest at a stated rate of 2.8% per annum for a current weighted average term to maturity of approximately two and a half years.

A Media Snippet accompanying this announcement is available by clicking on this link.

CAPREIT further announced that in November, it closed on the acquisition of one 61-suite building recently constructed in 2021 in the vibrant Little Italy neighbourhood in Toronto, Ontario. The 8-storey, concrete rental apartment property is located steps from multiple streetcar lines and less than 2 kilometres from the future Ontario line, providing residents with several subway access points and easy travel throughout the city, including an approximate 15-minute commute to the University of Toronto and 25 minutes to the financial district. The modern and conveniently situated property was purchased for $48.0 million, which represents $935 per leasable residential square foot. CAPREIT assumed $29.7 million in mortgage debt, which carries interest at a stated rate of 4.3% per annum for a remaining term to maturity of approximately eight and a half years.

“We’re pleased to be adding these four on-strategy, purpose-built rental apartment properties to our portfolio, recently constructed in two of our strongest performing Canadian markets,” commented Mark Kenney, President and Chief Executive Officer. “Including all closed transactions, our acquisition volume comes to approximately $670 million completed in 2024, the largest number of new builds we’ve purchased in a single year to date. Combined with our closed and upcoming divestments from non-core properties and other ancillary interests, as previously announced, total annual transaction activity will have reached approximately $3 billion by year end. All this to say, we’ve been extremely focused on the execution of our strategy, we’re proud of the progress being made and we’re looking forward to concluding this transformational year as a newer and better company.”

“We’re purchasing these high-quality, core-located concrete buildings, constructed by reputable, build-to-hold developers, at strong pricing per square foot that is meaningfully below replacement cost,” added Julian Schonfeldt, Chief Investment Officer. “In addition, we’ve been capitalizing on recent stock price performance and in November, pursuant to CAPREIT’s NCIB, we’ve repurchased $121 million worth of Units at a weighted average price of $45 per Unit. This represents an average discount to NAV of approximately 20%, based on CAPREIT’s reported NAV per Unit of $56 as of September 30, 2024. We’ll continue to actively source and take advantage of all opportunities available for CAPREIT to enhance earnings for its Unitholders, and we’re excited to maintain momentum on this mission as we head toward the new year.”

ABOUT CAPREITCAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at September 30, 2024, CAPREIT owns approximately 63,400 residential apartment suites, townhomes and manufactured home community sites, including approximately 15,400 suites and sites classified as assets held for sale, that are well-located across Canada and the Netherlands, with a total fair value of approximately $16.9 billion, including approximately $1.9 billion of assets held for sale. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosure which can be found under our profile at www.sedarplus.ca.                 CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTSCertain statements contained in this press release constitute forward-looking statements within the meaning of applicable Canadian securities laws which reflect CAPREIT’s current expectations and projections about future results. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “consider”, “should”, “plans”, “predict”, “estimate”, “forward”, “potential”, “could”, “likely”, “approximately”, “scheduled”, “forecast”, “variation” or “continue”, or similar expressions suggesting future outcomes or events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Any number of factors could cause actual results to differ materially from these forward-looking statements. Although CAPREIT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including with regards to the expected completion and timing of the pending transactions. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward looking statements in this press release are subject to certain risks and uncertainties, many of which are beyond CAPREIT’s control, which could result in actual results differing materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described under the heading “Risks and Uncertainties” in CAPREIT’s 2023 Annual Report and under the heading “Risk Factors” in CAPREIT’s Annual Information Form for the year ended December 31, 2023, each of which is available under CAPREIT’s profile on SEDAR+ at www.sedarplus.ca. 

Except as specifically required by applicable Canadian securities law, CAPREIT does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements should not be relied upon as representing CAPREIT’s views as of any date subsequent to the date of this press release.

For more information, please contact:

CAPREIT		CAPREIT
Dr. Gina Parvaneh Cody		Mr. Mark Kenney
Chair of the Board of Trustees		President & Chief Executive Officer
(437) 219-1765		(416) 861-9404
CAPREIT		CAPREIT
Mr. Stephen Co		Mr. Julian Schonfeldt
Chief Financial Officer		Chief Investment Officer
(416) 306-3009		(647) 535-2544