CAR.UN:CC - CAPREIT Announces Disposition of Non-Core Assets in Ottawa

TORONTO, Jan. 25, 2023 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the disposition of its 50% non-managing interest in three jointly owned properties located in Ottawa, Ontario.

The off-strategy, value-add assets were built between 1969 and 1981 and require ongoing capital expenditure to support their current growth profiles. CAPREIT’s 50% share in the aggregate 1,150 residential suites was sold for consideration of $136.25 million (excluding disposition costs). CAPREIT also transferred the mortgages associated with the properties, with its portion having a combined outstanding principal balance of $38.7 million. Net cash proceeds are intended for redeployment into accretive new-build opportunities in attractive markets and CAPREIT’s value-enhancing NCIB program.

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“CAPREIT’s disposition of its non-managing share in these three mature properties provides the means to act on more accretive, strategically-aligned opportunities that will maximize value for our Unitholders,” commented Mark Kenney, President and CEO. “We are selling at a strong capitalization rate in the mid 3% range, while also progressing on our asset and market repositioning objectives.”

“We continue to make active strides on CAPREIT’s capital refresh and asset management initiatives, comprised of selling non-strategic properties at or above IFRS fair values, and redirecting proceeds toward the acquisition of our Trust Units at significant discounts to IFRS fair value,” added Julian Schonfeldt, Chief Investment Officer. “In 2022, we invested $245 million in our NCIB program at an attractive weighted average purchase price of $45 per Trust Unit, crystallizing the meaningful disconnect between our disposition values and our Trust Unit prices, that we will continue to arbitrage for as long as it remains accretive to net asset value.”

ABOUT CAPREIT
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 65,000 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada and the Netherlands, with approximately $17 billion of assets under management globally. 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.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.