REIT News for Week Ending January 26, 2018

A summary of events in the world of Canadian REITs and REOCs 

(Real Estate Investment Trusts and Real Estate Operating Companies)

Distribution / Dividend Announcements

• Nexus REIT

Public Offerings, Debenture Redemptions

• H&R REIT ($250M)
• Morguard North American Residential REIT ($70M)
• CT REIT ($200M)
• First Capital Realty ($55,093M)
• Morguard NAR REIT (inc to $75M)

Acquisitions / Dispositions 

• BTB REIT

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Distribution / Dividend Announcements

• Nexus REIT (TSXV.NXR.UN): Two  monthly distributions of $0.01333 per unit (current yield of 8%, share price $2.00) have been declared and are to be paid on February 15, 2018 and March 15, 2018.

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Public Offerings / Redemptions

January 23, 2018

H&R REIT Announces $250 Million Public Offering of Trust Units 

H&R REIT (TSX:HR.UN) announces it completed its previously announced offering of $250 million principal amount of 3.416% Series O senior unsecured debentures due January 23, 2023.

The net proceeds from the offering will be used to repay outstanding indebtedness and for general trust purposes.

January 24, 2018

Morguard North American Residential REIT Announces $70M Offering of Convertible Debentures

Morguard North American Residential REIT (MRG.UN) announced that it has entered into an agreement with a syndicate of underwriters on a bought deal basis, $70M of 4.5% convertible unsecured subordinated debentures due March 31, 2023.

As part of the transaction, Morguard Corporation has agreed to purchase $5M of the debentures being offered.

The REIT intends to use the proceeds to fund the redemption of all the REIT's 4.65% convertible unsecured subordinated debentures which mature on March 30, 2018 and which have a par call date of April 1, 2017.  The 4.65% debentures will be redeemed on February 26, 2018.

CT REIT Announces $200M Offering of Unsecured Debentures

CT REIT (CRT.UN) announced that it has agreed to issue $200 million of Series F unsecured debentures with a 9.8 year term and a coupon of 3.865% per annum.  It is expected the debentures will be rated BBB+ by S & P Global Ratings.

The debentures will be direct senior unsecured obligations of CT REIT.  The proceeds will be used to pay down certain amounts outstanding under its credit facilities and to retain the balance for general business purposes.

January 25, 2018

First Capital Realty Announces Redemption

First Capital Realty (TSX:FCR) announced that it has provided holders of its 4.45% convertible unsecured subordinated debentures due February 28, 2020 a notice of redemption pursuant to which FCR will redeem the entire outstanding principal amount of the debentures on February 28, 2018 in the amount of $55,093,000.  

Morguard North American Residential REIT

Morguard North American Residential REIT (MRG.UN) announced that it has amended the terms of its previously announced public offering to a principal amount of $75,000,000.

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Acquisitions / Dispositions

January 26, 2018

BTB REIT:

BTB REIT (TSX:BTB.UN) announces the sale of a property located at 1863-1865 TransCanada Highway, Dorval, PQ for total proceeds of $5.65 million.  The net proceeds will be allocated to partially repay it outstanding lines of credit.

REIT News for Week Ending January 19, 2018

A summary of events in the world of Canadian REITs and REOCs 

(Real Estate Investment Trusts and Real Estate Operating Companies)

Scheduling Q4 and 2017 Results

• Summit Industrial
• Plaza Retail
• Morguard North American Residential REIT
• Morguard REIT
• Crombie

Distribution / Dividend Announcements

• BTB, NorthWest Healthcare Properties, Chartwell Retirement Residences, CT REIT (Canadian Tire), Morguard North American Residential, Morguard, Automotive Properties, Cominar, Artis, Artis Series G, Invesque, True North, Starlight U.S. Multi-family (No. 1), Starlight U.S. Multi-family (No. 5), Summit Industrial, Granite, Choice Properties, Plaza Retail, Pure Multi-family, Crombie, REIT INDEXPLUS, Middlefield Can-Global REIT Income Fund, Global Real Estate Dividend Growers Corp., Pathfinder Income Fund

Public Offerings, Debenture Redemptions

• None to report

Acquisitions / Sales

• Inovalis 
• Granite
• True North Commercial

Normal Course Issuer Bids

• None to report

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Year End Results

The following have scheduled the release of their Q4 and 2017 results:

• Summit Industrial (SMU.UN) will issue results Tuesday, Februrary 20, 2018.  A conference call will be held Wednesday February 21, 2018.  Website: Summit Industrial
• Plaza Retail REIT (PLZ.UN) will release its financial results on Monday, February 26, 2018 with a conference call to follow.  http://plaza.ca/news-releases/
• Morguard North American Residential REIT (MRG.UN) expects to announce financial results on Tuesday, February, 13, 2018.  A conference call will be held on Thursday, February 15, 2018.  https://www.morguard.com/news-knowledge/news
• Morguard REIT (MRT.UN) expects to announce financial results on Wednesday, February, 14, 2018.  A conference call will be held on Thursday, February 15, 2018.  
  https://www.morguard.com/news-knowledge/news
• Crombie REIT (CRR.UN) will release financial results on Wednesday, February 21, 2018 followed by a conference call on Thursday, February 22, 2018.
  https://www.snl.com/IRW/News/4143678

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Acquisitions / Dispositions

January 17, 2018

Inovalis REIT:  

Inovalis REIT (INO.UN) announced that it has completed the purchase of a DGNB Gold certified office property in Neu-lsenburg, Germany, as part of a 50-50 joint venture agreement with a global institutional investor at a value of approximately $57.6 M CAD$.

The REIT anticipates securing a new fixed rate loan for the property in the range of 1.70% to 1.75%.  This transaction represents a going-in cap rate of approximately 5.8%, and is expected to be immediately accretive to both FFO and AFFO

January 17 2018

Granite REIT:  

Granite (HLP.U) announced it has achieved an important strategic milestone, by entering into agreements for the sale of ten properties for a total sales price of approximately $400M.  The transactions are expected to close in the next several weeks.

Michael Forsayeth, Granite’s CEO, commented that “The sale of these properties is another major value creation milestone for Granite. It significantly reduces Granite’s exposure to Magna and the special purpose properties which are key strategic objectives of Granite.

January 18 2018

True North Commercial REIT:  

True North Commercial REIT (TNT.UN) has closed the acquisition of a 78,800 square foot Class "A" office property located at 3115 Harvester Road, Burlington, ON.

The $22.75 million purchase price for the Harvester Property was satisfied by: (i) mortgage financing in the amount of approximately $14.89 million, with an interest rate of approximately 3.36% for a seven-year term; and (ii) cash on hand.

REIT News for Week Ending January 12, 2018

A summary of events in the world of Canadian REITs and REOCs 

(Real Estate Investment Trusts and Real Estate Operating Companies)

General News

• Pure Industrial REIT to be acquired by Blackstone
• Sears Out, Canadian Tire In
• Morguard Corporation Increases Ownership in Morguard REIT

Scheduling Q4 and 2017 Results

• First Capital
• Artis REIT
• H&R REIT
• CT REIT

Dividend Announcements

• H & R REIT
• Brookfield Real Estate Services
• Pure Industrial REIT

Public Offerings, Debenture Redemptions

• ProREIT Announces Public Offering
• Choice Properties REIT to Issue $650M in Unsecured Debentures
• Choice Properties REIT Announces Redemption

Acquisitions

• Starlight U.S. Multi-Family (No. 1) Value-Add Fund 
• Invesque
• Plaza Retail REIT

Normal Course Issuer Bids

• Cominar REIT Increases NCIB
• Holloway Lodging Corporation Announces NCIB for Convertible Debentures

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Pure Industrial REIT to be Acquired by Blackstone

It was announced January 9, 2018 that Pure Industrial (AAR.UN) has entered into an arrangement with an affiliate of Blackstone Property Partners in which Blackstone will acquire all outstanding units of PIREIT for $8.10 per Unit, in an all cash transaction valued at $3.8 billion.  This represents at 21% closing price on January 8, 2018.  

Sears Out, Canadian Tire In

Calgary, AB:  CT REIT (CRT.UN) has announced that Canadian Tire will enter a ten year  lease of the building located at 25 Dufferin Place S.E. that Sears will vacate on or before February 3, 2018.  Now available for lease are a 30,000 sq. ft. building at 5500 Dufferin Blvd. S.E. and a 201,000 sq. ft. building at 11 Dufferin Place S.E., which Canadian Tire will move from to enter the aforementioned lease.

Morguard Corporation Increases Ownership in Morguard REIT

January 10, 2018.  Morguard Corporation (MRC) has announced it has acquired 1,298,796 units of Morguard REIT (MRT.UN) at a weighted average price of $14.13 per unit.  Following the acquisitions, Morguard holds 33,924,708 units, representing 55.90% of the outstanding units of Morguard REIT.

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Year End Results

The following have scheduled the release of their Q4 and 2017 results:

• First Capital (FCR) on Wednesday, Feburary 14, 2018.  A teleconference will follow.
  See website for details: https://www.fcr.ca/ir
  
  
  Although not a REIT, First Capital acquires, develops, redevelops, owns and manages well located urban retail-centered grocery anchored properties.  It pays a quarterly dividend, classified as "eligible" for Canadian investors.  The yield at time of this article is 4.113% and the share price is $20.91.

• Artis REIT (AX.UN) after close of market on Thursday, March 1, 2018.  A conference call will be held Friday, March 2, 2018 at 12:00 PM CT.  Website: Artis Investors Link
• H&R REIT (HR.UN) will release its financial results on Wednesday, February 14, 2018 with a conference call on Thursday, February 15, 2018 at 9:30 AM ET.Website: http://hr-reit.com/Investor-Relations/InvestorEvents.aspx
• CT REIT (CRT.UN) results to be released Monday February 12, 2018 after market close.  Conference call on Tuesday, February 13, 2018 at 9:00 AM ET.
  Website: http://www.ctreit.com/en/media-centre/events-webcasts

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Dividend Announcements

• H&R REIT (HR.UN): The  monthly distribution of $0.115 per unit (current yield of 6.51%, share price $21.21) was declared and is to be paid on January 31, 2018.  
• Brookfield Real Estate Services (BRE) announced a cash dividend of $0.1125 per restricted voting share (current yield of 7.91%, share price $17.06) payable on February 28, 2018 to shareholders of record on January 31, 2018.  This dividend is designated an "eligible dividend" for tax purposes.
• Pure Industrial REIT (AAR.UN) announced a $0.026 per trust unit (current yield 3.86%, share price $8.07).  The distribution is to be paid Feburary 15, 2018 to unitholders of record on January 31, 2018.

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Public Offerings

January 10, 2018

PROREIT Announces $25 Million Public Offering of Trust Units (TSX.V: PRV.UN) announces an agreement to sell to a syndicate (Canaccord Genuity Corp., TD Securities, Inc. and Scotiabank), on a bought deal basis, 10,870,000 trust units at a price of $2.30 per unit for gross proceeds to the REIT of approximately $25 million.  Current share price is $2.29.

Choice Properties to Issue $650M of Series I and Series J Senior Unsecured Debentures (CHP.UN).  

1. $300M Series I Senior Unsecured Debentures will bear 3.01% interest and mature March 21, 2022.
2. $350M Series J Senior Unsecured Debentures will bear 3.546% and will mature January 10, 2025.

The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.

It was subsequently announced that the Debentures were sold on an agency basis by a syndicate of agents co-led by RBC Capital Markets, TD Securities, CIBC Capital Markets and BMO Capital Markets. 

Choice Properties REIT Announces Redemption

The net proceeds of the above mentioned issuance of Debentures will be used by the Trust to repay existing indebtedness, including an intention to redeem in full the $400 million aggregate principal amount of its 3.554% series A senior unsecured debentures due July 5, 2018, and for general business purposes.

On the redemption date, the Debentures will be redeemed in accordance with their terms at a redemption price per $1,000 principal amount of the Debentures equal to $1,007.200 plus accrued and unpaid interest to but excluding the redemption date of $3.700, and will thereafter cease to be outstanding.

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Acquisitions

January 10, 2018

Starlight U.S. Multi-Family (No. 1) Value-Add Fund:  

Starllight (TSX.V: SUVA.A, SUVA.U) acquires a 50% interest in Landmark at Coventry Pointe, an Apartment Complex in Atlanta, Georgia.  The remaining 50% interest in the property will be indirectly acquired by Daniel Drimmer, a Director and the Chief Executive Officer of Starlight U.S. Multi-Family (No. 1) Value-Add GP, Inc., the Fund's general partner.

January 11, 2018

Invesque:  

Invesque Inc. (HLP.U) has acquired a newly constructed, state of the art, post-acute transitional care facility located in Lincoln, Nebraska from Mainstreet Property Group, LLC.

The 72 bed facility was purchased for US$21.6 million, and subject to a long-term triple net lease.  The acquisition is expected to be immediately accretive to the company's Adjusted Funds from Operations.

The Company funded the transaction through a combination of the assumption of debt, the retirement of mezzanine loans on the project, and cash on hand.

Upon closing the transaction, the Company’s portfolio expanded to 41 properties with approximately 5,000 beds/units across 12 U.S. states and one Canadian province.  

Plaza Retail REIT:  

Plaza Retail REIT (PLZ.UN) has acquired a prime retail property in Brockville, Ontario for $14 million.  The property is 1000 Islands Mall, previously anchored by Sears.  The REIT intends to redevelop the property into a multi-unit retail plaza.  

The REIT has satisfied the purchase price through $4.9 million in cash and a new $9.1 million borrowing facility at a cost of prime plus 1.25%. Development/construction expenses will be financed through the expansion of this facility.

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Normal Course Issuer Bids (NCIBs)

NICBs, in addition to dividends/distributions, are a way of returning value to shareholders.
Earnings per share will increase, and it is expected that share prices will increase.

Cominar REIT Increases NCIB

January 10, 2018 - Cominar REIT (CUF.UN) has announced it will amend its normal course issuer bid (NCIB) to increase the maximum number of units it intends to repurchase for cancellation during the twelve month period ending November 14, 2018 from 9,000,000 units to 17,596,591 units representing 10% of the public float of units as of November 7, 2017.

Holloway Lodging Announces NCIB

January 10, 2018 - Holloway Lodging Corporation (HLC) has received approval to make a normal course issuer bid to purchase for cancellation:

1. 6.25% convertible unsecured subordinated debentures with a maturity date of February 28, 2020 (Series B, Symbol HLC.DB) (Current price $97.50) 
2. 7.50% convertible unsecured subordinated debentures with a maturity date of September 30, 2021 (Series C, Symbol HLC.DB.A) (Current price $100.00)
   
   For more detail, see: Holloway Lodging Corporation NCIB

REIT News for Week Ending January 5, 2018

A summary of events in the world of Canadian REITS for the week ending January 5

General News

• Killam Apartment REIT hits milestone, looks ahead
• Mainstreet Health Investments Inc. changes name

Scheduling Q4 and 2017 Results

• Boardwalk
• Chartwell
• Choice Properties
• Cominar

Acquisitions

• Automotive Properties REIT

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Killam Apartment REIT hits milestone, looks ahead

Halifax-based Killam Apartment REIT  (KMP.UN) has reached a major milestone in its history and is now poised to expand its portfolio in the Ontario and Alberta markets.


The REIT was recently added to the S&P/TSX Composite Index, S&P/TSX Capped REIT Index, S&P/TSX Composite Dividend Index, S&P/TSX Composite High Dividend Index and the S&P/TSX Composite Low Volatility Index.

“Inclusion in the S&P/TSX Composite Index is a significant milestone for Killam and a positive conclusion to a successful 2017,” says Philip Fraser, Killam’s president and CEO. “The inclusion in the index reflects the successful execution of Killam’s growth strategy and will expand Killam’s investor base and increase liquidity for unitholders.

“It shows that we’re one of the larger companies on the TSX today. . . . A lot of funds that track that index need to buy us.”

Fraser says the REIT is looking to expand in Ontario and Alberta.

Source: https://renx.ca/killam-apartment-reit-seeks-major-markets-portfolio-growth/

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Name Change

Jan. 3, 2018: 

Mainstreet Health Investments Inc. (HLP.U) changes name to Invesque Inc.  They are not a REIT but maintain a portfolio of senior living properties in the US and Canada.  

Their monthly dividend is designated an eligible dividend for tax purposes and is paid in US$. 

At time of writing their shares are trading at $9.29 and the dividend yield is 7.9%.  The new website is https://www.invesque.com

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Year End Results

The following REITs have scheduled the release of their Q4 and 2017 results:

• Boardwalk (BEI.UN) before market open on Monday, Feburary 26, 2018.  A teleconference will be held later that morning.  See website for details: http://www.boardwalkreit.com/
• Chartwell Retirement Residences (CSH.UN) on the afternoon of Thursday, Feburary 22, 2018.  A conference call will be held Friday, February 23, 2018 at 10:00 AM ET.
  Website: http://www.chartwell.com/
• Choice Properties (CHP.UN) on Tuesday February 13, 2018 after market hours.  A conference call will be held the following day.  Website: http://www.choicereit.ca/
• Cominar (CUF.UN) on Thursday, March 8, 2018.  A conference call will be held on the same day at 11:00 AM EST.  Website: http://www.cominar.com/

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Acquisition

January 4, 2018

Automotive Properties REIT (APR.UN) Agrees to Acquire Dealership Property in Kitchener-Waterloo, ON for $7.5 million.  

The REIT intends to satisfy the purchase price through draws on its existing credit facilities. The REIT has completed its diligence in connection with this acquisition and closing is expected to occur in late February 2018, subject to customary closing conditions. 

Pure Industrial REIT to be Acquired

There may soon be one less REIT for investors to choose from as Pure Industrial REIT (TSX:AAR.UN) has entered into an agreement to be acquired by Blackstone Property Partners (NYSE:BX).  

The deal, worth $3.8 billion will see each unit acquired for $8.10.  This price represents a 21% premium to closing price of PIRET Units on the TSX on January 8, 2018, the last trading day prior to the announcement of the Transaction and a 27% premium to the current research consensus Net Asset Value estimate of $6.40 per Unit.

The Trust will continue to pay its normal monthly distributions in the ordinary course, consistent with past practice through closing of the Transaction.

The Arrangement Agreement provides for, among other things, customary representations, warranties and covenants, including customary non-solicitation covenants from PIRET and a "fiduciary out" that allows the Board of Trustees to accept a superior proposal in certain circumstances, subject to a "right to match" in favour of Blackstone and payment of a $77 million termination fee to Blackstone. In certain circumstances, Blackstone is required to pay a $220 million break fee to PIRET upon the termination of the Arrangement Agreement.

Completion of the transaction is expected to occur in the second quarter of 2018 and is pending a vote by PIRET shareholders, court approval and regulatory approvals (Canadian Competition Act and Investment Canada Act).

Source: Pure Industrial Press Release on Newswire.ca