A summary of events in the world of Canadian REITs and REOCs
(Real Estate Investment Trusts and Real Estate Operating Companies)
- Pure Industrial REIT to be acquired by Blackstone
- Sears Out, Canadian Tire In
- Morguard Corporation Increases Ownership in Morguard REIT
- First Capital
- Artis REIT
- H&R REIT
- CT REIT
- H & R REIT
- Brookfield Real Estate Services
- Pure Industrial REIT
- ProREIT Announces Public Offering
- Choice Properties REIT to Issue $650M in Unsecured Debentures
- Choice Properties REIT Announces Redemption
- Starlight U.S. Multi-Family (No. 1) Value-Add Fund
- Invesque
- Plaza Retail REIT
- Cominar REIT Increases NCIB
- Holloway Lodging Corporation Announces NCIB for Convertible Debentures
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Pure Industrial REIT to be Acquired by Blackstone
Sears Out, Canadian Tire In
Morguard Corporation Increases Ownership in 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/irAlthough 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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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).
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.
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.
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:
Choice Properties to Issue $650M of Series I and Series J Senior Unsecured Debentures (CHP.UN).
- $300M Series I Senior Unsecured Debentures will bear 3.01% interest and mature March 21, 2022.
- $350M Series J Senior Unsecured Debentures will bear 3.546% and will mature January 10, 2025.
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
Earnings per share will increase, and it is expected that share prices will increase.
Cominar REIT Increases NCIB
Holloway Lodging Announces NCIB
- 6.25% convertible unsecured subordinated debentures with a maturity date of February 28, 2020 (Series B, Symbol HLC.DB) (Current price $97.50)
- 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
