CAPREIT Completes Sale of Remaining Equity Interest in IRES
June 19 2024 - 5:00PM
Canadian Apartment Properties Real Estate Investment Trust
(“
CAPREIT”) (TSX:CAR.UN) announced today that it
has sold its remaining equity interest in Irish Residential
Properties REIT plc (“
IRES”). All amounts
disclosed herein exclude transaction costs.
During the first quarter of 2024, CAPREIT sold
IRES shares for aggregate proceeds of approximately $58 million,
which reduced its ownership from 18.7% to 11.3% as of March 31,
2024. During the second quarter of 2024, CAPREIT sold a further $81
million of equity in IRES, and completely disposed of its
ownership. CAPREIT intends to use the net proceeds from the
divestment to repay amounts drawn on its Canadian credit facility,
to repurchase CAPREIT units at a discount to net asset value under
its normal course issuer bid program, to acquire strategically
aligned properties and for other general business purposes.
Goodbody Stockbrokers UC acted as CAPREIT’s
agent with respect to the sale of its interest in IRES.
“Our business has historically been rooted in
the provision of high-quality rental apartments for Canadians, and
that remains our primary purpose today,” commented Mark Kenney,
President and Chief Executive Officer of CAPREIT. “In line with
that, we’re pleased to have now completed a full exit from our
investment in Ireland.”
“Completing this sale has simplified our balance
sheet and provides CAPREIT’s unitholders with the ability to make
their own capital allocation decisions as it relates to investing
in IRES,” added Julian Schonfeldt, Chief Investment Officer. “In
doing so, we’ve also freed up capital that we intend to redeploy
into our core apartment business in Canada, which is where we’re
able to drive maximum value for our unitholders.”
ABOUT CAPREITCAPREIT is
Canada’s largest publicly traded provider of quality rental
housing. As at March 31, 2024, CAPREIT owns approximately 64,200
residential apartment suites, townhomes and manufactured home
community sites well-located across Canada and the Netherlands,
with approximately $16.7 billion of investment properties in Canada
and Europe. 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, including in respect of the intended use of
proceeds from the sale of IRES shares. 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. 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 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.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 |
CAPREIT |
Mr. Mark Kenney |
Mr. Stephen Co |
Mr. Julian Schonfeldt |
President & Chief Executive
Officer |
Chief Financial
Officer |
Chief Investment Officer |
(416) 861-9404 |
(416) 306-3009 |
(647) 535-2544 |