InterRent REIT Announces $200 Million Equity Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESOTTAWA, May 26, 2020 (GLOBE NEWSWIRE) — InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent” or the “REIT”) announced today that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by Scotiabank, BMO Capital Markets and Desjardins Capital Markets, as joint bookrunners, to purchase 13,660,000 trust units (the “Units”) of the REIT on a bought deal basis at a price of $14.65 per Unit (the “Offering Price”) for gross proceeds of approximately $200 million (the “Offering”).InterRent has also granted the Underwriters an over-allotment option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the Offering, to purchase up to an additional 2,049,000 Units at the Offering Price for additional gross proceeds of approximately $30 million, to cover over-allotments, if any.Closing of the Offering is anticipated to occur on or about June 4, 2020 and is subject to the receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange. The Units will be offered in all provinces and territories of Canada by way of a prospectus supplement.The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.The net proceeds from the Offering will be used to repay existing indebtedness and for working capital purposes, creating additional liquidity to fund future potential acquisitions. After giving effect to the Offering, and prior to any future acquisitions, InterRent’s debt to GBV ratio will be approximately 26.8%.“Our portfolio is resilient and continues to perform extremely well. This equity offering further strengthens our balance sheet and increases liquidity. The current economic conditions as a result of the pandemic are likely to surface attractive acquisition opportunities that may not have otherwise come available, and following closing of the Offering, InterRent will be exceptionally well positioned to capitalize on those opportunities. Our management team has an established track record of creating value from periods of significant volatility and market dislocation, having acquired and operated apartments through the early 90’s and again when we joined InterRent during the global financial crisis. Through that difficult period and in the ensuing years, we grew the REIT, improved the portfolio and created significant value for unitholders.” said Mike McGahan, CEO.About InterRentInterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.InterRent’s strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions.InterRent’s primary objectives are to use the proven industry experience of the Trustees, Management and Operational Team to: (i) to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii) to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) to maintain a conservative payout ratio and balance sheet.Forward Looking StatementsThis news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent’s most recently publicly filed information located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.For further information about InterRent please contact:The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.