Automotive Properties REIT Announces $50 Million Equity Offering and Agreement to Acquire Three Automotive Properties

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TORONTO, Oct. 06, 2025 (GLOBE NEWSWIRE) — Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the “REIT”) announced today that it has entered into an agreement to sell 3,070,000 units of the REIT (“Units”) on a bought deal basis at a price of $11.11 per Unit (the “Offering Price”) to a syndicate of underwriters bookrun by TD Securities Inc. and Scotiabank for gross proceeds of approximately $34 million (the “Public Offering”).

In addition, the REIT has granted the syndicate of underwriters an over-allotment option, exercisable in whole or in part at any one time up to 30 days following closing of the Public Offering, to purchase up to an additional 460,500 Units at the Offering Price (the “Over-Allotment Option”) which, if exercised in full, would increase the gross proceeds of the Public Offering to approximately $39 million.

Concurrently with the Public Offering, the REIT has agreed to issue, at the Offering Price, 1,442,844 Units to a member of the Dilawri Group (“Dilawri”) on a private placement basis (the “Concurrent Private Placement” and, together with the Public Offering, the “Offering”). The REIT has also granted Dilawri an option to purchase up to an additional 216,427 Units at the Offering Price in the event of, and up to the same proportion that, the Underwriters exercise the Over-Allotment Option in the Public Offering, which, if exercised in full, would increase the gross proceeds of the Concurrent Private Placement to approximately $18 million. Units sold pursuant to the Concurrent Private Placement will be subject to a statutory hold period of four months plus one day from the closing date of the Concurrent Private Placement. The closing of the Concurrent Private Placement is scheduled to occur on the closing date of the Public Offering. The closing of the Public Offering is conditional on the closing of the Concurrent Private Placement and the closing of the Concurrent Private Placement is conditional on the closing of the Public Offering.

The REIT intends to use the net proceeds from the Offering (i) to fund a portion of the purchase price and related closing costs in respect of the Acquisition (as defined below), and (ii) for general trust purposes, including the repayment of indebtedness.

The REIT also announced today that it has entered into an agreement to purchase a portfolio of three automotive dealership properties (the “Properties”) located at 2291, 2301 and 2311 Place Transcanadienne in Dorval, Québec, a suburb of Montréal, from a third party for a purchase price of $52.5 million (the “Acquisition”). The Properties consist of Subaru Des Sources, Honda Des Sources and Volkswagen Des Sources, which together comprise 140,693 square feet of gross leasable area situated on approximately nine acres of land. The Properties are located along a commercial corridor adjacent to the Trans-Canada Highway in close proximity to the Montréal-Pierre Elliott Trudeau International Airport. The Properties are located across the street from a new Réseau Express Métropolitain train station. The Properties are tenanted by members of the Dilawri Group under short-term, triple-net leases with renewal rights.

The REIT currently owns the Mazda Des Sources dealership property located at 2345 Place Transcanadienne. Upon closing of the Acquisition, the REIT will own four adjoining properties located on approximately 11 acres of land.

The REIT intends to fund the purchase price of the Acquisition with $21.0 million in cash from the net proceeds of the Public Offering and an interest-only $31.5 million vendor take-back mortgage with an affiliate of the vendor at an interest rate of 4.5% for a term of five years.

“We believe that the Acquisition is attractive to the REIT given its location and proximity to Montreal, reputable tenant and brands, as well as rent escalators included in the leases. Proceeds from the Offering will provide the REIT with the ability to strengthen its balance sheet through the repayment of indebtedness, which we believe will enhance our financial flexibility and enable us to continue to execute on our growth strategy. Additionally, as a result of strong AFFO per unit growth, the REIT recently increased its distribution to an annualized amount of $0.822 per unit. Furthermore, and inclusive of the recently announced acquisitions of the Rivian property in Orlando, Florida and the six automotive properties in Ile-Perrot, Quebec, together with the Acquisition and the Offering, we anticipate that the REIT’s AFFO per unit will increase in 2026 and beyond as the REIT continues to execute on its business plan and growth objectives.” said Milton Lamb, Chief Executive Officer, Automotive Properties REIT.

Closing of the Offering is expected to occur on or about October 23, 2025, and is subject to certain customary conditions, including approval of the Toronto Stock Exchange. The Offering is not conditional on the closing of the Acquisition. Following closing of the Offering, completion of the Acquisition and payment of certain other commitments and after giving effect to the utilization by the REIT of its credit facilities subsequent to June 30, 2025 (including to fund the recently announced acquisitions of the Rivian and Ile-Perrot properties), the REIT expects that its debt to gross book value ratio will be approximately 46.3%. For an explanation of the composition of debt to gross book value, refer to the section titled “Non-IFRS Financial Measures” below.

The Units will be offered by way of a short form prospectus to be filed on or about October 7, 2025 with the securities commissions and other similar regulatory authorities in each of the provinces of Canada.

The first distribution that purchasers under the Offering are expected to be entitled to receive is expected to be payable on or about November 17, 2025 to unitholders of record on October 31, 2025.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news 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 jurisdiction in which such offer, solicitation or sale would be unlawful.

About Automotive Properties REIT

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada and the United States. The REIT’s portfolio currently consists of 87 income-producing commercial properties, representing approximately 3.2 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec in Canada, and Florida and Ohio in the United States. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events and in some cases can be identified by such terms as “anticipates”, “will”, “would” and “expected”. Forward-looking information includes statements regarding the Offering, including its expected terms, timing thereof, use of proceeds therefrom and resulting impact on the REIT and the Acquisition, including the REIT’s AFFO per unit and debt to gross book value. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the failure to successfully close the Offering and the Acquisition on the terms described, or at all, and the factors discussed under “Risks and Uncertainties, Critical Judgments & Estimates” in the REIT’s Management’s Discussion & Analysis for the quarter ended June 30, 2025 (the “Q2 2025 MD&A) or in the REIT’s annual information form dated March 5, 2025 (including under “Risk Factors” therein), both of which are available under the REIT’s profile on SEDAR+ at www.sedarplus.ca. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

Non-IFRS Financial Measures

This news release contains certain financial ratios which are not defined under and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. Debt to gross book value, a supplementary financial measure, is a measure of financial position defined by agreements to which the REIT is a party. This measure is not defined by International Financial Reporting Standards (“IFRS Accounting Standards”) and does not have a standardized meaning prescribed by IFRS Accounting Standards. For further information regarding this supplementary financial measure, please refer to Section 1 “General Information and Cautionary Statements – Non-IFRS Financial Measures” and Section 6 “Non-IFRS Financial Measures” in the Q2 2025 MD&A which is incorporated by reference herein and is available on SEDAR+ at www.sedarplus.ca.

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