CAPREIT Announces $194 Million in New Acquisition and Disposition Activity

This news release constitutes a “designated news release” for the purposes of CAPREIT’s prospectus supplement dated February 22, 2024, to its short form base shelf prospectus dated May 9, 2023.

TORONTO, Feb. 10, 2025 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed two non-core dispositions in Canada for combined gross proceeds of $96.8 million, in addition to closing on the previously announced 717-suite sale in Montréal for $103.8 million. CAPREIT also announced that it has acquired two recently constructed rental apartment properties in Western Canada for an aggregate purchase price of $97.6 million. All amounts disclosed herein exclude transaction costs and other customary adjustments.

In January, CAPREIT sold a non-core portfolio containing 242 residential suites in Brampton, Ontario, for $73.8 million, with proceeds used in part to repay the outstanding $31.7 million mortgage. CAPREIT also completed the disposition of an unencumbered 138-suite portfolio located in Charlottetown, Price Edward Island, for $23.0 million.

CAPREIT additionally announced that in January, it closed on the acquisition of a purpose-built 41-suite rental property situated in Vancouver, British Columbia. The property was constructed in 2015, and contains meaningful mark-to-market rents which provide for a stable runway of long-term growth potential. The property was acquired for a gross purchase price of $18.2 million, funded in part through the assumption of $5.5 million in mortgage debt, carrying interest at a stated rate of 2.3% for a remaining term to maturity of approximately one year.

CAPREIT further announced that in February, it purchased another on-strategy, 27-storey, 240-suite rental property located in the sought-after Wîhkwêntôwin (formerly Oliver) District of Edmonton, Alberta. The amenity-rich, concrete building was constructed in 2019, and it provides residents with easy access to multiple public transit routes as well as being a five-minute drive to downtown Edmonton; a nine-minute drive to Rogers Place and a twelve-minute walk to Victoria Golf Course. The premium, core property was acquired free of any mortgage financing for $79.4 million in gross consideration, which represents an attractive purchase price of $465 per leasable residential square foot.

A Media Snippet accompanying this announcement is available by clicking on this link.

“We’re kicking off the new year on an exciting note with these strategic transactions, through which we’re continuing to upgrade the quality and enhance the diversification of our core platform in Canada,” commented Mark Kenney, President and Chief Executive Officer. “These recently constructed, mid-market rental properties fit perfectly into our target portfolio positioning, and we’re acquiring them at an age where they provide an ideal balance of embedded value and growth potential. We’re equally pleased to be able to keep playing our part in supporting the Canadian housing eco-system, through the investment of our capital into newer purpose-built rental properties, and we’re looking forward to doing more of this in 2025.”

“We’ve strengthened our Western Canadian presence with the addition of these two on-strategy properties, which boast affordable rents averaging in the high $2 per square foot range,” added Julian Schonfeldt, Chief Investment Officer. “These transactions demonstrate that we’re able to sell our non-core legacy properties at prices that are at, or above, IFRS fair value, while also purchasing well-located, high-quality buildings at meaningful discounts to replacement cost. Our current capital reallocation plan remains robust, and we’ll continue to execute on value-enhancing transactions that benefit all of our key stakeholders moving forward.”

ABOUT CAPREIT
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at December 31, 2024, CAPREIT owns approximately 48,700 residential apartment suites, townhomes and manufactured home community sites that are well-located across Canada and the Netherlands. 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 STATEMENTS
Certain 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. 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, including with regards to the expected completion and timing of the pending transactions. 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, many of which are beyond CAPREIT’s control, which could result in actual results differing materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described under the heading “Risks and Uncertainties” in CAPREIT’s 2023 Annual Report and under the heading “Risk Factors” in CAPREIT’s Annual Information Form for the year ended December 31, 2023, each of which is available under CAPREIT’s profile 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:

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bd26006c-b826-4667-9b67-e5ece6e2c2b5