Choice Properties Real Estate Investment Trust (Choice Properties or the Trust) has announced the issuance of $300 million in Series V senior unsecured debentures, set to mature on January 16, 2030. The debentures, which will bear an interest rate of 4.293% per annum, will be issued through a private placement in certain provinces of Canada. The offering is expected to close on January 16, 2025, subject to customary closing conditions.
The debentures will be sold at par value and are being placed through an agency syndicate led by RBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, and CIBC Capital Markets. The net proceeds from this offering will be used primarily to repay amounts drawn on the Trust’s revolving credit facility. These funds were previously used to repay its Series J senior unsecured debentures, which matured at a principal amount of $350 million with a 3.546% interest rate. Any remaining proceeds will be allocated for general corporate purposes.
For the offering to proceed, the debentures must be rated by Morningstar DBRS with a “BBB” (high) rating and a “stable” trend, as well as by Standard and Poor’s Ratings Services with at least a “BBB+” rating. The Series V debentures will rank equally with all other unsecured indebtedness of the Trust, provided that it has not been subordinated.
This new issuance is part of Choice Properties’ ongoing efforts to maintain a robust financial strategy while positioning itself for continued growth.
The transaction represents a strategic financial move aimed at optimizing the Trust’s debt structure. By refinancing its earlier debentures, the Trust intends to maintain financial flexibility while continuing to focus on its long-term goals.
In line with its sustainability efforts, Choice Properties remains committed to integrating environmental, social, and economic considerations into its operations. The Trust’s portfolio, which includes high-quality commercial and residential real estate properties, is managed with a focus on creating spaces where people thrive. Through its leadership in sustainable practices, Choice Properties is enhancing the communities it serves and ensuring that its developments meet the needs of its tenants.
Headquartered in Canada, Choice Properties is a leading real estate investment trust known for its national presence and commitment to quality. As one of the largest owners, operators, and developers of commercial and residential properties in Canada, the Trust’s diverse portfolio includes assets in key urban centers across the country. With a focus on long-term value creation, Choice Properties continues to build on its legacy of providing well-managed properties that foster vibrant communities and spaces for people to live, work, and connect.
The Series V debenture offering represents another step in Choice Properties’ strategic approach to managing its financial resources while ensuring the continued success of its operations. By maintaining a strong balance sheet and leveraging its established network of financial partners, the Trust is well-positioned to continue growing its portfolio and achieving its business objectives.
The debentures are not registered under the U.S. Securities Act of 1933 and may not be sold or offered in the United States without proper registration or an exemption from registration. As such, the offering is restricted to specific jurisdictions and will not be made available for purchase in regions where it would be deemed unlawful.
Choice Properties Real Estate Investment Trust remains focused on delivering long-term value through a commitment to high-quality developments and sustainable practices. The issuance of the Series V debentures aligns with the Trust’s vision of creating spaces that enhance the lives of tenants and communities, while contributing to a more sustainable future in real estate development.
With a firm commitment to excellence, care, ownership, and respect, Choice Properties continues to innovate and lead in the real estate industry, creating lasting value for its stakeholders and ensuring its place as a trusted provider of commercial and residential spaces across Canada. The success of the debenture offering further supports the Trust’s financial stability, as it continues to deliver on its mission to create thriving, sustainable communities.
