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CAPREIT Completes Sale of Remaining Equity Interest in IRES

Canadian Apartment Properties Real Estate Investment Trust
Canadian Apartment Properties Real Estate Investment Trust

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, June 19, 2024 (GLOBE NEWSWIRE) -- 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.

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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 CAPREIT
CAPREIT 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 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, 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