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WINNIPEG, Feb. 19, 2019 /CNW/ - Artis Real Estate Investment Trust (TSX: AX.UN) ("Artis" or the "REIT") announced today the offering (the "Offering") of $250 million aggregate principal amount of 3.674% 2-year Series C senior unsecured debentures (the "Series C Debentures").
The Series C Debentures will bear interest at a rate of 3.674% per annum, payable in equal semi-annual instalments in arrears on February 22 and August 22 in each year, commencing on August 22, 2019.
The Series C Debentures are being offered on an agency basis by a syndicate of agents led by BMO Capital Markets, RBC Capital Markets and Scotiabank.
DBRS Limited has assigned a provisional rating of BBB (low) with a "Stable" trend to the Series C Debentures.
The Offering is being made pursuant to the REIT's base shelf prospectus dated August 23, 2018, as supplemented by a prospectus supplement dated February 19, 2019, which, collectively, describe the terms of the Offering and the Series C Debentures. The Offering is expected to close on or about February 22, 2019.
Artis intends to use the net proceeds from the Offering to partially repay indebtedness outstanding on the REIT's credit facilities.
Artis is a diversified Canadian real estate investment trust investing in office, retail and industrial properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and select markets in the United States. As of September 30, 2018, Artis' commercial property comprises approximately 24.8 million square feet of leasable area.
During the three months ended September 30, 2018, Property Net Operating Income ("Property NOI") by asset class, including Artis' proportionate share of properties held in joint venture arrangements, was approximately 52.6% office, 20.4% retail and 27.0% industrial. Property NOI by geographical region, including Artis' proportionate share of properties held in joint venture arrangements, was approximately 3.0% in British Columbia, 21.0% in Alberta, 6.5% in Saskatchewan, 13.6% in Manitoba, 11.1% in Ontario, 10.4% in Arizona, 18.1% in Minnesota, 8.8% in Wisconsin and 7.5% in U.S. – Other.
Property NOI is a non-GAAP measure. Artis calculates Property NOI as revenues less property operating expenses such as utilities, repairs and maintenance and realty taxes. Property NOI does not include charges for interest or other expenses not specific to the day-to-day operation of the REIT's properties.
This press release contains forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. The words "expects", "anticipates", "intends", "estimates", "projects", "will", and similar expressions are intended to identify forward-looking statements. Artis is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, general uninsured losses, future property acquisitions and dispositions, environmental matters, tax related matters, debt financing, unitholder liability, potential conflicts of interest, potential dilution, reliance on key personnel, changes in legislation and changes in the tax treatment of trusts. Artis cannot assure investors that actual results will be consistent with any forward-looking statements and Artis assumes no obligation to update or revise such forward-looking statements to reflect actual events or new circumstances. All forward-looking statements contained in this press release are qualified by this cautionary statement.
SOURCE Artis Real Estate Investment Trust
For further information: please contact Mr. Armin Martens, President and Chief Executive Officer; Mr. Jim Green, Chief Financial Officer or Ms. Heather Nikkel, Vice-President - Investor Relations of the REIT at 1.204.947.1250