Automotive Properties REIT Agrees to Acquire Go Auto Dealership Property in Edmonton for $23 million

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

− Announces completion of Toyota Woodland acquisition −

TORONTO, Dec. 24, 2015 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the "REIT") today announced that it has entered into a definitive agreement to purchase the real estate underlying Porsche Centre and Jaguar Land Rover Edmonton, a 44,800 square foot building occupied by two automotive dealerships in Edmonton, Alberta, for approximately $23 million, representing a cap rate of 6.6%. The addition of this property is expected to be immediately accretive to the REIT's Adjusted Funds from Operations ("AFFO") on a per unit basis.

"This is an important milestone for us, as the transaction represents the REIT's first acquisition of a dealership property with a third party dealer as tenants, and adds Land Rover Jaguar as a new brand in our portfolio," said Milton Lamb, President and CEO of Automotive Properties REIT. "These top-tier dealerships, owned by Go Auto, one of Canada's leading operators, also represents our first property in Edmonton, further expanding the REIT's geographic footprint, while also enhancing the luxury brand segment of our property portfolio."  

Built in 2014, Porsche Centre and Jaguar Land Rover Edmonton are best-in-class dealerships, located on an attractive commercial corridor at 17007 111^th Avenue N.W. in Edmonton. On closing of the transaction, the Go Auto tenants will enter into a 17-year triple-net lease with the REIT.

Go Auto is one of Canada's largest owner / operators of automotive dealerships, with 40 automotive dealerships located in Alberta, British Columbia and the Northwest Territories. "We are delighted to enter into this transaction with Automotive Properties REIT," said Jared Preistner, President of Go Auto. "By selling the real estate underlying these dealerships, we are capitalizing on a unique opportunity to monetize value and redeploy the funds in our core business − the ownership and operation of leading automotive dealership businesses."

The REIT will fund the purchase of the real estate underlying Porsche Centre and Jaguar Land Rover Edmonton through a combination of a new $15 million mortgage with a Canadian chartered bank and a draw on its credit facility. The REIT has completed its diligence in connection with this acquisition and closing is expected to occur before the end of the year, subject to customary closing conditions.   

The REIT also announced that it has completed its previously announced acquisition of Toyota Woodland, a 50,000 square foot Toyota dealership in Montréal, Québec, from an unrelated party, for approximately $7.2 million and that the Dilawri Group entered into a 16-year lease with the REIT in respect of this property.

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 dealership properties located in Canada. The REIT's portfolio of 27 income producing commercial properties represents approximately 1 million square feet of gross leasable area in Ontario, Saskatchewan, Alberta, British Columbia and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership 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 "will" and "expected". 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 factors discussed under "Risks and Uncertainties" in the REIT's management's discussion and analysis ("MD&A") most recently filed on SEDAR (www.sedar.com). 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.

Non-IFRS Financial Measure
This news release contains a financial measure which is not defined under IFRS and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. AFFO is a key measure of performance used by real estate businesses.  This measure is not defined by IFRS and does not have a standardized meaning prescribed by IFRS, and therefore should not be construed as an alternative to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic performance and is indicative of the REIT's ability to pay distributions. The IFRS measurement most directly comparable to AFFO is net income. Please refer to the REIT's MD&A for further discussion of this non-IFRS financial measure.

SOURCE Automotive Properties Real Estate Investment Trust

For further information: Bruce Wigle, Investor Relations, Bay Street Communications, Tel: [phone]; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: [phone]; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, Tel: [phone]