TORONTO, June 27, 2017 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced that it has extended the maturity of one of its non-revolving credit facilities ("Credit Facility 2"), from July 2020 to June 2022 for a five-year term and increased the amount available to be drawn under Credit Facility 2 from $55.7 million to $68.7 million. The additional $13.0 million available to be drawn on Credit Facility 2 is secured by a recently-acquired automotive dealership property. The interest rate of 3.37% in respect of this additional amount available under Credit Facility 2 has been fixed through an interest rate swap for a seven-year period. All other terms of Credit Facility 2 remain unchanged.
The REIT also announced today that it has placed a $10.0 million mortgage on one of its other recently-acquired automotive dealership properties. The mortgage has a term of ten years, maturing June 2027, and a fixed interest rate of 3.7% with a 25-year amortization.
The REIT has drawn on the additional amount under Credit Facility 2 and, together with the mortgage proceeds, all of such funds were used to repay existing indebtedness under the REIT's revolving credit facilities.
In addition, the REIT extended the maturity of two of its interest rate swaps currently in place. An interest rate swap in the amount of approximately $14.6 million in respect of Credit Facility 2 has been extended from July 2018 to July 2026 and an interest rate swap in the amount of approximately $27.8 million in respect of Credit Facility 1 has been extended from July 2018 to July 2023. All other terms of the interest rate swaps remain unchanged.
As a result of the above actions, the REIT's weighted average effective fixed interest rate on debt (excluding revolving credit facilities) increased from 3.15% to 3.35% and its weighted average interest rate swap term increased from 4.4 years to 5.9 years. The notional principal amount of the REIT's interest rate swaps is now approximately $194.0 million.
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. Currently, the REIT's portfolio consists of 35 income producing commercial properties represents approximately 1.4 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.
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 MD&A for the year ended December 31, 2016 and in the REIT's current annual information form, both of which are available 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. This forward-looking information speaks as of the date of this news release.
SOURCE Automotive Properties Real Estate Investment Trust
For further information: Bruce Wigle, Investor Relations, Bay Street Communications, Tel: 647-496-7856; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: (647) 789-2445; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, Tel: (647) 789-2446