Allied Properties Real Estate Investment Trust
TSX : AP.UN

Allied Properties Real Estate Investment Trust

March 16, 2016 12:13 ET

Allied Properties Real Estate Investment Trust Announces Closing of Bilateral Unsecured Credit Facility

TORONTO, ONTARIO--(Marketwired - March 16, 2016) - Allied Properties REIT ("Allied") (TSX:AP.UN) announced today that it has closed a $150,000,000 bilateral unsecured credit facility with a Canadian chartered bank for a term of five years and bearing interest at a floating rate of CDOR plus 1.70% per year (the "Term Facility"). The Term Facility is available by way of an initial drawdown on the closing date in the amount of up to $100,000,000 and a second drawdown in the amount of $50,000,000 prior to the expiry of the six-month period commencing on closing. The Term Facility is on substantially the same terms as Allied's $200,000,000 unsecured revolving credit facility that closed in January 2015 (the "Revolving Facility") and Allied's $150,000,000 bilateral unsecured credit facility that closed in December 2015. In addition, Allied intends to enter into an interest rate swap which will have the effect of fixing the underlying floating interest rate on the Term Facility at approximately 2.79% per year for the term of the loan.

Allied intends to use the Term Facility to pay down the Revolving Facility and for general working capital purposes. Allied has drawn on the Revolving Facility over the course of 2016 for the purpose of (i) repaying first mortgages as they came due; (ii) funding acquisitions; and (iii) meeting capital requirements in connection with ongoing development and value-creation activities. Allied expects that the Revolving Facility will be largely undrawn at the beginning of the second quarter of 2016 and that its debt ratio at that time will be substantially similar to its debt ratio at the end of 2015.

"Our unrelenting commitment to the balance sheet continues," said Michael Emory, President and CEO. "Not only will this bilateral facility augment our liquidity and financial flexibility for the purpose of acquisition and development activity in 2016, it will enable us to add significantly to our pool of unencumbered properties while maintaining our low debt ratio."

This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Allied discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in Allied's Annual Information Form, which is available at www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on Allied's behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.

Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada's major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

Contact Information

  • Allied Properties REIT
    Michael R. Emory
    President and Chief Executive Officer
    (416) 977-0643
    memory@alliedreit.com

    Allied Properties REIT
    Cecilia C. Williams
    Vice President and Chief Financial Officer
    (416) 977-1063
    cwilliams@alliedreit.com