Artis Real Estate Investment Trust
TSX : AX.UN

Artis Real Estate Investment Trust

March 27, 2014 08:30 ET

Artis Announces Completion of $125 Million Offering of 3.753% Series A Senior Unsecured Debentures

WINNIPEG, MANITOBA--(Marketwired - March 27, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Artis Real Estate Investment Trust (TSX:AX.UN) ("Artis" or the "REIT") announced today that it has completed its previously announced issuance of $125 million aggregate principal amount of series A senior unsecured debentures (the "Financing"). These debentures bear interest at a rate of 3.753% per annum and will mature on March 27, 2019. The debentures were offered on an agency basis by a syndicate of agents led by RBC Capital Markets and BMO Capital Markets.

DBRS Limited ("DBRS") has assigned a rating of BBB (low) with a "Stable" trend to the debentures.

The Financing was made pursuant to the REIT's base shelf prospectus dated June 15, 2012. The terms of the offering are described in a prospectus supplement filed with Canadian securities regulators dated March 20, 2014.

Artis intends to use the net proceeds from the Financing primarily for debt repayment and for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration requirements.

Artis is a diversified Canadian real estate investment trust investing in office, industrial and retail properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in Canada and the United States, with a major focus on Western Canada. As of today's date, Artis' commercial property comprises nearly 25.0 million square feet of leasable area.

At December 31, 2013, actual year-to-date Property Net Operating Income ("Property NOI") by asset class was approximately 25.6% retail, 50.5% office and 23.9% industrial. Property NOI by geographical region was approximately 9.0% in British Columbia, 38.7% in Alberta, 6.9% in Saskatchewan, 12.3% in Manitoba, 13.2% in Ontario and 19.9% in the U.S.

Property NOI is a non-GAAP measure. Artis calculates Property NOI as revenues, measured in accordance with International Financial Reporting Standards, less property operating expenses such as taxes, utilities, repairs and maintenance, and does not include charges for interest and amortization or income from joint arrangements accounted for as equity investments.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Artis Real Estate Investment Trust
    Mr. Armin Martens
    President and Chief Executive Officer
    1.204.947.1250
    204.947.0453 (FAX)

    Artis Real Estate Investment Trust
    Mr. Jim Green
    Chief Financial Officer
    1.204.947.1250
    204.947.0453 (FAX)

    Artis Real Estate Investment Trust
    Ms. Kirsty Stevens
    Chief Administrative Officer
    1.204.947.1250
    204.947.0453 (FAX)
    www.artisreit.com