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TORONTO--(BUSINESS WIRE)--Aug. 6, 2025-- Choice Properties Real Estate Investment Trust (“Choice Properties”, the “Trust” or “we”) (TSX: CHP.UN) announced today that it has agreed to issue, on a private placement basis in certain provinces of Canada (the “Offering”), (i) $350 million aggregate principal amount of series W senior unsecured debentures of the Trust that will bear interest at a rate of 4.628% per annum and will mature on August 8, 2035 (the “Series W Debentures”) and (ii) $150 million aggregate principal amount of series X senior unsecured debentures of the Trust that will bear interest at a rate of 5.369% per annum and will mature on August 8, 2055 (the “Series X Debentures” and, together with the Series W Debentures, the “Debentures”).

Offering of Debentures

The Debentures will be sold at par and are being offered on an agency basis by a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank. Subject to customary closing conditions, the Offering is expected to close on August 8, 2025.

The Trust intends to use the net proceeds of the Offering to repay existing indebtedness, including the redemption in full of the Trust’s $200 million aggregate principal amount of 4.055% series F senior unsecured debentures due November 24, 2025 (the “Series F Debentures”) on September 5, 2025, and for general business purposes.

It is a condition of closing of the Offering that the Debentures be rated at least “BBB” (high) with a “positive” trend by Morningstar DBRS and at least “BBB+” by Standard and Poor’s Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated.

The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Redemption of Series F Debentures

The Trust announced today that it has provided holders of its Series F Debentures a notice of redemption pursuant to which the Trust will redeem the entire outstanding principal amount of the Series F Debentures on September 5, 2025 and has fixed September 4, 2025 as the record date for this redemption. As of the date hereof, there is $200 million aggregate principal amount of the Series F Debentures outstanding.

On the redemption date, the Series F Debentures will be redeemed in accordance with their terms at a redemption price per $1,000 principal amount of the Series F Debentures equal to $1,000 plus accrued and unpaid interest to but excluding the redemption date of $11.554, and will thereafter cease to be outstanding.

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive.

We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.

For more information, visit Choice Properties’ website at www.choicereit.ca and Choice Properties’ issuer profile at www.sedarplus.ca.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties’ current expectations regarding future events, including the expected closing of the Offering, the intended use of proceeds of the Offering and the redemption of the Series F Debentures. 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 Choice Properties’ 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 in Choice Properties’ 2025 Second Quarter Report and current Annual Information Form. Choice Properties 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. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805271743/en/

For further information:
Erin Johnston
Chief Financial Officer
Choice Properties REIT
Erin.Johnston@choicereit.ca

Source: Choice Properties Real Estate Investment Trust