SmartCentres Real Estate Investment Trust Announces Redemption of 3.73% Series M and 2.876% Series Q Senior Unsecured Debentures
NOT FOR DISTRIBUTION IN THE UNITED STATES OR VIA UNITED STATES WIRE SERVICES
TORONTO, December 11, 2020 (GLOBE NEWSWIRE) – SmartCentres Real Estate Investment Trust (“SmartCentres” or the “Trust”) (TSX: SRU.UN) announced today that it is issuing its 3.73% redemption notices to holders. Series M Senior Unsecured Notes maturing July 22, 2022 (the “M Series Notes”) and 2.876% Q Series Unsecured Notes maturing March 21, 2022 (the “Q Series Notes” and together with the M Series Notes (the “Notes”), which represents a full repayment of all currently outstanding M and Q Series Notes. The Notes will be redeemed on January 11, 2021 (the “Redemption Date”) in accordance with the relevant Terms. The M Series Notes will be redeemed at a total redemption price of $ 1,046.86 plus accrued and unpaid interest of $ 17,679,178 up to and including the Redemption Date, for every $ 1,000 of face value. The Series Q Notes will be redeemed at a total redemption price of $ 1,027.03 plus accrued and unpaid interest of $ 8.824986 up to the redemption date, but with no redemption date, for every $ 1,000 of notional amount. At the close of trading on December 10, 2020, the total nominal amount of M Series Notes outstanding was $ 150,000,000 and the total nominal amount of Q Series Notes outstanding was $ 150,000,000.
SmartCentres intends to use the proceeds of its previously announced offer of US $ 350 million of senior unsecured X Series Notes (the “X Series Notes”) and US $ 300 million of Y Series Senior Unsecured Notes (the “Y Series “) to use. along with the cash on hand to fund the redemption price of the M Series and Q Series Notes. The X Series Notes have a 1.74% coupon and mature on December 16, 2025. The Series Y Notes will carry a 2.307% coupon and mature on December 18, 2028.
SmartCentres Real Estate Investment Trust is one of Canada’s largest fully integrated REITs and has a world-class portfolio of 166 strategically located properties in communities across the country. SmartCentres has approximately $ 10.4 billion in net worth and 33.8 million square feet of income, creating value-oriented retail space with 97.4% occupancy on 3,500 acres across Canada.
SmartCentres continues to focus on improving the lives of Canadians by designing and developing complete, connected, mixed-use communities on top of existing retail properties. A publicly announced $ 11.9 billion intensification program ($ 5.4 billion at SmartCentres) represents the current main focus of development for the trust, which is expected to begin construction in the next five years. This intensification program consists of rental apartments, condominiums, senior residences and hotels to be developed under the SmartLiving banner, and retail, office and warehouse facilities to be developed under the SmartCentres banner.
SmartCentres’ intensification program is expected to produce an additional 59.3 million square feet (27.9 million square feet in SmartCentres’ stake), of which 27.1 million square feet (12.3 million square feet in SmartCentres’ stake) have been or will be built within the United States next five years. From shopping malls to city centers, SmartCentres is uniquely positioned to reshape the Canadian urban and suburban landscape.
This intensification program includes the Trust’s stake in SmartVMC, which when completed is expected to comprise approximately 11.0 million square feet of mixed-use space in Vaughan, Ontario. The construction of the first five sold-out phases of Transit City Condominiums with 2,789 residential units continues. The final closings of the first two phases of the Transit City Condominiums began prematurely and prematurely in August 2020. As of September 30, 2020, 766 units (which corresponds to approximately 70% of all 1,110 units in the first and second phases) were closed. In addition, the 631 pre-sold units in the third phase, as well as 22 townhouses, all of which are sold out and currently under construction, are expected to close in 2021. The fourth and fifth sold-out phases with 1,026 units are currently under construction and are expected to close in 2023.
Certain statements in this press release are “forward-looking statements” that reflect management’s expectations with respect to the future growth, results of operations, performance, and business prospects and opportunities of SmartCentres. In particular, certain statements, including, but not limited to, statements relating to the expected use of proceeds from the Offering, the expected or planned development plans and joint venture projects of SmartCentres, including the type, scope, costs and others described financial indicators the expected time for the closure of construction and condominiums; and statements containing words such as “might,” “should,” “may,” “anticipate,” “expect,” “believe,” “will,” “may” and similar expressions and statements relating to matters that are not historical facts are “forward-looking statements”. These forward-looking statements are intended to assist shareholders and financial analysts in understanding the development potential of SmartCentres and may not be suitable for other purposes. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management.
Such forward-looking statements, however, involve considerable risks and uncertainties. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements, including risks associated with potential acquisitions that will not complete or will not complete as foreseen and public health crises such as the COVID-19 pandemic, real estate ownership and development, debt and equity financing for development, interest and financing costs, construction and development risks, ability to obtain commercial and municipal permits for development. These and other risks are discussed in greater detail under the “Risks and Uncertainties” heading and elsewhere in the most recent SmartCentres MD&A and under the “Risk Factors” heading in the latest SmartCentres annual information form. Although the forward-looking statements contained in this press release are based on reasonable assumptions made by management, including those discussed under the heading “Outlook” and elsewhere in the SmartCentres MD&A, SmartCentres cannot assure investors that actual results will match them forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this warning notice. These forward-looking statements speak as of the date of this press release and SmartCentres assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by applicable securities laws.
Material factors or assumptions that were used in creating a conclusion or estimate in the forward-looking information could include, but are not limited to: a stable retail environment; relatively low and stable interest costs; an ongoing trend towards intensification of land use, including housing development in urban markets and continued growth along transport hubs; Access to the equity and debt markets to fund future capital requirements at acceptable costs and to allow debt to be refinanced when due; The necessary permits for the development are obtained in the normal course, with construction and permit costs in line with the past year and recent inflation trends.
Further information is available at www.smartcentres.com or from: