DBRS Assigns Rating of BBB with a Stable Trend to Choice Properties Real Estate Investment Trust’s $750 Million 3.532% Series M Senior Unsecured Debentures

DBRS Limited (DBRS) assigned a rating of BBB with a Stable trend to Choice Properties Real Estate Investment Trust’s (Choice Properties or the Trust) $750 million 3.532% Series M Senior Unsecured Debentures due June 11, 2029 (the Series M Debentures). The rating assigned above to the Series M Debentures is based on the rating of the already-outstanding series of Senior Unsecured Debentures.

The Series M Debentures are direct senior unsecured obligations of Choice Properties and rank equally and rateably with all other unsecured and unsubordinated indebtedness of the Trust. The Series M Debentures are guaranteed by Choice Properties Limited Partnership (rated BBB with a Stable trend by DBRS), Choice Properties GP Inc. and any other wholly owned subsidiaries of Choice Properties.

DBRS understands that the net proceeds from the offering are being used to repay existing indebtedness, including to redeem in full the $100 million aggregate principal amount of Choice Properties’ 2.564% Series C Senior Unsecured Debentures due November 30, 2019; redeem in full the $200 million aggregate principal amount of Choice Properties Limited Partnership’s 3.00% Series 7 Senior Unsecured Debentures due September 20, 2019; repay some of the Trust’s unsecured term loans and for general business purposes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Entities in the Real Estate Industry (April 2019) and DBRS Criteria: Guarantees and Other Forms of Support (January 2019), which can be found on dbrs.com under Methodologies & Criteria.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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