DBRS Morningstar Assigns Rating of BBB (high), Stable, to SmartCentres Real Estate Investment Trust’s Series U Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (high) with a Stable trend to SmartCentres Real Estate Investment Trust’s (SmartCentres or the Trust) $450 million 3.526% Series U Senior Unsecured Debentures due December 20, 2029 (the Series U Debentures). The assigned rating is based on the rating of the already-outstanding series of Senior Unsecured Debentures.

The Series U Debentures are direct, unsecured obligations of SmartCentres and rank equally and ratably with all other present and future unsecured and unsubordinated indebtedness of the Trust. The Series U Debentures are guaranteed by the wholly owned material subsidiaries of SmartCentres.

DBRS Morningstar understands that the net proceeds from the offering will be used (1) to repay outstanding bank debt, (2) to repay property-level secured debt, (3) to fund a potential property acquisition to facilitate mixed-use development (approximately $109 million), and (4) for general trust purposes.

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 2019), DBRS Criteria: Guarantees and Other Forms of Support (January 2019), and DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 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 [email protected].

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada