DBRS Morningstar Assigns a Rating of BBB (high), Stable, to Choice Properties REIT’s Series R Senior Unsecured Debentures

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (high) with a Stable trend to Choice Properties Real Estate Investment Trust’s (Choice Properties or the Trust) $500 million 6.003% Series R Senior Unsecured Debentures, due June 24, 2032 (the Series R Debentures). The assigned rating is based on the rating on the already-outstanding series of Senior Unsecured Debentures.

The Series R 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 R Debentures are guaranteed by Choice Properties Limited Partnership (rated BBB (high) with a Stable trend by DBRS Morningstar), Choice Properties GP Inc., and any other wholly owned subsidiaries of Choice Properties.

DBRS Morningstar understands that Choice Properties intends to use the net proceeds of the offering to repay existing indebtedness, including (1) the early redemption of the Trust’s CAD 300 million 3.60% Series 10 Senior Unsecured Debentures on June 26, 2022, (2) to repay all or a portion of the balance drawn on the Trust’s credit facility, and (3) for general business purposes.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

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

The principal methodologies are Rating Entities in the Real Estate Industry (April 20, 2022; https://www.dbrsmorningstar.com/research/395563/rating-entities-in-the-real-estate-industry) and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (April 4, 2022; https://www.dbrsmorningstar.com/research/394683/dbrs-morningstar-criteria-guarantees-and-other-forms-of-support ), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (May 17, 2022; https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.)

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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