Morningstar DBRS Assigns Credit Rating of A (low) with Stable Trend to Canadian Core Real Estate LP's Series 2 Senior Unsecured Notes

DBRS Limited (Morningstar DBRS) assigned a credit rating of A (low) with a Stable trend to Canadian Core Real Estate LP's (CCRE or the Fund) $250 million 4.482% Series 2 Senior Unsecured Notes due October 16, 2029 (the Series 2 Senior Unsecured Notes). The assigned rating is based on the rating of the already-outstanding series of Senior Unsecured Notes.

The Series 2 Notes will be direct unsecured obligations of CCRE and will rank equally and rateably with all unsecured and unsubordinated indebtedness of the Fund and junior to all secured indebtedness of the Fund. The Series 2 Notes will be guaranteed, on an unsecured basis, by RBC Canadian Core Real Estate Fund, the sole limited partner of CCRE.

Morningstar DBRS understands that the net proceeds from the offering will be used in connection with the acquisition of three eligible green projects, consistent with CCRE's green bond framework. The projects are located at (a) 18 York Street, Toronto, Ontario and (b) Livingston Place, 250 2nd Street SW and 222 3rd Avenue SW, Calgary Alberta and (c) BP Centre, 240-4th Avenue SW, Calgary, Alberta. Morningstar DBRS understands that the acquisition of the 18 York Street property and the Livingston Place property and BP Centre property was completed within 36 months of the closing of this Offering.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

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

Morningstar DBRS applied the following principal methodology:
-- Global Methodology for Rating Entities in the Real Estate Industry (April 15, 2024),
https://dbrs.morningstar.com/research/431170

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

A description of how Morningstar DBRS analyzes corporate finance transactions and how the methodologies are collectively applied can be found at: https://dbrs.morningstar.com/research/397223.

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

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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