Morningstar DBRS Assigns Rating of BBB, Stable, to SmartCentres Real Estate Investment Trust's Series AB Senior Unsecured Debentures

DBRS Limited (Morningstar DBRS) assigned a rating of BBB with a Stable trend to SmartCentres Real Estate Investment Trust's (SmartCentres or the Trust) $300 million 4.737% Series AB Senior Unsecured Debentures, due August 5, 2031 (the Series AB Debentures). The assigned rating is based on the rating of an already-outstanding series of the above-mentioned debt instrument.

The Series AB Debentures are direct unsecured obligations of SmartCentres and rank equally and rateably with all other present and future unsecured and unsubordinated indebtedness of the Trust. The Series AB Debentures are guaranteed by the wholly owned material subsidiaries of SmartCentres. Morningstar DBRS understands that SmartCentres intends to use the net proceeds of the offering to refinance existing debt, including the repayment of its $160 million Series N senior unsecured debentures due February 6, 2025, the repayment of the REIT's revolving credit line and for general corporate purposes.

Please refer to https://dbrs.morningstar.com/research/432340 for more information, including all relevant disclosures.

ENVIRONMENTAL, SOCIAL, AND 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 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 Risk Factors in Credit Ratings (August 13, 2024) at https://dbrs.morningstar.com/research/437781.

BUSINESS RISK ASSESSMENT (BRA) AND FINANCIAL RISK ASSESSMENT (FRA)

A) Weighting of BRA Factors
In the analysis of the Issuer, the BRA factors were considered in the order of importance contemplated in the methodology.

B) Weighting of FRA Factors
In the analysis of the Issuer, the FRA factors were considered in the order of importance contemplated in the methodology.

C) Weighting of the BRA and the FRA
In the analysis of the Issuer, the BRA carries greater weight than the FRA.

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

Morningstar DBRS credit ratings may use of one or more sections of the Morningstar DBRS Global Corporate Criteria (February 3, 2025) https://dbrs.morningstar.com/research/447186 which covers, for example, topics such as holding companies and parent/subsidiary relationships, guarantees, recovery, and common adjustments to financial ratios.

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/431153.

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 dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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