Morningstar DBRS Assigns Rating of A (high) (of), Stable Trend, to the Mortgage Loan Made to 869107:11 Faubourg Boisbriand Shopping Centre Holdings Inc.

DBRS, Inc. (Morningstar DBRS) assigned a First Loss Rating of A (high) (of) with a Stable trend to the 3.00% rate Mortgage Loan due November 1, 2031 (the Mortgage Loan), made to 869107:11 Faubourg Boisbriand Shopping Centre Holdings Inc.

The Mortgage Loan is secured by the fee-simple interest in Faubourg Boisbriand Power Centre, a retail power centre located in Boisbriand, Québec, a suburb on the North Shore of Montréal. The property resides in the highly trafficked intersection of Highway15, and Autoroute 640, providing easy access to communities along the North Shore. The property also benefits from its adjacent location to a large-scale development of high-density residential.

Built between 2005 and 2008 on the former General Motors of Canada car assembly site, the property is anchored by Decathlon, Brick, and Sobeys. The property is shadow-anchored by Home Depot and Costco (noncollateral), which draws additional shoppers to the subject. According to the rent roll dated October 2024, the property was 96.9% leased. Lease rollover is elevated, with 45 tenants (around 72.3% of net rentable area (NRA) and 76.2% of Morningstar DBRS gross rent) rolling prior to loan maturity. However, Morningstar DBRS analyzed approximately $1.3 million in tenant improvement/leasing commission expenses to account for the potential re-leasing costs. Additionally, the property has experienced leasing momentum the past two years with four new leases, representing 12.8% of NRA, and 13 renewal leases, representing 6.6% of NRA, executed.

The A (high) (of) rating reflects (1) the expected stability of debt payments, given the strong operating history including the ability of the sponsor to re-lease vacant spaces; (2) a moderate loan-to-value ratio; and (3) loan amortization that has reduced the loan balance to $54.5 million as of the February 2025 loan payment from the initial loan amount of $60.0 million.

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) https://dbrs.morningstar.com/research/437781.

All credit ratings are subject to surveillance, which could result in credit ratings being upgraded, downgraded, placed under review, confirmed, or discontinued by Morningstar DBRS.

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

The principal methodology is North American Single-Asset/Single-Borrower Ratings Methodology (December 13, 2024) https://dbrs.morningstar.com/research/444612.

Other methodologies referenced in this transaction are listed at the end of this press release.

With regard to due diligence services, Morningstar DBRS was not provided with the Form ABS Due Diligence-15E (Form-15E), which typically contains a description of the information that a third party reviewed in conducting the due diligence services and a summary of the findings and conclusions.

The credit rating was not initiated at the request of the rated entity. The credit rating was initiated at the request of a third party.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

DBRS, Inc.
22 West Washington Street
Chicago, IL 60602 USA
Tel. +1 312 332-3429

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

-- Legal and Derivatives Criteria for Canadian Structured Finance (August 12, 2024) https://dbrs.morningstar.com/research/437761
-- Morningstar DBRS North American Commercial Real Estate Property Analysis Criteria (September 19, 2024)
https://dbrs.morningstar.com/research/439702
-- North American Commercial Mortgage Servicer Rankings (August 23, 2024)
https://dbrs.morningstar.com/research/438283

For more information on this credit or on this industry, visit https://dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.