Granite Real Estate Enhances Financial Stability with New Offering
Granite Real Estate Investment Trust's Latest Financial Moves
Granite Real Estate Investment Trust ("Granite" or the "REIT") is making significant strides in its financial strategy with its recent offerings. In a noteworthy move, Granite has successfully completed its issuance of senior unsecured debentures, totaling C$300 million. This strategic effort will not only diversify Granite's funding but also improve its financial flexibility moving forward.
Details of the Offering
The offering, which was facilitated through its fully-owned subsidiary Granite REIT Holdings Limited Partnership ("Granite LP"), includes Series 10 debentures that bear interest at a rate of Daily Compounded CORRA plus 0.77% per annum. These debentures are payable quarterly and set to mature on December 11, 2026. Through this process, Granite aims to strengthen its financial base while providing investors with reliable returns based on fixed interest rates.
Interest Rate Swap Benefits
In an innovative financial maneuver, Granite LP has entered into a cross currency interest rate swap. This switch allows the company to convert its Canadian dollar denominated principal and floating rate interest payments into Euro-denominated principal and fixed interest payments. Consequently, this strategy has effectively secured an advantageous fixed interest rate of just 0.27% per annum throughout the life of the debentures. This move reflects Granite's proactive approach to managing its financing costs and enhancing profitability.
Repayment of Existing Debt
To further strengthen its balance sheet, Granite LP has also successfully repaid its C$300 million senior unsecured non-revolving term facility without incurring any penalties. This repayment was facilitated using the net proceeds from the aforementioned offering. Such actions position Granite favorably in a competitive market and allow for more focused investment in its strategic initiatives.
Granite's Commitment to Growth
By consolidating its financial resources, Granite can continue to pursue its primary mission—acquiring, developing, and managing logistics and industrial properties across North America and Europe. This strategic focus has led Granite to own an impressive portfolio comprising 143 investment properties, which encompass approximately 63.3 million square feet of leasable space. These vital assets underscore Granite's commitment to growth, efficiency, and sustainability in the real estate sector.
About Granite Real Estate Investment Trust
Founded on principles of integrity and performance, Granite is dedicated to offering value in the logistics and industrial real estate domains. With strategic investments and a robust management approach, Granite is well-positioned to meet the evolving needs of its clients and stakeholders alike. Investors are encouraged to stay informed through Granite's financial reporting and public disclosures to understand the company's ongoing efforts and future plans.
Accessing Further Information
For those interested in delving deeper into Granite's financial health and opportunities, a wealth of information is available through their filings on SEDAR+ or the U.S. Securities and Exchange Commission’s EDGAR. These platforms provide a comprehensive view of Granite’s financial documents and annual information forms, including risk assessments and management discussions.
Frequently Asked Questions
What is the purpose of Granite's recent C$300 million offering?
The offering aims to enhance Granite's financial flexibility and support its investment strategies by providing a stable funding source.
What interest rate did Granite secure for its new debentures?
Granite secured an effective fixed interest rate of 0.27% per annum for its newly issued senior unsecured debentures.
What properties does Granite focus on?
Granite is focused on the acquisition, development, and management of logistics, warehouse, and industrial properties primarily across North America and Europe.
How many investment properties does Granite own?
Granite owns 143 investment properties, which represent approximately 63.3 million square feet of leasable area.
Where can I find more information about Granite's financial performance?
Investors can access detailed financial performance reports and documents on platforms like SEDAR+ and the SEC’s EDGAR to stay updated on Granite's financial health.
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