Granite REIT issues C$300M in unsecured debentures

Published 04/02/2025, 15:24
Granite REIT issues C$300M in unsecured debentures

Granite Real Estate Investment Trust announced today the successful completion of a C$300 million offering of senior unsecured debentures. The trust also confirmed the repayment of its C$300 million term loan. According to InvestingPro data, this transaction adds to the company’s total debt of $1.3 billion, maintaining a healthy debt-to-equity ratio of 0.96 and a strong current ratio of 4.05.

The Toronto-based real estate investment trust, which specializes in the acquisition and management of industrial, logistics, and warehouse properties, stated that the offering was conducted in accordance with its continuous disclosure obligations under the Securities Exchange Act of 1934. InvestingPro analysis indicates the company maintains a FAIR financial health score, with particularly strong performance in cash flow management.

Teresa Neto, Chief Financial Officer of Granite REIT (TSX:GRT_u), signed the report filed with the Securities and Exchange Commission, indicating the registrant’s compliance with the exchange act’s requirements.

The transaction involved the issuance of debentures, which are long-term debt instruments that are not secured by physical assets or collateral. The proceeds from the offering are being used to repay the company’s existing term loan, streamlining its debt profile and potentially improving its financial flexibility.

Granite REIT’s filing did not disclose the interest rate or maturity date of the debentures, nor did it specify the financial institutions involved in the transaction.

This strategic financial move comes as part of Granite REIT’s broader efforts to manage its capital structure and support its long-term investment strategy in the real estate sector. With an Altman Z-Score of 6.0, indicating strong financial stability, the company appears well-positioned for future growth. According to InvestingPro’s Fair Value analysis, Granite REIT currently presents an attractive investment opportunity, trading below its estimated Fair Value.

Investors and stakeholders can access the full details of the transaction through the Form 6-K filed by Granite REIT, which includes the offering of the debentures and the repayment of the term loan as part of its February 2025 report.

The information provided in this article is based on the official statement released by Granite REIT in its recent SEC filing.

In other recent news, Granite Real Estate Investment Trust (Granite REIT) has been making significant financial moves. The Toronto-based trust announced an offering of C$300 million in senior unsecured debentures, a form of long-term debt that will be used to finance its operations and investments. This strategic move reflects Granite REIT’s ongoing efforts to maintain liquidity and fund its operations without diluting shareholder equity.

In addition, Granite REIT has declared distributions for November and December 2024, reflecting its commitment to consistent shareholder returns. These regular distributions are a key aspect of its value proposition to investors, providing them with regular income from the trust’s real estate operations.

Furthermore, BMO Capital Markets updated its outlook on Granite REIT, maintaining an Outperform rating and increasing the price target from Cdn$86.00 to Cdn$88.00. The firm highlighted Granite REIT’s strong balance sheet and financial stability, which positions the trust to achieve mid- to high-single-digit growth in Funds From Operations (FFO) through 2026. These are among the recent developments for Granite REIT.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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