Canadian REITs can't get enough financing. After a heavy round of financing last fall, they are back in the market to raise even more money, chiefly for acquistions.
The most recent deal came from Homburg Canada REIT , raising $110-million Wednesday morning. The offering had a big number of dealers on its top-line, with TD Securities, CIBC World Markets, Desjardins Securities and Scotia Capital all designated co-lead status.
On Tuesday InnVest REIT also offered up $50-million of stapled convertible debentures and $25-million of stapled units. The stapled securities were necessary because InnVest spun out its hotel assets in 2010 so that the rest of the REIT would not be taxed like a corporation.
The units are comprised of one REIT trust unit, and one non-voting trust unit of the hotel division. Each $1,000 7-year convert is made up of $850 of a convert for the REIT, and $150 of a convert for the hotel trust. RBC and Scotia co-led this deal.
NorthWest Healthcare Properties REIT and Allied Properties REIT both raised $75-million on Tuesday as well.
On a side note, Bell Aliant is the latest non-financial to issue rate reset preferred shares, selling $250-million at a yield of 4.85 per cent.
Tim Kiladze