Core Viewpoint - Automotive Properties Real Estate Investment Trust (REIT) has announced a public offering of 3,070,000 units at a price of $11.11 per unit, aiming for gross proceeds of approximately $34 million, with potential to increase to $39 million if the over-allotment option is fully exercised [1][2]. Offering Details - The REIT has granted underwriters an over-allotment option for an additional 460,500 units, which could raise total gross proceeds to about $39 million if fully exercised [2]. - Concurrently, the REIT will issue 1,442,844 units to the Dilawri Group at the same offering price, with an option for Dilawri to purchase an additional 216,427 units if the over-allotment option is exercised, potentially increasing proceeds from this private placement to approximately $18 million [3]. Use of Proceeds - The net proceeds from the offering will be used to fund part of the purchase price and closing costs related to the acquisition of three automotive dealership properties for $52.5 million, as well as for general trust purposes, including debt repayment [4][5]. Acquisition Details - The REIT is acquiring three dealership properties in Dorval, Québec, which include Subaru Des Sources, Honda Des Sources, and Volkswagen Des Sources, totaling 140,693 square feet on approximately nine acres [5]. - The acquisition will expand the REIT's portfolio to four adjoining properties on about 11 acres of land [6]. Financial Strategy - The REIT plans to fund the acquisition with $21 million in cash from the offering and a $31.5 million vendor take-back mortgage at a 4.5% interest rate for five years [6]. - The CEO highlighted that the acquisition is attractive due to its location, reputable tenants, and rent escalators in the leases, which are expected to enhance financial flexibility and support growth strategies [7]. Future Expectations - The closing of the offering is anticipated around October 23, 2025, subject to customary conditions, including Toronto Stock Exchange approval [8]. - Following the offering and acquisition, the REIT expects its debt to gross book value ratio to be approximately 46.3% [8]. Company Overview - Automotive Properties REIT focuses on owning and acquiring income-producing automotive and OEM dealership properties in Canada and the U.S., currently holding 87 properties with approximately 3.2 million square feet of gross leasable area [11].