TORONTO, Dec. 20, 2023 (Globe Newswire) — European Residential Real Estate Investment Trust (“Eres” or “REIT”) (TSX: ERE.UN) today announced its Board of Directors (“”).board”) has completed its REIT strategic review process, which was first announced on June 16, 2023.
Strategic considerations include evaluating various alternatives to maximize value, including, but not limited to, the potential sale of the REIT. Following this process, we received numerous transaction proposals from potential strategic and financial counterparties. The Board of Directors, with the assistance of its legal and financial advisors, has evaluated each proposal and has determined that sufficient consideration has not been made regarding the intrinsic value of the REIT and other opportunities currently available for value creation. did. Accordingly, the Board has concluded that, under prevailing financial market conditions, it is not in the best interests of the REIT’s unitholders to proceed with the proposed sale transaction at this time.
“After a thorough review and evaluation of each proposal, the board agreed that no proposal would achieve the objective of maximizing value.” CEO Mark Kenny commented:. “The bid was affected by difficult macroeconomic headwinds, including an increasingly difficult financing environment. In light of this, ERES is looking to further improve margins, reduce leverage and strengthen its balance sheet. We have undertaken key strategic and liquidity enhancement initiatives and remain focused on creating unitholder value through other available means.”
Gina Parvane Cody, Chairman of the Board, said: “While the strategic review process has concluded, the Board remains committed to maximizing value as always and is actively evaluating potential opportunities to increase shareholder value in the short and long term. The Board remains open to the possibility of strategic transactions in the future as market conditions change. ”
As one of the leading providers of multifamily housing in the Netherlands, ERES has deep domain expertise backed by a best-in-class operational platform, resulting in a consistent track record of robust operational performance. Since its inception, the REIT has achieved strong rental income growth while maintaining structurally minimal vacancy rates. This reflects the increasingly tight rental market in the Netherlands due to unprecedented population growth and chronic housing shortages. Additionally, REIT cost management initiatives, combined with inherent insulation from inflationary pressures, have historically delivered solid profit growth for ERES, and the platform currently has the highest operating margins among its peers. It generates a rate.
The REIT will continue to execute on the core of its proven operational strategy, with the objective of advancing a strong organic growth trajectory, as it has demonstrated effectively to date. This major operating program, coupled with the REIT’s aggressive debt management and financing goals, strengthens ERES’ platform and ability to continue to drive value for all unitholders.
About Eles
ERES is an unincorporated open-end real estate investment trust. ERES units are listed on the TSX under the symbol ERE.UN. ERES is Canada’s only European-focused multifamily REIT, currently initially focused on investing in high-quality multifamily real estate in the Netherlands. As of September 30, 2023, ERES owned a portfolio of 158 multifamily properties in the Netherlands consisting of approximately 6,900 suites and ancillary retail space, one office property in Germany and one office property in Belgium. I own one office property.
ERES’ registered principal place of business is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.
For more information, please visit our website at www.eresreit.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements regarding unitholder value creation, significant strategic and liquidity initiatives, margin and leverage improvements, balance sheet strength, future market conditions, and potential transaction opportunities and initiatives. Certain statements contained herein constitute forward-looking statements. Statements within the meaning of applicable Canadian securities laws reflect ERES’ current expectations and projections regarding future results. Forward-looking statements generally include words such as “outlook,” “objective,” “may,” “will,” “expected,” “intend,” “estimate,” “anticipate,” “believe” ”, “consider”, “should”, “plan”, “predict”, “estimate”, “future”, “could”, “could”, “possible” words such as “likely”, “approximately”, “anticipated”, “anticipate”, “change”, “continue”, or similar expressions suggesting future results or events. The forward-looking statements made in this press release relate only to events or information as of the date on which they are made. Actual results and developments may differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Various factors could cause actual results to differ materially from these forward-looking statements. Although ERES believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that the expectations in the forward-looking statements will prove to be correct. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect. Accordingly, readers should not place undue reliance on forward-looking statements.
The forward-looking statements in this press release are subject to certain risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. These risks and uncertainties are further discussed in our regulatory filings, which are available on SEDAR+ (www.sedarplus.ca).
Except as specifically required by applicable Canadian securities laws, ERES makes no forward-looking statements as of the date on which they are made, whether as a result of new information, future events or otherwise. We undertake no obligation to subsequently or publicly update or revise it. To reflect the occurrence of unexpected events. These forward-looking statements should not be relied upon as representing ERES’ views as of any date after the date of this press release.
For more information, please contact us below. | |
Eres | Eres |
Mr. Mark Kenny | Ms. Jenny Chou |
chief executive officer | CFO |
416.861.9404 | 416.354.0188 |
m.kenney@capreit.net | j.chou@capreit.net |