Granite REIT Announces C $ 500 Million Offering of 2.378% Senior Debentures due 2030

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TORONTO – (COMMERCIAL THREAD) – Granite Real Estate Investment Trust (“Granite” or the “REIT”) (TSX: GRT.UN / NYSE: GRP.U) today announced that its wholly owned subsidiary Granite REIT Holdings Limited Partnership (“Granite LP ”) has priced an offering (the“ Offering ”) of an aggregate principal amount of C $ 500 million of 2.378% Series 5 Senior Unsecured Debentures due December 18, 2030 (the“ “). The Debentures will be guaranteed by Granite and Granite REIT Inc. The offering of the Debentures is expected to close on or about December 18, 2020, subject to the satisfaction of certain customary closing conditions.

The Debentures are being offered as agent by a syndicate of agents co-led by BMO Capital Markets and Scotia Capital Inc.

Granite is making the offering in Canada in accordance with its amended and restated base shelf prospectus dated November 26, 2020. The terms of the offering will be described in a prospectus supplement to the amended and restated base shelf prospectus to be filed with the Canadian securities regulatory authorities in every province and territory of Canada and accessible to www.sedar.com.

Granite LP intends to use the net proceeds of the Offering to refinance existing indebtedness, including the redemption of its Series 2 Senior Debentures due 2021, and for general corporate purposes.

Using a currency interest rate swap, Granite LP exchanged the principal and interest payments denominated in Canadian dollars for payments denominated in euros, resulting in an effective fixed interest rate. 1.045% for the ten-year term of the debentures.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Debentures in any jurisdiction. The Offered Debentures have not been approved or disapproved by any regulatory authority and no such authority has passed on the accuracy or sufficiency of the Amended and Restated Base Shelf Prospectus or Prospectus Supplement.

ABOUT GRANITE

Granite is a Canadian REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 110 investment properties representing approximately 46.6 million square feet of leasable area.

OTHER INFORMATION

Copies of financial data and other public documents relating to Granite are available on the Internet on the Canadian Securities Administrators (SEDAR) electronic document analysis and retrieval system, accessible at www.sedar.com and the United States Securities and Exchange Commission Electronic Data Collection, Analysis, and Retrieval (EDGAR) System, available at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, and the securities may not be offered or sold in the United States unless registered or d ” an applicable exemption from United States registration requirements. Securities Act of 1933, as amended.

For more information, please visit our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at 647-925-7560 or Andrea Sanelli, Manager, Legal and Investor Services, at 647-925-7504.

FORWARD-LOOKING STATEMENTS

This press release may contain statements which, to the extent that they are not statements of historical fact, constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements and forward-looking information may include, among other things, statements regarding the expected closing date of the offering, the use of the net proceeds of the offering, including the redemption of its Series 2 Senior Debentures due in 2021 and Granite’s plans, goals, strategies, intentions, beliefs, estimates, costs, goals, economic performance, expectations or forecasts or assumptions underlying all of the above. Words such as “may”, “would”, “could”, “will”, “probably”, “expect”, “anticipate”, “believe”, “intend”, “plan” , “Anticipate”, “project”, “estimate”, “seek”, “objective” and similar expressions are used to identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be construed as guarantees as to the expected closing date of the offering, the use of the net proceeds of the offering, including the redemption of its Series 2 Senior Debentures due 2021. , or other events, performance or results and will not necessarily constitute precise indications as to whether or when or by which future events or performance will be achieved. We should not place undue reliance on such statements. Forward-looking statements and forward-looking information are based on information available at the time and / or management’s good faith assumptions and analyzes in light of its perception of historical trends, current conditions and expected future developments, as well. that other factors that management believes are appropriate in the circumstances, and are subject to known and unknown risks, uncertainties and other unforeseeable factors, many of which are beyond Granite’s control, which could cause actual events or results differ materially from these forward-looking statements and forward-looking information. Important factors that could cause such differences include, without limitation, the risks set out in the Annual Information Form of Granite Real Estate Investment Trust and Granite REIT Inc. dated March 4, 2020 (the “Annual Information Form”) and the discussions and analysis of operating results and financial condition for the quarter ended September 30, 2020 (“Q3 MD&A”). The “Risk Factors” section of the Annual Information Form and the “Risks and Uncertainties” section of the Third Quarter MD&A also contain information about the material factors or assumptions underlying these forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information speak only as of the date on which the statements and information were made and, except as otherwise provided in applicable securities laws, Granite expressly disclaims any intention and assumes no obligation to update or revise any forward-looking statements or information that appears to be contained in this press release to reflect subsequent or other information, events or circumstances.


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