Canadian retail REITs on debt-financing spree

The report showed that diversified and industrial REITs secured $250 million and $200 million, respectively.

Choice Properties REIT emerged as the top capital raiser in the second quarter, issuing C$500 million worth of 5.030% senior unsecured debentures maturing in February 2031.

The retail-focused company plans to use the net proceeds to repay its outstanding C$550 million aggregate principal amount of 3.556% series K senior unsecured debentures, maturing in September.

Other significant capital raises in Q2 included shopping centre REITs First Capital and RioCan, each raising $300 million.

First Capital REIT issued $300 million of 5.455% series C senior unsecured debentures due June 2032, while RioCan REIT offered $300 million of 5.455% series AK senior unsecured debentures due March 2031. Both companies intend to use the net proceeds to repay existing debt.