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Inovalis Real Estate Investment Trust Announces a C$22 Million Private Placement, and the Extension of its Hedging Program at a Significantly More Favourable Rate
Inovalis Real Estate Investment Trust Announces a C$22 Million Private Placement, and the ...
About this update from Inovalis Reit
[{"type":"text","content":"\n\n\n\nInovalis Real Estate Investment Trust Announces a C$22 Million Private Placement, and the Extension of its Hedging Program at a Significantly More Favourable Rate\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, April 25, 2018\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, April 25, 2018 /CNW/ - Inovalis Real Estate Investment Trust (\"Inovalis\" or the \"REIT\") (TSX: INO.UN), a leading Canadian-listed REIT focused on managing and owning a portfolio of high quality assets in Germany and France, is pleased to announce the extension of its foreign exchange hedging program at more favourable rates in comparison to its existing program resulting in immediate accretion to AFFOPU and NAVPU and a C$22.0 Million private placement to institutional investors.\n\nExtension of the Foreign Exchange Hedging Program\n\nThe Euro has continued to significantly outperform relative to the Canadian dollar, and the REIT has capitalized on the foreign exchange movement by extending its EUR/CAD hedging program at a more favorable rate than the existing rate for an additional 18 months, expiring in October 2020. As at December 31, 2017, the REIT's EUR/CAD hedging program was at an average rate of C$1.4776/€. The new hedging program will be based on an average rate of C$1.6414/€, and will be accretive to AFFOPU and NAVPU.\n\nKhalil Hankach, Chief Investment Officer of Inovalis commented: \"Since our IPO, the Euro has appreciated ~19% relative to the Canadian dollar and we believe that the REIT has not benefitted from the positive currency movement. The impact of this currency movement alone, on a leverage neutral basis, should have resulted in a 13% increase in the unit price since our IPO in 2013. We continue to believe there is a significant discount between our current unit price and our underlying asset values. The extension of the foreign exchange hedging program at a more favorable rate, is one of many  initiatives we will be executing on d...