Mr. Milton Lamb reports

AUTOMOTIVE PROPERTIES REIT ANNOUNCES $35 MILLION EQUITY OFFERING

Automotive Properties Real Estate Investment Trust has entered into an agreement to sell 3.34 million units of the REIT, on a bought deal basis, at a price $10.50 per unit to a syndicate of underwriters co-led by TD Securities Inc. and Canaccord Genuity Corp. for gross proceeds of approximately $35-million.

In addition, the REIT has granted the syndicate of underwriters an overallotment option, exercisable in whole or in part, at any one time up to 30 days following closing of the offering, to purchase up to an additional 501,000 units at the offering price, which, if exercised in full, would increase the gross proceeds of the offering to approximately $40-million.

893353 Alberta Inc. (Dilawri) has waived its pre-emptive right in connection with the offering.

Closing of the offering is expected to occur on or about Sept. 19, 2016, and is subject to certain customary conditions, including approval of the Toronto Stock Exchange.

The REIT intends to use the net proceeds from the offering to finance the $17.2-million purchase price for the previously announced acquisition of the Pfaff Audi dealership property, located in Vaughan, Ont. The acquisition is expected to close by early October, 2016. The balance of the net proceeds from the offering will be used to repay indebtedness and for general business purposes. The previously announced new $14.6-million revolving credit facility with a major Canadian chartered bank will not be used to finance the acquisition and is expected to be undrawn at the closing of the offering.

Assuming successful completion of the offering and the acquisition and the repayment of approximately $15.5-million of the REIT's outstanding indebtedness from the proceeds of the offering, the REIT expects its pro forma debt to gross book value at June 30, 2016, to be approximately 50 per cent (compared with 55.6 per cent at June 30, 2016). Approximately $15-million of the indebtedness expected to be repaid was incurred by the REIT to finance its three previously announced acquisitions.

In addition to the acquisition, the REIT is in various stages of negotiations and due diligence in respect of other potential acquisitions, including under the strategic alliance agreement with Dilawri. There can be no assurance that these negotiations will result in acquisitions or, if they do, what the final terms or timing of such acquisitions would be.

The units will be offered by way of a short form prospectus to be filed on or about Sept. 12, 2016, with the securities commissions and other similar regulatory authorities in each of the provinces of Canada.

About Automotive Properties

The REIT's portfolio of 29 income-producing commercial properties represents approximately 1.1 million square feet of gross leasable area in Ontario, Saskatchewan, Alberta, British Columbia and Quebec.

We seek Safe Harbor.