Ms. Teresa Neto reports

GRANITE REIT ANNOUNCES C$400 MILLION GREEN BOND OFFERING AND CLOSING OF NEW EUROS70 MILLION TERM LOAN

Granite Real Estate Investment Trust's wholly owned subsidiary Granite REIT Holdings Limited Partnership has priced an offering of $400-million aggregate principal amount of 6.074 per cent Series 7 senior unsecured debentures due April 12, 2029. The debentures will be guaranteed by Granite and Granite REIT Inc. The offering of the debentures is expected to close on or about Oct. 12, 2023, subject to the satisfaction of certain customary closing conditions. The debentures are being issued as Granite's third green bond issuance pursuant to its Green Bond Framework.

The debentures are being offered on an agency basis by a syndicate of agents co-led by Scotia Capital Inc. and TD Securities Inc. It is a condition of closing that DBRS Morningstar and Moody's Investor Service Inc. assign credit ratings of BBB (high) with a stable trend or higher, and Baa2 or higher, respectively, relating to the debentures.

Granite is making the offering in Canada pursuant to its base shelf prospectus dated Oct. 1, 2021. The terms of the offering will be described in a prospectus supplement to the base shelf prospectus to be filed with Canadian securities regulators in each province and territory of Canada and accessible at SEDAR+.

The debentures are being issued as green bonds under Granite's Green Bond Framework, which is available on Granite's website. Granite LP intends to finance or refinance, in whole or in part, expenditures associated with eligible green projects as described in the framework. Initially and prior to the full allocation, the net proceeds from the offering will be used to refinance existing debt, including its Series 3 senior unsecured debentures due Nov. 30, 2023, on maturity, and for general corporate purposes. The failure to allocate funds to eligible green projects will not constitute a default under the terms of the debentures.

Through a cross-currency interest rate swap, Granite LP has exchanged the Canadian-dollar-denominated principal and interest payments for euro-denominated principal and interest payments, resulting in an effective fixed interest rate of 4.9285 per cent for the 5-1/2-year term of the debentures.

New 70-million-euro term loan

On Sept. 7, 2023, Granite LP entered into and fully drew upon a 70.0-million-euro senior unsecured non-revolving term facility that matures on Sept. 8, 2026.

The September, 2026, term loan is fully prepayable without penalty. In conjunction with the September, 2026, term loan, Granite entered into a float-to-fixed interest rate swap to exchange the floating interest payments from the September, 2026, term loan for fixed euro-denominated interest payments resulting in an all-in fixed interest rate of 4.3325 per cent. Granite used the net proceeds from the September, 2026, term loan to fully repay all draws outstanding on Granite's $1-billion unsecured revolving credit facility with the rest to be used for general corporate purposes, including to finance development and property acquisitions.

Granite's available liquidity as at June 30, 2023, was approximately $1,026-million consisting of approximately $119-million of cash and cash equivalents and $907-million of unused capacity under Granite's unsecured revolving credit facility. Pro forma the offering and repayment of the 2023 debentures, Granite's available liquidity is estimated to be $1.2-billion, including its fully undrawn revolving credit facility, and Granite's weighted-average debt term to maturity will improve to 4.4 years (from 3.7 years) offset by a moderate increase to its weighted-average cost of debt to 2.60 per cent (from 2.27 per cent) (1).

About Granite Real Estate Investment Trust

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 143 investment properties representing approximately 62.9 million square feet of leasable area.

(1) Available liquidity does not have a standardized meaning under international financial reporting standards, and, therefore, it may not be comparable with similarly titled measures presented by other publicly traded entities. Available liquidity is a non-international financial reporting standard performance measure defined as the sum of cash and cash equivalents and the unused portion of the unsecured revolving credit facility. Please refer to the basis of presentation and non-IFRS performance measures sections of management's discussion and analysis of operations and financial position of Granite Real Estate Investment Trust and Granite REIT for the year ended Dec. 31, 2022, and the six months ended June 30, 2023, which sections are incorporated herein by reference.

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