MORGUARD REIT ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

MISSISSAUGA, ON, Dec. 13, 2021 /CNW/ - Morguard Real Estate Investment Trust ("Morguard REIT" or the "REIT") (TSX: MRT.UN), announced today that it has successfully closed the issuance of an additional $9 million aggregate principal amount of its 5.25% convertible unsecured subordinated debentures due December 31, 2026 (the "Debentures") pursuant to the exercise in full of the over-allotment option granted by the REIT to the syndicate of underwriters in connection with the REIT's previously announced offering of $150 million aggregate principal amount of Debentures, which closed on December 7, 2021. The gross proceeds from the offering (the "Offering"), including the proceeds from the exercise of the over-allotment option, are $159 million. The Debentures are listed on the Toronto Stock Exchange under the symbol MRT.DB.A.

The REIT intends to use the net proceeds from the Offering, together with existing liquidity, to fund the redemption on December 17, 2021 of all of the REIT's 4.50% convertible unsecured subordinated debentures (current outstanding principal balance of approximately $175 million).

The syndicate of underwriters was co-led by RBC Capital Markets, TD Securities Inc. and Scotiabank, with RBC Capital Markets and TD Securities Inc. acting as bookrunners.

The Debentures, and the units of the REIT underlying the Debentures, have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States or to, or for the account or benefit of, U.S. Persons.

About Morguard REIT

Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 46 high quality retail, office and industrial income producing properties in Canada with a book value of $2.5 billion and consisting of approximately 8.3 million square feet of leasable space.

Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the REIT's business results of operations, proposed use of proceeds from the Offering (including any redemption) and the timing thereof. Forward-looking statements use the words "believe", "expect", "anticipate", "may", "should", "intend", "estimate" and other similar terms, which do not relate to historical matters. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause the actual results to differ materially from those indicated. Such factors include, but are not limited to, general economic conditions, the availability of new competitive supply of commercial real estate that may become available either through construction or sublease, the REIT's ability to maintain occupancy and to lease or re-lease space on a timely basis at current or anticipated rates, tenant bankruptcies, financial difficulties and defaults, changes in interest rates, changes in operating costs, the REIT's ability to obtain adequate insurance coverage at a reasonable cost, the ability to complete potential acquisitions and the availability of financing. The REIT believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; however, the REIT can give no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, the REIT disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Readers should be cautioned not to place undue reliance on the forward-looking statements.

SOURCE Morguard Real Estate Investment Trust