Real Estate Split Corp. Renews At-The-Market Equity Program Under New Regulation

Real Estate Split Corp., a Canadian investment company, has recently renewed its At-The-Market (ATM) equity program, which allows the company to issue additional Class A and Preferred Shares. This program gives the company the ability to sell shares directly into the open market, specifically on the Toronto Stock Exchange (TSX) or any other Canadian marketplace, depending on the prevailing market conditions.

Under the renewed program, the company will work with National Bank Financial Inc., which will serve as the agent for executing these share sales. The price at which the shares are sold will be determined by the market conditions at the time of the transaction, ensuring that the Company can raise funds efficiently and in a flexible manner.

This renewal aligns with the company’s strategy of raising capital to support its ongoing real estate investment activities, providing it with the financial flexibility necessary to pursue its objectives. The renewed ATM program, which went into effect on February 14, 2025, is governed by National Instrument 44-102, a Canadian regulation that covers shelf distributions of securities. This regulation is designed to streamline the process of raising capital by allowing companies to issue securities without having to file a new prospectus each time they wish to raise funds.

Instead, the company can sell shares within a predetermined amount, making the process simpler and more cost-effective. By renewing the ATM program, Real Estate Split Corp. is taking advantage of this regulation to raise capital in a manner that complies with Canadian securities laws while giving the company the flexibility to adjust its capital structure as needed. This ensures the company can continue to build its portfolio of real estate investments while adhering to legal requirements and maintaining investor confidence.

Real Estate Split Corp. plans to use the funds raised through the ATM program to further its investment strategy, which focuses on creating a well-diversified portfolio of real estate assets. The company’s real estate investments include key sectors such as healthcare, multi-family properties, retail spaces, office buildings, and data infrastructure.

This diverse mix of real estate types helps mitigate risk and provides opportunities for long-term growth. The company’s management team, led by Middlefield Capital Corporation, provides ongoing investment advice to ensure that the portfolio aligns with market opportunities and maximizes value for shareholders. The diversification strategy is intended to protect the company’s investments from downturns in any one sector, thus offering stability and resilience in uncertain market conditions.

Under the terms of the renewed program, Real Estate Split Corp. is authorized to issue up to $75,000,000 worth of both Class A and Preferred Shares. This cap on gross proceeds means that the company can issue shares up to this amount over the course of the ATM program’s duration. The sales will occur at the company’s discretion, based on market conditions and its capital needs.

The flexibility inherent in this program allows the company to issue shares gradually, as necessary, without being required to issue a large volume of shares at once. This structured approach ensures that the company can raise capital when needed while minimizing the risk of excessive dilution to existing shareholders. Additionally, the program will remain in effect until March 13, 2027, unless the company terminates the program earlier, giving the company an extended period to access capital as needed.

The Class A and Preferred Shares offered under the ATM program are designed to meet different investor needs. Class A shareholders are primarily seeking capital appreciation and non-cumulative monthly cash distributions. This means that Class A shareholders will receive payments based on the company’s performance, with no guarantee that these payments will continue in future months. On the other hand, Preferred Shareholders are offered a more stable investment, with fixed, cumulative quarterly cash distributions.

Preferred Shares are designed for investors who prioritize regular income over capital appreciation, as they offer a predictable stream of cash payments. The company’s commitment to return the original issue price of the Preferred Shares by December 31, 2025, provides added assurance for these investors. These investment structures allow Real Estate Split Corp. to cater to a broad spectrum of investors, from those seeking more stability and fixed returns to those looking for long-term growth potential.

It’s important for potential investors to understand the details of how these shares are sold and priced. When buying shares through the ATM program, investors may face brokerage fees, which could affect the total cost of their investment. The price at which the shares are bought will be influenced by the market conditions, and it may differ from the current net asset value of the shares. This means that investors should be prepared for price fluctuations, especially in the short term.

Additionally, it is essential for investors to recognize that investments in real estate funds, like those offered by Real Estate Split Corp., are not guaranteed and carry risks. The value of the shares could fluctuate based on factors such as market demand, economic conditions, and the performance of the underlying real estate assets. For this reason, past performance of the fund should not be relied upon as an indicator of future results.

To ensure transparency and allow investors to make informed decisions, detailed information about the company’s operations, including risk factors, financial performance, and management strategies, can be found in public filings. These filings are available through the System for Electronic Document Analysis and Retrieval (SEDAR), the Canadian regulatory body for securities filings. By accessing these filings, investors can obtain a clear picture of how Real Estate Split Corp. is managing its portfolio and executing its investment strategy.

This transparency is crucial for maintaining trust and allowing investors to evaluate whether the investment aligns with their financial goals and risk tolerance. Furthermore, the company’s commitment to regularly updating these filings ensures that investors have access to the most current and accurate information about the company’s financial health and market outlook.

In summary, the renewal of the ATM equity program by Real Estate Split Corp. presents a significant opportunity for both the company and its investors. The flexibility provided by the program allows the company to raise capital as needed, while adhering to regulatory requirements. This enables the company to continue building a diversified portfolio of real estate assets, offering stability and growth potential.

At the same time, the program offers different investment options tailored to various investor preferences, whether they seek capital growth or consistent income. Through transparent communication and the use of regulatory frameworks like National Instrument 44-102, the company ensures that its operations remain compliant, providing investors with a clear understanding of the risks and rewards involved in investing in its shares.