Milestone Apartments REIT Announces the Refinancing of US$228.6 Million Mortgage Debt Facility

- Extends Weighted Average Maturity of the Facility from 2015 to 2022 -

TORONTO AND DALLAS, April 30, 2014 /CNW/ - Milestone Apartments REIT (TSX: MST.UN) ("Milestone" or the "REIT") today announces the refinancing and successful close of its US$228.6 million mortgage debt facility (the "Facility").

Under its previous terms, the US$228.6 million Facility comprised approximately 30% of the REIT's total debt outstanding, was secured by 20 properties and was set to mature on April 1, 2015. Under the refinanced terms, the Facility will be an interest-only loan and provide additional capital of approximately US$50 million with a total weighted average interest rate of 3.46%, for a total balance of US$278.7 million. The US$50.0 million of additional capital raised through this refinancing will be used for future acquisitions and general business purposes. This refinanced Facility does not include any specific financial covenants.

This refinanced Facility is interest only, thus increasing the REIT's available cash flow. It also extends a large portion of the REIT's debt due in 2015 to a staggered maturity schedule of six, seven, nine and 10-year periods, in turn extending the overall weighted average maturity of the Facility from 2015 to 2022. The fixed loan portion represents approximately 82.5% of the Facility with an interest rate of 3.83%, with the remaining 17.5% comprised of a six year variable rate loan with an interest rate of 155 basis points over LIBOR. Subsequent to this refinancing, the total fixed interest rate indebtedness of the REIT's total debt portfolio is approximately 90%. The REIT estimates its debt to gross book value will remain consistent with its targeted level of approximately 55% upon closing of this refinancing.

Robert Landin, CEO of the REIT, stated: "We are extremely pleased with the successful refinancing of this component of our senior debt. The execution of this transaction is indicative of the continuing evolution and optimization of Milestone's capital structure by management, reflecting our ongoing focus of enhancing unitholder value. The refinancing of our US$228.6 million Facility previously set to mature on April 1, 2015 allows us to stagger our debt maturities, extend the Facility's overall weighted average debt maturity from 2015 to 2022, as well as create approximately US$50.0 million of lower cost capital to be used for future acquisitions and general business purposes, reflecting an increase in the market value of our assets."

About Milestone Apartments REIT
Milestone Apartments REIT is an unincorporated, open-ended real estate investment trust that is governed under the laws of Ontario. The REIT's portfolio consists of 54 multifamily garden-style residential properties, comprising 17,648 units that are located in 11 major metropolitan markets throughout the Southeast and Southwest United States. Milestone Apartments REIT is the largest REIT listed on the TSX focused solely on the U.S. multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, with more than 900 employees across the U.S. Based in Dallas, TX, TMG Partners, L.P., an affiliate of The Milestone Group, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.

About The Milestone Group
The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. The firm has corporate offices in Dallas, TX and New York, NY with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than US$4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.

Forward-looking information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions.  These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the optimization of the REIT's capital structure, acquisitions, available cash flow and creating unitholder value. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's annual information form available at www.sedar.com. The forward-looking statements in this news release are based on certain assumptions. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.  

SOURCE: Milestone Apartments REIT

Robert Debs, Investor Relations
Milestone Apartments REIT
Tel: [phone]

Bruce Wigle, Investor Relations
Bryan Mills Iradesso (BMIR)
Tel: [phone], x 232