Ravelin Properties REIT Announces Extended Loan Forbearance Periods and Indebtedness Waiver

Executive Summary

• Ravelin Properties REIT secured an extension of the forbearance period on loans totaling approximately CAD $528.3 million and US $45.5 million to March 31, 2026.
• The interest rate on these loans was increased to a weighted‑average 10.0% (cash 6.0% + PIK 4.0%) effective October 1, 2025.
• The REIT also extended the waiver of its indebtedness restriction until December 31, 2026 while it explores a potential recapitalization plan.

Key Details

• Forbearance Extension: G2S2 Capital agreed to extend forbearance on the aggregate Loans (CAD $528.3 M + US $45.5 M) to 31 Mar 2026 at the request of an independent committee of trustees.
• 120 South LaSalle Loan Transfer: The loan on the Chicago property (~US $84 M) was sold and assigned to G2S2; its forbearance also runs until 31 Mar 2026.
• Interest Amendment: Effective 1 Oct 2025, interest rate increased to 10.0% (cash 6.0%, PIK 4.0%). This is a related‑party transaction (G2S2 controlled by insider George Armoyan).
• Restrictions Relief: Certain cash‑use restrictions under the 120 South LaSalle Loan were removed; no anticipated material impact beyond capital preservation.
• Waiver Extension: The waiver of the REIT’s indebtedness restriction (originally effective until 31 Dec 2025) is now extended to 31 Dec 2026; the restriction will revive on 1 Jan 2027.
• Recapitalization Discussions: Trustees are negotiating with G2S2 and other lenders, and plan to engage convertible debenture holders; no agreement reached yet.
• Going‑Concern Risk: The REIT remains in serious financial difficulty; success of any recapitalization or additional financing is uncertain.

Notable Quotes

(No direct quotes were provided in the release.)