Artis REIT holder Sandpiper holds 20.6 million units

Executive Summary

• Sandpiper Group, along with joint actors, increased its beneficial ownership in Artis Real Estate Investment Trust (ARTS) to 21.47% of issued and outstanding units.
• The increase was achieved through the open-market purchase of 1,920,600 units between November 16, 2022, and January 8, 2026, for a total consideration of $14.68 million.
• Sandpiper’s CEO cited the proposed merger between Artis and RFA Capital as a key driver for the investment, describing it as a transition to a growth-oriented financial services platform with potential for substantial returns.

Key Details

• Ownership Increase: Sandpiper and joint actors now hold 20,606,359 units, representing approximately 21.47% of the 95,966,473 issued and outstanding units.
• Previous Position: Prior to these acquisitions, Sandpiper held 18,685,759 units, representing approximately 16.14% of the issued and outstanding units.
• Transaction Volume: Sandpiper acquired an aggregate of 1,920,600 units in the open market under Toronto Stock Exchange facilities.
• Financial Consideration: The aggregate consideration paid was $14.68 million, calculated at an average price of $7.64 per unit.
• Regulatory Basis: The purchases were made in reliance on the normal course purchase exemption under Section 4.1 of National Instrument 62-104, ensuring the acquisition did not exceed 5% of outstanding units and was priced at or below market value plus brokerage fees.
• Strategic Rationale: The units were acquired for investment purposes, specifically driven by confidence in the proposed merger with RFA Capital, which aims to transition Artis into a growth-oriented financial services platform and provide exposure to a Schedule 1 bank in Canada.

Notable Quotes

• "As a significant long term unitholder of Artis, we continue to believe in the strong, underlying value of Artis. More importantly, we believe the proposed merger with RFA Capital is extremely compelling. This combination will, amongst other things, transition a diversified REIT to a growth oriented, financial services platform that we believe has far greater potential, including the ability to achieve substantial returns on capital invested in each of RFA's key operating verticals. The opportunity to participate in the expansion and scaling of a Schedule 1 bank in Canada is unique and rare. We are confident and optimistic about the value creation opportunity that lies ahead and what the merger represents for all of the owners of the resulting issuer, RFA Financial," — Samir Manji, CEO of Sandpiper Group.