Starlight Offers 6.85% Yield on New Real Asset Preferred Unit

TORONTO, ON – May 22, 2026 – Starlight Investments Capital GP Inc. is tapping into the market for income-focused investments, announcing that its Global Real Assets Trust has filed a final prospectus for a new series of preferred units. The offering introduces Series 1 preferred units at a price of $25.00 each, carrying a fixed cumulative annual distribution of 6.85%.

The offering is being led by a syndicate of agents including CIBC World Markets Inc., National Bank Financial Inc., and Scotia Capital Inc. The new securities have received conditional approval to trade on the Toronto Stock Exchange under the ticker symbol GLRA.PR.A, with the offering expected to close on or about May 29, 2026.

This move by Starlight Capital, a subsidiary of the $30 billion real estate giant Starlight Investments, signals a strategic effort to both raise capital for new investments and finalize a significant internal restructuring.

A Stable Income Gateway to Global Real Assets

For investors navigating a complex economic environment, the offering presents a compelling fixed-income opportunity. The primary draw is the 6.85% annual yield, paid out in fixed cumulative preferential quarterly cash distributions of $0.428 per unit. This translates to an annual payout of $1.71 for each $25.00 unit.

The structure of these preferred units is designed to appeal to those seeking predictable returns. Unlike common equity, which can have fluctuating dividends, these units offer a fixed, cumulative distribution, meaning any missed payments must be paid out before common unitholders receive distributions. The yield is notably higher than the current distributions on the Trust's existing Series F units (6.08% yield) and Series B units (6.29% yield), reflecting the preferential but non-participating nature of this new series.

Furthermore, the units come with a defined redemption date. The Trust intends to redeem the units at their original $25.00 issue price on or about May 31, 2031, providing investors with a clear timeline for capital return. The terms do, however, allow the trustees to extend this date for successive terms, a detail investors will need to consider.

Strategic Capital for Reorganization and Growth

The capital raise is not just about attracting new investment; it serves a crucial dual purpose. According to the prospectus, up to 50% of the net proceeds will be used to fund a special redemption right for existing unitholders. This is directly linked to a significant 2025 reorganization where several private investment pools—specifically the Starlight Private Global Infrastructure Pool, Starlight Private Global Real Estate Pool, and Starlight Global Private Equity Pool—were merged into the Global Real Assets Trust.

This allocation of funds allows the Trust to provide liquidity to unitholders affected by the consolidation, a strategic step to ensure a smooth transition following the merger. Redemption transactions for existing units have been suspended pending the completion of this offering, highlighting its importance in the Trust's broader corporate strategy.

The remaining proceeds, which will constitute at least 50% of the net funds raised, are earmarked for growth. This capital will be deployed in line with the Trust's core investment objective: acquiring a portfolio of institutional-quality global real assets. The strategy focuses on a concentrated portfolio of 50 to 80 actively managed, publicly listed global infrastructure and real estate securities, supplemented with access to private real estate and infrastructure investments. This infusion of capital will enable the Trust, under the management of CEO and CIO Dennis Mitchell, to expand its footprint in these target sectors.

Tapping into a Growing Market Appetite

Starlight's offering arrives at a time of heightened investor interest in real assets. In an era of inflationary pressures and market volatility, assets like real estate and infrastructure are increasingly sought for their ability to provide stable, inflation-linked cash flows and portfolio diversification.

Real assets often exhibit a low correlation to traditional equity and bond markets, making them an attractive component for reducing overall portfolio risk. Infrastructure projects and income-generating properties can provide predictable revenue streams that are often contractually tied to inflation, offering a natural hedge against rising prices. This has made the sector a popular destination for capital from both institutional and retail investors.

The Global Real Assets Trust's strategy is designed to capitalize on this trend by providing a vehicle for investors to gain exposure to a professionally managed, diversified portfolio of these assets. By combining both public and private real assets, the Trust aims to deliver a blend of income and long-term capital appreciation that is difficult for individual investors to replicate on their own. The launch of these preferred units effectively broadens the on-ramp for investors who may prioritize stable income over the higher-risk, higher-reward profile of common equity.

Navigating the Fine Print and Associated Risks

While the 6.85% yield is attractive, prospective investors must consider the details outlined in the final prospectus, available on the SEDAR+ database. The document details several risk factors inherent in the investment. Key among them is interest rate risk; should prevailing interest rates rise significantly, the fixed 6.85% distribution may become less competitive, potentially impacting the market price of the units.

There is also redemption risk. The Trust holds the right to redeem the units on the termination date, but also has the option to extend the term. This flexibility for the issuer introduces a degree of uncertainty for the investor regarding the final return of capital. Furthermore, although the units are conditionally approved for a TSX listing, the liquidity of preferred units can vary, which may affect an investor's ability to sell their holdings at a desired price and time.

Finally, the performance of the Trust is intrinsically linked to the performance of its underlying global assets and the expertise of its management team at Starlight Capital. Factors such as foreign exchange fluctuations, sector-specific downturns in real estate or infrastructure, and overall market risk could all impact the Trust’s ability to meet its objectives. The offering represents a calculated move by Starlight to strengthen its capital base and expand its investment capacity in a market that continues to show strong demand for alternative, income-generating assets.