Business & Finance
Business and Finance
Business and Finance
Fri, February 18, 2011
Thu, February 17, 2011 Scott';s Real Estate Investment Trust announces February distribution and extension of $20-million bridge facility
TORONTO, Feb. 17 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT"), owner of 220 retail and restaurant properties in seven provinces across Canada, today announced a cash distribution for the month of February 2011 of $0.0708 per unit payable on March 15, 2011 to Unitholders of record on February 28, 2011. This marks the 63rd consecutive cash distribution declared since Scott's REIT began operations on October 6, 2005.
Scott's REIT also announced today a monthly cash distribution of $0.0708 per unit to Unitholders of record of Class B Limited Partnership Units in Scott's Real Estate LP on February 28th, 2011.
Extension of the $20-Million Bridge Facility
Scott's REIT announced today that it received an extension until June 30, 2011 that was currently scheduled to mature on March 4, 2011. The extension was granted using the same terms as the original loan, with the exception of the interest rate, which has been reduced to BAs plus 325 until June 15, 2011. In the last two weeks of the extension, the interest rate will increase to BAs plus 500.
The REIT is continuing its discussions with lenders to close permanent financing on the $20-Million bridge facility. Although no assurance can be provided that this will be concluded on favourable terms, the REIT believes it is well advanced in negotiating the terms of the financing and is encouraged by the positive discussions to date.
Resignation of Lilly Di Massimo from the Board of Directors of Scott's Trustee Corp.
Lilly Di Massimo has resigned from Scott's Trustee Corp. effective February 17, 2011 for personal reasons.
Governance Committee to Address Priszm Requests
Recently, Priszm Limited Partnership, the Scott's REIT's largest tenant, provided notice and a request to assign eight master leases affecting 79 properties that Scott's REIT owns. The Governance Committee made up of the three Independent Trustees of Scott's REIT and chaired by Don Biback, will co-ordinate all requests and negotiations with Priszm going forward.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 220 properties in seven provinces across Canada. Scott's REIT's properties are well-located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. The REIT has approximately75.6 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at [ http://www.scottsreit.com ].
Forward-Looking Statements
This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT's monthly cash distributions and information relating to the impact of the REIT's recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT's reliance on Priszm Limited Partnership, the REIT's largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's Annual Information Form for the year ended December 31, 2009.You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott's REIT filings with the Canadian securities regulators, available at [ www.sedar.com ].
