Business & Finance
Business and Finance
Business and Finance
Thu, March 31, 2011
Wed, March 30, 2011 
RICHMOND, BC, March 30 /CNW/ - Huntingdon Real Estate Investment Trust (the "Trust" or "HREIT") (TSX: HNT.UN) today announced an update on 2011 operations.
Convertible Debentures Redemption
With the objectives of continuing to improve the capital structure and reduce costs, during April 2011 management intends to redeem $10 million of HREIT's series C convertible debentures ("debentures") maturing March 31, 2012. Management intends to redeem the debentures from available cash resources. Once complete, this will reduce HREIT's total outstanding convertible debentures to $38 million and will result in annual savings of $750,000 in finance expense. Management will continue to focus on refinancing options for the debentures with the objective of minimizing future dilution to current unitholders.
Normal Course Issuer Bid
Management intends to renew its normal course issuer bid ("NCIB") for outstanding trust units ("Units") and debentures. Upon the expiration of its current NCIB, which expires April 11, 2011, management intends to apply to the Toronto Stock Exchange to renew its NCIB to repurchase up to 10% of the public float of Units.
Calgary Office Closure
Management has decided to close the Calgary, AB office and eliminate the Chief Operating Officer position of the Trust. HREIT will be repositioned along regional operating lines in an effort to increase efficiencies and communication. This closure and transition will be effective March 31, 2011.
HREIT is a real estate investment trust which is listed on the Toronto Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns, directly or indirectly, 78 income producing office, industrial, retail and standalone parking lot properties, including the aviation-related facilities at five of Canada's leading international airports that have a total gross leasable area of 5.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.
Forward-Looking Information:
Certain statements contained in this press release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include , but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and rate fluctuations. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in HREIT's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis. HREIT cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and HREIT does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.
The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
