KEYreit announces completion of $37 million Ontario refinancing
- Traditional mortgage replaces more expensive $34 million bridge facility
TORONTO, Sept. 19, 2012 /CNW/ - KEYreit (TSX: KRE.UN) ("KEYreit") today announced that it closed the previously announced first mortgage with First National Financial LP in the amount of $37 million. The mortgage is secured by 70 properties located in Ontario ("Ontario IPO Properties"). The mortgage has a term of five years, is amortized over a 20-year period, and bears an interest rate of 4.60 per cent.
The net proceeds from the mortgage were used to repay fully the $34 million first and second mortgages outstanding with Firm Capital Corporation which currently bore an interest rate of 7.0 percent and were set to mature on September 7, 2013.
"KEYreit's original IPO loan of $65 million related to our initial property portfolio in four regions of Canada: Ontario, Quebec, Western Canada and Atlantic Canada. This refinancing takes care of the Ontario IPO Properties from that loan, and earlier this year, we refinanced the Atlantic Canada properties. Now that Priszm has announced the sale of their last group of restaurants in Quebec to a strong international operator of quick service restaurants, we expect to refinance the Quebec properties in the coming months to take out the remainder of the IPO loan", said Teresa Neto" Chief Financial Officer of the REIT. "This will leave several unencumbered properties in the west that KEYreit hopes to refinance separately."
As of today's date KEYreit's cash balance is approximately $14.5 million.
KEYreit (TSX: KRE.UN) (formerly Scott's Real Estate Investment Trust) is Canada's premier small-box retail property owner with 229 properties in eight provinces across Canada. KEYreit's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases.
To find out more about KEYreit (TSX: KRE.UN), visit our website at www.keyreit.com.
This MD&A contains certain information or statements that may constitute forward-looking information within the meaning of securities laws, which reflect the current view of KEYreit with respect to the REIT's objectives, plans, goals, strategies, future growth, results of financial performance, financial and operating performance and business prospectus and opportunities . 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. In particular, forward-looking information included in this MD&A includes, but is not limited to, statements with respect to the REIT's ability to lease vacant property units, collect minimum rents, diversify its tenant base, undertake land intensification projects, refinance loans and mortgages at their maturity, complete accretive acquisitions, and maintain or grow monthly cash distribution levels, and also with respect to the timing of such events. Forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. All of the statements and information in this MD&A containing forward-looking information are qualified by these cautionary statements.
Forward-looking statements are based on information available at the time they are made, underlying estimates and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally which could cause actual results to differ materially from what is currently expected. Such risks and uncertainties include, but are not limited to the REIT's reliance on key tenants, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, distributions, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT's most recent Annual Information Form available on SEDAR at www.sedar.com. Additional risks and uncertainties not presently known to the REIT or that the REIT currently believes to be less significant may also adversely affect the REIT.
KEYreit cautions readers that the list of factors is not exhaustive and that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual events, performance and results may vary significantly from those expected. There can be no assurance that the actual results, performance, events or activities anticipated by the REIT will be realized or, even if substantially realized, that they will have the expected consequences to, or effect on, the REIT. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The REIT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
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