Scott's REIT comments on sale of Priszm outlets in Alberta and Manitoba
TORONTO, May 18, 2012 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT" or the "REIT") commented today that it had been advised that Priszm Income Fund and related entities ("Priszm") received an order by the court approving the sale of 57 restaurants located in Alberta and Manitoba to Hi-Flyer Food (Canada) Inc. ("Hi-Flyer"), a Canadian subsidiary of a pre-existing KFC franchisee in the Philippines.
Of the restaurant locations being sold, Scott's REIT is the landlord of 13 locations, four in Manitoba and nine in Alberta. The REIT has one property located in Brooks, Alberta that is not part of the sale transaction and continues to be leased by Priszm.
Following the completion of this sale, 52 locations (51 locations in Quebec and 1 in Alberta) totalling 127,696 square feet of gross leasable area ("GLA") will continue to be leased to Priszm, representing 12.4% of the REIT's GLA and 13.9% of minimum rent.
"We are pleased that the sale transaction of Priszm's remaining Western Canadian locations has been approved and look forward to completing the necessary lease assignments with Hi-Flyer. This transaction continues the trend of further diversifying our tenant base and reducing our reliance on Priszm," said Kevin Salsberg, Chief Operating Officer at Scott's REIT. "This sale brings Scott's REIT one step closer to realizing a conclusion of the Priszm matter and returning to a core focus of growing Scott's REIT with a strong, diversified and stable tenant base across Canada."
This press release contains certain information or statements that may constitute forward-looking information within the meaning of securities laws, which reflect the current view of Scott's REIT 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 press release 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 press release 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 Priszm Limited Partnership "Priszm", the REIT's second largest tenant, 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.
Scott's REIT 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.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 229 properties in eight 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. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at www.scottsreit.com.
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