Scott's REIT - Statement on Priszm

CCAA filing by Priszm allows opportunity to further diversify tenant base across Canada

TORONTO, March 31 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT" or "REIT") released statements today regarding Priszm Income Fund's ("Priszm") announcement that it had successfully received court protection under the Companies' Creditors Arrangement Act ("CCAA"). Scott's REIT understands that all tenanted Priszm KFC and Taco Bell store locations remain open.

"The CCAA filing facilitating the sale of Priszm's KFC and Taco Bell restaurants creates an opportunity for Scott's REIT to further diversify our tenant base and strengthen our property portfolio across Canada," said Evelyn Sutherland, Chief Financial Officer at Scott's REIT.

At the time of the Scott's REIT IPO in 2005, Priszm's KFC/Taco Bell restaurants represented 99 per cent of the tenant base of the REIT. With Scott's REIT's growth, today Priszm represents approximately 50 per cent of its tenant base.

"All stores remain open for business and rent is continuing to be paid," confirmed Sutherland. "It's our understanding that the court order was obtained to facilitate the sale of its restaurants and its large sale transaction with Soul Restaurants Canada Inc."

Scott's REIT has provided their consent to assign leases for 40 of Priszm's locations in British Columbia, Ontario and Quebec. The assignment agreement includes a representation from Soul Restaurants Canada Inc. ("Soul Restaurants"), which has not yet been delivered. Soul Restaurants is an entity controlled by a current European franchisee of Yum! Restaurants International.

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 approximately 75.6 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, 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.

SOURCE Scott's Real Estate Investment Trust

For further information:

For investor information, please contact:
Trish Moran
416-624-5133
trish.moran@scottsreit.com
          For media information, please contact:
Trevor Boudreau
604-564-8209
trevor.boudreau@scottsreit.com

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Scott's Real Estate Investment Trust

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