Scott's REIT receives request from Priszm Limited Partnership to assign 79 leases

TORONTO, Feb. 8 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") today announced that it had received notice and a request from its largest tenant, Priszm Limited Partnership ("Priszm") to assign eight master leases affecting 79 properties that Scott's REIT owns. Six of the properties are located in British Columbia, three in Quebec and the remainder in Ontario.

A further update will be provided after Scott's REIT fully evaluates its options under the leases and obtains additional information on the proposed new tenant. As previously communicated, Priszm would remain as a guarantor on all lease assignments.

Priszm is the principal tenant of Scott's REIT, operating KFC, Pizza Hut and Taco Bell restaurants at 187 of Scott's REIT properties and, as well, is the guarantor of three of the Scott's REIT properties that operate as KFC restaurants. Priszm has recently issued a number of press releases with respect to the sale of its restaurants and arrangements with its senior lender and franchisor and the servicing of its debt. Priszm's filings are available under Priszm Income Fund on www.sedar.com.

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@tbcommunications.ca

Profil de l'entreprise

Scott's Real Estate Investment Trust

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