TORONTO, Jan. 18, 2012 /CNW/ - Scott's Real Estate Investment Trust
(TSX: SRQ.UN) ("Scott's REIT") today announced a cash distribution for
of $0.0708 per unit for the month of January 2012. The distribution
will be payable on February 15, 2012 to Unitholders of record on
January 31, 2012.
Scott's REIT reviews the amount of its distributions on an ongoing basis
and considers a number of factors including expected cash flows based
on occupancy rates, operating expenses, capital expenditures and debt
service requirements. Although Scott's REIT has maintained the same
distribution amount for 74 consecutive months in accordance with its
distribution policy, there can be no assurance that any future
distributions will be at the current level.
Update on Priszm
On January 16, 2012, the Receiver (Duff & Phelps Canada Restructuring
Inc., formerly Richter Inc.) for Priszm Income Fund ("Priszm") gave
notice to the REIT that it intends to disclaim an additional eleven
leases effective January 27, 2012. All eleven leases are located in the
province of Quebec.
The REIT plans to market the eleven sites immediately and will either
re-lease or potentially dispose of the properties.
"We believe we are getting close to understanding what restaurants KFC
will be operating after Priszm completes the sales of its restaurants
to new operators, and this will help us stabilize our portfolio going
forward," said Teresa Neto, CFO of Scott's REIT. "While it has taken a
year to get through this process, Scott's REIT will come out of the
Priszm situation stronger, with more tenant diversity and upgraded
In total, Priszm has turned back 43 sites thus far (including the 11
disclaimed Quebec sites) of which 14 have been re-leased.
"It will take the balance of 2012 to re-lease the bulk of these sites,
but so far Scott's REIT has received strong interest in most of the
vacant locations," said Ms. Neto. "We finished the year with an
occupancy rate of approximately 95.1 per cent which is a strong number.
Including committed occupancy and these eleven disclaimed sites our
occupancy drops only modestly to 93.6 per cent."
Scott's REIT continues to pursue its claim on the proceeds from the
sales of Priszm's operations, and the Receiver continues to set aside
$13.4 million from those proceeds until such claim is determined. There
can be no assurance as to the outcome of any litigation involving this
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.
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
LP, the REIT's largest tenant in terms of rental revenue, 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, 2010. 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
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