Crombie REIT (TSX:CRR.UN)
STELLARTON, NS, Oct. 7, 2013 /CNW/ - Crombie Real Estate Investment Trust (TSX: CRR.UN) ("Crombie") today announced that it has been assigned a DBRS Provisional Rating of BBB (low) with a Stable trend.
This is the first time DBRS has rated Crombie. In its report, DBRS noted Crombie's steady earnings growth resulting from property acquisitions from Empire Company Limited ("Empire") and Sobeys Inc. ("Sobeys") including properties to be acquired from Sobeys as part of the pending Canada Safeway transaction, as well as third-party vendors; the quality and defensive nature of Crombie's grocery and drugstore anchored retail properties; improving geographic diversification in urban markets; and the long term leases with Sobeys, Crombie's major tenant. DBRS also noted Crombie's track record of consistent, conservative financial management.
"Crombie is pleased to have achieved this institutional investment grade credit rating as it acknowledges the quality and growth of our national real estate portfolio and platform" said Donald Clow, FCA, Chief Executive Officer of Crombie. "Earning an investment grade credit rating from DBRS may provide Crombie with access to new sources of capital, additional liquidity and further financial flexibility which helps Crombie deliver on our long term strategy. The competitive advantage we derive from our strategic relationship with Empire and Sobeys has provided us with the opportunity to soon acquire 68 Canada Safeway locations which we expect will be instrumental in continuing our long-term strategy of building our national portfolio of grocery and drug store anchored retail properties with emphasis on Canada's Top 36 markets."
To view the full DBRS news release, visit http://www.dbrs.com/research/261386/dbrs-assigns-a-provisional-rating-of-bbb-low-to-crombie-reit-stable-trend.html.
Crombie is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie currently owns a portfolio of 180 commercial properties across Canada, comprising approximately 14.6 million square feet with a strategy to own and operate a portfolio of primarily high quality grocery and drug store anchored shopping centers and freestanding stores focused primarily on Canada's top 36 markets.
This news release may contain forward-looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "continue", "may", "will", "estimate", "anticipate", "believe", "expect", "intend" and similar expressions have been used to identify these forward-looking statements. These statements reflect current beliefs and are based on information currently available to management of Crombie, and include, without limitation, statements regarding: potential new sources of capital providing further opportunities to gain additional liquidity and financial flexibility, which may be impacted by debt market conditions from time to time; and completion of the acquisition of Safeway properties which may be impacted by regulatory approvals and other closing conditions.
Readers are cautioned that such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Crombie can give no assurance that actual results will be consistent with these forward-looking statements. A number of factors, including those discussed under "Risk Management" in Crombie's annual Management Discussion and Analysis for the year ended December 31, 2012, could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward-looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct.
SOURCE: Crombie REIT
For further information:
Glenn Hynes, FCA
Chief Financial Officer and Secretary