Scott's Real Estate Investment Trust extends mortgage for one month

TORONTO, Dec. 31 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT"), today announced that it has received a one-month extension on its mortgage that is currently scheduled to mature on January 1, 2011. The extension was granted using the same terms as the original loan - 4.9 per cent interest only, payable monthly. Scott's REIT has also obtained approval for a six-month extension from its A note holders, but is awaiting formal consent from its B note holder.

Scott's REIT anticipates that it will receive approval for the additional five months within the one month time frame. The current loan maturity is on February 1, 2011.

Scott's will pay a total extension fee of 0.5 per cent on the remaining loan balance. Only 1/6 of that fee is considered earned under the current one-month extension. Should no further extensions be provided, the remaining prepayment will be applied against the principal loan balance outstanding at that time.

Scott's REIT revenue and expenses are stable. Its tenant default rate remains low because of the REIT's focus on long-term leases and strong national brand tenant base. While Scott's REIT has many properties in this mortgage with Priszm Income Fund ("Priszm"), its recent announcement regarding a sale of restaurants should not have an impact on Scott's REIT as Priszm will remain as a guarantor on the lease along with the new owner of the restaurants if the sale is completed.

Scott's REIT has interest and is continuing its discussions with lenders to close the financing for the $65-million loan and $20-million outstanding bridge facility over the next six months. Although no assurance can be provided that this will be concluded on favourable terms, the company believes it is well advanced in negotiating the terms of the financing and is encouraged by the positive discussions to date.

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 REIT, visit our website at

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 LP, 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


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Trevor Boudreau

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