New acquisitions further diversify asset portfolio
REIT announces December distribution
TORONTO, Dec. 19 /CNW/ - Scott's Real Estate Investment Trust
(TSX: SRQ.UN) ("Scott's REIT"), Canada's leading owner of small-box retail
properties, announced today it has completed two acquisitions in Ontario to
add four income-producing properties to its asset portfolio.
"These acquisitions exemplify our commitment to growing this business and
demonstrate how we are steadily increasing our asset base to the benefit of
our Unitholders," said John Bitove, Chairman and CEO of Scott's REIT. "Pharma
Plus is a very strong national brand tenant and with such solid lease terms in
place, these properties complement our existing portfolio by providing
enhanced industry diversification."
The first agreement, the largest acquisition for Scott's REIT to date and
previously announced on October 17, 2007, includes three brand new
single-tenant retail properties that are leased exclusively to Pharma Plus.
Located in Windsor and Renfrew, Ontario, the centres comprise a total of
36,400 sq. ft. and have a weighted average lease term of 18.25 years. The
total transaction is approximately $14 million.
The second agreement, previously announced on October 3, 2007, is for a
14,000 sq. ft. single-tenant unenclosed retail centre located in the centre of
Hanover, Ontario, a town on the boundary of Bruce and Grey Counties. The
property is occupied by Pharma Plus and has approximately eight years
remaining on a quadruple net lease. The total transaction cost is
approximately $1.4 million.
"With 205 income-producing properties in our asset portfolio, we are on
track to reach our goal to double our asset base within three years," said
Both acquisitions will be financed through a combination of cash and
financing and will be immediately accretive to earnings.
In addition, Scott's REIT announced today a cash distribution for the
month of December 2007 of $0.0708 per unit payable on January 15, 2008, to
Unitholders of record on December 31, 2007.
Scott's REIT also announced today a monthly cash distribution of $0.0708
per unit to Unitholders of record of Class B Limited Partnership Units in
Scott's Real Estate LP on December 31, 2007. This distribution marks the 25th
consecutive cash distribution declared since Scott's REIT began operations on
October 6, 2005.
Scott's REIT's policy is to pay cash distributions on or about the 15th
of each month to Unitholders of record on the last business day of the
preceding month. Unitholders who are non-residents of Canada will be required
to pay all withholding taxes payable on any distributions by Scott's REIT.
About Scott's Real Estate Investment Trust
Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property
owner with 205 properties in seven provinces across Canada. Scott's REIT's
properties are well-located and geographically diverse. Nearly all properties
are long-term quadruple-net leases. The REIT has a 70.6 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 www.scottsreit.com.
This media release contains forward-looking statements. Such statements
are based on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might differ
materially from projections suggested in any forward-looking statements due to
factors such as the competitive nature of the quick service restaurant
industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a
growth and development strategy, the reliance of Scott's REIT and Scott's Real
Estate LP on key personnel, on Priszm LP and risk associated with the
structure of income trusts. Scott's REIT and Scott's RE LP assume no
obligation to update the forward-looking statements, or to update the reasons
why actual results could differ from those reflected in the forward-looking
statements. Additional information identifying risks and uncertainties is
contained in Scott's REIT filings with the Canadian securities regulators,
available at www.sedar.com.
For further information:
For further information: Investors, Trish Moran, (416) 624-5133,
firstname.lastname@example.org; Media, Wilcox Group, (416) 203-6666,