RioCan Real Estate Investment Trust enters into an agreement with CT Real Estate Investment Trust for the sale of seven retail properties

TORONTO, Canada, 2017-Nov-30 — /EPR Retail News/ — RioCan Real Estate Investment Trust(“RioCan” or the “Trust”) (TSX:REI.UN) today announced that it has entered into an agreement with CT Real Estate Investment Trust (“CT REIT”) for the sale of seven retail properties, all of which are anchored by a Canadian Tire banner, for a total sale price of $200 million. The annualized income based on the first nine months of 2017 for the portfolio is approximately $12 million.

The sale is the first transaction to be completed as part of RioCan’s previously announced plan to accelerate its portfolio focus in Canada’s six major markets through the sale of approximately 100 properties located largely in secondary markets across Canada.

Edward Sonshine Chief Executive Officer of RioCan, said, “We are very pleased to report good progress on the execution of our accelerated strategy in such a short time. This transaction reinforces the quality and anticipated value of the properties allocated for sale, which are largely highly stable assets that appeal to a wide range of buyers. We have been very pleased with the initial response to the announcement, and we are in various stages of negotiations on several transactions representing properties that we expect to be able to provide more details on in the first quarter of 2018. Overall, we are very confident in our ability to complete our disposition program and execute our strategic vision within our initial timelines provided.”

The sales are subject to normal closing conditions with the majority expected to close in December 2017, and the remainder to close in the first quarter of 2018. The net proceeds will be used to pay down debt, fund unit repurchases through RioCan’s Normal Course Issuer Bid program and fund the Trust’s development activities. Since the renewal of the program on October 20, 2017, RioCan has purchased 2,526,687 units at an average purchase price of $25.54.

The properties included in the agreement are:

Property Name Location Net Leasable Area (sf.)
Collingwood Centre Collingwood, ON 210,000
Goodlife Centre St. Catharines, ON 144,000
Orillia Square Mall Orillia, ON 318,000
Parkland Mall Yorkton, SK 264,000
Southwinds Crossing Oliver, BC 73,000
Sudbury Place Sudbury, ON 148,000
Upper James Plaza Hamilton, ON 126,000

As previously disclosed, RioCan’s accelerated strategy is intended to further enhance the quality, growth profile and resilience of the Trust’s portfolio of retail focused, increasingly mixed-use properties located in prime, high density, transit oriented areas where Canadians want to shop, live and work.

About RioCan
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion at September 30, 2017. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. Our portfolio is comprised of 294 properties, including 16 development properties, with an aggregate net leasable area of approximately 45 million square feet. To learn more about how we deliver real vision on solid ground, visit www.riocan.com.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian securities laws. This information includes, but is not limited to, statements concerning RioCan’s disposition strategy, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements.

Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended September 30, 2017 (“MD&A”), which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity and general market conditions; tenant concentrations and related risk of bankruptcy or restructuring (and the terms of any bankruptcy or restructuring proceeding), occupancy levels and defaults, including the failure to fulfill contractual obligations by the tenant or a related party thereof; lease renewals and rental increases; the ability to re-lease and find new tenants for vacant space; retailer competition; changes in Ontario’s rent control legislation; access to debt and equity capital; interest rate and financing risk; joint ventures and partnerships; the relative illiquidity of real property, the timing and the ability of RioCan to sell certain properties; and the valuations to be realized on property sales relative to current IFRS values; unexpected costs or liabilities related to acquisitions and dispositions; development risk associated with construction commitments, project costs and related approvals; environmental matters; litigation; reliance on key personnel; unitholder liability; income, sales and land transfer taxes; and credit ratings.

Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

CONTACT INFORMATION

Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer
(416) 866-3018 | sonshine@riocan.com

Source: RioCan Real Estate Investment Trust/ GLOBE NEWSWIRE

PREIT closes sale of two street-level retail properties in downtown Philadelphia for approximately $20 million

PHILADELPHIA, 2016-Jun-07 — /EPR Retail News/ — PREIT (NYSE: PEI) has completed the transactions for the sale of two street-level retail properties 1501 – 05 Walnut Street and 1520 – 22 Chestnut Street  in downtown Philadelphia, representing a gain on sale of approximately $20 million and a blended 3.9% cap rate. PREIT acquired the properties in 2014 after recognizing there was sufficient tenant demand to create significant value.

“This transaction illustrates our acute knowledge of the Philadelphiamarket and our capital allocation approach,” said Joseph F. Coradino, CEO of PREIT.  “We are pleased to have recognized an opportunity to add value to these properties and use the sale proceeds to reduce debt and continue our balance sheet improvement efforts.”

About PREIT
PREIT (NYSE:PEI) is a publicly traded real estate investment trust specializing in the ownership and management of differentiated shopping malls.  Headquartered in Philadelphia, Pennsylvania, the company owns and operates approximately 26 million square feet of retail space in the eastern half of the United States with concentration in the Mid-Atlantic region’s top MSAs. Since 2012, the company has seen a transformation guided by an emphasis on balance sheet strength, high-quality merchandising and disciplined capital expenditures.  Information about the Company can be found at www.preit.com or on Twitter or LinkedIn.

Forward Looking Statements
This press release, together with other statements and information publicly disseminated by us, contain certain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current views about future events, achievements or results and are subject to risks, uncertainties and changes in circumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by uncertainties affecting real estate businesses generally as well as the following, among other factors:

Changes in the retail industry, including consolidation and store closings, particularly among anchor tenants; our ability to maintain and increase property occupancy, sales and rental rates, in light of the relatively high number of leases that have expired or are expiring in the next two years; increases in operating costs that cannot be passed on to tenants; current economic conditions and the state of employment growth and consumer confidence and spending, and the corresponding effects on tenant business performance, prospects, solvency and leasing decisions and on our cash flows, and the value and potential impairment of our properties; our ability to sell properties that we seek to dispose of or our ability to obtain estimated sale prices; potential losses on impairment of certain long-lived assets, such as real estate, or of intangible assets, such as goodwill, including such losses that we might be required to record in connection with any dispositions of assets; risks relating to development and redevelopment activities; our ability to identify and execute on suitable acquisition opportunities and to integrate acquired properties into our portfolio; our partnerships and joint ventures with third parties to acquire or develop properties; concentration of our properties in the Mid-Atlantic region; changes in local market conditions, such as the supply of or demand for retail space, or other competitive factors; changes to our corporate management team and any resulting modifications to our business strategies; the effects of online shopping and other uses of technology on our retail tenants; acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; our substantial debt and stated value of preferred shares and our high leverage ratio; constraining leverage, unencumbered debt yield, interest and tangible net worth covenants under our Credit Agreements; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through the issuance of equity or equity-related securities if market conditions are favorable, through joint ventures or other partnerships, through sales of properties or interests in properties, or through other actions; our short and long-term liquidity position; potential dilution from any capital raising transactions or other equity issuances; and general economic, financial and political conditions, including credit and capital market conditions, changes in interest rates or unemployment.

Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2015 in the section entitled “Item 1A. Risk Factors.” We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

CONTACT:
Heather Crowell
SVP, Corporate Communications and Investor Relations
(215) 454-1241
heather.crowell@preit.com

SOURCE PREIT