CT REIT Announces Agreement to Acquire Seven Properties from RioCan REIT

TORONTO, Nov. 28, 2017 /CNW/ – CT Real Estate Investment Trust (“CT REIT”) (TSX:CRT.UN) announced today that it has entered into an agreement to purchase seven properties from RioCan Real Estate Investment Trust (“RioCan”) at a total investment of $200 million, before transaction costs.

“We are delighted to be purchasing these well-located properties, each of which is tenanted by Canadian Tire, and in some cases, other members of the Canadian Tire Family of Companies,” said Ken Silver, President and Chief Executive Officer, CT REIT. “With the insight we have into retail store performance as well as the attractive fundamentals of the markets in which these properties are located, we are extremely pleased with these additions to our growing portfolio.”

The properties are located in Collingwood, Hamilton, Orillia, St. Catharines and Sudbury, Ontario; Yorkton, Saskatchewan; and Oliver, British Columbia. Together, they represent approximately 1,283,000 square feet of incremental gross leasable area (“GLA”). CT REIT is acquiring the portfolio at a weighted average going-in cap rate of 6.3% and will be funding these investments through its credit facilities. The table below summarizes the new properties:

 

CT REIT expects to redevelop and re-lease portions of the Orillia Square property during the first few years of ownership to enhance financial returns and better position the asset in its marketplace. Excluding Orillia Square, the portfolio has an occupancy rate of 98.5%.

Closings on the properties are subject to closing conditions and are expected to occur in December 2017 and/or Q1 2018.

Forward–Looking Statements

This document contains forward-looking information that reflects management’s current expectations related to matters such as future financial performance and operating results of CT REIT. Forward-looking statements are provided for the purposes of providing information about CT REIT’s future outlook and anticipated events or results. Readers are cautioned that such information may not be appropriate for other purposes.

All statements other than statements of historical facts included in this document may constitute forward–looking information, including but not limited to, statements concerning the REIT’s ability to complete any of the investments in acquisitions from RioCan and property redevelopment, the timing and terms of any such acquisitions and the benefits expected to result from such investments, and other statements concerning results, performance, achievements, prospects or opportunities for CT REIT. Forward-looking information is based on reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of prospects and opportunities, current conditions and expected trends, as well as other factors that management believes to be relevant and reasonable at the date such information is provided.

By its very nature forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the REIT’s assumptions, estimates, analyses, beliefs and opinions may not be correct and that the REIT’s expectations and plans will not be achieved. Although the forward-looking information contained in this press release is based on information, assumptions and beliefs which are reasonable and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking information.

The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. CT REIT does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.

For more information on the risks, uncertainties and assumptions that could cause the REIT’s actual results to differ from current expectations, refer to Section 4 “Risk Factors” of our Annual Information Form for the year ended December 31, 2016, and to Section 11 “Enterprise Risk Management” and all subsections thereunder of our Management’s Discussion and Analysis for the year ended December 31, 2016, as well as the REIT’s other public filings, available at www.sedar.com and at www.ctreit.com. 

Information contained in or otherwise accessible through the websites referenced in this press release (other than CT REIT’s profile on SEDAR at www.sedar.com) does not form part of this press release and is not incorporated by reference into this press release. All references to such websites are inactive textual references and are for information only.

Additional information about CT REIT has been filed electronically with various securities regulators in Canada through SEDAR and is available at www.sedar.com and at www.ctreit.com.

About CT Real Estate Investment Trust
CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed end real estate investment trust formed to own income producing commercial properties primarily located in Canada. Its portfolio is comprised of over 300 properties totalling approximately 25 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT’s most significant tenant. For more information, visit www.ctreit.com.

SOURCE CT Real Estate Investment Trust (CT REIT)

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