TORONTO, Dec. 03, 2020 (GLOBE NEWSWIRE) — Today, RioCan Real Estate Investment Trust (âRioCanâ or the âTrustâ) (TSX: REI.UN) announced a reduction of RioCanâs monthly distribution to unitholders from $0.12 per unit to $0.08 per unit, or from $1.44 to $0.96 on an annualized basis. RioCanâs Board of Trustees has determined the reduction is appropriate given ongoing uncertainty as a result of the pandemic. This decrease will be effective for the Trustâs January 2021 distribution, payable in February 2021.
âAs RioCan continues to navigate through the uncertain retail landscape created by the COVID-19 pandemic and faces an unknown length and breadth of closures, the Board has taken the prudent action of reducing our distribution. A more conservative payout ratio is important in this undeniably challenging environment despite our well positioned portfolio, solid base of tenants and deep liquidity,â said Edward Sonshine, Chief Executive Officer of RioCan. âAt the same time, we believe the current circumstances present an opportunity for us to optimize our capital allocation towards accretive initiatives as we remain committed to driving value creation for our unitholders and increasing distributions from this new base as conditions permit.â
This one-third distribution reduction will provide RioCan additional cash flow of approximately $152 million annually. The additional capital will be used to fund initiatives that drive long-term net asset value growth for RioCanâs unitholders such as its mixed-use residential developments, unit buybacks through its normal course issuer bid program, and debt repayment.
RioCanâs Board of Trustees will reevaluate the distribution on a regular basis, taking into account various factors including, but not limited to, market stabilization as the health crisis dissipates, cash flow and leverage.
About RioCan
RioCan is one of Canadaâs largest real estate investment trusts. 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. As at September 30, 2020, our portfolio is comprised of 221 properties with an aggregate net leasable area of approximately 38.4 million square feet (at RioCan’s interest) including office, residential rental and 16 development properties. To learn more about us, please visit www.riocan.com.
Forward Looking Information
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCanâs objectives, our strategies to achieve those objectives, as well as statements with respect to managementâs beliefs, estimates and intentions 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 âoutlookâ, âobjectiveâ, âmayâ, âwillâ, âwouldâ, âexpectâ, âintendâ, âestimateâ, âanticipateâ, âbelieveâ, âshouldâ, âplanâ, âcontinueâ, or similar expressions suggesting future outcomes or events.
Such forward-looking information reflects managementâs 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 RioCanâs current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the âRisks and Uncertaintiesâ section in RioCan’s MD&A for the period ended September 30, 2020 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release.
Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.
The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCanâs views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
For further information please contact:
| Jonathan Gitlin President & Chief Operating Officer (416) 866-3099 jgitlin@riocan.com |
Qi Tang Senior Vice President & Chief Financial Officer (416) 866-3033 qtang@riocan.com |
| Kim Lee Vice President, Investor Relations (416) 646-8326 klee@riocan.com |