If you cannot participate in the live mode, a replay will be available until June 25, 2011. The SIFT Legislation will not impose tax on a trust which qualifies under such legislation as a real estate investment trust (the “REIT Exception”). For further information, please refer to RioCan’s website at www.riocan.com.Forward-Looking InformationThis News Release contains forward-looking statements within the meaning of applicable securities laws. Certain sites such as RioCan Notre Dame, Montreal, QC and RioCan Flamborough, Hamilton, ON have such land where additional density may be developed depending on tenant demand. In other locations where there is additional density or land, RioCan expects to benefit from increased tenant demand for space in these properties through expansion and development. Additional sites owned by RioCan may be chosen in Target’s decision on the second tranche of store locations, which is expected to occur during the third quarter of 2011. eastern time. To access the replay, please dial 905-694-9451 or 1-800-408-3053 and enter passcode 4766003#. These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan’s current estimates and assumptions, which are subject to risks and uncertainties, including those described under “Risks and Uncertainties” in this News Release, which could cause actual events or results to differ materially from the forward-looking statements 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 these forward-looking statements. It owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 300 retail properties, including 8 under development, containing an aggregate of over 70 million square feet. Any remaining locations not selected by Target will continue to be leased by Zellers until the end of the term of the current lease.”We are very pleased to have been able to secure Target stores for so many of our centres in this first round,” said Edward Sonshine, President and Chief Executive Officer of RioCan. RioCan owns an 80% interest in 31 grocery anchored and new format retail centres in the United States through various joint venture arrangements. The Income Tax Act (Canada) (the “Act”) contains legislation affecting the tax treatment of publicly traded trusts (the “SIFT Legislation”). Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Alternatively, to access the simultaneous webcast, go to the following link on RioCan’s website http://investor.riocan.com/Investor-Relations/Events-Webcasts/default.aspx and click on the link for the webcast. RioCan is Canada’s largest real estate investment trust with a total capitalization of approximately $11.2 billion as at March 31, 2011. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. All 21 of these locations will be converted to, and open as, Target stores. The webcast will be archived 24 hours after the end of the conference call and can be accessed for 120 days. Locations to be occupied by TargetLocationApprox. “This transaction highlights the intrinsic value in our portfolio, and will bring tremendous potential for repositioning and the opportunity to further enhance value and cash flow growth in our centres.”Target has committed substantial capital to remodel and renovate the selected locations, which will serve to modernize and bring the stores to a format that is in keeping with a typical Target store. Management’s presentation will be followed by a question and answer period. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a more robust retail environment compared to recent years; relatively stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for growth in Canada and the US; and the impact of accounting principles adopted by the Trust effective January 1, 2011 under International Financial Reporting Standards (“IFRS”) which includes application to the Trust’s 2010 comparative financial results. TORONTO, ONTARIO–(Marketwire – May 26, 2011) – RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) is pleased to provide an update on its ongoing negotiations with Target Corporation (“Target”). Certain statements included in this News Release may be considered “financial outlook” for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centres and drug store-anchored convenience centres located predominantly in the Northeastern United States. With this, RioCan will be Target’s largest landlord in Canada. On January 13, 2011 Target announced that it had agreed to acquire up to 220 Zellers leasehold interests from Zellers Inc. RioCan currently qualifies for the REIT Exception and intends to continue to qualify for future years. To further enhance the value that Target will bring to its locations, RioCan is contemplating an extensive capital improvement program for those locations where it feels cash flow can eventually be increased as a result. The conference call operator will be notified of all requests in the order in which they are made, and will introduce each questioner. and the Hudson Bay Company (collectively “Zellers”). You will be required to identify yourself and the organization on whose behalf you are participating. As at the current date RioCan has 34 Zellers locations in its portfolio.Target has selected the initial tranche of locations that they wish to acquire. Laurent, Ottawa, ON86,000Shoppers World Brampton, Brampton, ON121,000Shoppers World Danforth, Toronto, ON135,000South Hamilton Square, Hamilton, ON89,000Stratford Shopping Centre, Stratford, ON89,000Sudbury Place, Sudbury, ON85,000Trinity Common Brampton, Brampton, ON118,000Prince Edward IslandCharlottetown Mall, Charlottetown, PEI108,000QuebecRioCan Notre Dame, Laval, QC116,000TOTAL2,253,000Interested parties are invited to participate in a conference call with management on Friday, May 27, 2011 at 2:00 p.m. Included in this first tranche of 105 locations are 21 locations across five provinces that are owned by RioCan and its partners currently occupied by Zellers. To ask a question, press “star 1″ on a touch-tone phone. Size of current Zellers StoreAlbertaMillwoods Shopping Centre, Edmonton, AB113,000RioCan Shawnessey, Calgary, AB123,000RioCan Signal Hill, Calgary, AB112,000British ColumbiaAbbotsford Power Centre, Abbotsford, BC115,000Tillicum Mall, Victoria, BC121,000OntarioCounty Fair Mall, Smith Falls, ON93,000Five Points Shopping Centre, Oshawa, ON89,000Gates of Fergus, Fergus, ON96,000Millcroft Shopping Centre, Burlington, ON116,000Orillia Square, Orillia, ON91,000RioCan Durham Centre, Ajax, ON121,000RioCan Flamborough, Flamborough, ON116,000RioCan St. These statements include, but are not limited to, statements made in this News Release (including the sections entitled “US Investment”, “Acquisition Pipeline” and “Liquidity and Capital”), and other statements concerning RioCan’s objectives, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. All forward-looking statements in this News Release are qualified by these cautionary statements. Should this not occur, certain statements contained in this News Release may need to be modified.Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Scheduled speakers include Edward Sonshine, President and Chief Executive Officer, Fred Waks, Executive Vice President and Chief Operating Officer and Rags Davloor, Senior Vice President and Chief Financial Officer. In order to participate, please dial 416-695-7806 or 1-888-789-9572. Those risks and uncertainties include, but are not limited to, those related to: liquidity in the global marketplace associated with current economic conditions, tenant concentrations, occupancy levels, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, the investment in the United States of America (“US”), US currency and RioCan’s qualification as a real estate investment trust for tax purposes.
TORONTO, ONTARIO–(Marketwire – May 26, 2011) – RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) is pleased to provide an update on its ongoing negotiations with Target Corporation (“Target”). As at the current date RioCan has 34 Zellers locations in its portfolio. On January 13, 2011 Target announced that it had agreed to acquire up to 220 Zellers leasehold interests from Zellers Inc. and the Hudson Bay Company (collectively “Zellers”).
Any remaining locations not selected by Target will continue to be leased by Zellers until the end of the term of the current lease. All 21 of these locations will be converted to, and open as, Target stores. Included in this first tranche of 105 locations are 21 locations across five provinces that are owned by RioCan and its partners currently occupied by Zellers. Target has selected the initial tranche of locations that they wish to acquire. With this, RioCan will be Target’s largest landlord in Canada. Additional sites owned by RioCan may be chosen in Target’s decision on the second tranche of store locations, which is expected to occur during the third quarter of 2011.
“We are very pleased to have been able to secure Target stores for so many of our centres in this first round,” said Edward Sonshine, President and Chief Executive Officer of RioCan. “This transaction highlights the intrinsic value in our portfolio, and will bring tremendous potential for repositioning and the opportunity to further enhance value and cash flow growth in our centres.”.
Certain sites such as RioCan Notre Dame, Montreal, QC and RioCan Flamborough, Hamilton, ON have such land where additional density may be developed depending on tenant demand. In other locations where there is additional density or land, RioCan expects to benefit from increased tenant demand for space in these properties through expansion and development. Target has committed substantial capital to remodel and renovate the selected locations, which will serve to modernize and bring the stores to a format that is in keeping with a typical Target store. To further enhance the value that Target will bring to its locations, RioCan is contemplating an extensive capital improvement program for those locations where it feels cash flow can eventually be increased as a result.
RioCan owns an 80% interest in 31 grocery anchored and new format retail centres in the United States through various joint venture arrangements. RioCan is Canada’s largest real estate investment trust with a total capitalization of approximately $11.2 billion as at March 31, 2011. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centres and drug store-anchored convenience centres located predominantly in the Northeastern United States. It owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 300 retail properties, including 8 under development, containing an aggregate of over 70 million square feet. For further information, please refer to RioCan’s website at www.riocan.com.
This News Release contains forward-looking statements within the meaning of applicable securities laws. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. These statements include, but are not limited to, statements made in this News Release (including the sections entitled “US Investment”, “Acquisition Pipeline” and “Liquidity and Capital”), and other statements concerning RioCan’s objectives, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. All forward-looking statements in this News Release are qualified by these cautionary statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events.
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 these forward-looking statements. Certain statements included in this News Release may be considered “financial outlook” for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release. These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan’s current estimates and assumptions, which are subject to risks and uncertainties, including those described under “Risks and Uncertainties” in this News Release, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a more robust retail environment compared to recent years; relatively stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for growth in Canada and the US; and the impact of accounting principles adopted by the Trust effective January 1, 2011 under International Financial Reporting Standards (“IFRS”) which includes application to the Trust’s 2010 comparative financial results. Those risks and uncertainties include, but are not limited to, those related to: liquidity in the global marketplace associated with current economic conditions, tenant concentrations, occupancy levels, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, the investment in the United States of America (“US”), US currency and RioCan’s qualification as a real estate investment trust for tax purposes.
RioCan currently qualifies for the REIT Exception and intends to continue to qualify for future years. The SIFT Legislation will not impose tax on a trust which qualifies under such legislation as a real estate investment trust (the “REIT Exception”). Should this not occur, certain statements contained in this News Release may need to be modified. The Income Tax Act (Canada) (the “Act”) contains legislation affecting the tax treatment of publicly traded trusts (the “SIFT Legislation”).
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