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TORONTO, December 3, 2020 (GLOBE NEWSWIRE) – Today, RioCan Real Estate Investment Trust (“RioCan” or “Trust”) (TSX: REI.UN) announced a reduction of RioCan’s monthly distribution to unitholders from $ 0, 12 per unit at $ 0.08 per unit or $ 1.44 to $ 0.96 on an annual basis. RioCan’s board of directors has determined that the reduction is appropriate given the continuing uncertainty following the pandemic. This reduction will be effective for the Trust’s January 2021 distribution, payable in February 2021.
“As RioCan continues to navigate the uncertain retail landscape created by the COVID-19 pandemic and faces a series of unknown closures, the Council has taken prudent action to reduce our distribution. A more conservative payment relationship is important in this undeniably challenging environment, despite our well-positioned portfolio, strong tenant base and large liquidity, “said Edward Sonshine, RioCan CEO.” At the same time, we believe that the current circumstances offer us an opportunity to optimize our capital allocation towards growth initiatives as we remain committed to driving value creation for our unitholders and increasing distributions from this new base if conditions permit. “
This one-third reduction in distribution will provide RioCan with an 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 RioCan’s unitholders, such as its mixed-use residential developments, unit buybacks through the issuer’s regular offering program, and debt repayment.
RioCan’s board of directors will reassess distribution on a regular basis, taking into account various factors including, but not limited to, market stabilization with the dissolving of the health crisis, cash flow and leverage.
About RioCan
RioCan is one of Canada’s largest real estate investment funds. RioCan owns, operates and develops retail-centric and increasingly mixed-use properties located in prime transit-oriented, high-density areas where Canadians want to shop, live and work. As of September 30, 2020, our portfolio includes 221 properties with an aggregate net leasable area of approximately 38.4 million square feet (in RioCan’s interest), including offices, residential rental and 16 development properties. To find out more about us, visit www.riocan.com.
Forward-looking information
This press release contains forward-looking information under applicable Canadian securities laws. This information reflects RioCan’s goals, our strategies for achieving those goals, as well as statements regarding management’s beliefs, estimates and intentions regarding anticipated future events or expectations that are not historical facts. Forward-looking information can typically be identified by the use of forward-looking terminology such as “prospect”, “goal”, “may”, “will”, “would”, “expect”, “intention”, “estimate”, “Anticipate” “,” believe “,” should “,” plan “,” continue “or similar expressions that suggest future results 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 press 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 in the RioCan MD&A “Risks and Uncertainties” section. for the period ending 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 press release.
While the forward-looking information contained in this press release is based on what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.
Forward-looking statements contained in this press release are made as of the date of this press release and should not be relied upon as representing RioCan’s views on any date after the date of this press release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise forward-looking information, following new information, future events or otherwise.
For more information please countct:
| Jonathan Gitlin President and Chief Operating Officer (416) 866-3099 [email protected] |
Qi Tang Senior Vice President and Chief Financial Officer (416) 866-3033 [email protected] |
| Kim Lee Vice President, Investor Relations (416) 646-8326 [email protected] |
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