RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

June 10, 2009 09:01 ET

RioCan Announces Completion of $150 Million Public Offering of Trust Units and Provides an Update on 2009 Capital Markets Activities

TORONTO, ONTARIO--(Marketwire - June 10, 2009) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has successfully completed its previously announced issuance of 10,345,000 trust units for $14.50 per unit for gross proceeds of $150,002,500. The underwriting syndicate for the offering was co-led by RBC Capital Markets, BMO Capital Markets, and TD Securities Inc.

The offering was made under RioCan's base shelf prospectus dated June 13, 2008. The terms of the offering are described in a prospectus supplement dated June 3, 2009, which was filed with Canadian securities regulators.

Capital Markets Update

Year to date RioCan has successfully raised approximately $527 million of new equity and debt capital comprised of:

- $150 million trust unit offering completed today;

- $180 million of unsecured debt issued in April 2009; and

- $197 million of mortgage financings completed.

These financings, after taking into account the retirement of mortgage debt due at maturity, and the repayment of $55 million of Series D and Series J debentures due September 2009 and March 2010 respectively, produced aggregate net proceeds to RioCan of approximately $400 million. Furthermore, as a result of the equity issue completed today, RioCan's leverage ratios will improve: debt to aggregate assets will be below 56% and net of cash on hand debt to aggregate assets will be below 54%. These ratios are well below RioCan's limit of 60% under its Declaration of Trust.

With the completion of the unit offering, RioCan expects to have in excess of $250 million cash on hand and an additional $193 million of available capacity on its credit facilities. In addition, RioCan continues to make good progress refinancing its upcoming debt maturities, which will further enhance its liquidity position.

"We are very pleased with the response from the market in a period where access to capital remains constrained," said Edward Sonshine, Q.C., President and Chief Executive Officer. "These financings have further strengthened RioCan's balance sheet and added additional financial flexibility to the Trust's substantial liquidity position. This will allow RioCan to take advantage of acquisition opportunities as they arise."

About RioCan:

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $6.2 billion as at March 31, 2009. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 247 retail properties, including 13 under development, containing an aggregate of over 59 million square feet. For further information, please refer to RioCan's website at

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning our objectives, our 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. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future events and are based on our estimates and assumptions that are subject to risks and uncertainties, which could cause actual events or results described above to differ materially from the forward-looking statements contained herein. Those risks and uncertainties include risks associated with real property ownership, financing and interest rates, environmental matters and construction. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: a less robust economic and retail environment than we have seen for the last few years; interest costs to us remain relatively stable; acquisition capitalization rates increase and land costs for greenfield development decrease; a continuing trend towards land use intensification in high growth markets; and equity and debt capital markets will continue to provide access to capital to fund at acceptable costs our future growth program and refinance our debts as they mature. Although the forward-looking information contained herein 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. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • RioCan Real Estate Investment Trust
    Rags Davloor
    Senior Vice President & CFO
    (416) 642-3554