SOURCE: Calloway Real Estate Investment Trust

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March 30, 2015 13:22 ET

Calloway REIT Impact of Future Shop Store Closures

TORONTO, ON--(Marketwired - March 30, 2015) - Calloway Real Estate Investment Trust (TSX: CWT.UN) (Calloway) update with respect to a recent tenant announcement on store closures.

Given the recent tenant announcement by Best Buy / Future Shop on their store program in Canada, Calloway wishes to provide information on the expected impact on its portfolio.

Future Shop currently leases 19 stores across Canada on various Calloway sites. As announced by Best Buy on March 28th, it expects to close a total of 66 Future Shop stores, of which eight were identified as being within a Calloway shopping centre. In anticipation of this, Calloway is already in negotiation with tenants for three of these spaces. The following comments are relevant to an understanding of the potential financial impact on Calloway of the closure of the remaining five sites.

  • Best Buy has confirmed to Calloway that Future Shop will honour all rental payments for the full term of all leases for stores that are being closed.
  • The five stores that are closing represent 0.4% of Calloway's rent and GLA and the lease expiries are spread over the next five years.
  • We intend to work closely with our partner, Best Buy, during this process to assist them in repositioning their store offering to maximize value.

"We are always sorry to lose a tenant in any of our locations," said Huw Thomas, President and CEO of Calloway Real Estate Investment Trust, "but the evolution of retail concepts is an inevitable part of the broad retail landscape. We are very confident in the quality of our portfolio of principally Walmart anchored shopping centres, and already this morning we have received calls from national retailers interested in taking over a number of the remaining Future Shop spaces, reflecting the quality of the spaces and of our centres," added Thomas.

About Calloway
Calloway is one of Canada's largest real estate investment trusts with an enterprise value of approximately $7 billion. It owns and manages approximately 27 million square feet in 121 value-oriented principally Walmart anchored retail centres having the strongest national and regional retailers, as well as strong neighbourhood merchants. In addition, Calloway is a joint-venture partner in the Toronto and Montreal Premium Outlets. Calloway's vision is to provide a value-oriented shopping experience to Canadian consumers. For more information on Calloway, visit www.callowayreit.com.

Contact Information

  • For more information, please contact:

    Huw Thomas
    President and Chief Executive Officer
    Calloway Real Estate Investment Trust
    (905) 326-6400 x7649