Canadian Real Estate Investment Trust
TSX : REF.UN

Canadian Real Estate Investment Trust

March 16, 2009 16:42 ET

Canadian Real Estate Investment Trust Announces Unit Financing of $100.0 MM

TORONTO, ONTARIO--(Marketwire - March 16, 2009) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Canadian Real Estate Investment Trust ("CREIT") (TSX:REF.UN) of Toronto, Ontario today announced that it has agreed to sell, subject to regulatory approval, 4,950,750 Units for $20.20 per Unit for aggregate gross proceeds of $100,005,150 to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis.

CREIT will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, a preliminary short form prospectus relating to the issuance of the Units. Closing of the offering is expected to take place on or about April 7, 2009.

The net proceeds of the offering will be used to strengthen CREIT's capital position and enhance its financial flexibility in order to allow it to take advantage of acquisition opportunities that may emerge from the current industry environment, to reduce indebtedness, and for general trust purposes.

CREIT intends to make monthly cash distributions to Unitholders of record on each record date, on or about the 15th day of the month following the record date. CREIT's current monthly cash distribution declared on February 13, 2009 was $0.1133 per Unit, representing an approximate annualized yield of 6.7% to an investor under this offering. The first cash distribution to which purchasers of the Units under this offering will be entitled to participate will be for the month of April, with a record date of April 30, 2009 and a payment date of May 15, 2009.

The Units being offered have not been and will not be registered under the United States Securities Act of 1933 and state securities laws. Accordingly, the Units may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

CREIT is a real estate investment trust focused on accumulating a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing monthly cash distribution. CREIT owns a portfolio of 162 retail, office and industrial properties.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to CREIT's operations and the environment in which CREIT operates, which are based on CREIT's expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. CREIT undertakes no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.

Contact Information

  • Canadian Real Estate Investment Trust
    Stephen Johnson
    President & Chief Executive Officer
    (416) 628-7878
    Email: sjohnson@creit.ca
    or
    Canadian Real Estate Investment Trust
    Tim McSorley
    Vice President & Chief Financial Officer
    (416) 628-7790
    Email: tmcsorley@creit.ca
    Website: www.creit.ca