Canadian Real Estate Investment Trust
TSX : REF.UN

Canadian Real Estate Investment Trust

June 11, 2007 16:07 ET

Canadian Real Estate Investment Trust Announces Unit Financing of $78 MM

TORONTO, ONTARIO--(Marketwire - June 11, 2007) -

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

Canadian Real Estate Investment Trust (TSX:REF.UN) ("CREIT") of Toronto, Ontario today announced that it has agreed to sell, subject to regulatory approval, 2,500,000 Units for $31.25 per Unit for aggregate gross proceeds of $78,125,000 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 July 4, 2007.

The estimated net proceeds from the sale of the Units will be used for future acquisitions, general trust purposes, value-added expansion and mezzanine financing programs, and/or to reduce outstanding indebtedness, including indebtedness under the Credit Facility.

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 monthly cash distribution effective in June 2007 is $0.1108 per Unit, representing an approximate yield of 4.26% to an investor. The first cash distribution to which purchasers of the Units under this offering will be entitled to participate will be for the month of July, with a record date of July 31, 2007 and a payment date of August 15, 2007.

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 in excess of 140 retail, office and industrial properties.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not future 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. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances.

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