NorRock Realty Finance Corporation

NorRock Realty Finance Corporation

June 20, 2011 12:36 ET

NorRock Realty Finance Corporation (TSX:RF.PR.A)(TSX:RF.A) Announces Distributions

TORONTO, ONTARIO--(Marketwire - June 20, 2011) - NorRock Realty Finance Corporation (the "Corporation") (TSX:RF.PR.A)(TSX:RF.A) is pleased to announce a distribution of $0.4219 per Preferred Share, Series 1 for the second quarter of 2011. The distribution will be paid on July 15, 2011 to Preferred Shareholders of record on June 30, 2011. The Preferred Shares trade on the Toronto Stock exchange "TSX" (under the symbol RF.PR.A).

The suspension of the Corporation's targeted quarterly distribution of $0.19 per Class A Share for the quarter ended June 30th, 2011 will remain in effect until such time as the Corporation has further visibility on the reinvestment of its excess cash balances into mortgages and loans. The Class A Shares trade on the TSX under the symbol RF.A.

The Corporation has a robust balance sheet with cash and cash equivalents positions which are currently in excess of $30 million. However, notwithstanding the strong financial position of the Corporation, the Corporation has not yet experienced the deal flow required to earn the returns necessary to reinstate the Class A Share distribution at this time.

The Corporation's focus is to proactively manage the existing mortgage portfolio and assess strategic options to create sustainable value for shareholders.

NorRock Realty Finance Corporation

The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax-efficient basis.

Certain statements included in this news release constitute forward-looking statements including statements identified by the words "plan," "will" and "intend," and similar expressions or the negative thereof. The forward-looking statements are not historical facts but reflect the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations including but not limited to the ability of the Corporation to pay the distributions on July 15, 2011. Readers are cautioned not to place undue reliance on forward-looking information. The Corporation undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information except as required by law.

Contact Information

  • NorRock Realty Finance Corporation
    Jacqueline Boddaert
    Chief Executive Officer
    (416) 479-9510 x305
    1-866-362-2469 (FAX)