Primaris Retail REIT

Primaris Retail REIT

December 05, 2006 16:01 ET

Primaris Retail REIT Announces 3.5% Increase in Distributions

TORONTO, ONTARIO--(CCNMatthews - Dec. 5, 2006) - Primaris Retail REIT (TSX:PMZ.UN) announced today that its monthly distribution will increase by 3.5% effective with the payment January 15, 2007, for unitholders of record on December 29, 2006. The new payment will be 9.83 cents per unit, or $1.18 annualized.

Michael Latimer, President and CEO of Primaris Retail REIT said, "One of the objectives of Primaris is to provide stable and growing distributions to unitholders. The new rate of distributions represents a 15% increase over the initial rate of distributions of $1.025 set in July 2003 at the time of going public, and is the third distribution increase since that time. The three development projects (Orchard Park, Stone Road Mall, and Dufferin Mall) have reached a substantive degree of completion and opened to the public during November in time for the holiday shopping season."

In approving this increase the trustees of Primaris considered the status of the development projects, occupancy rates, market rent levels, capital requirements to maintain the portfolio, and the sustainability of the new rate of distributions. The trustees also gave regard to the provisions of the REIT's Declaration of Trust.

Unitholders who elect to participate in the DRIP will receive a further distribution, payable in units, equal in value to 3% of each cash distribution reinvested by them. The price at which units will be purchased with such cash distributions is based on a weighted average trading price of units for the 20 trading days prior to the relevant distribution date, which is normally the 15th of each month. Those unitholders wishing to enroll in the DRIP should contact the brokerage house or financial institution where their units are currently held and complete the required authorization form.

Forward-Looking Information

This press release and the MD&A for the quarter ended September 30, 2006 contain forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, the REIT's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.

Examples of such information include, but are not limited to, factors relating to the business, financial position of the REIT, operations and redevelopments including volatility of capital markets, consumer spending, retail leasing demand, strength of the retail sector, price volatility of construction costs, availability of construction labour and timing of regulatory and contractual approvals for developments.

Although the forward-looking statements contained in this press release and the MD&A are based on what management of the REIT believes are reasonable assumptions, forward-looking statements involve significant risks and uncertainties. They should not be read as guarantees of future performance or results and will not necessarily be an accurate indicator of whether or not such results will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results to differ from targets, expectations or estimates expressed in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, economic, competitive and commercial real estate conditions, unplanned compliance-related expenses, uninsured property losses and tenant-related risks.

Primaris Retail REIT is a TSX listed real estate investment trust (TSX:PMZ.UN). Primaris Retail REIT owns 20 shopping centres comprising approximately 8.0 million square feet located in Canada. As of December 1, 2006, the REIT had 52,338,296 units issued and outstanding.

Contact Information

  • Primaris Retail REIT
    R. Michael Latimer
    Chief Executive Officer
    (416) 865-5353
    Primaris Retail REIT
    Louis M. Forbes
    Senior Vice President and Chief Financial Officer
    (416) 865-5360