Primaris Retail REIT

Primaris Retail REIT

July 07, 2005 08:06 ET

Primaris Retail REIT Announces 5.5% Increase in Distributions, Announces July Distribution, Delivers Acquisitions Update

TORONTO, ONTARIO--(CCNMatthews - July 7, 2005) - Primaris Retail REIT (TSX:PMZ.UN) announced today that its monthly distribution will increase by 5.5% effective August 15, 2005, for unitholders of record on July 29, 2005. The new payment will be 9.5 cents per unit, or $1.14 annualized. This increase effectively coincides with the commencement of the REIT's third year of operations.

The increase of 5.5% outpaces the average distributions increase in the Canadian REIT market, and demonstrates the continued strength of Primaris' results. The latest increase follows the July 2004 distributions increase of 5.4%.

Michael Latimer, President and CEO of Primaris Retail REIT said, "Since going public in July of 2003, Primaris has agreed to make eight accretive acquisitions, has enhanced unit value, and we are now able to announce our second increase in distributions - all of which are in line with our stated objectives, which continue to drive our business."

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.

Acquisitions Update

Grant Park, Winnipeg, Manitoba

Primaris completed the previously announced acquisition of a 50% interest in Grant Park Shopping Centre on June 27, 2005. Together with its partners in Grant Park, it refinanced the shopping centre with a new mortgage having a ten year term and bearing interest at 5.08%.

Place du Royaume, Saguenay, Quebec

Primaris completed this previously announced acquisition on June 28, 2005. The REIT intends to borrow $85 million to be secured by this asset. This new loan should be funded in late July 2005. Proceeds will be used to repay $63.1 million of existing debt, to pay a debt repayment penalty and to reduce the REIT's revolving line of credit. The new loan will have a ten year term and will bear interest at a rate that approximates the sum of the yield on the June 2015 4.5% Government of Canada bond plus 1.35%.

Place Fleur de Lys, Quebec City, Quebec

As previously announced, this acquisition is expected to close on July 20, 2005.

Conversion of Debentures

Certain holders of the 6.75% convertible unsecured subordinated debentures elected to convert $16.5 million of the debentures into units during the second quarter. The large majority of these conversions took place in late June. This resulted in the issuance of 1,347,263 units. As at June 30, 2005 there were 35,442,822 units outstanding and $30,518,000 of convertible debentures outstanding.

Primaris Retail REIT is a TSX listed real estate investment trust (TSX:PMZ.UN). Primaris Retail REIT owns 14 shopping centres, subject to the completion of the acquisition of Place Fleur de Lys, comprising approximately 6.1 million square feet located in Canada.

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