Retirement Residences Real Estate Investment Trust
TSX : RRR.UN

Retirement Residences Real Estate Investment Trust

October 20, 2006 10:15 ET

Retirement Residences Real Estate Investment Trust Announces October 2006 Monthly Distribution and Suspends Distribution Reinvestment Plan

MISSISSAUGA, CANADA--(CCNMatthews - Oct. 20, 2006) - Retirement Residences Real Estate Investment Trust ("Retirement REIT")(TSX:RRR.UN) today announced that a distribution of $0.035 per unit has been declared for October, 2006, payable November 15, 2006, to the unitholders of record as at October 31, 2006.

On October 5, 2006, Retirement REIT entered into an acquisition and support agreement with Public Sector Pension Investment Board ("PSPIB"), whereby PSPIB will make a take-over bid to acquire all of the issued and outstanding units of Retirement REIT at a price of $8.35 per unit. Under the terms of this agreement, Retirement REIT will pay monthly distributions equal to the lesser of (i) $0.035 per unit and (ii) adjusted funds from operations per unit for the month. Retirement REIT has also suspended its Distribution Reinvestment Plan ("DRIP"). Unitholders who participated in the DRIP will now automatically receive cash distributions commencing with the distribution payable on November 15, 2006.

Retirement REIT is the largest provider of accommodation and care for seniors in Canada. Retirement REIT owns 223 retirement and long term care facilities, including 40 facilities in select United States markets, and provides management services to 8 homes for other parties, with an aggregate resident capacity in excess of 26,500. Retirement REIT also provides nursing placement and in-home health care through its Central Health Services unit. For further information, see the Retirement REIT website at www.retirementreit.com.

Certain statements contained in this news release may include forward-looking information with respect to Retirement REIT's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity and regulatory requirements. Further information on uncertainties, risks and other matters can be found in the disclosure documents filed by Retirement REIT with the securities regulatory authorities, available at www.sedar.com.

Contact Information

  • Retirement Residences Real Estate Investment Trust
    Tim Benson
    Vice President, Investor Relations & Corporate Finance
    (289) 360-1224
    (289) 360-1228 (FAX)
    Website: www.retirementreit.com