Retirement Residences Real Estate Investment Trust
TSX : RRR.UN

Retirement Residences Real Estate Investment Trust

November 21, 2006 16:45 ET

Retirement Residences Real Estate Investment Trust Announces a Reduction to the November 2006 Monthly Distribution

MISSISSAUGA, ONTARIO--(CCNMatthews - Nov. 21, 2006) - Retirement Residences Real Estate Investment Trust ("Retirement REIT") (TSX:RRR.UN) today announced that a distribution of $0.025 per unit has been declared for November, 2006, payable December 15, 2006, to the unitholders of record as at November 30, 2006.

The Public Sector Pension Investment Board ("PSPIB") has made a take-over offer to acquire all of the issued and outstanding units of Retirement REIT at a price of $8.35 per unit. Under the terms of the agreement with PSPIB, Retirement REIT can continue to pay distributions equal to the lesser of (i) $0.035 per unit per month and (ii) adjusted funds from operations (or "AFFO") per unit since August 31, 2006. For the purpose of monitoring compliance with the agreement, AFFO is calculated by Retirement REIT as Funds From Operations plus the strategic review costs minus a reserve for maintenance capital expenditures.

Based on financial performance since August 31, 2006, Retirement REIT has announced a monthly distribution of $0.025 per unit for November, 2006, compared to $0.035 per unit for October, 2006, and $0.035 per unit for September, 2006, in order to comply with the terms of the agreement with PSPIB. The Trustees will continue to carefully monitor financial performance and will adjust the subsequent monthly distribution payments if required.

Retirement REIT has suspended its Distribution Reinvestment Plan ("DRIP"). Unitholders who participated in the DRIP will automatically receive cash distributions.

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