Retrocom Mid-Market Real Estate Investment Trust
TSX : RMM.UN

Retrocom Mid-Market Real Estate Investment Trust

September 16, 2008 09:00 ET

Retrocom Mid-Market REIT Announces 2008 Third Quarter Distribution in Combination With a Return to Monthly Distributions

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE

Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the REIT) announced today that the cash distribution for the third quarter of 2008 will be $0.1125 per unit, or $0.45 per unit on an annual basis. The cash distribution for the third quarter of 2008 is for the period from and including July 1, 2008 to and including September 30, 2008 and will be payable on October 15, 2008 to Unitholders of record as of September 30, 2008. The REIT also announced that monthly distributions will recommence with the distribution for the month of October 2008, payable on November 15th, 2008, at an anticipated rate of $0.0375 per unit or $0.45 per unit on an annual basis. The REIT anticipates that it will announce the October 2008 distribution in mid-October 2008.

The REIT has initiated an extensive review of its portfolio that will result in up to 10 properties being redeveloped/repositioned to increase occupancy, and in some instances, gross leasable area. The decrease in the annual distribution rate from $0.60 to $0.45 per unit results in an approximate $4.1 million annual reduction in cash distribution, which along with proceeds from financings and selective and strategic dispositions is part of a plan to ensure sufficient funds, will be available to undertake the redevelopment projects.

"Through the utilization of SmartCentres' capabilities, The REIT is able to contemplate a wider variety of redevelopment scenarios, much more than it could have done previously by itself" said David Fiume, President and CEO of Retrocom Mid-Market REIT. Fiume continued, "When the board proposed the transaction with SmartCentres, the goal was to align the REIT with one of the best real estate companies in Canada, one that would provide opportunities for change in direction and strategy. This transaction was overwhelmingly approved by its Unitholders and we believe that this relationship will enhance value for Unitholders in the long term."

The REIT also announced today the successful completion of the purchase from Canadian Tire Corporation of a property adjoining Mountainview Mall in Midland, Ontario, together with the successful refinancing of the Mountainview Mall, including the purchased property. The transaction adds two national tenants with strong covenants and long term leases, Staples and PartSource, to this property. The proceeds of the financing of $16.8 million at an annual rate of 6.45% were used to repay the existing first mortgage on the property and to pay down the REIT's bridge loan, which in July 2008 was $33.5 million, to approximately $17.1 million. As a result of this repayment the REIT has already met the requirement to pay down the bridge loan to $20 million or less by July 2009.

Distributions paid to Unitholders who are non-residents of Canada will be subject to Canadian withholding tax.

About Retrocom Mid-Market REIT

Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust which focuses on owning and acquiring mid-market commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Retrocom Mid-Market REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

Contact Information

  • Retrocom Mid-Market Real Estate Investment Trust
    David Fiume
    Chief Executive Officer
    (416) 741-7999 x227
    (416) 741-7993 (FAX)
    Email: dfiume@rmmreit.com