RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

October 30, 2009 13:22 ET

RioCan Real Estate Investment Trust Announces Closing of Equity Investment in Cedar Shopping Centers, Inc.

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2009) - RioCan Real Estate Investment Trust (TSX:REI.UN) ("RioCan") today announced it has completed its previously announced equity investment in Cedar Shopping Centers, Inc. ("Cedar"), consisting of the purchase of approximately 6.7 million shares of Cedar common stock at a price of US$6.00 per share and a warrant to purchase an additional approximately 1.4 million shares of common stock at an exercise price of US$7.00 per share. The warrants will be exercisable any time up to two years following today's closing. The equity investment will result in gross proceeds of US$40 million to Cedar, with an additional US$10 million of gross proceeds to Cedar upon exercise of the share purchase warrants.

About Cedar

Cedar is a self-managed real estate investment trust focused on grocery-anchored shopping centres and drug store-anchored convenience centres located predominantly in the North-eastern and Mid-Atlantic states of the United States. Since the company's public offering in October 2003, Cedar has realized significant growth in assets and shareholder value primarily through selective acquisitions. Cedar presently owns and operates approximately 13.2 million square feet of gross leasable area at 124 shopping centre properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. Cedar had a total capitalization of US$1.5 billion as of September 30, 2009.

About RioCan

RioCan is Canada's largest real estate investment Trust with a total capitalization of approximately CDN$7.8 billion as at September 30, 2009. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 247 retail properties, including 13 under development, containing an aggregate of over 59 million square feet. For further information, please refer to RioCan's website at

Forward Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made regarding the anticipated timing of the closing of the joint venture acquisitions and other statements concerning RioCan's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. All forward-looking statements in this news release are qualified by these cautionary statements.

These statements are not guarantees of future events or performance and, by their nature, are based on RioCan's estimates and assumptions, which are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in its management discussion and analysis dated September 30, 2009 which could cause actual events or results to differ materially from the forward-looking statements contained in this news release. Those risks and uncertainties include, but are not limited to, those related to: liquidity in the global marketplace associated with current economic conditions, tenant concentrations, occupancy levels, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, the conditions to the transactions not being satisfied resulting in the failure to complete some or all of the proposed transactions, the trading price of the securities of Cedar, lack of availability of acquisition opportunities for the joint venture and exposure to economic, real estate and capital market conditions in the United States. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include: a less robust retail environment than has been seen for the last several years; relatively stable interest costs; an increase in acquisition capitalization rates; a decrease in land costs for greenfield development; a continuing trend towards land use intensification in high growth markets; more limited but available access to equity and debt capital markets to fund, at acceptable costs, the future growth program and to enable the Trust to refinance debts as they mature and the availability of purchase opportunities for the joint venture. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this news release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this news release.

Contact Information

  • RioCan Real Estate Investment Trust
    Edward Sonshine, Q.C.
    President & CEO
    (416) 866-3018