RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

January 15, 2015 12:55 ET

RioCan Real Estate Investment Trust Provides an Update on Target Canada Corporation's Announcement to Withdraw from the Canadian Market

TORONTO, ONTARIO--(Marketwired - Jan. 15, 2015) - In connection with Target Canada Corporation's ("Target") announcement earlier today to withdraw from the Canadian market RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) hereto provides summary of the locations that will be impacted by Target's announcement.

"RioCan will work closely with the management team from Target to facilitate an orderly transition at the properties where Target is closing. While significant, Target currently represents less than two percent of RioCan's annual rental revenue, thus reinforcing the strength of the Trust's tenant diversification within the portfolio," said Edward Sonshine, Chief Executive Officer of RioCan. "Our locations are in strong retail nodes, and while this process will unfold over time, we expect that the interruption to revenue will be minimal, if at all. Ultimately, this could prove to be an opportunity for RioCan."

RioCan has twenty-six locations that are currently leased by Target representing 1.9% of total annualized rental revenue at an average lease rate of $6.62 per square foot with an average remaining lease term of approximately 12.7 years. These leases are guaranteed by Target Canada Corporation's US parent, generally for the remaining terms of the leases.

The properties affected by today's announcement are:

Site City Prov. RioCan
(RioCan %)
Abbotsford Power Centre Abbotsford BC 50% 115,407 57,704
Burlington Mall Burlington ON 50% 121,523 60,762
Charlottetown Mall Charlottetown PEI 50% 107,806 53,903
County Fair Mall Smiths Falls ON 100% 92,989 92,989
Desserte Ouest Laval PQ 50% 116,147 58,074
Five Points Shopping Centre Oshawa ON 100% 102,444 102,444
Flamborough Power Centre Flamborough ON 100% 116,493 116,493
Gates Of Fergus-Tower St Fergus ON 50% 95,978 47,989
Lawrence Square Toronto ON 100 89,432 89,432
Mill Woods Town Centre Edmonton AB 40% 122,804 49,539
Millcroft Shopping Centre Burlington ON 50% 115,566 57,783
Orillia Square Mall Orillia ON 100% 91,440 91,440
RioCan Durham Centre Target Ajax ON 100% 121,280 121,280
RioCan Niagara Falls Niagara Falls ON 100% 106,103 106,103
RioCan Scarborough Centre Scarborough ON 100% 116,241 116,241
RioCan Shoppes At Shawnessy Calgary AB 50% 124,216 62,108
RioCan St. Laurent Ottawa ON 50% 103,568 51,784
Shopper's World Brampton Brampton ON 100% 121,490 121,490
Shopper's World Danforth Toronto ON 50% 134,845 67,423
Signal Hill Centre Calgary AB 100% 112,488 112,488
South Hamilton Square Hamilton ON 100% 93,125 93,125
Stratford Centre Stratford ON 100% 88,935 88,935
Sudbury Place Sudbury ON 100% 109,554 109,554
The Stockyards Toronto ON 50% 153,456 76,728
Tillicum Centre Victoria BC 50% 120,684 60,342
Trinity Common Brampton Brampton ON 100% 118,228 118,228
Total 26 Locations 2,912,242 2,184,379

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $14.7 billion as at September 30, 2014. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 340 retail properties containing more than 80 million square feet, including 48 grocery anchored and new format retail centres containing 13 million square feet in the United States as at September 30, 2014. RioCan's portfolio also includes 15 properties under development in Canada. 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 in this News Release regarding the impact of Target's announcement to withdraw from the Canadian market 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 forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan's current estimates and assumptions, which are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in RioCan's Management's Discussion and Analysis for the period ended September 30, 2014, 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 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, development projects, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, the investment in the United States of America ("US"), fluctuations in the currency exchange rate between the Canadian and US dollar and RioCan's qualification as a real estate investment trust for tax purposes. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; and the availability of purchase opportunities for growth in Canada and the US. 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.

The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the "SIFT Provisions"). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust ("REIT"). RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not occur, certain statements contained in this News Release may need to be modified.

Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • RioCan Real Estate Investment Trust
    Edward Sonshine, O. Ont., Q.C.
    Chief Executive Officer
    (416) 866-3018