RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

July 09, 2007 13:58 ET

RioCan Real Estate Investment Trust to Record a $150 Million Non-Cash Charge to Second Quarter Earnings as a Result of Bill C-52 Budget Implementation Act, 2007

TORONTO, ONTARIO--(Marketwire - July 9, 2007) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it will record a non-cash charge to earnings of $150 million in the second quarter of 2007. The charge relates to RioCan's future income tax liabilities to be recorded as a result of tax legislation included in Bill C-52, the Budget Implementation Act, 2007, which received Royal Asset on June 22, 2007. This is a non-cash charge to earnings relating to RioCan's share of the temporary differences between the accounting and tax basis of RioCan's assets and liabilities. The charge will have no impact on RioCan's cash flows or distributions.

The new legislation is not expected to apply to RioCan until 2011 as Bill C-52 provides for a transition period for publicly traded entities that existed prior to November 1, 2006. In addition, the new legislation will not apply to an entity that qualifies for the real estate investment trust exemption (the "REIT exemption"). RioCan intends to qualify for the REIT exemption prior to 2011. In order to so qualify, RioCan may be required to restructure its affairs.

RioCan has also revised the date and time of its conference call with management to discuss its second quarter earnings release to Thursday, August 2, 2007 at 4:00 p.m. Eastern Time. Financial results for the three and six months ended June 30, 2007 will, as previously announced, also be released on August 2, 2007.

In order to participate, please dial 416-406-6419 or 1-866-540-8136. If you cannot participate in the live mode, a replay will be available until December 3, 2007. To access the replay, please dial 416-695-5800 or 1-800-408-3053 and enter passcode 3225683.

Scheduled speakers are Edward Sonshine, Q.C., President and Chief Executive Officer, Fred Waks, Senior Vice President and Chief Operating Officer, and Robert Wolf, Chief Financial Officer. Management's presentation will be followed by a question and answer period. To ask a question, press "star 1" on a touch-tone phone. The conference call operator will be notified of all requests in the order in which they are made, and will introduce each questioner.

Alternatively, to access the simultaneous webcast, go to the following link on RioCan's website and click on the link for the webcast. The webcast will be archived 24 hours after the end of the conference call and can be accessed for 120 days.

About RioCan

RioCan is Canada's largest real estate investment trust with a total market capitalization of approximately $8 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 204 retail properties, including 8 under development, containing an aggregate of almost 52 million square feet. For further information, please refer to RioCan's website at

Contact Information

  • RioCan Real Estate Investment Trust
    Robert Wolf
    Vice President & CFO
    (416) 866-3198