Granite Real Estate Inc. Announces Shareholder Meeting to Approve
REIT Conversion
TORONTO, Oct. 17, 2012 /CNW/ - Granite Real Estate Inc.
(TSX: GRT; NYSE: GRP) (''Granite'' or the ''Company'') is
pleased to announce that on November 15,
2012 the meeting for shareholders to consider approving the
Company's conversion to a real estate investment trust (the "REIT
Conversion") will take place at the Metro Toronto Convention
Centre, 255 Front Street West, Meeting Room 206F, Toronto, Ontario, Canada at 10:00 a.m. The board of directors of the Company
is unanimously recommending that shareholders vote in favour of the
REIT Conversion.
The REIT Conversion is a key component of the Company's
strategic plan announced in October
2011 and was expected, at that time, to result in a
significant reduction in annual cash income taxes estimated to be
approximately $8 million. The REIT
structure, as now proposed, is expected to reduce Granite's cash
income taxes for 2013 by approximately $11
million. If the REIT Conversion is approved, the Company
expects to be a REIT on or about December
31, 2012 and beginning in fiscal 2013 the new REIT will
commence monthly distributions of $0.175 per stapled unit (an increase in the
annual distribution to $2.10 per
stapled unit from the current annual dividend of $2.00 per share). The first distribution to be
declared for the month of January
2013 will be paid on or about February 15, 2013.
Granite has mailed a notice of special meeting of shareholders
and management information circular / proxy statement (the
"Circular") in respect of the special meeting of
shareholders. As noted above, the meeting has been called to
consider and, if thought fit, approve, among other things, a
special resolution approving a plan of arrangement under the
Business Corporations Act (Québec) providing for the
conversion of the Company from a corporate structure to a "stapled
unit" REIT structure.
The REIT Conversion is subject to customary conditions and
approvals, including court approval. Details of the REIT
Conversion are described in the Circular, which is available on
SEDAR at www.sedar.com, on EDGAR at www.sec.gov and on the
Company's website at www.graniterealestate.com. Persons with
questions about the REIT Conversion are encouraged to visit the
"REIT Conversion Frequently Asked Questions" section of the
Company's website at www.graniterealestate.com or to contact the
Company at ir@graniterealestate.com or (647) 925-7550 for
assistance.
ABOUT GRANITE
Granite is a Canadian-based real estate company engaged in the
ownership and management of predominantly industrial properties in
Canada, the United States, Mexico and Europe. The Company owns and manages
approximately 28 million square feet in 104 rental income
properties. Our tenant base currently includes operating
subsidiaries of Magna International Inc. as our largest tenants,
together with tenants from other industries.
OTHER INFORMATION
Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities
Administrators' Systems for Electronic Document Analysis and
Retrieval (SEDAR) which can be accessed at www.sedar.com and on the
United States Securities and Exchange Commission's Electronic Data
Gathering, Analysis and Retrieval System (EDGAR) which can be
accessed at www.sec.gov. For further information about Granite,
please see our website at www.graniterealestate.com.
FORWARD-LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
''forward-looking statements'' within the meaning of applicable
securities legislation, including the United States Securities Act
of 1933 and the United States Securities Exchange Act of 1934.
Forward-looking statements may include, among others, statements
regarding the Company's future plans, goals, strategies,
intentions, beliefs, estimates, costs, objectives, economic
performance or expectations, or the assumptions underlying any of
the foregoing. In particular, this press release contains
forward-looking statements regarding our proposed conversion to a
REIT. Words such as ''may'', ''would'', ''could'', ''will'',
''likely'', ''expect'', ''anticipate'', ''believe'', ''intend'',
''plan'', ''forecast'', ''project'', ''estimate'' and similar
expressions are used to identify forward-looking statements.
Forward-looking statements should not be read as guarantees of
future events, performance or results and will not necessarily be
accurate indications of whether or the times at or by which such
future performance will be achieved. Undue reliance should not be
placed on such statements. In particular, Granite cautions that the
timing or completion of the REIT Conversion cannot be predicted
with certainty, there can be no assurance at this time that all
required or desirable approvals and consents to effect the REIT
Conversion will be obtained in a timely manner or at all and there
can be no assurance that the anticipated reduction in cash income
taxes payable following the REIT Conversion will be realized.
Forward-looking statements are based on information available at
the time and/or management's good faith assumptions and analyses
made in light of our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances, and are
subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond the Company's
control, that could cause actual events or results to differ
materially from such forward-looking statements. Important factors
that could cause such differences include, but are not limited to,
the risk of changes to tax or other laws that may adversely affect
the REIT Conversion; inability of Granite to implement a suitable
structure for the REIT Conversion; the inability to obtain all
required consents and approvals for the REIT Conversion; the
inability to realize the anticipated reduction in cash income taxes
payable following the REIT Conversion and the risks set forth in
the ''Risk Factors'' section in the Circular and in the Company's
Annual Information Form for 2011, each filed on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov, which investors are
strongly advised to review. The ''Risk Factors'' sections also
contain information about the material factors or assumptions
underlying such forward-looking statements. Forward-looking
statements speak only as of the date the statements were made and
unless otherwise required by applicable securities laws, the
Company expressly disclaims any intention and undertakes no
obligation to update or revise any forward-looking statements
contained in this press release to reflect subsequent information,
events or circumstances or otherwise.
SOURCE Granite Real Estate Inc.