/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
STELLARTON, NS,
April 10, 2012 /PRNewswire/ - Crombie
Real Estate Investment Trust ("Crombie") (TSX: CRR.UN) announced
today that it has completed the previously announced purchase of a
portfolio of 22 retail properties (the "Properties") from third
party vendors for $254.6 million (the
"Purchase Price"), excluding closing adjustments and transaction
costs. The Properties include a total gross leasable area of
approximately 850,000 square feet, and with the exception of two
assets located in Manitoba and
Saskatchewan, all of the
Properties are located in Ontario.
"With the completion of this transaction, the
REIT has added to its portfolio of high quality assets across
Canada and, importantly, increased
our geographic diversification, particularly in Ontario." commented Donald Clow FCA, Crombie's
President and Chief Executive Officer. "The REIT's acquisition of
these high quality assets is anticipated to be accretive to
Crombie's Adjusted Funds From Operations ("AFFO") per unit."
The Purchase Price was funded in part through
the assumption of $95.7 million in
existing mortgages on the Properties with a weighted average term
to maturity of 3.8 years and a weighted average interest rate of
4.86% and by applying $116.9
million of net proceeds from Crombie's recently completed
public offering of Units and concurrent private placement of
exchangeable LP Units. The balance of the Purchase Price and
closing adjustments and transaction costs was drawn from Crombie's
existing revolving line of credit. Crombie may arrange
additional mortgage financing for certain of the properties, which
would reduce the required borrowings under its existing line of
credit.
Non-IFRS Measures
Certain terms used in this press release, such
as AFFO, are not measures defined under International Financial
Reporting Standards ("IFRS") and do not have standardized meanings
prescribed by IFRS. AFFO should not be construed as an alternative
to net earnings or cash flow from operating activities as
determined by IFRS. AFFO, as presented, may not be comparable to
similar measures presented by other issuers. Crombie believes that
AFFO is useful in the assessment of its operating performance and
that this measure is also useful for valuation purposes and is a
relevant and meaningful measure of its ability to earn and
distribute cash to unitholders. Examples of reconciliations of AFFO
to the most directly comparable measure calculated in accordance
with IFRS are provided in the MD&A of Crombie for the year
ended December 31, 2011.
About Crombie
Crombie is an open-ended real estate investment
trust established under, and governed by, the laws of the Province
of Ontario. The trust
invests in income-producing retail, office and mixed-use properties
in Canada, with a future growth
strategy focused primarily on the acquisition of retail properties.
Crombie currently owns a portfolio of 161 investment properties in
nine provinces, comprising approximately 13.5 million square feet
of rentable space. More information about Crombie can be found at
www.crombiereit.com.
This news release may contain forward looking
statements that reflect the current expectations of management of
Crombie about Crombie's future results, performance, achievements,
prospects and opportunities. Wherever possible, words such as
"continue", "may", "will", "estimate", "anticipate", "believe",
"expect", "intend" and similar expressions have been used to
identify these forward looking statements. These statements reflect
current beliefs and are based on information currently available to
management of Crombie, and include, without limitation, statements
regarding the effect of the acquisition on the financial
performance of Crombie including the degree to which the
acquisition will be accretive. Forward looking statements
necessarily involve known and unknown risks and
uncertainties. A number of factors, including those discussed
in the 2011 annual Management Discussion and Analysis under "Risk
Management", could cause actual results, performance, achievements,
prospects or opportunities to differ materially from the results
discussed or implied in the forward-looking statements. These
factors should be considered carefully and a reader should not
place undue reliance on the forward looking statements. There can
be no assurance that the expectations of management of Crombie will
prove to be correct.
Readers are cautioned that such
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from these statements. Crombie can give no assurance that actual
results will be consistent with these forward-looking
statements.
Additional information relating to Crombie can be found on
Crombie's web site at www.crombiereit.com or on the SEDAR web site
for Canadian regulatory filings at www.sedar.com.
SOURCE CROMBIE REIT