Melcor REIT announces April distribution of $0.03 per unit to proactively strengthen our balance sheet
EDMONTON, Alberta, March 20, 2020 (GLOBE NEWSWIRE) — Melcor Real Estate Investment Trust (TSX: MR.UN) today announced that the Trustees of the REIT have declared cash distributions of $0.03 per unit for the month of April. This represents a reduction of 47% to the current distribution. The March distribution, payable April 15, 2020, will remain at $0.05625 per unit as announced on January 15, 2020.
Darin Rayburn, CEO of the REIT commented: “We are navigating an unprecedented global challenge in the COVID-19 pandemic combined with the additional stress to Alberta’s energy industry due to the dramatic decrease in the price of oil.Both of these situations have been and may continue to impact our tenants, particularly if local health and government authorities implement further restrictions and shutdowns. While the recently announced government programs are designed to support businesses in financial stress, it is too early to determine how and when these programs will take effect.To proactively preserve cash and based on the potential reduction in earnings for 2020, our Board of Trustees made the difficult decision to reduce the distribution we have maintained through 82 months.We are taking this step, along with implementing other cost saving and cash management strategies, to continue strengthening our balance sheet and to lay the foundation to be able to respond to reduced demand for space over an uncertain time period in the wake of this global crisis.With a diversified portfolio, proven management team and history of adapting through challenging times, we remain well positioned to manage through this period of uncertainty.Managing cash flow while also keeping a safe environment for our tenants and visitors during the COVID-19 crisis is our priority. We hope that the measures we have taken and are continuing to take will reduce stress on tenants and slow the spread of COVID-19 so that we can all return to business as usual.”The April distribution will be payable as follows:Annual General MeetingAs a result of the current situation and to encourage social distancing, the REIT will hold a virtual annual general meeting this year. Details will be provided at a later date.About Melcor REITMelcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in western Canada. Its portfolio is currently made up of interests in 39 properties representing approximately 3.2 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit www.melcorREIT.ca.Forward-Looking InformationThis press release contains forward-looking information as defined under applicable Canadian securities law (forward-looking information or forward-looking statements) which reflect management’s expectations regarding objectives, plans, goals, strategies, growth, results of operations, performance, business prospects and opportunities of the REIT. Statements other than statements of historical fact contained in this press release may be forward-looking information. The REIT has based these forward-looking statements on its current expectations and assumptions about future events, which may prove to be incorrect.When relying on forward looking statements to make decisions, readers are cautioned not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and do not take into account the effect of transactions or other items announced or occurring after the statements are made. All forward-looking information in this press release speaks as of the date of this press release. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. The REIT does not undertake any obligation to update any such forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.Contact Information: Investor Relations
Director, Corporate Communications