CT Real Estate Investment Trust has provided an update regarding the impact of the novel coronavirus (COVID-19) pandemic on its business.
According to the REIT, “CT REIT continues to remain focused on the health and safety of our employees, our tenants and their customers, and the collective effort to contain the virus and mitigate its impact,” said Ken Silver, President and CEO of CT REIT. “We came into this crisis with a strong balance sheet, a portfolio that was 99.1% occupied and a conservative 75% payout ratio. We are committed to working with those of our tenants who need our support during these challenging times.”
“Tenants representing approximately 6.2% of the REIT’s annual base minimum rent are currently not open or operating. Tenants representing approximately 2.8% of annual base minimum rent did not fulfill their financial obligations to the REIT on April 1st. Discussions have begun on a case by case basis with those tenants for whom rent obligations under the current circumstances represent a significant challenge to their ongoing viability.”
“Tenants representing another 33.5% of the REIT’s annual base minimum rent are now operating on a limited basis. This includes 132 Canadian Tire stores in Ontario owned by the REIT serving customers only through Curbside Pick Up or eCommerce home delivery in accordance with current provincial requirements. Canadian Tire Auto Service Centres and Gas+ locations in the province continue to operate. Canadian Tire stores and Gas+ locations in all other provinces remain open to the public and continue to operate with reduced hours.”
“The REIT is in a strong liquidity position with a debt-to-gross book value of approximately 43%, and approximately $300 million of undrawn credit facilities and cash on hand. The REIT’s assets, with an IFRS value of approximately $6 Billion, are 98% unencumbered.
The REIT is continuing to closely monitor the impact that the rapidly evolving COVID-19 pandemic has on its business, operations and financial position.”
CT Real Estate Investment Trust is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties primarily located in Canada. Its portfolio is comprised of over 350 properties totalling approximately 28 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT’s most significant tenant.