TORONTO, April 6, 2020 /CNW/ - CT Real Estate Investment Trust (TSX: TSX: CRT.UN) (the "REIT") today provided an update regarding the impact of the novel coronavirus (COVID-19) pandemic on its business.

"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 1^st.  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.  

Note: Unless otherwise indicated, all figures in this press release are as of December 31, 2019

FORWARD-LOOKING INFORMATION

Certain statements made in this press release may constitute forward-looking information under applicable securities laws, including statements concerning: the effect of the COVID-19 pandemic on the REIT's tenants' business and operations, including the operations of Canadian Tire stores in Ontario and other provinces, and discussions between the REIT and its tenants with respect to future rent obligations. Although the REIT believes that the forward-looking information in this press release is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information.

Risks and uncertainties related to the effects of COVID-19 on our business include the length, spread and severity of the pandemic, the nature and extent of the measures taken by governments at the federal, provincial and municipal levels to mitigate against the severity and spread of the virus, and the impact of the virus and government authorities' and public health officials' responses thereto on: our tenants' ability to pay rent in full or at all; domestic and global credit and capital markets, and our ability to access capital on favourable terms or at all; the health and safety of our employees and our tenants' personnel; and domestic and global supply chains. Given the evolving circumstances surrounding COVID-19, it is difficult to predict how significant the adverse impact of the pandemic will be on the global and domestic economy, the business, operations and financial position of the REIT's tenants, including Canadian Tire, and the business, operations and financial position of the REIT. For more information on other risks, uncertainties and assumptions that could cause the REIT's actual results to differ from current expectations, refer to Section 4 "Risk Factors" of our Annual Information Form for fiscal 2019, and to Section 11 "Enterprise Risk Management" and all subsections thereunder of our 2019 Management's Discussion and Analysis, as well as the REIT's other public filings, available at www.sedar.com and at www.ctreit.com.

The REIT does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.

About CT Real Estate Investment Trust

CT Real Estate Investment Trust (TSX:CRT.UN) 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. For more information, visit ctreit.com.

SOURCE CT Real Estate Investment Trust (CT REIT)

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