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REIT Overview

Retrocom REIT was created on December 15, 2003.  On March 22, 2004, the REIT completed an initial public offering of 11,069,000 Units (the “Initial Offering”) at a price of $10 per Unit for total gross proceeds of approximately $110 million.  Contemporaneously with closing the Initial Offering, the REIT closed the acquisition of a portfolio of 26 retail, 1 office and 2 light industrial income producing mid-market commercial properties located in primary and secondary cities across Canada.  On April 13, 2004, the REIT issued an additional 1,107,000 Units for gross proceeds of approximately $11 million pursuant to the exercise of an over-allotment option granted as part of the Initial Offering. 

Since the Initial Offering, the REIT has continuously reviewed its business operations and property portfolio, purchased additional assets and reinvested in and selectively repositioned and disposed of existing assets in order to position itself for sustainable future growth.

Retrocom REIT focuses on owning and acquiring retail properties across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows. The REIT invests primarily in income-producing retail properties with strong tenant covenants, stable yields, low vacancy levels and strong growth potential. The REIT continually reviews its portfolio and seeks to acquire additional properties with these characteristics to provide additional cash flow and further enhance the long-term portfolio value.

The REIT believes that the income-producing retail property segment represents a reasonable long-term risk/return investment environment with fewer national competitors than other segments of the commercial property market. By concentrating on the community-based segment, the REIT believes it will be afforded greater opportunities to make accretive acquisitions that will contribute to achieving attractive yields for Unitholders.  The REIT believes that the geographic diversity of its properties, as well as their diverse tenant mix, decreases the likelihood that a single regional economic downturn will have a material adverse impact on the REIT’s distributions.
 

The objectives of the REIT are to: (i) generate stable and growing cash distributions on a tax efficient basis; (ii) enhance the value of the REIT’s assets and maximize long-term value through the active management of its assets; and (iii) expand the asset base of the REIT and increase its income available for distribution through an accretive acquisition program.