Scott's Real Estate Investment Trust announces financing and leasing update

TORONTO , Feb. 1, 2012 /CNW/ –  Scott’s Real Estate Investment Trust (TSX: SRQ.UN) (“Scott’s REIT”) today announced the following:

• Extends $32 million original IPO mortgage one year to February 1, 2013
• Enters an agreement for a new first mortgage in Atlantic Canada for $8.5 million
• Re-leases an additional four previously disclaimed properties
• Extends six leases in New Brunswick

Extension of $32 Million IPO Mortgage
Scott’s REIT received a further one-year extension for its $32 million IPO mortgage to February 1, 2013 from February 1, 2012 . The extension has been granted using the same terms as the original loan; 4.9 per cent interest only, payable monthly, and the mortgage is open for payment at any time during the one-year extension period.
New $8.5 Million Atlantic Canada Mortgage
Scott’s REIT entered into an agreement for a first mortgage with First National Financial LP in the amount of $8.5 million , with a further $1 million available if certain leasing targets are met. The mortgage will be secured by 24 properties located in New Brunswick and Nova Scotia, the primary tenant of which is FMI Atlantic Inc. The mortgage will have a term of five years, amortized over a 25-year period, and will bear an interest rate of 4.95 per cent. The mortgage is expected to close during the month of February 2012 and is subject to customary closing conditions. The proceeds from the mortgage will be used to pay down a portion of the $32 million IPO mortgage.
“The extension and partial pay-down of the IPO loan will provide the REIT with much needed stability over this transitional period and will provide the necessary time for Scott’s REIT to re-lease its portfolio as we return occupancy to historical levels,” said Teresa Neto , CFO of Scott’s REIT. “In addition, the extension also provides Scott’s REIT the flexibility to seek alternative refinancing for the remaining outstanding balance of the IPO mortgage, once Priszm announces and executes sales of its Quebec , Manitoba and Alberta KFC operations.”
Leasing Update
Scott’s REIT has completed four new leases for sites disclaimed and previously leased by Priszm, including three sites in Quebec which were disclaimed effective January 27, 2012 . The fourth site is located in London , Ontario and has been leased to Starbucks. Each of the four leases were signed at rents higher than the rent under the previous Priszm lease. Including these four new leases, Scott’s REIT has now leased 18 of the total 43 sites disclaimed, or 40.4% of the total disclaimed GLA.
“We are seeing strong interest in many of our vacant sites as evidenced by how quickly we have been able to re-lease a notable portion of the properties,” said Kevin Salsberg , Chief Operating Officer of Scott’s REIT. “Some of these sites were vacant less than a month before we re-leased them and we believe most of the remaining vacant sites will be re-leased over the next twelve months.”
In addition, Scott’s REIT has also successfully extended six leases in New Brunswick with FMI Atlantic Inc. as KFC restaurants, extending the terms by five years to the year 2023. FMI Atlantic is also the dominant Pizza Hut operator in Atlantic Canada .
“We will be working with our tenants to secure extensions where possible, in particular with the operators seeking to invest in their businesses for the long term”, said Mr. Salsberg .” Extended lease terms with capital invested in the real estate is a win for our tenants and Scott’s REIT”.
About Scott’s Real Estate Investment Trust
Scott’s REIT (TSX: SRQ.UN) is Canada’s premier small-box retail property owner with 229 properties in eight provinces across Canada . Scott’s REIT’s properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. To find out more about Scott’s Real Estate Investment Trust (TSX: SRQ.UN), visit our website at www.scottsreit.com.
Forward-Looking Statements
This document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management’s future outlook and anticipated events or results, and may include statements or information regarding future growth opportunities and potential and expected cash distributions or cash distribution levels. In particular, information regarding the REIT’s monthly cash distributions and information relating to the impact of the REIT’s recent acquisitions on annual revenues and interest expense is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, occupancy rates, property expense and capital expenditures. While the REIT considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to the REIT’s reliance on Priszm LP, the REIT’s second largest tenant, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in the REIT’s Annual Information Form for the year ended December 31, 2010 . You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, the REIT does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in Scott’s REIT filings with the Canadian securities regulators, available at www.sedar.com.

Consumer Financial Protection Bureau director eyes fraud

by Candice Choi – Jan. 20, 2012 07:16 PM
Associated Press

WASHINGTON – A company’s obligations don’t stop with the law. It also needs to be fair and upfront with customers.
That’s the message from Richard Cordray, who was named by President Barack Obama as the first director of the Consumer Financial Protection Bureau.
“Frankly, there’s a lot of fraud that’s committed in the marketplace that is not on its face necessarily technically illegal,” Cordray said. Such practices will now be a target for the CFPB.

The agency and Cordray’s appointment are both controversial. The CFPB was created as part of the overhaul of the nation’s financial regulations, with a mandate to police the array of financial products marketed to consumers.
Republicans blocked Cordray’s appointment for months, saying the agency would have far too much power with too little accountability. Then, earlier this month, Obama installed Cordray when Congress wasn’t in session.
On Thursday, the agency released a field guide for its examiners to analyze practices at payday lenders, which essentially offer customers advances on their paychecks for a flat fee. It will mark the first time the industry will be subject to such oversight.
The CFPB has started collecting public comment to help simplify the disclosures consumers receive with credit cards, mortgages and student financial aid. It will take months or even years before consumers see how these efforts play out.
But here’s what Cordray had to say about how the agency will impact consumers:
Question: A major focus for the CFPB has been on improving the transparency of a product’s fees and terms, and the disclosures consumers receive. Are there instances where this won’t be enough and more aggressive regulatory action will be required?
Answer: Let me answer that question in two parts.
On transparency and disclosure, a key insight here is that more disclosures don’t always make things better. As it accumulates, there can be so much dense fine print that it can actually make things much worse — consumers find it hard to penetrate and they often will not read it.
That’s a concern and that’s why we’re trying to make things more transparent, simpler and clearer with our “Know Before You Owe” project.
However, simply making things clearer to consumers is not enough if people aren’t actually playing by the rules and defrauding consumers. There we have to enforce the rules and we have to do it fairly, evenhandedly, but with rigor so that everybody understands that they have to follow and respect the law.
Q: Are there practices that are technically legal yet require regulatory action?
A: If something is technically legal, that’s one issue. But we also have the authority to determine that practices are unfair, deceptive and abusive. That’s where our authority can be used to try to protect consumers, even though maybe the technicalities of pre-existing laws have been followed.
So that’s something we’re going to have to be careful about — the use of that authority.
But it certainly is necessary to protect consumers, and frankly there’s a lot of fraud that’s committed in the marketplace that is not on its face necessarily technically illegal. But when you see how a product is marketed, you can see what the effect is on consumers.
Q: So in those situations, what is the most important thing consumers need to know about what the CFPB can and cannot do?
A: Consumers should know that when they feel they’re being treated unfairly, they have the opportunity to come and tell us about it. And I mean the 300 million consumers all across this country, they can come to our website at consumerfinance.gov.
If it’s a mortgage or credit-card issue, they can file a complaint with us.
If it’s any other kind of issue, we will be able to take those complaints eventually.
Q: Once those complaints are in hand, what are the limits of what the CFPB can do?
A: We have three different sets of authority that Congress gave us and that we are by law responsible to carry out. We have rule-making authority. And we particularly are going to be active in trying to correct some of the problems in the mortgage markets over the next year or two.
We have supervision and examination authority, which is new but very important. It’s the ability to actually go into these institutions, look at their books and records and ask questions about what they do, and really get to the bottom of things.
This means both working with them where that’s possible and or bringing enforcement actions where that’s necessary.
And the third is the ability to actually enforce the law.
Q: One of the first industries the agency will be looking at is payday lending. A concern for consumer advocates is that customers often roll over the loans, meaning they repeatedly take out new loans to repay previous loans. What practices in the payday industry raise concerns for you?
A: One of the things we’re very concerned about is making sure that those products actually help consumers and don’t harm them. So the possibility that consumers end up rolling loans over and over, and end up in this sort of debt trap where they’re living off of money at 400 percent interest rates is a concern and it’s something we’re going to look at very closely.
Q: Student loans were a big issue during the Occupy protests, and graduates are burdened with more and more debt. Do you see any parallels to the mortgage industry?
A: I’ve read a lot that suggests that student loans may be a bubble that is developing.
Obviously, the major driver of the total amount of student loans is the rapid increases in tuition and the costs of higher education in the last 10 years. We don’t control that.
What we can control and what we can affect is the choices that consumers make. That they know what their choices are, that they know the difference between federal loans and private student loans — how that can affect terms of repayment, how that can affect the price and interest rate.
These are important things for consumers to know.
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AG Mortgage Investment Trust, Inc. Announces Public Offering of Common Stock

NEW YORK–(BUSINESS WIRE)– AG Mortgage Investment Trust, Inc. (NYSE: MITT – News) (the “Company”) announced today that it is commencing an underwritten public offering of 4,000,000 shares of common stock. MITT expects to grant the underwriters a 30-day option to purchase up to 600,000 additional shares of common stock to cover overallotments.
The Company intends to use the net proceeds of the offering to make, as market conditions warrant, additional acquisitions of agency securities, non-agency residential mortgage-backed securities and other target assets, and for general corporate purposes.
Deutsche Bank Securities Inc., BofA Merrill Lynch and Stifel Nicolaus Weisel are acting as joint book-running managers for the offering.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission (“SEC”) but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
The offering will be made solely by means of a prospectus, copies of which may be obtained, when available, from: Deutsche Bank Securities Inc., Attention: Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, NJ 07311-3988, by calling (800) 503-4611, or by emailing prospectus.cpdg@db.com; BofA Merrill Lynch, 4 World Financial Center, New York, New York 10080, Attention: Prospectus Department, or by e-mail at dg.prospectus_requests@baml.com; or Stifel Nicolaus Weisel, One Montgomery Street, Suite 3700, San Francisco, California 94104, telephone: (415) 364-2720.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of the Company’s securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About AG Mortgage Investment Trust, Inc.
AG Mortgage Investment Trust, Inc. is a real estate investment trust that invests in, acquires and manages a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. AG Mortgage Investment Trust, Inc. is externally managed and advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered investment adviser that specializes in alternative investment activities. Please visit the Company’s website at www.agmortgageinvestmenttrust.com.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in interest rates, changes in the yield curve, changes in prepayment rates, the availability and terms of financing, changes in the market value of our assets, general economic conditions, market conditions, conditions in the market for agency securities, and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements, are included in the Company’s periodic reports filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. All written or oral forward-looking statements that the Company makes, or that are attributable to the Company, are expressly qualified by this cautionary notice. The Company expressly disclaims any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate
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Financial Check-Up: 10 Steps to Get Mortgage Ready

SANTA ANA, CA–(Marketwire -01/09/12)- Whether you’re financing or refinancing, the thought of applying for a mortgage can be scary. After all, a lot of folks say the mortgage marketplace has largely closed down and that home loans are difficult to get, if not impossible.
“More than four million existing homes were sold in 2011 according to the National Association of Realtors,” said Steve Patton, executive vice president with Carrington Mortgage Services, a lender with 27 offices, and licensed to do business in 42 states. “How can there be so much real estate activity without financing and refinancing? Mortgages are clearly more difficult to get than they were during the real estate boom a few years ago, but millions of loans are still being issued.”
So what’s the secret to getting a home loan in today’s marketplace?
The application process is a lot easier if you prepare in advance.
“The lender has a list of necessary documents which will be needed to create the loan,” said Patton. “While paperwork requirements can vary, borrowers generally have most information in hand. The trick is to organize financial information in advance so you can be mortgage-ready.”
The purpose of a financial check-up is to identify what lenders want and to place that paperwork in a file so you’re ready to apply for a mortgage. The result is that when you apply for a loan, all the required documentation will be in hand and your application will have a great chance to fly through the underwriting process.
What Lenders Really Want
There are lengthy guidelines outlining what lenders need to document loan applications. For borrowers, the best approach is to assume that lenders want everything required for your particular situation and to build an application file from that perspective.
What do you need? Patton said his firm has a lot of information online (www.carringtonhomeloans.com) and that most borrowers can use Carrington’s 10-point application checklist to start a basic file.
1. Income: Tax returns and pay stubs. Have complete tax returns and W-2s in hand for the past three years — just in case a lender wants to go back more than two years. The same with pay stubs: always have the last three or four stubs in the file. If self-employed you may also need a year-to-date profit-and-loss statement, especially if you apply for a loan late in the year.
2. Debts: You must disclose all debts. Lenders will generally have some idea of what you owe from credit reports. However, you’ll need to document debts including account names and numbers, the amount owed and the required monthly payment. Make sure to include debts such as: car loans, student loans, mortgages and credit card accounts. The best approach is to have the latest three monthly statements for each account in the file.
3. Credit: Lenders will pull both credit reports and credit scores from the three major credit reporting bureaus. A credit report can be seen as a history of credit use while a credit score is a statistical measure of credit usage. Borrowers can get free copies of credit reports from AnnualCreditReport.com. Three months before applying for a mortgage get a copy of your report and check it for factual errors and items that are more than seven years old (10 years for bankruptcies). “If you find errors or out-of-date items,” said Patton, “contact the credit reporting agency or creditor to get them removed. Inaccurate information can hurt credit scores and affects the borrower’s ability to qualify in some cases.”
4. Assets: Assets are a sign of financial stability and financial stability very much pleases lenders. Pull together the latest three statements for such things as retirement accounts, stock brokerage accounts, mutual funds, savings, checking, etc.
5. Gifts: If you’re buying property with help from an outside source, lenders will require a gift letter from the donor which confirms that the money you received was not a loan. Note that you can’t get a “gift” from the seller, builder, broker or anyone with an interest in the transaction.
6. VA Loans: Those seeking a VA mortgage but are no longer in the service will need to provide a Certificate of Eligibility (Form DD214). If currently on active duty, lenders will want a letter from your commanding officer to verify service.
7. Divorce: A large number of marriages end in divorce but the usual claim that 50 percent fail is debatable. What’s not debatable is that divorce can impact mortgage applications. Applicants must report all required alimony and child support payments — think of them as a form of debt. Recipients need not include alimony and child support payments in loan applications, however such payments can be counted toward qualifying income if documented.
8. Bankruptcy: More than 1.5 million people declared bankruptcy in both 2010 and 2011. You can sometimes qualify for a new mortgage within two years if the bankruptcy was caused by a hardship such as the loss of a job or a medical emergency — and you have re-established good credit. Lenders will require a bankruptcy to be fully documented, including copies of the petition and discharge.
9. Foreclosure: If you have a foreclosure, expect to wait two to five years for a new mortgage — but longer for those who “walked-away” from a home loan. Lenders will require details regarding exactly what happened and why, as well as a strong credit history after the foreclosure.
10. Rentals: Your tax returns should tell the financial story regarding any rental units you own. Depreciation from rental units — often a big item — can be “added back” to boost qualifying income. Also, lenders will want copies of leases.
“By creating a financial check-up and having the required paperwork in hand, you’ll be able to move quickly through the process and hopefully avoid application headaches and hold-ups,” said Patton. “The 10-point Carrington application list is a way to get started at your own pace, to see what information you have and what verifications you need.”
For a specific list of documents and verifications, speak with lenders well before entering the mortgage marketplace.
Peter G. Miller is a widely-published writer who specializes in mortgages and real estate
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Prudential Mortgage Capital Company provides $160 million financing for 21 industrial facilities in Mexico

Prudential Mortgage Capital Company has provided $160 million in financing to a co-investment venture managed by San Francisco-based Prologis, L.P., for a portfolio of industrial buildings in Mexico. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial Inc. (NYSE: PRU).
The fixed-rate, five-year refinancing is secured by 21 industrial and warehouse distribution buildings with 4.7 million square-feet of usable space. The property portfolio comprises modern properties in Mexico’s leading industrial markets of Mexico City and Guadalajara and is more than 95 percent leased to a broad mix of multinational and regional tenants.
Frederick van Overbeek, a principal with Prudential Mortgage Capital Company, and Elizabeth Velazquez, a director, led the transaction.
“The loan is secured by a high quality, well-located and well-leased industrial property portfolio. When combined with the strength, experience, and local market expertise of Prologis, this is a compelling mortgage investment for Prudential,” said van Overbeek.
“The significant improvement in Mexico’s economy over the past couple of years along with continued manufacturing growth bodes well for Mexico’s industrial real estate sector,” added Velazquez.
“We chose to refinance this portfolio with Prudential Mortgage Capital Company because of its professionalism, reliability and superior quality of service. Prudential Mortgage Capital is a sophisticated, relationship-oriented lender that understands our needs,” said Gayle Starr, senior vice president of capital markets for Prologis.
Prologis, Inc. is one of the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of September 30, 2011, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 55.7 million square meters in 22 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.
Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with $69.5 billion in assets under management and administration as of September 30, 2011. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $66.9 billion, as of September 30, 2011. For more information, please visit http://www.prumortgagecapital.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $871 billion of assets under management as of September 30, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/

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BTB Real Estate Investment Trust announces a $12,850,000 mortgage financing

MONTREAL, Dec. 1, 2011 /CNW Telbec/ – BTB Real Estate Investment Trust (TSXV: BTB-UN.V – News) (“BTB“) is proud to announce that it has entered into a mortgage financing agreement of $12,850,000 with Otéra Capital/Hypothèques CDPQ.
This mortgage financing pertains to three recently acquired properties, namely:

• 2175 Des Entreprises Boulevard, Terrebonne, Québec
• 2205-2225 Des Entreprises Boulevard, Terrebonne, Québec
• 5600 Côte-de-Liesse, Town of Mount-Royal, Québec

This mortgage financing bears interest at the rate of 3.5% for a term of five years.
About BTB
BTB is a growth-oriented real estate investment trust listed on the TSX Venture Exchange. Its total assets are more than $365 M, its real estate portfolio constitutes 53 properties totaling more than 3.2 million square feet.  Its objective is to provide unitholders with stable cash distributions from investments in good quality leased office, industrial, commercial and retail properties predominantly located in the province of Quebec. BTB is led by an experienced management team with in-depth experience in the real estate industry and a Board of Trustees focused on governance and sound business practices.
Forward-Looking Statements
This press release may contain forward-looking statements with respect to BTB. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of BTB could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulation and the factors described from time to time in the documents filed by BTB with the securities regulators in Canada. The cautionary statements qualify all forward-looking statements attributable to BTB and persons acting on their behalf. Unless otherwise stated or required by applicable law, all forward-looking statements speak only as of the date of this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Mr. Michel Léonard
President and Chief Executive Officer
514-286-0188
ext. 228