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.

Miami Investment Properties For Your Own Rental Business Do You Have What It Takes To Succeed?

Numerous investors today have come to understand what great potential lies in the real estate market of Miami which is the fabulous region located along the Atlantic coast of South Florida where people can expect to find a spectacular range of Miami investment properties which are perfect for those who are looking to begin making a profit through real estate.
Being a location which has managed to earn its ranks among the most amazing beach resort destinations in the world, Miami is definitely the best market for beginning real estate investors and knowing that there will always be a demand for rental properties proves to be the key to one’s overall success.
However, before going out into the market to get started, it is important for investors to consider whether becoming the owner of a rental property within Miami is going to be a suitable investment to make and we have come up with a few pointers to help you figure out if Miami investment properties are going to be worth your time and energy.
• Are you comfortable with financing strategies? Taking on the responsibilities that come with owning and running Miami investment properties involves a lot of time, money, and hard work. If you have what it takes to push through with these types of obligations then you should carry on with your plans.
• Do you know other investors who run rentals within Miami? If you do, you will find it easier to pick up on what these investments entail and you will be able to collect information which can help you succeed with your own rental venture.
• Are you financially prepared? Becoming the owner of an operational rental venture is going to involve a lot of money and people who are interested in taking on Miami investment properties for these purposes will find that it is always a good idea to start by adding up the monthly mortgage payments and property taxes. Also, insurance expenses are going to be an important aspect that an investor will want to look into.
• Will you be putting up advertisements? Much like any other business, people find that having advertisements up can help boost the amount of business that your Miami investment properties can generate, especially since rental options will not always be occupied — leaving investors will lower income potential. If you are hoping to get the best business possible, advertising might be a good option for you to consider as long as your budget allows it.
There are many other factors that potential investors will want to consider as they go about learning more when it comes to Miami investment properties. Nevertheless, it has been proven time and again that being able to invest in these types of real estate options has been an effective way of generating profit.
Joan Vonnegut
Miami Investment Properties

http://tourism9.com/

What will 2012 bring in air travel?

While some travelers wish that fees would disappear, that’s not going to happen, Brett Snyder says.

STORY HIGHLIGHTS

• If fuel prices spike higher, then airlines will be forced to raise fares regardless of demand
• It’s just about certain that there will be fewer flights in the next year
• Next year might be the year when things really heat up on the mobile front

Editor’s note: Brett Snyder is the founder of air travel assistance site Cranky Concierge, and he writes the consumer air travel blog The Cranky Flier.
(CNN) — It’s the end of 2011, so you know what that means. It’s time for everyone to come out of the woodwork with their predictions for 2012.
So what will happen in the world of air travel?
Here are some thoughts on what the coming year might have in store.
Fares will go up . . . or down
The one thing everyone wants to know is whether fares will keep going up. We’ve seen plenty of increases in 2011, but will that continue? That really depends on two things: passenger demand and fuel prices.
Despite a still-shaky economy, demand for flights has been quite strong, and that has enabled airlines to keep raising fares. If demand continues to strengthen, then you can bet we’ll see more increases in the new year. If it starts to drop off, then fares will likely start to fall, or at the very least, stay the same.
The one thing that can get in the way of that plan is high fuel prices. If prices spike higher, then airlines will be forced to raise fares regardless of demand. If that happens, then airlines will also have to cut the number of flights.
Still holding back
Fewer flights, however, will likely be the case no matter what happens with fuel.
Airlines have shown a great deal of discipline in terms of holding back the number of seats and flights they’ve put out there over the last few years, and that isn’t likely to change. In fact, as Holly Hegeman, founder of PlaneBusiness.com notes, there are a couple of events that will directly affect that.
“In 2012, U.S. airlines will continue to reduce capacity both domestically in the U.S. and on international flights,” she notes.
“Specifically, Southwest Airlines will be removing service in many AirTran markets as the airlines’ merger moves forward, and American Airlines will cut back on its service in certain markets as part of its bankruptcy restructuring. Excess capacity across the Atlantic is also being trimmed.”
You can expect fewer flights to smaller cities in general. That’s the continuation of a trend we’ve seen for several years. Fortunately, not all is gloom and doom. There are some bright spots when it comes to technology.
More mobile
I asked Henry Harteveldt, travel industry analyst at Atmosphere Research Group, for his predictions for the new year since he always has his ear to the ground.
His first thought? He expects that 2012 will be “the first year that airlines see a meaningful number of reservations made through mobile devices.”
That seems like a good bet. Smartphones and tablets are gaining ground rapidly, and airlines have raced to improve functionality. Next year might be the year when things really heat up, as airlines continue to make it easier to do business with them while on the road.
No end to fees
While some travelers wish fees would disappear, that’s not going to happen. Some new rules from the federal government will make it a little easier to find fee information up front, but fees are proving to be a great way for the airlines to be able to offer lower base fares and then let people pay more if they want more.
That doesn’t mean the experience will remain exactly the same when it comes to buying tickets.
Airlines will, in Harteveldt’s opinion, “start to get more creative about bundling.”
Frontier is ahead of the curve on this one, offering different fare categories that include different amenities bundled together as a package.
So there you have it. I actually think flying will be less frustrating next year and here’s hoping all of your journeys are smooth in 2012.

This article is from http://tourism9.com/