WELCOME TO SCOTT'S REIT
Scott's Real Estate Investment Trust (Scott's REIT) manages a portfolio of 205 retail properties located in seven provinces across Canada and trades on the Toronto Stock Exchange under the symbol SRQ.UN.
The objectives of Scott's REIT are:
- to provide unitholders with stable monthly cash distributions that are, to the maximum extent possible, tax deferred
- to maximize cash flow and unit value while minimizing unitholder risk
- to expand the REIT's asset base through the acquisition of additional small-box retail properties
- to increase distributable income through ongoing management of the REIT's assets
As Canada’s leading small-box REIT, our goal is to double our asset base through organic growth, development and acquisitions. As the only Canadian REIT devoted primarily to pursuing the small-box market, we are moving quickly but prudently to expand and leverage our first mover advantage. Through the REIT’s ongoing acquisition process, one of our key objectives is to diversify our asset base to limit our exposure to regional and industry-specific condition. In our first two years of operation, we have grown our asset base by 40%.
Over the last two years, we have been driving organic growth and making strategic acquisitions. At the same time, we have been prudently managing costs and keeping our capital expenditures at a minimum, which is one of the significant advantages of our unique portfolio of quadruple-net leases. Collectively, these factors have significantly enhanced the REIT’s financial performance and its ability to generate stable distributable income.
Our current distribution is 85 cents per unit on an annualized basis or just over seven cents per unit per month. In 2007, 69.3% of distributions declared were deemed to be non-taxable. This is in line with our goal to provide unitholders with consistent monthly cash distributions that are tax deferred to the maximum extent possible.
Scott’s REIT is truly unique. We are the premier small-box retail property owner as well as the largest quadruple-net landlord in Canada. Our specialized niche business model, leases, quality properties, name brand tenants, and outstanding record of growth set us apart. We have three key drivers of growth and, with our strong balance sheet, acquisitions will remain our primary focus. We are in an excellent position to capitalize on our unique strategy and we are excited about our future.
For Scott’s REIT and our unitholders, small-box means BIG returns.