SmartCentres REIT provides a business update related to COVID-19

TORONTO, April 21, 2020 (GLOBE NEWSWIRE) -- SmartCentres Real Estate Investment Trust (“SmartCentres” or the “REIT”) (TSX: SRU.UN) released an update today on the impact of COVID-19 on the REIT’s business, the measures it has put in place, accordingly, and its long-term strategy.  Additional details will be provided as part of the REIT’s first quarter reporting.  Additionally, the REIT announced today that it is withdrawing any previous guidance for fiscal 2020 due to the continuing economic and operating impact resulting from the COVID-19 pandemic.

SmartCentres is an open-air shopping centre REIT, 5 years into a strategy to transition into a diversified REIT through development, primarily on its owned properties, of residential, seniors housing, office, and storage facilities.  This $12.1 billion development program, underway, is in the service of the REIT’s short, medium and long-term growth strategy, providing additional sources of income from intensification and its alignment in an ever-changing world. 

Not all retail is the same.  SmartCentres’ focus has always been on value/essential services-oriented retail; not fashion, recreational, entertainment or experimental retail.  This weekly-needs centric retail portfolio is the result of a long-standing relationship with Walmart, going back to Walmart’s entry into Canada.  It is from this pedigree and mindset that SmartCentres emerged in the 1990s, focused, along with Walmart, on bringing value to all Canadians and has led to its consistent 98% plus occupancy level, up to and including as recently as December 31, 2019 (the REIT’s last reporting date).  Having said that, SmartCentres is alert to the changing landscape of retail and has hence chosen to be ‘driver’, not ‘passenger’, in charting its path into the next era, which, notwithstanding, but also because of, accelerated complexities associated with COVID-19, continues to be the REIT’s vision. 

March 12-April 21, 2020:  Focused on Supporting Canadians

First and foremostly, SmartCentres’ priority during this period of uncertainty is to protect its people, the communities it serves, and its business.  The SmartCentres Business Continuity Leadership Team, led by President and CEO, Peter Forde, meets daily to monitor the evolving situation and adapt in the best interest of all its stakeholders.