Melcor REIT Announces Acquisition of Coast Home Centre

EDMONTON, ALBERTA–(Marketwired – Sept. 12, 2013) –

Acquisition Highlights

• Retail centre located in Edmonton, Alberta with total gross leasable area of 59,725 sq. ft. on 4.21 acres
• Well-maintained buildings with 100% occupancy and future re-development potential
• Strategically located on the 170th Street traffic corridor in a strong sub-market
• Positioned to benefit from new development and re-development in the area

Melcor REIT (TSX:MR.UN) today announced that it has completed the acquisition of Coast Home Centre in Edmonton, Alberta for $12.3 million (excluding closing costs).

Darin Rayburn, Chief Executive Officer of Melcor REIT, commented on the acquisition: “We are pleased to add Coast Home Centre to our portfolio. This acquisition fits well with our strategy of growing in the markets that we know best in order to leverage existing market knowledge. Coast is a quality asset in a prime, high traffic location.”

Management expects that the acquisition will be accretive to AFFO by $0.02 per unit on an annualized basis. The acquisition was funded through the REIT’s line of credit and available cash. Following the acquisition the REIT’s Debt to Gross Book Value ratio remains at 47%.

Rayburn continued: “We continue to look at potential acquisitions that fit our acquisition strategy.”

About Melcor REIT

Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties with exposure to high growth western Canadian markets. Its portfolio is currently made up of interests in 28 properties representing approximately 1.63 million square feet of gross leasable area located in and around Edmonton, Calgary, and Lethbridge, Alberta; Regina, Saskatchewan; and Kelowna, British Columbia. For more information, please visit www.MelcorREIT.ca.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; the REIT’s ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. The REIT’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise.

Additional information about these assumptions and risks and uncertainties is contained in the REIT’s filings with securities regulators.