Reading International Acquires Entertainment-Themed Real Estate Assets and Amends Credit Facility in Australia


12/23/15 8:45 am EST



Public Company Information:

"Cannon Park is complementary to our Australian real estate portfolio and a testament to the synergies between our entertainment and real estate businesses"

LOS ANGELES--(BUSINESS WIRE)--Reading International, Inc. (NASDAQ: RDI) today announced that it has acquired two adjoining entertainment-themed retail centers (ETRC) in Townsville, Queensland, Australia for a total of $23.0 million USD ($33.0 million AUD). The total gross leasable area of the two adjoining properties, the Cannon Park City Centre and the Cannon Park Discount Centre, is 133,000 square feet (12,343 square meters).

The Cannon Park City Centre is anchored by Reading International’s affiliate, Reading Cinemas, and has three mini-major tenants and ten specialty family oriented restaurant tenants. The Cannon Park Discount Centre is anchored by Kingpin Bowling and supported by four other retailers. The properties are located approximately 0.6 miles from downtown Townsville, the second largest city in Queensland, Australia.

Ellen Cotter, Chairman and Interim Chief Executive Officer of Reading International, commented: “We are pleased to enhance our portfolio with the acquisition of these properties, which is consistent with our strategic priority of owning the real estate underlying our cinema assets. The properties are 98.7 percent occupied, providing stable cash flows with upside potential from our ability to capture growth in the local market and upgrade the facilities. Additionally, we intend to operate the two properties as a single entertainment-themed retail center, which would mark the fourth ETRC owned and operated by Reading in Australia and New Zealand.”

“Cannon Park is complementary to our Australian real estate portfolio and a testament to the synergies between our entertainment and real estate businesses,” said Matthew Bourke, Director of Real Estate. “We continue to execute on our strategy of enhancing Reading’s portfolio of real estate assets with this acquisition. Townsville is a strong and growing market, with a diverse economy and attractive demand drivers. We believe the Cannon Park properties are well-positioned to create value for Reading shareholders by leveraging the growth dynamics in their markets and our operational expertise.”

Reading expects the acquisition to be immediately accretive to earnings and contribute approximately $0.03 to EPS in 2016. The transaction was financed with existing cash on hand.

Additionally, the Company also announced that it has amended its Reading Entertainment Australia Term Loan and Corporate Credit Facility into a corresponding $48.1 million USD ($66.5 million AUD) Revolving Corporate Markets Loan facility maturing on June 30, 2019. The amended terms of the facility has enhanced pricing with the potential to translate into $200,000 to $600,000 USD of annual savings, depending on the level of borrowings.

About Reading International, Inc.

Reading International ( is in the business of owning and operating cinemas and developing, owning and operating real estate assets. Our business consists primarily of:

  • the development, ownership and operation of multiplex cinemas in the United States, Australia and New Zealand; and
  • the development, ownership, and operation of retail and commercial real estate in Australia, New Zealand, and the United States, including ETRCs in Australia and New Zealand and live theater assets in Manhattan and Chicago in the United States.

Reading manages its worldwide business under various different brands:

Forward-Looking Statements

Our statements in this press release contain a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995. Forward-looking statements reflect only our expectations regarding future events and operating performance and necessarily speak only as of the date the information was prepared. No guarantees can be given that our expectation will in fact be realized, in whole or in part. You can recognize these statements by our use of words such as, by way of example, “may,” “will,” “expect,” “believe,” and “anticipate” or other similar terminology.

These forward-looking statements reflect our expectation after having considered a variety of risks and uncertainties. However, they are necessarily the product of internal discussion and do not necessarily completely reflect the views of individual members of our Board of Directors or of our management team. Individual Board members and individual members of our management team may have different views as to the risks and uncertainties involved, and may have different views as to future events or our operating performance.

Among the factors that could cause actual results to differ materially from those expressed in or underlying our forward-looking statements are the following:

  • With respect to our cinema operations:
    • The number and attractiveness to movie goers of the films released in future periods;
    • The amount of money spent by film distributors to promote their motion pictures;
    • The licensing fees and terms required by film distributors from motion picture exhibitors in order to exhibit their films;
    • The comparative attractiveness of motion pictures as a source of entertainment and willingness and/or ability of consumers (i) to spend their dollars on entertainment and (ii) to spend their entertainment dollars on movies in an outside the home environment; and
    • The extent to which we encounter competition from other cinema exhibitors, from other sources of outside of the home entertainment, and from inside the home entertainment options, such as “home theaters” and competitive film product distribution technology such as, by way of example, cable, satellite broadcast, DVD rentals and sales, and online streaming.
  • With respect to our real estate development and operation activities:
    • The rental rates and capitalization rates applicable to the markets in which we operate and the quality of properties that we own;
    • The extent to which we can obtain on a timely basis the various land use approvals and entitlements needed to develop our properties;
    • the risks and uncertainties associated with real estate development;
    • The availability and cost of labor and materials;
    • Competition for development sites and tenants;
    • The extent to which our cinemas can continue to serve as an anchor tenant that will, in turn, be influenced by the same factors as will influence generally the results of our cinema operations; and
    • Certain of our activities are in geologically active areas, creating a risk of damage and/or disruption of real estate and/or cinema businesses from earthquakes.
  • With respect to our operations generally as an international company involved in both the development and operation of cinemas and the development and operation of real estate; and previously engaged for many years in the railroad business in the United States:
    • Our ongoing access to borrowed funds and capital and the interest that must be paid on that debt and the returns that must be paid on such capital;
    • The relative values of the currency used in the countries in which we operate;
    • Changes in government regulation, including by way of example, the costs resulting from the implementation of the requirements of Sarbanes-Oxley;
    • Our labor relations and costs of labor (including future government requirements with respect to pension liabilities, disability insurance and health coverage, and vacations and leave);
    • Our exposure from time-to-time to legal claims and to uninsurable risks such as those related to our historic railroad operations, including potential environmental claims and health related claims relating to alleged exposure to asbestos or other substances now or in the future recognized as being possible causes of cancer or other health-related problems;
    • Changes in future effective tax rates and the results of currently ongoing and future potential audits by taxing authorities having jurisdiction over our various companies; and
    • Changes in applicable accounting policies and practices.

The above list is not necessarily exhaustive, as business is by definition unpredictable and risky, and subject to influence by numerous factors outside of our control, such as changes in government regulation or policy, competition, interest rates, supply, technological innovation, changes in consumer taste and fancy, weather, and the extent to which consumers in our markets have the economic wherewithal to spend money on beyond-the-home entertainment.

Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results will undoubtedly vary and there is no guarantee as to how our securities will perform, either when considered in isolation or when compared to other securities or investment opportunities.

Finally, we undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak.

Additionally, certain of the presentations included in this press release may contain “pro forma” information or “non-U.S. GAAP financial measures.” In such case, a reconciliation of this information to our U.S. GAAP financial statements will be made available in connection with such statements.


Reading International, Inc.
Dev Ghose, Chief Financial Officer
Joele Frank, Wilkinson Brimmer Katcher
Kelly Sullivan, Scott Bisang or Matthew Gross

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