September 23, 2010 / 9:20 PM / in 7 years

UPDATE 1-RioCan REIT sees asset value up 27 pct on new norms

* Says value of properties to increase by about 30 pct

* Says value of assets to increase by about 27 pct

* New standards effective on Jan 1, 2011

Sept 23 (Reuters) - RioCan REIT (REI_u.TO) said the value of its total assets is expected to increase by about 27 percent when it swtiches to new reporting standards.

The International Financial Reporting Standards (IFRS) takes effect on Jan 1, 2011.

The real estate investment trust, Canada’s biggest and oldest, said after the transition, the value of its income properties and properties under development is expected to increase to about $6.9 billion.

This $6.9 billion value compares to the historical cost amount under current Canadian GAAP of $5.3 billion as at Jan 1.

The REIT’s total asset value is expected to increase to $7.5 billion from $5.9 billion under GAAP.

RioCan’s first reporting period under IFRS will start with its interim financial statement for the three months ending March 31, 2011.

RioCan’s units, which hit a 52-week high on Tuesday when it closed its offering of $100 million in senior unsecured debentures, closed at $22.65 Thursday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Prem Udayabhanu) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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