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Press release from Marketwire

Canadian Real Estate Investment Trust Announces Second Quarter 2012 Results and Renewal of Normal Course Issuer Bid

Friday, August 03, 2012

Canadian Real Estate Investment Trust Announces Second Quarter 2012 Results and Renewal of Normal Course Issuer Bid06:16 EDT Friday, August 03, 2012TORONTO, ONTARIO--(Marketwire - Aug. 3, 2012) - Canadian Real Estate Investment Trust (TSX:REF.UN) ("CREIT") today announced results for the three and six months ended June 30, 2012.For the three months ended June 30, 2012, CREIT reported Funds from Operations (FFO) of $0.65 per Unit compared to $0.58 per Unit for the same period in 2011, an increase of 12%. For the six months ended June 30, 2012, CREIT reported Funds from Operations (FFO) of $1.28 per Unit compared to $1.14 per Unit for the same period in 2011, also reflecting an increase of 12%. Stephen Johnson, President and Chief Executive Officer, said, "Our financial performance for the quarter was very solid. Our existing real estate portfolio continues to produce strong results and, as well, property acquisitions in 2011 and year-to-date in 2012 have contributed to income growth."CREIT has added $298.5 million of high quality income-producing real estate to its portfolio since January 1, 2012.Mr. Johnson added, "During the quarter, our property development program also progressed well. Of note, we completed the leasing for the entire first phase of one of our industrial property developments in Milton, Ontario (CREIT's ownership interest is 85%). Lowe's Canada signed a lease for 635,000 square feet at this property, which they will utilize as their main distribution facility in Canada. We expect construction to be completed and rent to commence late in the second quarter of 2013."For the three months ended June 30, 2012 and 2011, FFO was as follows:Three months ended June 30Change($ thousands, except per Unit amounts)20122011($)(%)FFO$43,948$39,119$4,82912%FFO per Unit$0.65$0.58$0.0712%For the six months ended June 30, 2012 and 2011, FFO was as follows:Six months ended June 30Change($ thousands, except per Unit amounts)20122011($)(%)FFO$86,901$76,424$10,47714%FFO per Unit$1.28$1.14$0.1412%The increase in FFO for the six months ended June 30, 2012 over the six months ended June 30, 2011 is a result of transaction activities, improvements in same-asset performance and higher interest income from the mezzanine financing program.The charts below provide a summary of net income results for the three and six months ended June 30, 2012 and 2011. Three months ended June 30Change($ thousands, except per Unit amounts)20122011($)Income before the disposition of investment properties, property acquisition costs, foreign currency translation and income tax$17,196$12,905$4,291Net income$16,796$9,333$7,463Net Income per Unit$0.25$0.14$0.11Six months ended June 30Change($ thousands, except per Unit amounts)20122011($)Income before the disposition of investment properties, property acquisition costs, foreign currency translation and income tax$33,843$24,439$9,404Net income$40,037$22,499$17,538Net Income per Unit$0.59$0.34$0.25FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by International Financial Reporting Standards. Readers are directed to Management's Discussion and Analysis of Results of Operations and Financial Condition (MD&A) for a description of the measure and its reconciliation to Net Income.CREIT's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2012 are posted on CREIT's website at www.creit.ca. Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.Renewal of Normal Course Issuer BidCREIT today also announced that it has received approval from the Toronto Stock Exchange ("TSX") for the renewal of its normal course issuer bid ("NCIB") which will enable it to purchase for cancellation up to 3,396,840 of its outstanding Trust Units ("Units"), representing 5% of its 67,936,809 issued and outstanding Units as at July 31, 2012.CREIT intends to commence the NCIB on August 10, 2012. The NCIB will expire on August 9, 2013 or such earlier date as CREIT completes its purchases pursuant to the NCIB. All purchases under the NCIB will be made on the open market through the facilities of the TSX, Alpha or alternate trading systems in Canada at market prices prevailing at the time of purchase. In accordance with TSX rules, any daily repurchases will be limited to a maximum of 22,682 Units, which represents 25% of the average daily trading volume of the Units on the TSX for the six months ended July 31, 2012. Any Units that are repurchased will be cancelled.The Trustees of CREIT believe that the ongoing purchase by CREIT of certain of its Units will afford additional liquidity for the issued and outstanding Units. It will also benefit all remaining Unitholders by increasing their proportionate equity and voting interests in CREIT.From time to time, when CREIT does not possess material non-public information about itself or its securities, it will enter into a pre-defined plan with its broker to allow for the repurchase of Units at times when CREIT ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with CREIT's broker will be adopted in accordance with applicable Canadian securities laws.Under its NCIB that began on August 10, 2011, CREIT purchased 23,000 Units for cancellation at a weighted average purchase price of $31.60 per Unit.Cautionary Statements Regarding Forward-Looking StatementsThis news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.FOR FURTHER INFORMATION PLEASE CONTACT: Stephen JohnsonCanadian Real Estate Investment TrustPresident & Chief Executive Officer416-628-7878sjohnson@creit.caORTim McSorleyCanadian Real Estate Investment TrustVice President & Chief Financial Officer416-628-7790tmcsorley@creit.cawww.creit.ca