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Press release from Marketwire

Canadian Real Estate Investment Trust Announces Second Quarter 2013 Results and Renewal of Normal Course Issuer Bid

Thursday, August 08, 2013

Canadian Real Estate Investment Trust Announces Second Quarter 2013 Results and Renewal of Normal Course Issuer Bid

17:15 EDT Thursday, August 08, 2013

TORONTO, ONTARIO--(Marketwired - Aug. 8, 2013) - (TSX:REF.UN) - Canadian Real Estate Investment Trust ("CREIT") today announced results for the three and six months ended June 30, 2013.

For the three months ended June 30, 2013, CREIT reported Funds from Operations ("FFO") of $0.71 per Unit compared to $0.65 per Unit for the same period in 2012, an increase of 9.2%.

For the six months ended June 30, 2013, CREIT reported Funds from Operations ("FFO") of $1.39 per Unit compared to $1.28 per Unit for the same period in 2012, an increase of 8.6%.

Stephen Johnson, President and Chief Executive Officer, said, "Our strong financial performance continued in the second quarter, with FFO increasing 9.2% over the comparative period in the prior year. Our portfolio of high-quality real estate assets continued to produce a reliable and growing income stream and we have also had a significant contribution to income growth from acquisitions and completed development projects. Year-to-date in 2013, we have added $249.8 million of income-producing property to the CREIT portfolio."

For the three months ended June 30, 2013 and 2012, FFO was as follows:

Three months ended June 30
Change
($ thousands, except per Unit amounts) 2013 2012 ($) (%)
FFO $ 48,714 $ 43,948 $ 4,766 10.8 %
FFO per Unit $ 0.71 $ 0.65 $ 0.06 9.2 %

For the six months ended June 30, 2013 and 2012, FFO was as follows:

Six months ended June 30
Change
($ thousands, except per Unit amounts) 2013 2012 ($) (%)
FFO $ 95,377 $ 86,901 $ 8,476 9.8 %
FFO per Unit $ 1.39 $ 1.28 $ 0.11 8.6 %

The increases in FFO for the three and six months ended June 30, 2013 as compared to the same period in 2012 are 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, 2013 and 2012.

Three months ended June 30
($ thousands, except per Unit amounts) 2013 2012 Change
Income before the disposition of investment properties, property acquisition costs, foreign currency translation and income tax $ 20,905 $ 15,900 $ 5,005
Net income $ 25,228 $ 15,500 $ 9,728
Net Income per Unit $ 0.37 $ 0.23 $ 0.14
Six months ended June 30
($ thousands, except per Unit amounts) 2013 2012 Change
Income before the disposition of investment properties, property acquisition costs, foreign currency translation and income tax $ 40,523 $ 31,346 $ 9,177
Net income $ 44,762 $ 37,540 $ 7,222
Net Income per Unit $ 0.66 $ 0.56 $ 0.10

FFO 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 CREIT's Condensed Consolidated Financial Statements and 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, 2013 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 Bid

CREIT 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 3,423,013 of its outstanding Trust Units ("Units"), representing 5% of its 68,460,263 issued and outstanding Units as at July 31, 2013.

CREIT intends to commence the NCIB on August 13, 2013. The NCIB will expire on August 12, 2014 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 33,505 Units, which represents 25% of the average daily trading volume of the Units on the TSX for the six months ended July 31, 2013. 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, 2012, CREIT purchased 150,000 Units for cancellation at a weighted average purchase price of $43.02 per Unit.

Cautionary Statements Regarding Forward-looking Statements

This 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:

Contact Information:
Stephen Johnson
President & Chief Executive Officer
416-628-7878
sjohnson@creit.ca


Rael Diamond
Chief Financial Officer
416-628-7861
rdiamond@creit.ca

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