C.A. Bancorp Canadian Realty Finance Corporation
TSX : RF.PR.A
TSX : RF.A

March 07, 2011 16:34 ET

C.A. Bancorp Canadian Realty Finance Corporation Announces Quarterly Distribution on Preferred Shares and Suspension of Class A Share Distribution

TORONTO, ONTARIO--(Marketwire - March 7, 2011) - C.A. Bancorp Canadian Realty Finance Corporation (the "Corporation") (TSX:RF.PR.A)(TSX:RF.A) declares the following distribution for the quarter ending March 31, 2011:

Security Trading Symbol Record Date Payable Date Distribution (per share)
Preferred Shares RF.PR.A March 31, 2011 April 15, 2011 $0.4219

The fixed cumulative preferential quarterly cash distribution on the Corporation's Preferred Shares remains unchanged from previous quarters.

The Corporation's Board of Directors (the "Board") has resolved to suspend the Corporation's target quarterly distribution of $0.19 per Class A Share for the quarter ended March 31, 2011 until such time as the Corporation has further visibility on the reinvestment of its excess cash balances into mortgages and loans. The Corporation has a robust balance sheet with cash and cash equivalents positions which are currently in excess of $20 million. However, notwithstanding the strong financial position of the Corporation, the Corporation, for the reasons described below, has not experienced the deal flow required to earn the returns necessary to maintain the Class A Share distribution at this time.

C.A. Bancorp Inc., the parent company of the Corporation's manager and investment advisor, announced in August 2010, following the culmination of a series of failed take-over bid transactions, that its interests would best be served through the realization of its assets and distribution of the proceeds to its shareholders. As previously disclosed, given the uncertainty relating to the manager and investment advisor of the Corporation, the number and quality of new lending opportunities for the Corporation has been depressed. As such, the Corporation's focus has been to proactively manage the existing mortgage portfolio and preserve capital. Many mortgages have been repaid over the past year, and without any material reinvestment into new mortgages and loans, the Corporation currently has excess cash and cash equivalents which are not earning adequate investment returns.

The Corporation's Board will continue to assess future distributions on a quarterly basis.

C.A. Bancorp Canadian Realty Finance Corporation  

The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax-efficient basis.

C.A. Bancorp Inc.  

C.A Bancorp Inc. (TSX:BKP) owns approximately 32% of the Class A Shares of the Corporation and manages the Corporation through its wholly-owned subsidiary C.A. Bancorp Ltd.

Certain statements included in this news release constitute forward-looking statements including statements identified by the words "plan," "will" and "intend," and similar expressions or the negative thereof. The forward-looking statements are not historical facts but reflect the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations including but not limited to the ability of the Corporation to pay the preferred share distribution on April 15, 2011. Readers are cautioned not to place undue reliance on forward-looking information. The Corporation undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information except as required by law.

The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

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