C.A. Bancorp Canadian Realty Finance Corporation

December 14, 2010 08:00 ET

C.A. Bancorp Canadian Realty Finance Corporation (TSX: RF.PR.A; RF.A) Announces Quarterly Distributions

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2010) - C.A. Bancorp Canadian Realty Finance Corporation (the "Corporation") (TSX:RF.PR.A)(TSX:RF.A) declares the following distributions for the quarter ended December 31, 2010:

Security Trading Symbol Record Date Payable Date Distribution (per share)
Preferred Shares RF.PR.A December 31, 2010 January 14, 2011 $0.4219
Class A Shares RF.A December 31, 2010 January 14, 2011 $0.19

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

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. Since this announcement, C.A. Bancorp Inc. has been pursuing opportunities to accelerate the realization dates for its assets, including its interests in the Corporation. 

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 in 2010 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.

The Corporation previously disclosed in its 2010 Semi-Annual Management Report of Fund Performance that if it continued to maintain a large balance of uninvested cash, it would result in an overall investment yield to the Corporation that would be insufficient to meet the Corporation's target quarterly distribution of $0.19 per Class A share. The Corporation has determined to maintain this distribution level for the quarter ended December 31, 2010 and will reassess its decision to continue to maintain this distribution on an ongoing 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. is a significant shareholder of the Corporation and manages the Corporation through its wholly-owned subsidiary C.A. Bancorp Ltd.

C.A. Bancorp Inc. (TSX:BKP) is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

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 distributions on January 14, 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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