Calloway Real Estate Investment Trust
TSX : CWR.UN
TSX : CWT.DB

Calloway Real Estate Investment Trust

September 12, 2006 14:58 ET

Calloway Announces Distribution Increase

TORONTO, ONTARIO--(CCNMatthews – Sept. 12, 2006) –

Attention Business/Financial Editors:

Calloway Real Estate Investment Trust (TSX:CWT.UN) announced today that the trustees of the REIT have approved an increase in monthly distributions payable to unitholders. The current annual distribution of $1.45 per unit will be increased to $1.50 per unit. The new monthly rate of $0.125 per unit will commence with the distribution for the month of September 2006, which will be paid on October 16, 2006 to unitholders of record on September 29, 2006.

Mr. Simon Nyilassy, President and CEO of Calloway said, "We are pleased to be passing on to our unitholders the benefits from owning a growing portfolio of shopping centres. The pace of growth, through our acquisition and development program, enables us to raise our distribution rate. This is the 5th time in the last 2 1/2 years that Calloway has increased its distributions. Unitholders will now receive a monthly cash distribution from the REIT that is 30% higher than the March 2004 distribution. Since the third quarter of 2003, when Calloway acquired its first portfolio of shopping centres from SmartCentres, assets have grown from approximately $100 million to over $3 billion today."

Mr. Nyilassy added, "We have increased our distributions at the fastest pace of any Canadian REIT. The growth in our cash flow available for distributions has been even faster. We are increasing distributions because we are confident they are sustainable".

Calloway currently has a portfolio of 108 properties with a book value in excess of $3 billion. The portfolio is expected to grow to in excess of $3.3 billion by the end of 2006, as a result of further acquisitions, expansions and new developments.

This press release contains "forward looking statements" subject to various significant risks and uncertainties which may cause actual results, performances or achievements of Calloway to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, restrictions on redemption, general uninsured losses, future property acquisitions, environmental matters, tax related matters, debt financing, Unitholder liability, potential conflicts of interest, potential dilution, and reliance on key personnel. Calloway cannot assure investors that actual results will be consistent with these forward looking statements and Calloway assumes no obligation to update or revise them to reflect new events or circumstances.

The Toronto Stock Exchange neither approves nor disapproves of the contents of this Press Release.

Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and Chief Executive Officer
    (905) 326-6400