Canadian Real Estate Investment Trust
TSX : REF.UN

Canadian Real Estate Investment Trust

May 04, 2007 12:40 ET

Canadian Real Estate Investment Trust Announces First Quarter 2007 Results and an Increase in Distributions

TORONTO, ONTARIO--(CCNMatthews - May 4, 2007) - Canadian Real Estate Investment Trust (TSX:REF.UN) ("CREIT") today announced results for the three months ended March 31, 2007.

For the three months ended March 31, 2007, CREIT reported Funds from Operations (FFO) of $0.513 per unit ($2.05 annualized). This is a $0.052 per unit increase over the three months ended March 31, 2006, representing an 11% improvement.

Stephen Johnson, President and Chief Executive Officer of CREIT, said, "We are very pleased with our first quarter results. We recorded positive improvements in all three property sectors on a same-asset basis. We reduced our average cost of debt. We progressed on our strategy of disposing of partial interests in our office assets with the sale of a 50% non-managing interest in 175 Bloor Street East, Toronto, Ontario, on February 1, 2007. Although the market for acquisitions remains very competitive, we currently have an active pipeline of potential acquisitions, due in part to the success of our mezzanine financing initiatives."

Mr. Johnson added, "Last year was an outstanding year for CREIT, and our financial results for the first quarter of 2007 have provided a solid start for this year. Consistent with our steady performance, we will again be increasing our cash distributions to our Unitholders."

Effective June 2007, CREIT will increase its monthly distribution (payable in July 2007) to 11.08 cents per Unit ($1.33 annualized) from 10.83 cents per Unit ($1.30 annualized).

CREIT has established a track record of reliable distributions and growth in these distributions over time.

For the three months ended March 31, 2007, FFO and Net Income were as follows:



THREE MONTHS ENDED MARCH 31
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CHANGE
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($ millions) 2007 2006 ($) (%)
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Total FFO $ 29.7 $ 26.4 3.3 13
Per Unit $ 0.513 $ 0.461 0.052 11
Per Unit annualized $ 2.05 $ 1.84 0.21 11
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THREE MONTHS ENDED MARCH 31
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CHANGE
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Net Income ($ millions) 2007 2006 ($) (%)
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Income from continuing operations $ 27.8 $ 14.4 13.4 93
Discontinued operations $ - $ 0.7 (0.7) N/A
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Net Income $ 27.8 $ 15.0 12.80 85
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FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by Canadian Generally Accepted Accounting Principles. Readers are directed to the MD&A for a description of the measure and its reconciliation to Net Income.

The Consolidated Financial Statements of the Trust for the three months ended March 31, 2007 and the MD&A are posted on CREIT's website at www.creit.ca.

CREIT's Unitholder Distribution Reinvestment Plan ("DRIP") offers registered Unitholders a convenient and economical opportunity to automatically reinvest monthly distributions in additional CREIT units without the payment of any brokerage commissions. CREIT is pleased to announce that the discount at which these units are purchased (a percentage of the weighted average price at which units of CREIT have traded on the Toronto Stock Exchange for the 5 trading days preceding the distribution date) will be increased from 3% to 4% effective June 1, 2007. Please refer to www.creit.ca for more information on CREIT's DRIP.

CREIT is a real estate investment trust focussed on accumulating a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing cash distribution. CREIT owns a portfolio in excess of 140 retail, office and industrial properties.

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 future 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.

Contact Information

  • Canadian Real Estate Investment Trust
    Stephen Johnson
    President & Chief Executive Officer
    (416) 628-7878
    Email: sjohnson@creit.ca
    or
    Canadian Real Estate Investment Trust
    Tim McSorley
    Vice President & Chief Financial Officer
    (416) 628-7790
    Email: tmcsorley@creit.ca
    Website: www.creit.ca