Canadian Real Estate Investment Trust Announces First Quarter 2015 Results and an Increase in Distributions

TORONTO, ON--(Marketwired - April 30, 2015) - (TSX: REF.UN) -- Canadian Real Estate Investment Trust ("CREIT") today announced results for the three months ended March 31, 2015.

For the three months ended March 31, 2015, CREIT reported Funds from Operations ("FFO") of $0.75 per Unit compared to $0.73 per Unit for the same period in 2014, an increase of 2.7%.

The increase in FFO for the three months ended March 31, 2015 as compared to 2014 is driven by same-asset property NOI growth from the retail portfolio, a full quarter of NOI contribution from $85 million of new developments completed in 2014, higher interest income from the mezzanine loan advances, and interest cost savings on refinancing of debt. Some of this growth was offset by a decline in NOI from the office portfolio. In addition, the industrial assets generated stable operating results.

Stephen Johnson, Chief Executive Officer, said, "Our strong financial performance reflects the benefits of a high-quality portfolio that is diversified by product type and geographic location." He added, "The growing contribution to FFO from our recently completed developments enhances our ability to provide Unitholders with both cash flow stability and growth."

CREIT also announced it will increase its annual distribution by $0.05 per Unit (3%) effective for the June 30, 2015 distribution payable on July 15, 2015. This will bring the distributions to $1.80 per Unit on an annualized basis from the current level of $1.75 per Unit. Mr. Johnson noted, "We are extremely pleased to announce another increase in our distributions. Each year since 2002, our investors have enjoyed higher year-over-year distributions per Unit. We are very proud of this achievement; it is an extraordinary track record."

The chart below provides a summary of net income results for the three months ended March 31, 2015 and 2014.

(1)  Effective December 31, 2014, CREIT changed its policy for the measurement of investment properties to the fair value method. Accordingly, net income fluctuates due to changes in fair value for CREIT's investment properties. Comparative amounts have been restated.

Financial Measures and Additional Financial Information
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 months ended March 31, 2015 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.

About CREIT
CREIT is a real estate investment trust focused on accumulating and aggressively managing 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 monthly cash distribution. CREIT owns a diversified portfolio of 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 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.