CAPREIT Acquires High-Quality GTA Portfolio

TORONTO, ONTARIO--(Marketwire - May 31, 2011) -Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the acquisition of seven apartment properties comprising 625 suites well-located throughout the Greater Toronto Area. The total purchase price, excluding acquisition and closing costs, was approximately $79.0 million. As all properties were acquired free and clear on closing, CAPREIT expects to finance the acquisition with new ten-year CMHC-insured mortgages of approximately $44.9 million and the balance in cash from its acquisition and operating facility.

These mid-tier properties are well-maintained and strategically located close to transportation, schools and shopping, and all are close to existing CAPREIT properties. Amenities at the properties include swimming pools, playgrounds and full laundry facilities, as well as security cameras and recorders for enhanced resident safety. The buildings will be easily integrated into CAPREIT's current property management operations with little additional cost. Management believes average monthly rents at the acquired properties are well below market rents, providing the opportunity to significantly enhance net operating income.

"We are very pleased to be adding these high-quality, strategically located GTA properties to our growing portfolio," commented Thomas Schwartz, President and Chief Executive Officer. "We are confident the acquisition will make an immediate and accretive contribution to our Funds from Operations, with growing cash flows as we apply our proven property management and property improvement programs, and bring average monthly rents up to market rates."

"To date, we have acquired 1,203 suites in 2011, and remain confident we will achieve our target to purchase between 1,500 and 2,000 suites this year," Mr. Schwartz concluded.

As one of Canada's largest residential landlords, CAPREIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 29,557 residential units, comprised of 28,232 apartment and townhome suites located in and near major urban centres from coast to coast and two manufactured home communities comprising 1,325 land lease sites located in Ontario. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net.