Transaction Overview and Rationale

• 213 full service grocery stores under the Safeway banner in Western Canada;
• 199 in-store pharmacies with market leading productivity;
• 62 co-located fuel stations;
• 10 liquor stores;
• 4 primary distribution centres and related wholesale business; and
• 12 manufacturing facilities.

• Creates a new growth platform for Sobeys
• Positions Sobeys as a leading grocer in Western Canada and the #1 grocer in the fast-growing Alberta market
• Solidifies Sobeys' #2 position nationally with pro forma revenue of approximately $24 billion
• Canada Safeway has an exceptional store network totaling approximately 9 million square feet in sought-after locations of which over 60 percent is located in Vancouver, Calgary, Edmonton and Winnipeg
• $1.8 billion in owned real estate (based on an independent appraisal as at March 30, 2013)
• Aligned corporate strategy - both companies have complementary offerings, are focused on excellence in fresh food and represent a great cultural fit
• Strengthens Sobeys' talent base
• Identified cost synergies of approximately $200 million annually within three years
• Management expects the acquisition to be immediately accretive to adjusted net earnings per share and in excess of 25 percent accretive once synergies are fully realized
• Significant free cash flow generation and rapid de-leveraging

Financial Highlights

Financing of the Transaction

Closing of the Transaction and Other Information

Major repositioning

Mark Redman, Senior Managing Director & Head of Europe, OPE commented:

Leo de Bever, CEO of AIMCo commented:

Tim Richards, CEO of Vue said:

This course is designed to discuss the development process, the various stakeholders in the process and some risks and mitigation strategies of real estate development in the commercial and multi-residential markets. It will also provide you with some of the tools to analyze, plan and manage development activities in order to maximize the probabilities of success. We will also discuss the goals, benefits, common skills and operating models of the real estate development function; and, will explore the context of operations in which real estate development is undertaken.

Register for this event

Goodmans and REALpac are pleased to announce a series of breakfast seminars in connection with the 20th Anniversary of Real Estate Investment Trusts. The first of the sessions will be held on Wednesday, June 26th and will be applicable to a broad-based audience of REIT and Commercial Real Estate Industry professionals.

The session will feature a panel discussion on current topics in real estate valuations, including both public and private entities.

The panel will be moderated by Stephen Pincus, Partner at Goodmans LLP, and will include Adlai Chester, CFO, HealthLease Properties REIT, Colin Johnston, President, Research, Valuation & Advisory, Altus Group Canada, and Martin Liddell, CFO, True North Apartment REIT.

Please Register for the Seminar by Friday, June 14th

Details of Peter Pond Acquisition

Details of the $300 Million Financing

Click on the image to enlarge

• The Top Ten pension funds are healthy, growing, and increasingly important to Canada as it faces challenging demographics and economics
• They have created a centre of excellence in Canada for managers of quality, large-scale investments
• They manage ~35% of Canada's retirement assets
• Their net assets grew by more than 100% in the previous eight years
• They have invested roughly $400 billion in Canada, including $100 billion in real estate, infrastructure and private equity
• They are strong proponents of good corporate governance practices, ultimately improving the efficiency and effectiveness of capital markets
• They comprise four of the top 20 global commercial real estate investors
• They also comprise four of the top 20 global investors in infrastructure assets
• They directly employ 5,000 professionals in the Canadian financial sector and an additional 5,000 employees in their real estate subsidiaries.

Global investment scale

Growing Canadians' retirement investments

The keys to success

Excellence in fund management

A transaction for and by Quebecers

Groupe Mach, a leader of real estate development in Quebec

A relationship of trust with their investor

"Sun Life Financial is honoured to be viewed as a leading corporate citizen," says Phil Gillin, Senior Managing Director, Head of Canadian Property Investment, Sun Life Financial.

Sun Life Financial is pleased to be named to the 2013 Best 50 Corporate Citizens in Canada ranking by Corporate Knights. It's the eighth time in 12 years that Sun Life has been named to the list. The Best 50 Corporate Citizens recognizes Sun Life as one of the country's top companies across resource, employee and financial management - which are critical elements of Sun Life's focus on sustainability.

"We're honoured to be viewed as a leading corporate citizen," says Phil Gillin, Senior Managing Director, Head of Canadian Property Investment, Sun Life Financial. "We're committed to operating as a sustainable company; that means taking accountability for our interactions with the environment, contributing to communities where we live and work, and developing high-performing employees focused on nurturing enduring customer relationships."

Sun Life is one of only three insurers on the Best 50 Corporate Citizens this year. Key factors that contributed to Sun Life's recognition included leadership diversity and linking compensation with talent management and customer satisfaction - which align with Sun Life's priorities to create a high performance culture, intensify customer focus and improve productivity. For more complete information about the methodology, visit www.corporateknights.com.

Sun Life and sustainability

In addition to the Best 50 Corporate Citizens ranking, Sun Life is the only North American insurance company on the Corporate Knights 2013 Global 100 Most Sustainable Corporations in the World. Making life brighter through sustainable endeavours is at the very heart of helping people achieve lifetime financial security and ensuring Sun Life delivers value to its stakeholders.

Making life brighter through sustainable business practices, to Sun Life, means:

• Fighting diseases, like diabetes, and improving health around the world;
• Giving back to the community by supporting social services, providing disaster relief and encouraging volunteerism among Sun Life's employees;
• Working with environmentally sustainable organizations and like-minded companies to advance the importance of sustainability within Sun Life's operations and, ultimately, the world; and
• Making responsible, sustainable investments to contribute to the Canadian and global economies.

To find out more about Sun Life's commitment to making life brighter, please visit Sun Life's Public Accountability and Sustainability Report.

Other recognition

Sun Life Financial is the "Most Trusted Life Insurance Company" in Canada, according to the 2013 Reader's Digest Trusted Brand consumer survey. Sun Life was also listed, once again, on the 2012 FTSE4Good Index as well as on the Dow Jones Sustainability Index North America.

• The Kromer Radio site today is zoned Mixed Use Commercial Retail (MCR), a designation that permits retail uses.  It is important to note that zoning by laws regulate use and not users;
• RioCan believes its proposed plan for the Kromer Radio site is entirely consistent with the general intent and policies of the City's Official Plan which encourages appropriate growth (including retail uses) within Mixed Use areas;
• RioCan believes the proposed form of urban retail uses proposed in this project is an appropriate and desirable response to growth of the residential population within the city;
• The proposed uses of the development, including smaller retail uses on the ground floor will provide area residents and employees within the area shopping choices that they do not have today. This is entirely consistent with the City's Official Plan policy that encourages, "a broad range of shopping opportunities for local residents and employees in a variety of settings." and
• RioCan's development proposal is not new. It is the same proposal that has been under consideration since last year.  The OMB denied RioCan's application for process reasons and did not make a decision based on the merits of the proposal. RioCan has accepted the OMB decision and is now following the re-zoning process laid out by the OMB.

• RioCan commissioned an independent, detailed traffic study that showed that a retail development in this location would not adversely impact local traffic flow.
• RioCan commissioned an independent Market Study that concluded that the proposed development would not have an adverse impact on the economic health of nearby shopping districts.
• RioCan commissioned a Planning Rationale Report that concluded the proposed development is entirely consistent with The City's Official Plan.
• RioCan commissioned a Sun Shadow report that demonstrated that the development will have no meaningful shadow impact on the surrounding properties.
• RioCan commissioned a Functional Servicing Report that showed that there is sufficient capacity to accommodate the proposed development.

• The Community consultation meeting be scheduled with 120 m notice and to additional residents, as determined by their local councillor
• The final report include and analysis of:
  • Impact of the project on the future built form of Bathurst St.
  • The economic impact of the project
  • The appropriateness of large format retail in this area
  • Transportation impacts on the Bathurst Streetcar and Toronto Western Hospital.

A proposed land use amendment to accommodate a mixed-use development at Chinook Centre by Cadillac Fairview will be presented to the Calgary Planning Commission on Thursday. It is recommended for approval by the city’s corporate planning applications group.

http://www.calgaryherald.com/business/Chinook+Centre+expansion+plans+take+another+step+forward/8471247/story.html

A development permit for the south block of The Bow project could be filed this year as owners of the property across the street from the skyscraper continue to discuss possibilities for the site. 

http://www.calgaryherald.com/business/Development+permit+works+south+block+project/8478448/story.html

20 African cities poised for commercial real estate growth

By Shane Henson, May 27, 2013—Twenty cities across Africa will present key opportunities for commercial real estate growth by 2020 as retailers, corporates and real estate investors target growing urban centers in countries with solid GDP (gross domestic product) growth prospects

The company notes that while poor real estate transparency continues to constrain many of these cities, there are potentially huge pay-offs if they can improve regulatory environments and transaction processes.

The 20 African cities are:

Angola: Luanda

Egypt: Alexandria, Cairo

Ethiopia: Addis Ababa

Ghana: Accra

Kenya: Mombasa, Nairobi

Morocco: Casablanca, Marrakech, Rabat, Tangier

Mozambique: Maputo

Nigeria: Abuja, Lagos

South Africa: Cape Town, Durban, Johannesburg

Tanzania: Dar es Salaam

Tunisia: Tunis

Zambia: Lusaka

The 20 cities collectively represent an urban population of 70 million people, and 11 of the cities are located in just four countries:

Egypt: Cairo, the most populous city in Africa, and a key target for developers, despite political and economic uncertainties;

Morocco: Casablanca, the largest city in the Maghreb region and an emerging outsourcing hub;

Nigeria: Lagos, the commercial hub of Africa's second-largest economy and a city witnessing rapid GDP growth at over 7 percent; and

South Africa: The continent's only transparent real estate market.

Africa's strengthening regional economies and improving operating environment, rapid urbanization, and emerging middle class consumerism present strong opportunities for established international retailers to expand their footprints and enter new markets. Improving business confidence and increasing cross-border investment also are predicted to support corporate outsourcing into Africa, as many corporates implement long-term strategic growth plans.

http://www.icsc.org/events-and-programs/details/conference-de-licsc-quebec-icsc-quebec-conference/

Construction quality

A sustainable project

• A significant reduction in energy consumption as a result of performance studies and better monitoring of the A/C system;
• Replacement of several pieces of equipment with energy-efficient models;
• A significant reduction in water consumption for hygiene purposes (faucets and low-flush toilets);
• Designation of the entire building as smoke-free;
• Implementation of new ecological building operating procedures, including better management of the cooling towers;
• Expansion of the composting program;
• Seeking continuous feedback from tenants regarding their level of satisfaction with the indoor environment; and
• Ongoing measurement of occupants' satisfaction with proactive environmental measures throughout the building.

In practice, this has seen a significant shift towards open-plan working, hot-desking, and the principle that individuals should freely circulate around the office. In doing so, they will develop their own informal networks and thrive in a more collegiate environment.

With the financial appeal of down-sizing property portfolios an added incentive, the traditional office is becoming, for many organisations, a symbol of a bygone era.

Deloitte is one business that has already embraced these more modern methods. "We have a very diverse set of people working in very different sectors of professional services. At one extreme, we have people who are based at their desk all day and who require a monitor and a desk. At the other, we have people out and about travelling or seeing clients, in multiple locations, and they're sharing three or four people to one desk," says Simon Booth, director, property and corporate services group, with responsibility for the firm's internal environment.

Facilities management is increasingly involved earlier in the process, when such set-ups are designed, he says, with the ultimate aim being to provide people with a greater choice around how and where they work.

Andrew Mawson, managing director of Advanced Workplace Associates, believes facilities management has a core role to play in identifying just what staff require and ensuring they have the tools with which to do their job. "We see an evolution where you have a 'workplace manager', who needs to take responsibility for all of the systems and facilities that enables them to do their best work and do it anywhere," he says.

But FM also has to be aware of changing requirements. "In the traditional world, you have a team of 100 people and you allocate 100 spaces — basically pretty straightforward," he says.

For Mawson, the overall headcount is no longer as visible — you may have 120 people and have decided that 100 seats would deal with their daily demands. "But after three months," he says, "that particular group may have grown by 20, or your headcount may go down."

Follow this link to read the full article

This transaction employs an alternate-debt vehicle that allows real estate owners access to a non-conventional area of the capital stack. By opening up a new source of debt capital, Avison Young is able to assist Calloway with balancing its debt requirements. The terms of the arrangement include a weighted average term of approximately 16 years, leverage of 81% of value and an interest rate of 3.76%.

Norm Arychuk, a mortgage broker with Avison Young's debt capital markets group, was part of the team that brought the parties together and facilitated the transaction.

"By accessing this capital, Calloway gains the use of another debt vehicle that augments the universe of debt funds available in a much more efficient manner than a conventional mortgage execution, through achieving higher leverage at a lower interest rate than typical pricing would provide," comments Arychuk. "Obtaining additional capital by leveraging existing assets in this fashion allows property owners the opportunity to unlock previously unreachable equity to further their business goals."

Steve Liew, Vice-President with Calloway REIT, adds: "This structure allowed us to utilize the strength of our largest tenant by pledging only the Wal-Mart assets and retaining the ancillary retail shopping centre free and clear for future financing. Working with Avison Young's debt capital markets team provided us with a customized debt vehicle well-suited to our particular situation and requirements."

This structured finance transaction is directly tied to 100% of the net cash flow from the tenant after expenses, to establish the leverage at very low debt-service coverage of 1.05 times. "Unlike a conventional mortgage transaction - which would be restricted to less than 70% to 75% leverage and debt-service coverage of at least 1.2 times - we were able to provide greater leverage on a smaller asset grouping and provide Calloway with greater overall flexibility," says Arychuk.

Summit Industrial Income REIT announced its operating and financial results for the three months ended March 31, 2013.

HIGHLIGHTS:

• Trust Unit consolidation completed January 28, 2013
• Completed offering of 11.1 million Units on February 26, 2013 for proceeds of $75.1 million
• Acquired fifteen light industrial properties totaling 2.0 million sq. ft. of GLA for $171.2 million
• Sold two non-core properties, with a third held for sale
• Total portfolio now 25 properties aggregating 2.7 million sq. ft. of GLA
• Announced monthly cash distributions of $0.0408 per Unit (annualized $0.4896 per Unit)
• Implemented new DRIP with 5% bonus
• $300 million in accretive acquisitions and property expansions targeted for 2013
• Acquisitions contribute to significant growth in first quarter results

"Our focus on prudent and accretive portfolio growth is now beginning to have a significant and positive impact on our financial and operating results," stated Paul Dykeman, CEO. "Looking ahead, we are confident our cash flows will continue to grow as our recent acquisitions make a full contribution to our results and we achieve our target of acquiring a total of $300 million in new assets this year."

SIGNIFICANT PORTFOLIO GROWTH

In late February and through March 2013 the REIT completed the acquisition of 15 light industrial properties well-located in Edmonton Alberta, the Greater Toronto Area, and Moncton New Brunswick aggregating approximately 2.0 million square feet of gross leaseable area (GLA) for a total purchase price of $171.2 million. The acquisitions were funded by cash raised in a successful offering of Trust Units completed on February 26, 2013 raising $69.5 million in net proceeds, and new mortgage financings totaling $107.5 million with attractive interest rates ranging between 3.2% and 3.7% and maturities between five and seven years.

Subsequent to the end of the first quarter of 2013 the REIT sold two non-core properties in Saskatoon for a total sale price of approximately $5.4 million with mortgages of $4.2 million being repaid. Net cash proceeds of approximately $1.2 million were used to reduce debt. A third non-core property in Saskatchewan is being held for sale.

With the completion of the above transactions, the REIT's total property portfolio will consist of 25 properties totaling approximately 2.7 million square feet of GLA generating current annualized net operating income (NOI) of approximately $17.2 million.

STRONG FINANCIAL RESULTS

Operating revenues increased to $2.7 million for the three months ended March 31, 2013 compared to $1.7 million for the three months ended December 31, 2012 and $0.3 million in the prior year's first quarter. The REIT acquired two properties late in the fourth quarter of 2012 and another 15 properties in late February and March 2013. Portfolio occupancy stood at 99% at March 31, 2013 compared to 97% at December 31, 2012. NOI rose to $2.1 million in the first quarter of 2013 compared to $1.2 million in the fourth quarter of 2012 and $0.2 million in the first quarter of the 2012.

Funds from Operations (FFO) for the three months ended March 31, 2013 were $1.2 million ($0.111 per Unit) compared to $0.4 million ($0.055 per Unit) in the fourth quarter of 2012 and $77,000 ($0.118 per Unit) in the first quarter of 2012. The quarterly increase in 2013 is due to the contribution from acquisitions completed in the first quarter of 2013 and fourth quarter of 2012. As the REIT had no leasing costs or capital expenditures in the first quarter of 2013, Adjusted Funds from Operations (AFFO) and AFFO per Unit amounts are the same as FFO amounts. Per Unit amounts have been adjusted to reflect the twelve for one trust unit consolidation completed on January 28, 2013.

Net income for the three months ended March 31, 2013 was $1.2 million ($0.111 per Unit) compared to $7.7 million ($1.118 per Unit) in the fourth quarter of 2012, which included a $7.7 million fair value adjustment to investment properties, and $77,000 ($0.118 per Unit) in the first quarter of 2012. There were no fair value appraisal increases in the first quarter of 2013.

On March 15, 2013 the Trust announced a cash distribution policy to pay $0.0408 per Trust Unit on a monthly basis to Unitholders, aggregating $0.4896 on an annual basis. The first cash distribution in the amount of $0.7 million was paid on April 15, 2013 to Unitholders of record on March 29, 2013.

ACTIVE LEASING PROGRAM

During and subsequent to the first quarter of 2013 the REIT made significant progress in leasing approximately 287,000 square feet of space subject to leases with applicable property vendors (Head Leases) with terms ending December 2014 and September 2015. Approximately 199,000 square feet (7% of the REIT's total GLA) under Head Leases is occupied by tenants under short term leases and  approximately 50,000 square feet of Head Lease space is not set to commence until November 2013. As of March 31, 2013 long-term leases have been secured for 22,000 square feet of Head Lease space, with offers under negotiation for another 249,000 square feet.

Overall, leases representing only 2.0% of the total property portfolio, or 53,000 square feet, renew in 2013 with 384,000 square feet, or 14.4% of the total portfolio, up for renewal in 2014. The weighted average term to maturity for the lease portfolio is approximately 6.1 years.

SOLID BALANCE SHEET AND LIQUIDITY POSITION

Total assets increased to $257.5 million as at March 31, 2013 compared to $81.6 million at December 31, 2012. Total debt increased to $140.6 million at March 31, 2013 from $38.3 million at December 31, 2013. The increases are due to the REIT's acquisition of 15 properties and related mortgage and other financing to complete the purchases. At March 31, 2013 the REIT's debt leverage ratio was 54.6% compared to 47.0% at December 31, 2012. The weighted average interest rate on the REIT's mortgage portfolio improved to 3.7% from 3.9% at December 31, 2012, with a weighted average term to maturity of 5.8 years. Debt service and interest coverage ratios improved to 2.48 times and 2.98 times, respectively, compared to 2.39 times and 2.40 times at December 31, 2012.

As of March 31, 2013 the REIT had increased its credit facility to $55 million, of which $38.9 million was drawn on the loan. If the REIT increased its borrowing to the 65% maximum allowed under its Declaration of Trust, it would have the capacity to purchase approximately $76 million in new properties as at March 31, 2013.

Under the terms of the REIT's Management Agreement with Sigma Asset Management Limited (the Manager), the Manager can elect to take the fees payable to it in the form of Trust Units rather than in cash. In the first quarter of 2013 the manager used its acquisition fee proceeds of approximately $1.6 million to acquire 240,444 Units, from the offering of 11,120,000 Units, further aligning the interests of the Manager with all Unitholders.

"In addition to being immediately accretive on an unlevered basis, each property is adjacent to one or more of our existing properties," said Michael Emory, President & CEO. "The acquisitions will also enable us to increase our growing pool of unlevered properties."

The Quebec City Property

Located on the east side of Chapelle Street and extending from the corner with St. Joseph to the corner with Charest, this property is comprised of 31,185 square feet of GLA, all of which is leased to tenants consistent in character and quality with Allied's tenant base. It is adjacent to Allied's property at 633 St. Joseph and just across the street from its property at 622 St. Joseph. Built in 1875, the building was redeveloped for its current use in early part of the last decade.

The Calgary Property

Located on the south side of 11th Avenue S.W., this property is comprised of 9,020 square feet of GLA, all of which is leased to tenants consistent in character and quality with Allied's tenant base, and 14 surface parking spaces. It is between Allied's properties at 613 and 625 11th Avenue S.W. and one property over from its property at 603-603 11th Avenue S.W., affording 376 feet of uninterrupted frontage on the north side of an important block in Calgary's Warehouse District. Built in the 1970s, the building was renovated and upgraded in 2010.

Closing and Financing

The acquisitions are expected to close in June and August of 2013, subject to customary conditions. The purchase price for the properties represents a capitalization rate of 7.9% applied to the current annual net operating income (NOI). The properties will be free and clear of mortgage financing for closing. Allied does not intend to place mortgage financing on the properties in the near term.

David J. LaRue, president and CEO of Forest City Enterprises, was elected chairman of ICSC for the 2013–2014 term on Monday. His election provides ICSC with a leader from one of the most recognizable U.S. development firms to the public at large.

"I look forward to the opportunity to get closer to our members in the U.S. and abroad over the next year," LaRue said immediately after his election.

LaRue, 52, has been an active ICSC member for nearly 20 years and a trustee since 2008, playing a key role in the organization’s administration and many of its activities. In June 2011 he succeeded Charles A. Ratner as head of Forest City, becoming the first chief executive in the company’s 90-year history not to be related to its founding family.

Forest City is noted for the diversity of its real estate, which encompasses just about every project type across a range of market categories. The publicly traded company owns retail, office and residential properties in key markets around the United States. The combined value of those properties is some $10.7 billion and includes regional lifestyle, neighborhood and enclosed centers as well as urban, big-box, entertainment, residential and office retail. There is similar variety in the firm’s residential development, which includes apartments, condos, master-planned communities, and housing for the elderly and for military personnel. Forest City’s high-profile developments include such mixed-use projects as the 4,700-acre Stapleton community, in Denver, and the recently opened Barclays Center stadium, in the New York City borough of Brooklyn. Other famous projects include The New York Times building, in Manhattan, and University Park at MIT, near Boston.

The company is also a leader in sustainable development, and several of its projects have attained LEED (Leadership in Energy and Environmental Design) certification from the U.S. Green Building Council. Stapleton is LEED-certified, and The Yards Park, in the Capitol Riverfront district of Washington, D.C., is LEED Gold–certified, as will be the Waterfront Station retail-office building, also in Washington.

“Forest City’s experience over such a wide spectrum of real estate categories makes David a great choice for chairman of ICSC,” said Michael P. Kercheval, ICSC’s president and CEO, noting the organization’s increasingly broad membership. “Our members are building shopping centers, mixed-use and other kinds of projects; they are everywhere, and working in every kind of real estate.”

Forest City’s embrace of sustainable and innovative development also makes LaRue a good choice as the industry positions itself for the future, Kercheval added.

Forest City is not diverse only in terms of its real estate, however. One of the company’s core values is diversity and inclusion, both in terms of its employees and the communities in which it operates. The company employs a director of diversity and inclusion, and is a major sponsor of the Real Estate Associate Program, established in 1997 to promote diversity in the real estate industry. A challenge for the industry is to recognize and respond to demographic changes in the U.S., both at the consumer level and in terms of promoting workplace diversity, LaRue says. “Our industry must have a sharper focus on this important issue,” he said.

LaRue, who holds a bachelor’s in business and accounting from Wittenberg University, began his career as an internal auditor and financial analyst at The Sherwin-Williams Co. He joined Forest City in 1986 as a financial analyst, rising to executive vice president and COO in March 2010. He has served on the ICSC Global Task Force, taking part in the most ambitious review of the organization’s programs and services. He has been an advocate of ICSC’s Global Public Policy efforts in Washington, contributing to the ICSC PAC, and he has spoken at ICSC events.

One of ICSC’s priorities for the coming year will be House approval for federal legislation requiring online retailers to collect sales taxes in those states in which brick-and-mortar retailers are required to. “Traditional physical stores cannot continue to be discriminated against by this tax policy,” said LaRue. Reform in this area would also benefit cash-strapped state and local public coffers, he says.

LaRue is active in his community as a member of various professional, charitable and artistic organizations, including the Cleveland School of the Arts. He helped found the Basketball Challenge Cup, a series of charity games held every spring in Rocky River, the Cleveland suburb where he and his wife, Cindy, have raised their four children. The event raises money to fight drug and alcohol abuse among young people.

LaRue succeeds Brad M. Hutensky, president and principal of Hutensky Capital Partners, Hartford, Conn.

Meanwhile, at the Meeting of Members, the following were elected to the Board of Trustees: William B. Horner, CFO, Fitness International; James J. Lampassi, vice president, real estate and construction, Petco; Carlos Medeiros, CEO, BR Malls; Mark L. Myers, executive vice president, head of commercial real estate, Wells Fargo Bank; Brian Smith, president and COO, Regency Centers; and Arturo Sneider, SCLS, partner, Primestor Development.

The following were re-elected to the Board: Kenneth F. Bernstein; Holly Cohen; Vincent A. Corno; Carl L. Goertemoeller; and Donald C. Wood.

Trustees whose terms of service end today are James Bersani, Gordon T. “Skip” Greeby Jr., SCDP; Donald G. Provost; Matthew E. Rubel; and René Tremblay (he will remain a nonvoting past chairman).

Elected to the ICSC Executive Committee as divisional vice presidents were: Adam W. Ifshin (Eastern and Government Relations); Vincent A. Corno (Central); Bruce D. Pomeroy, SCDP (Western); Martin A. Mayer (Southern); John R. Morrison, CDP (Canadian); Marcus Wild (Europe); Michael Rodel (International Advisory Committee); and Secretary-Treasurer Kenneth A. McIntyre Jr.

Appointed as at-large members are: Thomas J. Connolly SCLS, CDP, Carl L. Goertemoeller and Sandeep Mathrani. Gary D. Rappaport SCMD, SCSM, SCLS, SCDP, ICSC PAC; and Christopher J. Niehaus, Investment and Employee Retirement Committee.

ICSC past chairmen serving on the Executive Committee are: Brad Hutensky; David B. Henry, William S. Taubman, Peter Sharpe and Mary Lou Fiala.

In addition to some luxurious accommodations, this 12-storey building will offer high-quality service with banquet rooms for 500 guests, flexible meeting rooms, a spa, a fitness center and an underground parking lot of 96 places. Meanwhile, the interior space of the iconic Mount Stephen Club, closed since December 2011, will be expanded from 2,400 m2 to 6,500 m2.

Michel Lauzon, partner creation, manages this new project, valued at more than $25 million, which will give a boost to this almost-a-century-old establishment. "We strongly believe that business people and tourists will adopt this new address destined to become a key location in Montreal," says Mr. Lauzon.

An integrated and respectful design

Established in the heart of the Golden Square Mile, this new hotel complex represents a unique opportunity to highlight of the Mount Stephen Club without compromising the integrity and heritage of this 19th-century bourgeois architectural jewel. To incorporate the new features of the site, the proposed architectural scheme plans to locate the hotel at the rear side of the site, liberating the perimeter of the existing building. This ingenious distribution can integrate the prestigious Mount Stephen Club in a coherent and functional ensemble in regards with the daily activities of the hotel.

Winner of the Award of Merit by the Canadian Architect, this redevelopment project aims to preserve and expand the Mount Stephen Club and is committed to creating an urban, architectural and historical experience for the city of Montreal, while respecting the exterior of one of the most remarkable residences in the province.

GlobeSt.com is providing wall-to-wall coverage of ICSC's RECon show in Las Vegas May 19-22. Retail Ticket will provide coverage of the event through the end of May, featuring pre-event articles, live video interviews on site and post-conference analysis.

On Sunday, RECon, the world's largest retail real estate convention began in Las Vegas. It's host is the International Council of Shopping Centers, and Michael Kercheval took some time to discuss what to expect this year. He touched on what to expect attendance wise, some things that might be different at this year's show and the state of the industry and consumer.

GlobeSt.com: Where is attendance at compared to prior years? How is that shaping up?

Michael Kercheval: The advance registration has been running significantly ahead of last year. That’s been a pretty good indication that we’re going to have more people there. This week we are still running significantly ahead, and we always get a large number of on-sites. Clearly, it would be almost impossible to have less than last year. I’m guessing that we’ll bring in 35,000 people through the doors. That is less than we had in those peak years, when there were about 50,000 people.

Follow this link to read the full interview

GlobeSt.com: The grocery sector seems volatile. How do you see that shaping up in the year to come?

Owens: It’s certainly a transitional period here for our market. We’ve got new players, such as Mariano’s, which is spurring the only new development. Walmart is coming in with its Express format in urban spaces. On the other side of that, we have the traditional market leaders here like Jewel and Dominicks, so the traditional grocers are being replaced by new owners. We’re seeing a lot of strength from local independents here that are backfilling some of those grocery spaces, and it will ease the hit that landlords are feeling filling older spaces. There will still be empty-box grocers that are going to be filled with non-traditional uses or split up. There is only so much room for so many grocers.

Follow this link to read the full interview 

The Toronto-based pension fund also won the awards for Best Innovation and Best Value-added Investment.

Guillaume Poitrinal – former chief executive at French commercial real estate group Unibal-Rodamco and chairman of the European Real Estate Association – won the Platinum Award for Outstanding Industry Contribution.

The IP Real Estate Gold Awards went to the Crown Estate for Best Large Real Estate Investor, the CERN Pension Fund for Best Medium Real Estate Investor, APK Pensionkasse for Best Small Real Estate Investor and Almazara Real Assets Advisory for Best Investment Consultancy.

Ärzteversorgung Westfalen-Lippe won two awards on the night – for Best Direct Investment Strategy and the regional award for Austria/Germany/Switzerland – as did SPF Beheer, which won Best Use of Sustainability and the regional award for Benelux/France.

The Healthcare of Ontario Pension Plan won Best Portfolio Construction, as well as the Other Regions award.

The full list of winners for the IP Real Estate Awards 2013:

PLATINUM AWARDS

Best Real Estate Investor: Canada Pension Plan Investment Board 

Outstanding Industry Contribution: Guillaume Poitrinal

GOLD AWARDS

Best Large Real Estate Investor: The Crown Estate 

Best Medium Real Estate Investor: CERN Pension Fund 

Best Small Real Estate Investor: APK Pensionskasse AG 

Best Investment Consultancy: Almazara Real Assets Advisory

THEMED AWARDS

Best Newcomer to Real Estate Investing: ERAFP

Best Core Investment: PFA Pension 

Best Indirect Investment Strategy: Pennsylvania Public School 

Employees' Retirement System 

Best Innovation: Canada Pension Plan Investment Board 

Best Direct Investment Strategy: Ärzteversorgung Westfalen-Lippe 

Best Opportunistic Investment: National Pension Service 

Best Portfolio Construction: Healthcare of Ontario Pension Plan 

Best Use of Sustainability: SPF Beheer 

Best Value-added Investment: Canada Pension Plan Investment Board

REGIONAL AWARDS 

Austria/Germany/Switzerland: Ärzteversorgung Westfalen-Lippe 

Benelux/France: SPF Beheer 

Nordic Countries: PensionDanmark and ATP 

UK/Ireland: Clwyd Pension Fund 

Other Regions: Healthcare of Ontario Pension Plan

A well-designed chargeback system can help a company become more fiscally responsible. Facilities management uses standard commercial real estate industry practices to charge back facility-related services to internal customers.

A chargeback system should fairly allocate facilities costs to the end users. The underlying principle of this system must be commercial comparability—to provide and bill services in a manner that closely approximates how tenants are addressed in the private sector.

By implementing a fair, equitable chargeback system, you will recognize two primary benefits: cost awareness and the elimination of the cookie jar mentality.

Cost Awareness. The more your customer departments know about what their service requests cost, the more prudent they will be about requesting them. Cost awareness can benefit the company as a whole by reducing costs, and can help the facilities department avoid unnecessary work by allocating resources more closely in line with their original, budgeted purpose.

Eliminating the Cookie Jar Mentality. In the early stages of typical corporate growth, most facilities departments are set up as an overhead (expensed) cost center, and costs are not allocated to users. This sets up a cookie jar mentality among end users, who will continue to ask for services until they are turned away by the facilities department, usually due to a lack of funds. Shifting from this mode of operation to a fee-for-service posture is usually difficult because corporate attitudes about facilities services must change at every level of the organization. However, once the shift is made, the facilities department will be perceived more as a service provider than as a necessary burden.

Most facility managers organize chargeback systems into four levels of service. A fifth level has been added to reflect additional costs frequently borne by facilities departments. This breakdown roughly reflects the structure of standard lease packages.

Basic Rental Cost. The basic rental rate may be a standard for all departments, or it can be adjusted to reflect the capital asset value of space. It is usually based on an appraisal of the type of construction. The baseline for cost comparisons is standard finished office space. Any alterations above building standard are billed as a separate, one-time charge. Basic rental costs include the following:

• Rental per square foot, including amortization of base building construction, loan interest, reasonable profit, insurance, and taxes

• Amortization of the cost to construct the space to the building standard, specified in the tenant work letter in commercial practice

• Amortization cost of the initial space layout and working drawings for standard alterations

Operating Costs Associated with the Space. Most facilities departments set a single rate for all user departments, unless they have sophisticated space accounting and tracking systems that break out costs by department. Commercial practice operates much the same way, but surcharges are levied for anything other than normal business day/week operation. This "management by exception" procedure is established during lease negotiations. Space-associated operating costs typically include such items as:

• Energy
• Utilities
• Uninterruptible power supply
• Facility administration
• Site management

Ongoing Services Rendered. As with operating expenses, setting a baseline is important if some departments require unusually heavy service (such as day maid service for executive areas). Either some means of tracking these differences or a schedule of above-standard charges is needed. Examples of ongoing services include:

• Routine responsive maintenance
• Preventive maintenance, tours, and watches
• Security service
• Landscaping maintenance
• Housekeeping service
• Technology services

Other Facility-Related One-Time Costs. Expenses associated with rearranging facilities to support a change in the basic operation of the user constitute a facility-related one-time cost. Such costs contrast with ongoing services, which maintain the status quo. One-time costs are usually tracked by work orders for specific jobs and can include the following:

• Moving
• Furniture rearrangement
• Space redesign
• Above-building-standard alterations to prepare the space for occupancy (especially remodeling for a current occupant who intends to stay)
• Extra design services for above-standard alterations (extra detailing, millwork shop drawings, installation drawings, and specification of systems furniture)

Ancillary Services Provided by Facilities Departments. Many facilities departments experience demand for a wide range of odds and ends that consume substantial time and money. These services are commonly provided by corporate facilities departments, but are almost never provided by commercial landlords for their tenants. If they are provided, extra charges are levied. The list below presents some typical ancillary services.

• Catering for special meetings
• Chauffeur service
• Picture framing
• Setting up and cleaning up conference rooms

Change in an organization can be difficult, and implementing a chargeback system is certainly no exception to this rule. As you implement a chargeback system, you will likely have to hurdle some obstacles. The most likely of these you will encounter are:

Additional Staff Requirements. To operate properly, chargeback systems must be administered by the same facilities staff that is usually already overworked. The facilities department has four options:

• Allocate more staff to manage the system
• Hire part-time or temporary help
• Eliminate other tasks
• Gamble that the chargeback system will reduce unnecessary work so that existing staff will have time to manage the system

Compatibility with Existing Policies. Before procedures can be implemented, any existing policies, manual procedures, and automated sequences must be dovetailed so that data can be tracked smoothly across organizational lines, even within the facilities department. If existing accounting cost centers are diverse, some means of collecting or estimating all the real costs must be developed. It is also important to present a consistent image to users. Bills from all affected facilities components must either be grouped together or sent separately in the same format. This creates an accounting burden that the facilities department must be prepared to meet.

Consumer Education. Any system of charging for facilities services will be complex. Consequently, facilities department staff must educate the building users about how the system works and why certain items are charged. Without this, suspicions of unfairness can develop, and end users will become less cooperative. Consumer education is a key ingredient to successful facilities management.

Once the hurdles of implementing a chargeback system are overcome, and a system is in place, the challenges often continue. Some of these ongoing challenges include:

Imbalance of Supply and Demand. Users may demand services in relation to the health of their budget. Some users hoard money all year and then overload departments with funds in a year-end rush to "use it or lose it." Other companies do the reverse, ordering items and then trying to renege on the commitments after the items have been ordered. The old maxim "No money, no work" is essential. This will help the facilities department anticipate seasonal variations in workload and coordinate its outside contracting programs.

Definition of Major Project versus Minor Improvements. A comprehensive chargeback system covers the life cycle cost of operating and amortizing a building. It does not cover costs of major replacement or renovations that will extend a building's useful life. This "rainy day" cost is factored into some chargeback systems to develop a general fund from which all major projects will be funded. History has shown that almost all such systems have experienced greater ongoing costs than anticipated, prompting raids on the replacement fund and compromising the capital improvement plan. This leaves users disgruntled for having allocated resources to a long-term investment that did not pay off.

Questions of Fairness. Inevitably, when users become conscious of costs, they also become conscious of which peer groups are demanding an unusually high share of services. Across-the-board charges are simple to administer but will cause cries of inconsistency (for around-the-clock computer users, for example).

A chargeback system—one designed with commercial comparability in mind—can help facility managers fairly allocate facilities costs to their end users. There are challenges to implementing and maintaining such as system, but you will find that the benefits outweigh any difficulties.

This article is adapted from BOMI International's course Real Estate Investment and Finance. More information regarding this course is available by calling 1-800-235-2664. Visit BOMI International's website, www.bomi.org.

Morguard Corporation (Morguard) announced its financial results for the three months ended March 31, 2013.

HIGHLIGHTS

• Funds from operations increased by 10.5% to $47.1 million, or $3.73 per share, compared to $42.7 million, or $3.30 per share in 2012;
• Total revenues increased by 13.2% to $111.4 million compared to $98.5 million in 2012;
• Total net operating income increased by 13.5% to $47.3 million compared to $41.7 million in 2012;
• Net income attributable to common shareholders totalled $99.6 million compared to $51.7 million in 2012; the increase is predominantly due to higher fair value gains recorded on real estate properties in the amount of $21.6, an increase in income from equity accounted investments of $14.5 million and a decrease in income taxes of $6.3 million; and
• On March 15, 2013, Morguard North American Residential Real Estate Investment Trust (REIT) completed an offering which raised gross proceeds of $95.1 million for 8,270,000 trust units sold at a price of $11.50 per trust unit and $60 million aggregate principal amount of 4.65% convertible unsecured subordinated debentures due March 30, 2018.

All amounts in thousands of Canadian dollars, except for per share amounts, unless otherwise noted.

FINANCIAL HIGHLIGHTS

NET INCOME

The Company's net income attributable to common shareholders for the three months ended March 31, 2013, was $99,649 ($7.89 per share) compared to $51,662 ($4.00 per share) for the same period in 2012. The increase in net income of $47,987 for the three months ended March 31, 2013, was primarily due to an increase in fair value gains on real estate properties of $21,571, an increase in net operating income of $5,622, an increase in income from equity accounted investments of $14,450 and a decrease in income taxes of $6,259.

NET OPERATING INCOME (NOI)

Net operating income for the three months ended March 31, 2013, increased by $5.6million to $47.3 million compared to $41.7 million in 2012, representing an increase of 13.5%.  The increase was predominantly the result of an increase in NOI for the U.S. multi residential properties primarily due to the acquisition of three properties in 2012 which accounted for $4.9 million of the increase.

FUNDS FROM OPERATIONS (FFO)

FFO was calculated as follows:…

For the three months ended March 31, 2013, the Company recorded FFO of $47,138 ($3.73 per share) compared to $42,671 ($3.30 per share) in 2012.  The increase in FFO of $4,467 is mainly due to an increase in NOI of $5,622, an increase in other income of $15,532 (predominantly due to an arbitration settlement of $14,850 received in 2013), an increase in Morguard REIT's equity accounted FFO of $1,902 and a decrease in current taxes of $952.  These items were partially offset by an increase in interest expense of $2,348, distributions of $2,833 to the Residential REIT's unitholders and a gain on sale of marketable securities of $13,598 recorded in 2012. The change in foreign exchange rates had a positive impact on FFO of $54.

MORGUARD NORTH AMERICAN RESIDENTIAL REAL ESTATE INVESTMENT TRUST

On March 15, 2013, the REIT completed an offering of 8,270,000 trust units at a price of $11.50 per unit, representing gross proceeds of $95.1 million and issued $60 million aggregate principal amount of 4.65% convertible unsecured subordinated debentures due March 30, 2018 (the "Debentures", collectively with the Units the "Offering").  The Debentures are convertible at the option of the holder, into trust units of the REIT at $15.50 per trust unit.   As part of the transaction, Morguard purchased 870,000 Units, at the offering price representing approximately $10 million and $5 million aggregate principal amount of the Debentures.   At March 31, 2013, Morguard owned a 48.8% effective interest in the REIT through ownership of Units and Class B LP Units.

The net proceeds from the Offering will be used to partially fund the REIT's April 19, 2013 acquisition of six multi-unit residential properties from an institutional fund sponsored by Pearlmark Real Estate Partners, L.L.C. for US$218,000 (excluding closing costs).   The six properties acquired are residential apartment and townhome complexes comprised of 1,793 suites located in Denver, Colorado, Tampa, Florida, Cary, North Carolina and Atlanta, Georgia.  In connection with the purchase of four of the six properties, the REIT assumed in-place mortgage financing of US$81,800 with a weighted average interest rate of 4.86% with a weighted average term to maturity of 4.6 years.  For the remaining two properties, the REIT, at closing, entered into first mortgage financing arrangements in an aggregate amount of US$58,700 with a weighted average interest rate of 3.51% for terms of 10 years.

KEYreit reminds unitholders that Plazacorp's offer to acquire 100% of the issued and outstanding trust units of KEYreit for $8.35 per Unit in cash, subject to a maximum aggregate cash amount of approximately $62.1 million, representing approximately 50% of the consideration, 1.7041 Plazacorp shares per Unit or any combination thereof, subject to proration will expire at 8:00 p.m. (Toronto time) on May 16, 2013, and urges unitholders to tender their Units to the Plazacorp Offer prior to the expiry time.

The KEYreit board of trustees reiterates its support of, and UNANIMOUS RECOMMENDATION that unitholders ACCEPT, the Plazacorp Offer and TENDER their Units to the Plazacorp Offer by 8:00 p.m. (Toronto time) on May 16.   All of the trustees and officers of KEYreit have accepted the Plazacorp Offer and have tendered their Units to the Plazacorp Offer.

If you require assistance in depositing your Units to the Plazacorp Offer, please contact your investment advisor or KEYreit's information agent, Kingsdale Shareholder Services Inc., at 1-888-518-1562 toll-free in North America or at 416-867-2275 outside of North America (collect calls accepted) or by email at contactus@kingsdaleshareholder.com.

KONE Inc. is proud to announce it has been honored with the CBRE "Technical Supplier of the Year" award for its service of 216 buildings in CBRE's Infrastructure Ontario (IO) portfolio. CBRE Director of Facility Management and Critical Services, Andy Basacchi, presented the award to KONE on behalf of the company.

KONE was recognized after receiving the highest average score in the award's Technical category based on service coverage, input from quarterly supplier performance reviews, and a survey of CBRE management, procurement, and analytics teams.

CBRE credited KONE's professional management and operational excellence as well as the exceptional service at its new Technical Services Center for the award. The KONE Technical Services Center opened this April and combines employees, spare parts, training and technology to enhance customer service throughout the Americas regions.

"We are thrilled to be recognized for such a prestigious award, which is a testament to the strong partnership our Ontario team has built with CBRE," said Kelly Leitch, President of KONE Canada. "We look forward to continued growth with this valued, strategic partner and furthering our reputation for providing products and services that exceed our customers' expectations."

CBRE group is the world's largest real estate services firm, offering a range of services from leasing to property management. KONE currently provides maintenance services to 216 buildings in all four regions of CBRE's IO Property Services portfolio.

DUNDEE INTERNATIONAL REIT reported its financial results for the quarter ended March 31, 2013. Dundee International REIT's management team discussed the Trust's business and results at its annual meeting, held last week.

HIGHLIGHTS

• Q1 2013 was the Trust's most active quarter since its IPO with the acquisition of 14 hiqh-quality office properties in key markets in Germany. These accretive acquisitions further diversify Dundee International REIT's tenant mix and lender base and improve the quality of its long-term cash flow.
• $722 million of acquisitions completed at cap rates which exceed borrowing costs by 400 basis points.
• Closed $442 million of mortgage financings at an average interest rate of 2.58% and an average term of 7.1 years.
• Increased the average term to maturity of its debt to 5.2 years from 4.8 years at March 31, 2012.
• Further diversified the REIT's tenant profile by reducing its exposure to its largest tenant Deutsche Post to 43% of the Trust's overall gross rental income (GRI), down from 65% at the end of 2012 and 85% at the end of 2011.
• Achieved 92 basis point year-over-year decline in weighted average interest rate since March 31, 2012.
• Completed a public offering 23,230,000 units, including an over-allotment option, and raised net proceeds of $243 million to finance growth.

GROWTH INITIATIVES

Acquisitions - During Q1 2013, Dundee International REIT completed 14 office property acquisitions for approximately $722 million, comprising approximately 1.9 million square feet of office space, 75% of which are located in the biggest German markets.

(1) Excludes transaction costs

"With our acquisition of 14 office properties during the quarter, we have transformed our asset base by adding prime office buildings in major German cities, diversified our tenant base with globally recognized names and continued the drive to create a high quality portfolio of real estate." said Jane Gavan, CEO of the REIT.

Acquisitions completed subsequent to quarter-end - On April 30, 2013, the Trust completed the acquisition of a property located at Beuthstrasse 6-8 and Seydelstrasse 2-5 ("Löwenkontor") in Berlin for $55.0 million. The property comprises approximately 258,000 square feet of GLA with more than half of the space occupied by a government agency, has an occupancy rate of 95% and a weighted average remaining lease term of 9.1 years. The Trust acquired the property at a cap rate of 6.9% and obtained mortgage financing with a face rate of 2.37% for a term of 5 years.

Dispositions - The Trust completed the sale of seven small properties during Q1 2013 for an aggregate sales price of approximately $7.0 million. Net proceeds totalling $4.3 million were used to reduce the Trust's term loan credit facility.

OPERATING AND FINANCIAL HIGHLIGHTS                          

(1) Including the terminated space for which the Trust receives payments pursuant to a head lease, occupancy would increase to 90%.
(2) Operating results for the three-months ended March 31, 2013, and March 31, 2012, were converted at the following average exchange rates, respectively: $1.3319:€1 and $1.3129:€1.
(3) FFO - net income, adjusted for fair value adjustments on investment property and financial instruments, property acquisition costs, amortization of equipment, deferred income taxes and interest expense on Exchangeable Notes.
(4) AFFO - FFO adjusted for amortization of debt costs, deferred unit compensation expense, straight line rent and the Trust's estimates of normalized leasing costs and normalized non-recoverable recurring capital expenditures.

Occupancy - Occupancy at March 31, 2013 was 85%, or approximately 90% if the head lease for the 2012 terminated Deutsche Post space is taken into consideration. The Trust receives payments pursuant to such head lease until June of 2014.

In-place rents - In-place rents have increased in Q1 2013 largely due to the acquisitions of higher quality office properties. Overall, at $10.61 per square foot, average market rents in our portfolio remain approximately 3.4% above in-place rents of $10.26 per square foot.

Funds from operations - FFO for the three months ended March 31, 2013 was $0.20/unit. The Trust had an average balance of $135 million of undeployed cash on hand during the quarter, largely resulting from recent equity issues in anticipation of upcoming acquisitions. Excluding the impact of undeployed cash, FFO would be $0.24/unit.

Adjusted funds from operations - AFFO for the three months ended March 31, 2013 was $0.19/unit. Excluding the impact of undeployed cash, AFFO would be $0.23/unit.

CAPITAL INITIATIVES

Equity - On April 30, 2013, the Trust had 95,659,578 units outstanding. At the April 30, 2013 closing price of $11.00 per unit, the Trust's market capitalization was $1.05 billion.

Public offering of units - On March 5, 2013, the Trust completed a public offering of units, issuing 23,230,000 Units, including an over-allotment option, at a price of $10.90 per unit. In total, the Trust raised $253 million of gross proceeds.

Financing - During Q1 2013, the Trust obtained mortgage financing in the amount of $442 million at an average face rate of 2.58% and an average term to maturity of 7.1 years.

Key performance indicators with respect to the Trust's financing activities are:

(1) December 31, 2012 ratio reflects significant cash on hand to fund future acquisitions.

As at March 31, 2013, the Trust had a debt-to-book value of 56% (or 49%, if Debentures are excluded), had a weighted average interest rate of 3.39% for all of its interest-bearing debt and an interest coverage ratio of 3.45 times, reflecting the Trust's ability to cover its interest expense requirements.

The average term to maturity of the Trust's debt increased to 5.2 years from 4.4 years. The Trust continues to attract new lenders. At the end of Q1 2013, new lenders held 58% of the Trust's mortgage debt compared to 100% of the mortgage debt being held by the original syndicate at the time of the Trust's IPO in 2011.

Equitable Group Inc. (Equitable) reported record first quarter earnings for the three months ended March 31, 2013.

HIGHLIGHTS

• Net income increased 17% to a first quarter record of $20.9 million from $17.9 million in 2012
• Diluted earnings per share ("EPS") increased 15% to $1.30 from $1.13 in 2012
• Return on Equity ("ROE") was 17.5% compared to 17.3% in the fourth quarter of 2012 and 17.7% a year ago
• Book value per share increased 18% to $31.07 from $26.26 at March 31, 2012 and was up 4% from December 31, 2012
• The Board of Directors announced a common share dividend increase of 7.1% to $0.15 cents per quarter from$0.14 cents effective with the next payment in July

"Equitable delivered outstanding results in the first quarter, even in the context of what appears to be a softer  Canadian housing market and despite adjusting our business to accommodate the new B-20 mortgage lending guidelines," said Andrew Moor, President and CEO. "Through a combination of solid Core Lending production and strong mortgage renewal rates, we were able to grow mortgage assets by $1.0 billion or 11% year over year and register an ROE performance that was above our five-year average of 17.2%. This performance provides yet another example of the value-creation capabilities of our business across different market cycles and illustrates the benefits of our diversified mortgage portfolio."

FIRST QUARTER OPERATING HIGHLIGHTS

• Core Lending mortgage principal (comprised of Single Family and Commercial Lending) amounted to $5.4 billion, up 20% or $0.9 billion year over year- while first quarter Core Lending production increased 13% year over year to $458 million
• Single Family Lending Services mortgage principal grew 39% or $892 million to a record $3.2 billion on production of $285 million and strong mortgage renewal rates
• Commercial Lending Services mortgage principal was $2.2 billion, the same as a year ago, while production increased 46% year over year to $173 million
• Securitization Financing mortgage principal increased 3% or $149 million to $5.4 billion on production of $166 million compared to $111 million a year ago.  Also in the quarter, the Company securitized and derecognized $118 million of mortgages on which it earned $1.1 million of gains on sale.

Equitable's strategies of employing best in class underwriting and collection efforts allowed the Company to maintain its low-risk profile. For the first quarter:

• Realized net loan losses were just $0.02 million compared to $0.5 million a year ago
• Early-stage delinquencies were 0.27% of total principal, an improvement from 0.39% at March 31, 2012 and 0.31% in the fourth quarter of 2012
• Mortgages in arrears 90 days or more were 0.36% of total principal outstanding at quarter end, in line with historical norms but above 0.25% a year ago and 0.32% in the fourth quarter of 2012.

The Canadian century-old arts and crafts retail chain DeSerres opened a new store—its 31st in Canada and 3rd in B.C.—in Surrey in April and is celebrating its official grand opening. The store features a refreshing and innovative design concept, providing a unique shopping experience that will inspire creativity. This more than $1.8 million investment by DeSerres will create some 15 jobs in the local community. This new store opening is in line with the company's expansion plan in order to build a network of some 40 stores within the next few years. The new DeSerres store is located at 7635 King George Blvd in Surrey, B.C.

The store's inspiring new design concept laid out on a surface of 10,000 square feet showcases DeSerres' wide range of products in order to satisfy everyone's innate need to express their creativity. Surrey being Canada's fastest growing city, it's rapid expansion and the dynamic qualities of its population made it an ideal location for a new DeSerres store with contemporary flair.

Marc DeSerres, President of DeSerres and the third-generation family member to head the company, says: "We have created a new store concept to help serve young families in the area and allow customers of all ages to satisfy their desire to learn, create and discover. We hope that DeSerres will be a place that the people of Surrey and its surroundings go to be inspired and to find a variety of products for children and adults alike. After all, we are all young at art."

DeSerres caters to a variety of customers interested in fine arts and graphic arts and has developed a strong niche for children, with a wide selection of creative toys and games, which is the company's fastest-growing sector. Recognized for the expertise of its staff, DeSerres offers a distinctive shopping experience by providing its customers with added-value advice to better guide them through an array of more than 40,000 products. Mr. DeSerres and his team of buyers travel around the globe to find unique products and to purchase directly from the manufacturers in order to ensure DeSerres customers benefit from fair prices.

Holt Renfrew is pleased to celebrate the opening of a second hr2 store at Vaughan Mills. Canada's first premium off-price concept, hr2 offers leading brands and on trend styles at irresistible prices.

"Holt Renfrew is in growth mode, boosted by record performance", said Holt Renfrew President Mark Derbyshire. "In addition to exciting plans to expand and enhance our luxury Holt Renfrew banner, our hr2 stores offer a further channel to extend our market reach."

Visitors to the 25,000 square foot hr2 store can expect a lively, colourful and modern shopping experience, with weekly new arrivals in womenswear, menswear, footwear, accessories and jewellery.  "We are pleased to welcome customers to this exciting new store concept," said Heather Arts, Vice President of hr2.

hr2 showcases over 150 leading brands with a  leading assortment from the likes of Alice + Olivia, Diane von Furstenberg, Splendid, Michael Michael Kors, Cole Haan, Ray-Ban, 7 for All Mankind, Nicole Miller, Elie Tahari, House of Harlow, Anzie, Naked and Famous, Hunter and hr2 private label. While some of the brands at hr2 will also be carried at Holt Renfrew, product assortment does not overlap.

"Our vendors are thrilled to partner with us to further grow their reach in the Canadian market," noted Heather Arts. "hr2 targets everyone who loves leading brands, on-trend style and irresistible prices. The new stores will appeal to a contemporary audience and those who shop designer brands as well."

For the fourth consecutive year, Stikeman Elliott has been selected as one of Canada's Green 30 businesses by Maclean's magazine in collaboration with Aon Hewitt. The Green 30 is comprised of Canadian businesses most committed to environmental sustainability and whose employees at all levels believe they have incorporated environmental stewardship into their business model and corporate culture.  The 30 recipients are selected from among the businesses that participated in the 2013 Best Employers in Canada survey, an honour the firm received earlier in the year.

"Stikeman Elliott is proud to be seen as a leader among professional services firms in its sustainability practices, which we promote strongly within each of our local markets," said firm Chair, William Braithwaite. "This is evident in the engagement seen among our firm members, the recognition the firm has received and in the relationships, both with the community and businesses, which have emerged."

Stikeman Elliott was the first and remains the only national Canadian law firm to be carbon neutral, achieved by developing and implementing successful green programs, helping the firm to reduce its carbon footprint by 13% since the first footprint in 2008.

The firm's commitment to Corporate Social Responsibility (CSR) including environmental sustainability continues to have a positive impact on firm member engagement.  This is highlighted in firm member responses to the 50 Best Employers in Canada annual survey questionnaire which measures firm member engagement across many factors, including CSR, where 94% of firm members in 2013 believe Stikeman Elliott is a socially and environmentally responsible organization, taking an active role in minimizing the impact of its operations on the environment.  This compares to the average of 88% of the other Best Employers in 2013.

Many of the initiatives implemented by Stikeman Elliott to reduce waste have come from ideas suggested by employees, one of the criteria weighed in the selection of the award. In keeping with our sustainability program, the following initiatives were undertaken in 2012:

• Submission of data for the firm's third Carbon Footprint including:
  • Key findings of the Toronto report which show a 9.1% reduction in our footprint and a 31% reduction in Toronto's sub metered electricity, due in large part to efforts undertaken with a lighting retrofit.
• Participation in a waste management task force:
  • The firm successfully completed a re-launch of its waste program by aligning recycling to more closely match residential programs. New recycling equipment and smaller waste containers with enhanced visual bin signage were distributed to 630 offices/workstations/serveries.  This heightened awareness of items acceptable in waste, paper, recycling and organics streams.
  • Having been successful in working with our landlord to incorporate paper towels used in kitchens (previously placed in waste stream destined for landfill) into the organics stream, the firm carried out further changes to recycling signage in serveries.
• Successfully implemented reusable delivery boxes for delivery of office products, in conjunction with the firm's office products supplier, thereby reducing waste in the procurement process.
• Conducted a power survey and identified all areas where space heaters were being used with a view to continued focus on power reduction.  Remedial work was carried out on induction units where operation was deficient and space heaters were removed.

Canadian Tire Corporation, Limited is announcing its intention to create a real estate investment trust (REIT) to surface the value of billions of dollars of owned property, appointing a new leader for Canadian Tire Retail and releasing overall positive Q1 earnings.

REAL ESTATE INVESTMENT TRUST

The Company today announced its intention to create a high-quality REIT that would:

• Surface the value of Canadian Tire's real estate holdings
• Create a stand-alone vehicle for Canadian Tire's real estate which will support continued real estate investment
• Provide Canadian Tire with increased financial flexibility to pursue new opportunities to invest in and grow its business.

"We are executing a strategy that reinforces the strength of our Company while pursuing new growth opportunities organically and through acquisition," said Stephen Wetmore, President and CEO, Canadian Tire Corporation.  "Today's announcement regarding a REIT would increase CTC's financial flexibility, providing us with the ability to access funds at an attractive cost of capital as we continue to invest in and grow our business."

The proposed new REIT would acquire a majority of the Company's owned real estate, including a geographically diverse portfolio of approximately 250 properties comprised largely of Canadian Tire Retail stores, Canadian Tire anchored retail developments and one distribution centre; approximately 18 million square feet; and approximately $3.5 billion of estimated market value.  Canadian Tire owned properties currently comprise approximately 25 million square feet and are located in all provinces and two territories.  Canadian Tire Retail stores that are being considered for replacement, relocation, or further development would initially be retained by the Company and not be part of the REIT.

CTC would retain a significant ownership interest of 80% to 90% of the REIT with the remainder of the REIT's units offered to the public via an initial public offering anticipated in the fall of 2013.  The REIT would be designed to meet appropriate standards for management, governance and financial structure and with leases reflecting market rates and terms.

The REIT's financial statements would be consolidated with CTC's financial statements and it is expected that there would be minimal impact on consolidated net earnings, cash flow and debt metrics.

The creation of the CTC REIT would have no impact on the arrangements that exist between Canadian Tire and its Associate Dealer network.

The ongoing ownership and management of real estate assets have been and will continue to be an integral part of Canadian Tire Retail's success and operational flexibility.

The Company confirmed that its creation of a REIT would be subject to due diligence, favourable market conditions, regulatory and third party approvals and approval by the Canadian Tire Board of Directors.

ALLAN MACDONALD NAMED HEAD OF CANADIAN TIRE RETAIL

The Company also announced that its Senior Vice-President, Automotive and Marketing, Allan MacDonald will be the new Chief Operating Officer of Canadian Tire Retail.

Mr. MacDonald joined CTC four years ago and has held senior roles influencing all of CTR's areas of operations, including Dealer relations, global sourcing, merchandising, supply chain, marketing, digital strategy, store design and vendor management.

"Allan has clearly demonstrated the skills and commitment to lead Canadian Tire Retail as we enter a sustained period of unprecedented change in our industry," said Wetmore.

Marco Marrone, CTR's current Chief Operating Officer, has decided to leave the company following a 27 year career. Mr. Marrone has advised the Company that he is not able to make a longer-term commitment to his current role. With the recent agreement between the Company and its Dealers to a new Dealer contract, Mr. Marrone believes that the time is right for a smooth transition of his role to Mr. MacDonald.

Mr. Marrone has been known for exceptional execution throughout his career at Canadian Tire, including his successful leadership of the Financial Services division, his role as Chief Financial Officer for CTC and most recently as Chief Operating Officer at CTR where he has successfully executed a number of key initiatives to improve CTR.

Q1 EARNINGS

The Company today released first quarter results for the period ended March 30, 2013, showing positive sales, revenue and margin growth.

Consolidated revenue increased 1.7% or $40.3 million to $2.5 billion in the quarter as a result of strong performance at FGL Sports and sales growth at Petroleum, Financial Services and Mark's. Consolidated net income increased to $73.0 million and diluted earnings per share rose to $0.90, an increase of 3.3% over Q1 2012. Consolidated retail sales increased 0.8% or $20.4 million to $2.4 billion in the quarter.

"Following a strong 2012, we had a very encouraging start to the year with the successful execution of key initiatives across all of our banners, including reaching an agreement on the significant terms of our contracts with our Canadian Tire Associate Dealers," said Wetmore.

"We had a great start for the first 70 days of the quarter but that shifted dramatically in the last two weeks as a result of last March's early spring temperatures combined with this March's cold, wintry weather.  That said, the first quarter is our smallest for the retail segment.  Financial Services is the major contributor to our first quarter earnings and it continued its strong performance in 2013."

RETAIL SEGMENT OVERVIEW

Retail segment revenue increased 1.5% or $32.8 million to $2.2 billion in the quarter due to strong performance at FGL Sports and sales growth at Petroleum and Mark's.

Retail segment income before income taxes of $23.0 million was down 5.8% or $1.5 million compared to the prior year largely due to the timing of marketing and advertising expenses and higher depreciation and occupancy costs from additional stores in the network compared to the prior year.  Excluding depreciation and net finance costs, Retail EBITDA increased 1.8% in the quarter resulting from improved revenue and strong margin management across the businesses.

Consolidated retail sales were $2.4 billion, representing a 0.8% increase compared to the same period last year, primarily as a result of strong sales at FGL Sports and increased sales at Petroleum and Mark's, which were partly offset by a sales decline at CTR.

CTR had positive sales in January and February but experienced a sharp drop in the last two weeks of March, resulting in a 1.6% sales decline and 2.4% decrease in same store sales for the quarter.  Canadian Tire stores saw sales increases in key categories offset by declines in seasonal, gardening and outdoor living. While sales were lower compared to the previous year, gross margin rates were higher due to active management of the sales and margin mix.

Automotive started the quarter with solid sales of light automotive parts and in maintenance categories such as batteries, battery accessories and wipers. The strong performance at the beginning of the quarter was off-set by cooler March temperatures which impacted sales of automotive cleaning products and delayed both spring automotive maintenance and switching over to all-season tires.

Petroleum retail sales increased 3.7% primarily due to increased convenience store sales and gas volumes related to the opening of 10 new sites, including two additional 400/401 series highway sites, and due to higher gasoline prices compared to the previous year.

FGL Sports had a very good start to the year with retail sales growth of 5.6% over the same period in 2012.  Same store sales grew by 8.8%, partly due to the planned closure of non-strategic banners such as Sport Mart and Athletes World. Adjusting for store closures, corporate same store sales still grew by a strong 3.1%, notwithstanding the impact of March weather. The core corporate banner, Sport Chek, experienced strong sales in apparel and equipment, particularly in winter-related categories such as hockey, ski and snowboard.

At Mark's, retail sales were up 1.6% and same store sales increased by 1.5% driven by growth in women's casual wear and industrial apparel and accessories sales, particularly in the Greater Toronto region of Ontario. Sales gains were partly offset by lower footwear and men's wear sales due to fewer clearance sales compared to 2012 and cooler March weather.

FINANCIAL SERVICES OVERVIEW

Financial Services was a very strong performer in the first quarter.  Revenue increased 3.4% to $250 million and income before income taxes of $77.3 million increased 5.8% compared to the prior year due to higher credit card charges on higher credit card receivables balances.

Financial Services gross margin rate increased 203 basis points in the quarter compared to the prior year primarily due to higher revenue from increased credit charges and favourable net write-offs.

Financial Services operating expenses increased 6.2% in the quarter compared to the prior year due to marketing expenses related to growing receivable balances.

CAPITAL EXPENDITURES

Capital expenditures for the first quarter were $62.0 million compared to prior year spending of $64.1 million.

QUARTERLY DIVIDEND

Canadian Tire Corporation has declared a quarterly dividend of 35 cents per share on each Common and Class A Non-Voting share. The dividend is payable September 1, 2013 to Common and Class A non-voting shareholders of record as of July 31, 2013. The dividend is considered an "eligible dividend" for tax purposes.

NORMAL COURSE ISSUER BID

During the first quarter of 2013, the Company purchased 215,900 Class A Non-Voting Shares under its normal course issuer bid program. This includes 196,100 shares which were purchased in addition to shares purchased for anti-dilutive purposes.

Please refer to Management's Discussion and Analysis for further details and to view a PDF version of Canadian Tire Corporation's full quarterly earnings report.

Highlights for the quarter ended March 31, 2013

• Increased operating revenues by 34.3%
• Increased net income by 82.4%
• Increased total assets by 4.0%, totalling $5.8 billion (+25.1% compared to Q1 2012)
• Invested $177.4 million in acquisitions
• $156.9 million for the acquisition of buildings
• $20.5 million for the acquisition of lots
• Issued $100 million in unsecured debentures

Subsequent Events after March 31, 2013 

• Appointed Mr. Gilles Hamel, CPA, CA as Vice-President, Corporate Finance and Administration
• Issued $100 million in unsecured debentures bearing interest at 4.0% and maturing in 2020
• Acquired an industrial property in Montréal for $12 million

"The quarter started off strong for Cominar, with a $177.4 million investment in the strategic acquisition of 20 income properties and lots for future development in promising sectors. Overall, results show solid growth and a healthy financial position for the first quarter ended March 31", stated M. Michel Dallaire, President and Chief Executive Officer of Cominar. "In general, we are quite satisfied with our results, as they compare well with those obtained in the first quarter of 2012".

"While remaining focused on cost control, operational synergies and high-quality customer service, we carry on with our acquisitions, which will continue to contribute to our distributable income in the coming quarters", concluded Mr. Dallaire.

PRESENTATION OF FINANCIAL RESULTS

For the quarter ended March, 31, 2013, Cominar's operating income totalled $169.6 million, up 34.3% over the corresponding period in 2012, when they totalled $126.3 million. This increase is mainly due to the contribution of the acquisitions made in 2012 and 2013.

Net operating income reached $89.9 million, up 34.5%, compared to $66.9 million in the first quarter of 2012.

Net income grew to $59.7 million, an increase of 82.4% over last year's first-quarter result, which was $32.7 million.

Recurring net distributable income per unit (fully diluted) was $0.38 at the end of the first quarter of 2013, which is the same as last year's first-quarter result. This demonstrates, namely, that the synergies generated by our acquisitions have allowed us to reduce our debt ratio from 54.4% to 51.2%, without affecting our per-unit results.

Recurring funds from operations for the first quarter of 2013 reached $55.1 million, up 29.6% over the corresponding quarter in 2012, when they totalled $42.5 million. Recurring funds from operations per unit (fully diluted) stood at $0.43, compared to $0.45 as at March 31, 2012, representing a decrease of 4.4%.

Recurring adjusted funds from operations per unit (fully diluted) stood at $0.38, the same as in the first quarter of 2012.

In the first quarter of 2013, Cominar's distributions to unitholders totalled $45.2 million, compared to $35.6 million in the corresponding quarter in 2012, representing an increase of 26.7%. The monthly distribution per unit remained stable at $0.12.

FINANCIAL HIGHLIGHTS

As at March 31, 2013, Cominar's debt ratio stood at 51.2%, whereas its annualized interest coverage ratio remained conservative at 2.85: 1, and the weighted average interest rate of long-term debt stood at 4.87%, compared to 5.15% as at March 31, 2012.

OPERATIONAL HIGHLIGHTS

Leasing Activity

As at March 31, 2013, the average occupancy rate of our properties stood at 93.9%, compared to 94.6% as at March 31, 2012. Cominar renewed 23.3% of leases maturing in 2013, and also signed new leases representing an area of 0.7 million square feet.

Acquisition Activities

• On January 31, 2013, Cominar acquired a portfolio of 18 industrial properties primarily located on the South Shore of Montréal and one office property located in Montréal, for a purchase price of $149.8 million. The portfolio represents a total of approximately 1.8 million square feet of leasable area. As part of this transaction, Cominar also acquired a vacant lot of 173,569 square feet located in Saint-Bruno-de-Montarville, for $1.4 million. The capitalization rate for this transaction is 7%.

• On March 15, 2013, Cominar acquired approximately 508,780 square feet of vacant land located in Calgary, Alberta, which includes a parkade structure for approximately 347 parking spaces. Cominar paid $20.5 million in cash for these properties. Thanks to the acquisition of these lots, Cominar is now the sole proprietor of the Centron Park Complex.

• On March 21, 2013, Cominar acquired an office building located in Fredericton, New Brunswick, for $5.7 million, paid in cash; this building represents a leasable area of 44,500 square feet. The capitalization rate for this transaction is 8%.

• On May 1, 2013, after quarter end, Cominar acquired an industrial building located in Pointe-Claire, Québec, for a purchase price of $12 million, paid in cash; this property represents a leasable area of 199,000 square feet. The capitalization rate for this transaction is 7.6%.

Financing Activities

• On February 5, 2013, Cominar re-opened its Series 2, issuing $100.0 million in unsecured debentures bearing an interest rate of 4.23% and maturing on December 4, 2019. Cominar allocated the net proceeds to repaying its credit facility and to various general needs.

• On April 29, 2013, after quarter end, Cominar issued $100 million worth of Series 3 senior unsecured debentures bearing an interest rate of 4.0%, and maturing in November 2020.

These financing transactions are part of Cominar's strategy to take advantage of lower interest rates by replacing short-term debt with long-term debt, without increasing overall debt.

DISTRIBUTION REINVESTMENT PLAN

Cominar offers unitholders the opportunity to participate in its Unitholder Distribution Reinvestment Plan, which allows them to reinvest their monthly distributions in additional Cominar units. Participants will be entitled to receive an additional distribution equal to 5% of the distributions reinvested, which will be reinvested in additional units. For more information and to obtain a participation form, please visit Cominar's website at www.cominar.com.

First Quarter 2013 Highlights (In thousands of CAD dollars, except per unit amounts and as otherwise noted)

• Strong 9.5% growth in Funds From Operations (FFO) per unit for the three months ended March 31, 2013 (Q1) as FFO per unit fully diluted (FD) was $0.28 per unit compared to $0.25 per unit FD for the same period in 2012. Q1 FFO grew 33.3% over the same period in 2012 ($25,721 vs $19,301) with the FFO payout ratio of 79.5% compared to 88.9% for the same period in 2012.

• Strong 10.1% growth in Q1 Adjusted Funds From Operations (AFFO) per unit as AFFO per unit FD was $0.23 per unit compared to $0.21 per unit FD for the same period in 2012. AFFO grew 35.0% over the same period in 2012 ($21,606 vs $16,007) for the three months ended March 31, 2013 with the AFFO payout ratio of 94.6% compared to 107.2% for the same period in 2012.

• $164 million in acquisitions of high quality grocery and drug store anchored or other retail properties from third parties, Sobeys and Empire during Q1

• Acquisition of a grocery anchored retail property from Sobeys for $21 million subsequent to the quarter end, bringing year to date acquisitions to $185 million.

• Replacement of $92 million of short term debt with $135 million of 11.3 year average term mortgages at a 4.22% average interest rate.

• Portfolio fair value reaches $2.8 billion - one of the largest retail REITs in Canada.

• Same Asset Cash Net Operating Income (NOI) growth of 1.8% in Q1 over Q1 2012.

• Property revenue of $71,006, an increase of $11,559 or 19.4% over the $59,447 for Q1 2012.

• Solid occupancy on a committed basis of 93.5% compared with 92.7% at Q1 2012.

• Crombie completed leasing activity on 243,000 square feet during the quarter, which represents approximately 20.7% of its 2013 expiring lease square footage.

• Lease renewals during the quarter of 119,000 square feet at an average rate of $16.37 per square foot, an increase of 2.2% over the expiring lease rate. Lease renewals of 11,000 square feet for 2014 lease expiries at an increase of 8.6% over the expiring lease rate.

• Weighted average lease term of 10.3 years and weighted average mortgage term of 7.7 years; amongst the longest and most defensive in the REIT industry.

• Weighted average interest rate on mortgages reduced to 5.09% from 5.21% at December 31, 2012 and 5.59% at March 31, 2012. Strong 2.82 times interest coverage.

• Debt to Gross Book Value (fair value basis) of 48.3% (53.0% on a cost basis).

Donald E. Clow, FCA, President and CEO commented: "We are pleased with our cash flow growth and operating performance, as well as with the solid growth of Crombie's high quality retail portfolio and platform across Canada during the first few months of 2013. With the third party acquisitions of four grocery and drug store anchored shopping centres in Alberta for $132 million and the acquisition of two grocery anchored plazas and two other retail properties in Atlantic Canada and Quebec for $53 million through our strategic relationship with Sobeys and Empire, we are leveraging our strengths and improving our geographic and tenant diversification. The fair value of Crombie's assets now exceeds $2.8 billion and our market capitalization exceeds $1.35 billion at the end of Q1."

Financial Highlights

Crombie's key financial metrics for the first quarter ended March 31, 2013 are as follows:

The increase in FFO and AFFO for the quarter ended March 31, 2013 was primarily due to the significant acquisition activity during 2013 and 2012.

The table below presents a summary of financial performance for the quarter ended March 31, 2013 compared to the same period in fiscal 2012.

Growth Highlights

These acquisitions continue Crombie's growth strategy of acquiring high quality grocery or drug store anchored retail properties in the top 30 markets or stable or growing trade areas in Canada.

Operating Highlights

Property NOI, on a cash basis, excludes straight-line rent recognition and amortization of tenant incentive amounts. The 1.8% increase in same-asset cash NOI for the quarter ended March 31, 2013 is primarily the result of increased average rent per square foot from leasing activity during the past 12 months, completed land use intensification development projects and improved recovery rates.

Crombie believes that cash NOI is a better measure of AFFO sustainability and same-asset property performance.

Capital Highlights

Crombie's objectives when managing its capital structure are to optimize weighted average cost of capital; maintain financial flexibility through access to long-term debt and equity markets; and maintain ample liquidity. In pursuit of these objectives, Crombie utilizes staggered debt maturities, optimizes its ongoing exposure to floating rate debt, pursues a range of fixed rate secured and unsecured debt and maintains sustainable payout ratios. Crombie has an authorized floating rate revolving credit facility of up to $285,000, subject to available borrowing base of which $145,000 was drawn as at March 31, 2013, and an additional $11,329 encumbered by outstanding letters of credit, resulting in significant available liquidity. On February 22, 2013, Crombie increased the maximum principal amount of its revolving credit facility from $200,000 to $285,000 in conjunction with property acquisitions on that date.

Debt to Gross Book Value on a fair value basis is 48.3% (including convertible debentures) at March 31, 2013, compared to 47.6% at March 31, 2012.

General and Administrative Expenses

General and administrative expenses for the quarter ended March 31, 2013 as a percentage of property revenue, increased by 0.3% from 4.2% to 4.5% when compared to the same period in 2012.

Definition of Non-GAAP Measures

Certain financial measures included in this news release do not have standardized meaning under IFRS and therefore may not be comparable to similarly titled measures used by other publicly traded entities.  Crombie includes these measures because it believes certain investors use these measures as a means of assessing Crombie's financial performance.

• Property NOI is property revenue less property expenses.
• Property Cash NOI is Property NOI adjusted to remove non-cash straight-line rent and tenant incentive amortization.
• Debt is defined as bank loans plus investment property debt and convertible debentures.
• Gross book value means, at any time, the book value of the assets of Crombie and its consolidated subsidiaries plus deferred financing charges, accumulated depreciation and amortization in respect of Crombie's properties (and related intangible assets) and cost of any below-market component of properties less (i) the amount of any receivable reflecting interest rate subsidies on any debt assumed by Crombie and (ii) the amount of deferred income tax liability arising out of the fair value adjustment in respect of the indirect acquisitions of certain properties. Gross book value (fair value basis) differs from gross book value as defined above in that it includes Crombie's investment properties at fair value and excludes the book value of investment properties and related accumulated depreciation and amortization as well as intangible assets, tenant incentives and accumulated straight-line rent receivable.
• EBITDA is calculated as property revenue, adjusted to remove the impact of amortization of tenant incentives, less property expenses and general and administrative expenses.
• FFO is calculated as Increase (decrease) in net assets attributable to Unitholders (computed in accordance with IFRS), excluding gains (or losses) from sales of depreciable real estate and extraordinary items, plus depreciation and amortization expense, deferred income taxes, finance costs - distributions to Unitholders and after adjustments for equity accounted entities and non-controlling interests.
• AFFO is defined as FFO adjusted for non-cash amounts affecting revenue, amortization of effective swap agreements, less maintenance capital expenditures, maintenance tenant incentives and deferred leasing costs, and the settlement of effective interest rate swap agreements.

Ivanhoé Cambridge announces that it has finalized the sale of the office building located at 42, avenue de Friedland, corner of rue de Tilsitt, in Paris’ 8th arrondissement. The agreement is with the French company Assurances du Crédit Mutuel.

The 42 avenue de Friedland is a quality building that offers more than 10,500 m2 (113,000 ft2) of leasable space. It is the site of the head office of Vivendi, whose presence in the building is assured for a firm six-year period. 

The Catella company brokered the sale as part of a co-exclusive mandate with Jones Lang LaSalle. Ivanhoé Cambridge also benefited from the counsel of notary Hubert Wargny and the legal firm of Allen & Overy. For its part, Assurances du Crédit Mutuel was advised by notary Hitier.

Granite Real Estate Investment Trust (Granite) announced its agreement to acquire a majority interest in one income producing property located in Portland, Oregon and its acquisition of a majority interest in two development sites located in Louisville, Kentucky and Bethel, Pennsylvania.  Granite's portion of the funding for these acquisitions is a combination of its existing line of credit, property-specific mortgage and construction financing and cash on hand. The completion of these acquisitions and the associated debt financing is consistent with Granite's strategic initiatives to diversify its real estate portfolio and prudently leverage its balance sheet.  Property specific details on each of the acquisitions are set out below.

18201 NE Portal Way, Portland Oregon is a 264,984 square foot Class "A" multi-tenant logistics /warehouse facility constructed in 2008. The property will be acquired at a total cost of approximately US$21 million, with an equity ownership split between Granite (95%) and Dermody Properties (5%). The property is well located within the East Columbia submarket, 5 miles east of Portland International Airport, 15 miles from the Port of Portland, with close proximity to major arterial interstate routes (I-84 East-West, I-205 North-South, and I-5 North-South). The property is 100% leased to four tenants with a weighted average lease term of 4.8 years. The acquisition is subject to customary closing conditions and is scheduled to close on or before May 15, 2013.

825 Conestoga Parkway, Louisville Kentucky is a 35.9 acre site located at Settlers Point Business Park in Louisville, Kentucky. The property is well located within the Bullitt County submarket, 15 miles south of Louisville city center, and 5 miles south-west of the Louisville International Airport. The site is earmarked for a proposed development which will include a 624,000 square foot Class "A", cross-docked, logistics/warehouse facility, and will be designed to allow for up to four separate users. The site is fully entitled - zoned light industrial and is pad-ready - allowing construction to begin upon building permit issuance. The project is proposed to be developed on a speculative or inventory basis at an estimated all-in cost (including land and building) of approximately US$26.8 million. Equity ownership in the project will be through a development joint venture between Granite (90%) and Dermody Properties (10%). To date the land has been acquired for a purchase price of US$6.2 million.

Berks Park 78, Bethel, Pennsylvania (PA) is an 89.2 acre site located on the western side of Berks Park 78 in Bethel Township, PA. The site is fully improved and located within a high quality business park approximately 125 miles from New York City, New York and 85 miles from Philadelphia, PA off Exit 13 of I-78, 13 miles east of the I-81/I-78 intersection.  The property is fully entitled and zoned for 750,000 square feet of logistics/warehouse uses. The site was acquired for a purchase price of US$7.8 million, and equity ownership in the project will be through a development joint venture between Granite (90%) and Dermody Properties (10%). The acquisition was funded on a land-only basis and will be held in inventory for future build-to-suit opportunities and/or future speculative development. 

Additional details on the acquisitions are available on our website at www.granitereit.com.

Timbercreek Asset Management Inc. (Timbercreek) is pleased to announce on behalf of Timbercreek U.S. Multi-Residential Opportunity Fund #1, a joint venture between Timbercreek and Elco Landmark Residential Holdings (Elco Landmark), it has completed the acquisition of 788 residential units across two multi-residential properties located in Cary, North Carolina for approximately $55.7 million.  The Acquisition is the second for the Fund since the completion of its initial public offering on October 25, 2012.

"We are pleased with this acquisition, as it not only satisfies the Fund's investment criteria, but has also allowed us to quickly grow the portfolio of properties within the Fund." said Ugo Bizzarri, Founding Managing Director, Portfolio Management and Investments at Timbercreek. "We are currently raising additional capital, with a second public offering, in order to continue taking advantage of attractive acquisition opportunities, like this one, available in the targeted region."

Prior to this acquisition, the Fund's portfolio consisted of 1,380 units across four other multi-residential properties, which were acquired in December 2012, and are located in the southeastern United States, specifically Austin, Texas, Charlottesville, Virginia, Charlotte, North Carolina and Chapel Hill, North Carolina.

The Fund is focused on acquiring undervalued and/or undermanaged multi-residential assets located in the southeastern United States, at an advantageous price and significant discount to replacement cost.  The Fund is sponsored and managed by Timbercreek and operated by Elco Landmark.

The Fund's primary focus is on enhancing the value of the assets it acquires by implementing an actively-managed repositioning and renovation program, designed to invest capital into a property to improve both cosmetic and structural elements.

The total return objective of the Fund is to generate a 15% internal rate of return (or average annualized total rate of return) on a pre-tax basis and net of all fees and expenses, including a quarterly distribution with an annualized yield of 4%- 5% (which includes the allocation to Unitholders of U.S. taxes paid by the Fund).

Plazacorp Retail Properties Ltd. (Plazacorp) announced its results for the quarter ended March 31, 2013.

For the quarter ended March 31, 2013, Plazacorp reported funds from operations (FFO) of $4.0 million, an increase of 5.6% over the same period in the prior year.  FFO per share was $0.063 for the quarter ended March 31, 2013 ($0.063 per share diluted) compared to $0.064 per share for the quarter ended March 31, 2012 ($0.064 per share diluted). FFO was positively impacted by growth in total net property operating income and same-asset net property operating income as well as an increase in the Company's joint ownership position in one of Plazacorp's properties coupled with improved results at that property.  These were partly offset by:  (i) an increase in administrative expenses affected by Restricted Share Units issued in late December 2012 under the Company's Restricted Share Unit plan; and (ii) an increase in one-time refundable current income tax expense.  Excluding the impact of the one-time refundable current income tax expense, FFO was $4.2 million or $0.066 per share.

Profit for the quarter ended March 31, 2013 was $8.5 million compared to $14.7 million recorded for the prior year.  Profit was mainly impacted by non-cash fair value adjustments on investment properties and investments as a result of decreases in capitalization rates, net of deferred taxes on those amounts, as well as the same factors described above affecting FFO.

During the quarter, the Company launched a friendly takeover of KEYreit and on April 4, 2013, the Company announced that it entered into a definitive agreement with KEYreit to increase its offer to acquire 100% of the units of KEYreit.  KEYreit unitholders will have the option to tender their Units for either $8.35 per unit in cash, subject to a maximum aggregate cash amount of approximately $62.1 million, representing approximately 50% of the consideration, 1.7041 shares of the Company, or any combination thereof, subject to proration.  This revised offer is valued at approximately $124 million.  As part of the transaction, the asset management and property management agreement with JBM Properties Inc. (a company owned by John Bitove, CEO of KEYreit) will be terminated.  Based on synergies to be realized due to the Company's internalized management team, the acquisition is estimated to be accretive to adjusted funds from operations.  As well, KEYreit's properties are compatible with those of Plazacorp and the integration of those properties will enhance the pro forma geographic diversification of Plazacorp.

During the quarter, Plazacorp also received a positive ruling from Canada Revenue Agency in respect of converting from a mutual fund corporation to a real estate investment trust on a tax-deferred basis.  Completion of this conversion will occur later this year and will be subject to shareholder approval.

Michael Zakuta, Plazacorp's President and CEO said, "We are pleased with the financial results for the quarter.  The company has continued to execute on its strategy of creating value for our shareholders as evidenced by the growth in FFO.  We are also looking forward to completing the acquisition of KEYreit and thereby growing our asset base, as well as completing our conversion to a REIT, which has been in process for over two years now.  We believe that 2013 will be a significant year for Plazacorp."

Highlights of the acquisition include:

• The REIT is executing its growth plan by acquiring a well-located, high-quality property in a major U.S. market which is experiencing significant growth.
• The Property was acquired at an attractive relative valuation, and is located next to several of the REITs current assets in a strategically clustered portfolio providing economies of scale in key Houston submarkets.
• The REIT is acquiring the Property at an attractive capitalization rate of 8.16%.
• The REIT has negotiated an interest only 5-year term mortgage of approximately $10 million that will be fixed at an interest rate of less than 3.0%.
• The balance of the Purchase Price will be completed through a combination of cash on hand and drawing on the REIT's acquisition line.
• The property is 100% leased and has an attractive lease maturity profile of approximately 6.5 years at contractual rates determined to be under market.
• Approximately 83% of the Property NOI is derived from investment grade tenants.
• The acquisition is expected to be approximately 3% accretive to the REITs Forecasted Adjusted Funds From Operations per unit.

Frank Camenzuli, Agellan's Chief Executive Officer, commented, "We are excited because the acquisition is consistent with our previously stated growth strategy of acquiring high-quality assets located in strategic clusters in growing markets at attractive relative valuations. The REIT continues to see similar investment opportunities in the targeted U.S. markets."

Firm Capital Mortgage Investment Corporation (Corporation), released its financial statements for the three months ended March 31, 2013.

PROFIT & RETURN ON EQUITY

Comprehensive income and profit for the first quarter ended March 31, 2013 increased by 7% to $4,194,465 as compared to $3,937,912 for the same period last year. Basic weighted average profit per share for the first quarter ended March 31, 2013 was $0.240, in comparison to the $0.258 reported for the first quarter ended March 31, 2012. Profit for the quarter ended March 31, 2013 exceeded dividends to Shareholders by $97,007. 

Profit for the three months ended March 31, 2013 represented an annualized return on shareholders' equity of 9.45%. This return on shareholders' equity represents 842 basis points per annum over the average Government of Canada One Year Treasury Bill yield for the first quarter of 2013 of 1.03%, and is well in excess of the Corporation's stated target yield objective of 400 basis points per annum over the average One Year Treasury Bill yield.

DIVIDEND OVERVIEW

For the first quarter ended March 31, 2013, the Corporation paid dividends totaling $4,097,458 or $0.234 per share versus $3,718,535 or $0.234 per share for the first quarter ended March 31, 2012.

INVESTMENT PORTFOLIO HIGHLIGHTS
Details on the Corporation's investment portfolio as at March 31, 2013 are as follows:

• Total gross investment portfolio equals $317,684,716, which is a 7% increase over December 31, 2012.
• Conventional first mortgages, being those mortgages with loan to values less than 75%, comprise 64.4% of our total portfolio, and total conventional mortgages with loan to values under 75% comprise 73.5% of our total portfolio.
• Related investments total 13.6% of the portfolio.
• Non-conventional mortgages total 9.6% of the portfolio.
• Discounted debt investments total 3.3% of the portfolio.
• Approximately 65% of the portfolio matures by March 31, 2014. This results in a continuously revolving portfolio, allowing management to assess market conditions.
• The average face interest rate on the portfolio is 8.79% per annum.
• Regionally, the portfolio is diversified approximately as follows: Ontario (75.1%), Alberta (10.7%), Quebec (9.4%) and British Columbia (4.8%).
• Investment portfolio breakdown by loan size is as follows:

IMPAIRMENT PROVISION UPDATE

Management has always taken a proactive approach to allowance provision reserves. This is a prudent approach to protecting our Shareholders' equity. The impairment provision remains unchanged at $3,180,000 which represents 1% of the gross loan portfolio.

UNRECOGNIZED INCOME COLLECTED

As at March 31, 2013, the Corporation has recorded as a receivable on its books, banked non-refundable fee income of $656,591, which will be recognized as income over the term of the corresponding investments.

DIVIDEND AND SHARE PURCHASE PLAN

The Corporation has in place a Dividend Reinvestment Plan (DRIP) and Share Purchase Plan that is available to its Shareholders. The plans allows participants to have their monthly cash dividends reinvested in additional shares at a 2% discount to market and grants participants the right to purchase, without commission, additional shares, up to a maximum of $12,000 per annum. 

NEW COO APPOINTMENT

The Corporation also announces the retirement of Mr. Edward Gilbert as Chief Operating Officer of the Corporation.  Mr. Gilbert remains a management-appointed director of the Corporation. The board of directors of the Corporation has appointed Mr. Sandy Poklar to act as Chief Operating Officer of the Corporation.

Mr. Gilbert has served as Chief Operating Officer and as a trustee or director since the initial public offering of Firm Capital Mortgage Investment Trust, the Corporation's predecessor, in 1999. Mr. Gilbert will continue to be an important part of the Firm Capital Corporation management team through his ongoing role with the Corporation's advisor and as a director of the Corporation.

Ivanhoé Cambridge announces that construction has begun on the site of The Outlet Collection at Niagara, an outlet shopping centre project in Niagara-on-the-Lake, Ontario. Slated to open in May 2014 following an investment of nearly $200 million, the new outlet centre will feature close to 100 marquee retailers and coveted collections for value-seeking shoppers including Banana Republic, Bench Outlet, Brooks Brother Outlet, Calvin Klein, Forever 21, Gap Outlet, Izod, Michael Kors Outlet, Naturalizer, Osh Kosh, Tommy Hilfiger and Van Heusen. Bass Pro Shops has chosen this location to open their third anchor store in Canada.

Dignitaries present at the ground breaking ceremony included Niagara-on-the-Lake Lord Mayor Dave Eke who said: “This retail centre is a significant economic venture for all of Niagara.  Not only will it create thousands of jobs and generate more tax revenue for our area, it has the potential to make the Glendale interchange at the QEW a major commercial hub for both the Southern Ontario and Northeastern U.S. markets.”

The Outlet Collection at Niagara development project will generate approximately 1,000 construction jobs. Over 1,500 full- and part-time jobs will be created upon the opening of the centre.

Phase I oh The Outlet Collection at Niagara will feature eight single-level buildings totalling 48,000 m2 (520,000 ft2) of gross leasable area within a race track design. The common area will be open-air, with various sections covered by roof structures to provide relief from the elements. The centre will also include a food court pavilion and an event area for a farmer's market and a community gathering place.

The Outlet Collection Fact Sheet

Information: Sébastien Théberge - Senior Director, Public Affairs and Communications

Pure Industrial Real Estate Trust (PIRET) announced that it has entered into agreements to acquire two single-tenant and two multi-tenant industrial properties in Calgary, Alberta for a total purchase price of $72 million.  The purchase price represents approximately $100 per square foot and a going-in capitalization rate of approximately 5.91%.

The Calgary Portfolio consists of four properties having a total rentable area of 720,434 square feet.  The portfolio is 93% leased to high quality multinational, national and regional tenants on a fully net basis with a weighted average rent of $5.85 per square foot. PIRET expects to fund the acquisition with the balance of the proceeds from the REIT's bought deal offering of subscription receipts which closed on May 1, 2013 and with the proceeds of new first mortgage financing in the amount of approximately $46.8 million, having an anticipated interest rate of 3.75%, and with working capital.  The acquisition is expected to close in June, 2013.

After the completion of the acquisition of the Calgary Portfolio and of the portfolio of 59 properties located in the Greater Toronto Area and Southwestern Ontario which was announced in April 11, 2013 and which is expected to close on May 15, 2013, PIRET's portfolio will total 160 properties and approximately 12.56 million square feet.

Tommy Bahama, an operating group of parent company Oxford Industries, Inc., announced that it has closed a deal to acquire the business operations relating to the Tommy Bahama business in Canada from its licensee, the Jaytex Group. The acquired operations include nine Tommy Bahama retail stores in Canada and a wholesale business with high end department stores and specialty retailers, including Hudson's Bay Company. The nine retail stores consist of five in Ontario, two in Alberta and two in British Columbia.

"We are excited about the purchase of the Canadian business," said Doug Wood, President and COO of Tommy Bahama. "The Tommy Bahama business in Canada has been solid and we see great potential for growth in the market. We are fortunate to already have many Canadian guests visiting our U.S. retail stores, restaurants, and our Ecommerce site, and look forward to the opportunity to connect with them more frequently. We owe a great deal to Jaytex, which has helped to develop the brand in Canada and has been a valuable partner to us. We appreciate all they have done and are pleased that our organization is now ready to take this next step in our business expansion."

"One of the benefits of operating in Canada directly will be our ability to establish consistent merchandising, marketing and distribution strategies between the U.S. and Canadian operations," continued Mr. Wood. "This will give our Canadian guests access to a broader product assortment, direct marketing offers and a closer relationship with the brand."

Eric Grundy, CEO of Jaytex, said, "I am proud of our accomplishments with the Tommy Bahama brand and have thoroughly enjoyed working with the Tommy Bahama USA team during the past 15 years. We are pleased with the outcome of this transaction and look forward to our continued relationship with Oxford as we build the Ben Sherman and Lilly Pulitzer brands in Canada."

The acquisition of the Tommy Bahama business in Canada is another phase of Tommy Bahama's business expansion. In the last year, the company has opened retail stores in Hong Kong, Tokyo, Macau and Singapore. Last year, the company acquired from its licensee the Tommy Bahama business in Australia, where it now operates five retail stores and a wholesale business. A new retail store in Sydney is scheduled to open in May. Tommy Bahama is also partnering with FiftyOne Global Ecommerce, allowing Tommy Bahama merchandise to be shipped directly to consumers in over 100 countries worldwide.

"The unmatched selection, cold beer and efficient service that beer drinkers expect from The Beer Store are now being enhanced with a new look, brand and colour scheme, as well as helpful store design features that we hope will improve the beer shopping experience for our valued customers," said The Beer Store president, Ted Moroz. "We'll be piloting these stores throughout the 2013 beer selling season and we invite you to 'Meet Beer' by coming in to check out the new features, tell us what you think, and pick up your favourite beer."

Some of the design changes include:

• Fresh 'Beer Store' name and branding, including a new logo, signage and merchandise;
• Brand new interior design to the stores;
• New interactive digital touch displays to make it easier for people to explore the our wide product selection before purchasing;
• A more streamlined, dedicated bottle return recycling experience;
• Increased refrigerated beer offerings, including seasonal beer can selections.

In order to remain the undisputed authority on beer, employees at The Beer Store's new pilot locations underwent significant 'Beer College' product knowledge training. Course material included information about different types of beer and the brewing process, beer and food matches and continued education around environmental leadership, social responsibility and health and safety.

"The Beer Store system is open to any brewer in Ontario or around the world and we want Ontarians to learn about and interact with the hundreds of brands that we offer," said Andrea Randolph, vice-president of Retail. "Beer College training for our employees and new ways to feature our impressive selection of beer really showcases to our customers that we're serious about your beer."

In order to measure the customer response to the changes, different design features will be implemented in a variety of different store formats at four locations across the GTA. The Beer Store brand refresh is being bolstered by a community-focused advertising campaign to tell our neighbours about our exciting new changes and invite them in our doors.

The locations are:

• College and Bathurst
• Parliament and Winchester
• Danforth and Greenwood
• Hopedale Mall in Oakville

IGW Real Estate Investment Trust (IGW REIT) announced that its wholly owned subsidiary IGW Public Limited Partnership has provided notice to the Board of Trustees of Partners REIT (Partners) that it is nominating four highly experienced real estate executives for election to the Board at Partners' annual meeting scheduled for June 6, 2013.

IGW REIT is a private real estate investment trust and, through its affiliates, is the largest unitholder of Partners REIT. It is nominating the four Trustees to enable all Partners' unitholders to have strong alternatives in the election of their Board.

The four nominees are:

James R. Bullock

Mr. Bullock is a former President and Chief Executive Officer of Cadillac Fairview Corporation and of Laidlaw Inc. During his career at Cadillac Fairview, he directed the development of more than 30 million square feet of retail properties throughout Canada and the United States. From 1987 to 1988 he served as Chairman of the International Council of Shopping Centers. He has actively managed and directed his family-owned investment company, Glengate Holdings Inc., a company with significant holdings in commercial real estate throughout Ontario, since 2000. He is also a member of the Real Estate Advisory Committee of OP Trust. Mr. Bullock has been a Board Member of several other Canadian public companies including Imasco Inc., Dylex Limited, Telemedia Inc, and Revenue Properties Corp. He was a Governor of Ryerson University, and served for two years as Chairman of its Board of Governors. He was also a Governor of McMaster University and served as a Director of McMaster Innovat ion Park. Mr. Bullock was a founding member of the Board of the Greater Toronto Airport Authority and was a Director of the Woodbine Entertainment Group. He has also served on the Board of the Royal Ontario Museum Foundation, the Princess Margaret Hospital Foundation, the Shaw Festival, and the Board of Ontario Hydro.

Patrick Miniutti

Mr. Miniutti is currently Chief Executive Officer of Partners REIT and has served as a Trustee since 2010. Prior to that, Mr. Miniutti was Managing Director with Sunset Realty Services, a financial and management advisory services firm, which assisted in the acquisition and asset management of community and outlet centres and the development and management of low income and multi-family housing. Earlier, he served as Executive Vice President, Chief Financial Officer and Chief Operating Officer, and as a Director of Konover Property Trust, a public company which owned, developed and managed grocery-anchored centres and outlet centres. Mr. Miniutti previously served in various executive roles with several companies including Crown American Realty Trust, a public company and an operator of regional malls, New Market Companies, one of the first developers of power centres. Mr. Miniutti is a Certified Public Accountant and began his career in accounting with KPMG before specializi ng in commercial and residential real estate accounting at Kenneth Leventhal & Company.

Graham Senst

Mr. Senst served as Vice President of Real Estate for OMERS Administration Corp. (Ontario Municipal Employees Retirement System), one of Canada's largest pension funds. He is currently a Member of Advisory Board at KingSett Capital Income Fund and a Trustee and Chair of the Investment Committee of Milestone Apartments Real Estate Investment Trust. Mr. Senst served as President of the Institute of Canadian Real Estate Investment Managers until its sale in August 2012. He previously served as Managing Director of Kingsett Capital Real Estate Income Fund and as an Executive Vice President of Bentall Capital and Penreal Capital Management. Earlier, Mr. Senst was Vice President of Real Estate at a subsidiary of Mackenzie Financial Corporation, where he developed debt and equity investment products for various Mackenzie equity funds, and Vice President of Corporate Real Estate at Canada Trust. He also served as Trustee of Residential Equities Real Estate Investment Trust (ResREIT), as a Director of Oxford Properties Group, Inc., and on the Advisory Boards of Morgan Stanley Real Estate Fund IV and Soros Real Estate Investors, C.V.

Wilbur H. Smith III

Mr. Smith is the Principal/CEO and founder of Greenlaw Partners, LLC and Greenlaw Management, Inc. Founded in 2003, Greenlaw is a full service real estate investment management and operating company, which has completed more than $2 billion in acquisitions and dispositions of commercial real estate properties. Currently, Greenlaw manages a portfolio in California of four million square feet comprising office, industrial, retail, resort and commercial land assets. Prior to founding Greenlaw, Mr. Smith was the Director of Asset Management for Makar Properties, a privately held real estate company. Mr. Smith is a licensed California real estate broker and a member of Young Presidents Organization (YPO). 

For more information:

IGW Public LP
Adam Gant
(250) 592-3395

 
Vincent Chiara, President, Groupe Mach 

 Jean Laurin, President & CEO, Newmark Knight Frank Devencore 

Brian Ker, Vice President, National Investment Team, CBRE Limited

Michal Kuzmicki, Managing Partner, Brookfield Financial
 

Méka Brunel, Ivanhoé Cambridge’s Executive Vice-President for Europe, explains the details of the group’s latest venture in Paris, The Duo Project.

During the recent international MIPIM conference for real estate professionals in Cannes, Ivanhoé Cambridge and the Société d'Étude, de Maîtrise d’Ouvrage et d’Aménagement Parisienne (SEMAPA) announced that the development of the DUO project in Paris’s 13th arrondissement has taken another step forward.

The SEMAPA has signed a "promesse unilatérale de vente" (unilateral promise to sell - a provision in the French Civil Code) with Ivanhoé Cambridge enabling the continuation of studies on the project and giving Ivanhoé Cambridge the right to build and to embark upon the next predevelopment steps.

DUO would comprise 87,000 m² of office and commercial space, as well as a 150-room hotel. The DUO project, designed by architect Jean Nouvel, recently earned Ivanhoé Cambridge a win in a major City of Paris architectural competition. Hines, Ivanhoé Cambridge’s developer partner, will be the DUO project’s owner-agent.

The Marriott Courtyard Downtown Toronto is the largest full-service Courtyard hotel in the world. Centrally located on Yonge St., near College St., it offers guests easy access to Toronto's business, shopping and entertainment districts. The hotel features 575 guest rooms, a newly redesigned lobby, restaurant, bistro, 24-hour fitness center, indoor pool, valet parking and full concierge services.

"The Marriott Courtyard brand has become a standard for business travellers and visitors who want prime locations, a top quality experience and good value," says Eric Aintabi, Vice-President, Jesta Group. "We are very proud to announce this acquisition. From Jesta's perspective, this was a very compelling business opportunity and an ideal chance to leverage our expertise in hotel ownership and management worldwide. We will ensure a seamless management transition for our guests and associates. We are also committed to significant renovations and upgrades to guest rooms, meeting places and common areas, in order to uphold and further elevate the high standards that people expect from the Marriott brand."

The property was originally built as the Westbury Hotel in 1957. In 1999, it was converted into a Courtyard. Last year, the hotel earned a TripAdvisor Certificate of Excellence.

"Frank is one of the most sought-after experts in the industry. His knowledge of high value real estate development projects and underwriting will help Fortress strengthen our developer and builder client relationships and expand our footprint in Canada," said Jawad Rathore, President and CEO, Fortress Real Developments. "One of Frank's primary responsibilities will be designing and securing the full capital stack and all important bank and lender construction financing for the numerous projects we're involved in. Frank's addition expands our all-star team and reinforces our position as the industry leader in the Canadian real estate development market."

Margani comes to Fortress from MCAP, one of Canada's leading independent mortgage financing companies, where he was Director of the Development Finance Group and managed a portfolio of high value real estate assets. During his 10 year tenure there, he secured some impressive statistics including providing development financing of over $3.5 billion in new loans and the financing of over 10,000 units and lots in the GTA. In addition, he helped develop the GTA high-rise land value report that is now standard for industry experts across the country. 

"The executive team at Fortress brings an entrepreneurial approach to the marketplace and have created a business model that is truly unique," said Margani. "They are able to blend the Fortress Real Capital product with excellent development partners and lenders to realize top-notch developments across Canada - quickly and seamlessly.  I'm excited to help expand their success by seeking out new market opportunities with attractive yields for our stakeholders and investors."

Obtaining LEED® Platinum certification for AAA commercial office space is a significant achievement. This distinction is a result of the owners' efforts to raise the bar with regards to sustainability and energy resource management while offering their tenants the best office space on the market.

“When we were looking at signing an office lease and securing the best environment for our employees, it was clear that sustainability was a factor in our decision-making,” said Kevin Neveu, President and CEO, Precision Drilling Corporation “Not only is Eighth Avenue Place the most prestigious business address in Calgary, it shares Precision Drilling Corporation’s commitment to sustainable development.”

A sustainable building

Eighth Avenue Place’s sustainable design features and programs include: 

• Installation of a state-of-the-art building management and control system to monitor and manage energy consumption and tenant comfort requests
• Reliance on outside air (at certain temperatures) to cool the building
• 40% reduction in water use through features such as ultra-low-flow urinals and low-flow water closets
• Provision of enclosed 300-stall bicycle parking with adjacent showers
• Over 75% landfill diversion of construction waste including that from the demolition of the previous buildings
• Use of low-emitting paints, adhesives and sealants
• Use of environmentally sensitive refrigerants
• Canada’s largest green roof encompassing more than 2,700 m2 (30,000 ft2)

Eighth Avenue Place is a 49-storey tower, a two-storey retail podium spanning a full city block and featuring a dramatic atrium winter garden, a 1,143-car, below-grade parking garage. Construction began in December 2007 and was completed in the summer of 2011.  Construction on Phase II West Tower began in March 2012 and will be a 78,000 m2 (840,000 ft2), 40-storey office tower. It is scheduled for completion in summer 2014 and is fully pre-leased. Hines is the development manager.

For more information: eighthavenueplace.com

"We are very pleased to complete this acquisition, which significantly increases our size, enhances our health care product mix and improves our geographic diversification," said Zeke Turner, Chairman and CEO of HealthLease. "The transaction is immediately accretive and will reduce our payout ratio.  Consistent with our growth strategy, the properties expand our portfolio of next-generation facilities that are leased under triple-net structures to leading operators.  We continue to see acquisition opportunities in the both the Canadian and U.S. markets, and believe that these opportunities, along with our development pipeline, provide us with significant growth potential over the short and long term." 

The acquired properties represent a total of 978 beds, consisting of 355 beds in four skilled nursing facilities ("SNFs"), 563 beds in eight combination assisted living/Alzheimers facilities ("AL/ALZs"), and 60 beds in one standalone Alzheimer facility.  Six properties are leased to Meridian Senior Living, which operates 91 facilities across 12 states.  The remaining seven properties are leased to Saber Healthcare Group, LLC, which operates 56 facilities across six states.  In total, the acquired properties have a weighted average lease term of 10.5 years. 

With the completion of the acquisition, HealthLease's portfolio now consists of 28 facilities with a total of 2,909 beds across five states and two provinces, and leased to a total of 11 tenant-operators.

For more information, visit www.hlpreit.com.

"Great Eagle Holdings has owned the hotel for almost two decades but the time is now right for the Langham Hospitality Group to assume management," says Brett Butcher, chief executive officer of Langham Hospitality Group.  "It represents a tangible development for our company in North America as we are now represented in the U.S. market with properties in Boston and Pasadena, with new hotels opening in New York and Chicago this year." 

"To complement these hotels, we will now have a strong presence in Canada which is in line with the group's financial commitment and long-term vision for the continent," adds Mr. Butcher. 

Eaton aims to surprise and delight guests with a value-for-money proposition that delivers a stylish, modern level of comfort with warm and welcoming service and an on-going commitment to sustainability.  A multi-million dollar investment programme for the hotel has already begun and includes beautifying the exterior, refurbishing the lobby and Market Garden Restaurant, and extensively upgrading the interiors of the banquet and meeting facilities.

"We are very excited about the addition of Eaton Chelsea, Toronto to the Langham family," says Josef Ebner, Regional Vice President and Managing Director of Eaton Chelsea, Toronto.  "In repositioning to an Eaton brand that will include some significant renovations, we are excited to now share a design philosophy of smart, modern and uncomplicated interiors and an enthusiastic "can do" service culture which will set us apart from the competition in downtown Toronto."

As Canada's largest hotel with 1,590 guest rooms, Eaton Chelsea, Toronto is centrally located and just steps from the city's best shopping districts, world-class theatres, vibrant nightlife and exciting attractions. A full-service urban resort, Eaton Chelsea has room types to suit everyone and the hotel offers five restaurants and lounges, separate adult and family recreation areas and pools - including the "Corkscrew" - downtown Toronto's only indoor waterslide. As a premier family destination, the hotel offers a full range of services including the Family Fun Zone with Camp Chelsea, Kid Centre and Club 33 Teen Lounge. For more information or to make reservations, please call 1-800-CHELSEA (243-5732) or visit chelsea.eatonhotels.com 

As the wholly-owned subsidiary of Great Eagle Holdings, Langham Hospitality Group encompasses a family of distinctive hospitality brands which include hotels, resorts, residential serviced apartments, restaurants and spas, located on four continents. The Group currently owns and/or manages 16 hotels under The Langham, Langham Place, Eaton and 88 Xintiandi brands with more than 24 hotel projects currently either confirmed or in a developed stage of negotiation from China through Asia and India to the Middle East. North America remains a focal point for the group's development with over 2,000 rooms planned to be added in 2013 to the existing portfolio. For reservations, please contact a travel professional or access the website at www.langhamhotels.com.

Our Properties:

EUROPE:

The Langham, London

PACIFIC:

The Langham, Auckland
The Langham, Melbourne
The Langham, Sydney

ASIA:

China

The Langham, Xintiandi, Shanghai
The Langham, Haikou, Hainan (2015)
The Langham, Shenzhen
Langham Place, Beijing Capital Airport
Langham Place, Dalian (2016)
Langham Place, Datong (2014)
Langham Place, Guangzhou (2013)
Langham Place, Ningbo (2013)
Langham Place, Qingdao (2014)
Langham Place, Xiamen (2014)
88 Xintiandi, Shanghai
Eaton Luxe, Nanqiao, Shanghai
Eaton Luxe, Xinqiao, Shanghai
Eaton Luxe, Qingdao (2014)

Hong Kong

The Langham, Hong Kong
Langham Place, Mongkok, Hong Kong
Eaton Hong Kong 

India

Eaton Smart, New Delhi Airport Transit Hotel
Eaton, Lavasa (2015)
Langham Place, Lavasa (2015)

NORTH AMERICA & CARIBBEAN:

The Langham, Boston
The Langham, Huntington, Pasadena, Los Angeles
The Langham, Chicago (2013)
Langham Place New York, Fifth Avenue (2013)
Eaton Chelsea, Toronto (2013)

CREIT will acquire a 50% managing interest in two centres located in Quebec City, Quebec and a 100% interest in one centre located in Moncton, New Brunswick. Typical due diligence conditions have been satisfied and the transaction is subject to standard closing conditions. The closing is scheduled to occur prior to the end of the second quarter of 2013.

CREIT initially entered into an agreement with the Vendor to acquire a 100% interest in the three properties for a purchase price of $301.0 million. CREIT then subsequently entered into an agreement to sell a 50% non-managing interest in the two Quebec City properties to a subsidiary of a Canadian pension fund with all closings taking place simultaneously. CREIT's share of the purchase price for the properties is $181.5 million which represents a capitalization rate of 6.1% (excluding management fees).

A description of the three properties is as follows:

1. Sainte Foy Centre, Quebec City, QC (50% interest)

Sainte Foy Centre is located at the northwest corner of Highway 40 and Highway 540 in the western part of Quebec City. Average traffic volume on these highways at the property is approximately 100,000 vehicles per day.

Sainte Foy Centre is comprised of approximately 526,000 square feet of retail space (excluding shadow anchor space) on 59.3 acres of land (both at 100%). The property is 99.6% leased to high quality retailers and is anchored by Walmart and is shadow anchored by a Super C grocery store (Metro owned chain).

2. Mega Centre Lebourgneuf, Quebec City, QC (50% interest)

Mega Centre Lebourgneuf is located at the northwest corner of Highway 73 and Highway 40 in central Quebec City. Average traffic volume along the property is approximately 225,000 vehicles per day.

Inclusive of shadow anchor space, Mega Centre Lebourgneuf is comprised of over 1,000,000 square feet of developed space. Retailer owned shadow anchors include Costco, Canadian Tire, Home Depot and a Maxi grocery store (Loblaw owned chain).

The property to be acquired is comprised of approximately 457,000 square feet of leasable area on 47.6 acres of land (both at 100%). This space is 100% leased to a strong roster of predominantly national tenants.

3. Wheeler Park Power Centre, Moncton, NB (100% interest)

Wheeler Park Power Centre is the dominant shopping centre in Moncton's primary unenclosed retail node. It is located at the northeast corner of Wheeler Road and Mountain Road approximately 1.5 kilometres from the Trans-Canada Highway.

Wheeler Park Power Centre is shadow anchored by Costco, Loblaws Superstore and Kent Building Supplies. Inclusive of shadow anchors, the shopping centre has approximately 600,000 square feet of retail area. The property to be acquired is comprised of approximately 272,000 square feet of retail space on 16.9 acres of land and is 100% leased to national tenants.

In the total transaction, CREIT will acquire approximately 763,000 square feet (at CREIT's share) of space that is 99.9% leased.

CREIT's share of the total purchase price of $181.5 million will be partially satisfied by the assumption of approximately $39.6 million of existing mortgage debt, carrying a weighted average interest rate of 5.0% and a weighted average term to maturity of 2.8 years. The purchase price will be reduced by a mark-to-market adjustment (in favour of CREIT) that will reduce the effective interest rate on the assumed debt to 3.0%.

CREIT has also entered into an agreement for a new mortgage secured by the Sainte Foy property. CREIT's share of the loan (50%) is approximately $42.5 million. The loan has a term of ten years with a 3.57% interest rate. The balance of the purchase price will be funded with cash on hand and through bank facilities.

Adam Paul, Executive Vice President, Investments and Leasing of CREIT said "Each of these assets are established and dominant properties in their respective markets. Strong retailer demand for space in these high quality centres has resulted in a long-term track record of exceptionally high occupancy levels. Properties of this calibre are difficult to acquire, so we are pleased to add these shopping centres to our portfolio."

GTA Industrial Development

CREIT's development program is continuing to progress very well. Of note, Phase I of CREIT's Milton Distribution Facility in the Greater Toronto Area (GTA) West market is nearing completion.

CREIT owns an 85% interest in the property. Phase I is comprised of 635,000 square feet (at 100%) of rentable area that is fully leased to Lowes Canada on a long-term basis. This facility will serve as the main distribution centre for all of Lowes' retail stores in Canada. The property was recently turned over to the tenant for fixturing and the rent commencement date is scheduled to be May 7, 2013.

On April 3, 2013, the National Association of Industrial and Office Properties (NAIOP) held their annual GTA chapter Real Estate Excellence Awards. CREIT, together with its development partner, were pleased to be recognized with the Industrial Lease Deal of the Year award for the lease transaction with Lowes in this project. 

For more information please visit our website at www.creit.ca.

The spin-off was effected by way of a special dividend of units of BPY to holders of Brookfield's Class A and B limited voting shares (the Shares) as of the record date, March 26, 2013. Each holder of Shares received one BPY unit for approximately every 17.42 Shares (that is, approximately 0.0574 BPY units for each Share). Shareholders of Brookfield now own 35,839,414 BPY units, or 7.56% of BPY, and Brookfield owns the remaining 92.44% of BPY (assuming the exchange of all of Brookfield's redeemable partnership units, which it holds in an affiliate of BPY, for BPY units). The BPY units commenced regular-way trading on the Toronto Stock Exchange and the New York Stock Exchange this morning under the symbols "BPY.UN" and "BPY" respectively.

"Brookfield Property Partners public listing opens an exciting new chapter in the growth of a leading global commercial property company, with the scale and expertise needed to deliver superior long term performance," said Ric Clark, chief executive officer at Brookfield Property Partners and Senior Managing Partner and head of the global property group at Brookfield Asset Management.

"This final step in the launch of Brookfield Property Partners significantly furthers our asset management strategy, providing investors with access to our real asset platforms through three flagship listed entities which deliver income, growth and a portfolio of strongly performing private equity funds," commented Bruce Flatt, Chief Executive Officer of Brookfield. "BPY joins our two other high dividend yield and growth entities, Brookfield Infrastructure Partners and Brookfield Renewable Energy Partners, which since their inceptions, have delivered annual compound returns in excess of 15%."

Brookfield shareholders will receive a cash payment in lieu of any fractional interests in the BPY units. Brookfield will use the volume-weighted average of the regular-way trading price of the BPY units for the five trading days immediately following the spin-off to determine the value of the BPY units for the purpose of calculating the cash payable in lieu of any fractional interests. Payment of this cash amount will be made by check and mailed on or about April 24, 2013.

Prior to completion of the spin-off, BPY acquired from Brookfield substantially all of its commercial property operations, including its office, retail, multi-family and industrial assets, including approximately $157 million worth of ownership interests that Brookfield acquired on April 12, 2012 from fellow investors in the consortium that holds underlying common shares and warrants of General Growth Properties, Inc. and common shares of Rouse Properties, Inc. As consideration for these interests, the investors received approximately $110 million in cash and a note for approximately $47 million that was issued by one of BPY's holding entities and matures on October 12, 2013. This transaction resulted in an increase in the value of the special dividend of BPY units to Brookfield shareholders from the $1.45 value per Share that was estimated upon declaration of the dividend to $1.47 per Share upon payment, or approximately $920 million dollars in the aggregate, based on International Financial Reporting Standards carrying values.

In order to satisfy Canadian withholding tax and U.S. "backup" withholding tax obligations on the special dividend, a portion of the BPY units otherwise distributable to non-Canadian investors will be withheld from registered shareholders. For non-Canadian beneficial owners of Brookfield shares registered in the name of a broker or other intermediary, these withholding tax obligations will be satisfied in the ordinary course through arrangements with the broker or intermediary. Beneficial owners should consult their brokers to determine how the withholding tax obligations will be satisfied for their units and on any questions they may have regarding fractional units.

As contemplated in BPY's Form 20-F filed with the U.S. Securities and Exchange Commission and its Canadian Prospectus and U.S. Information Statement filed with the Ontario Securities Commission, on April 14, 2013 the existing board of directors of BPY's general partner was replaced in its entirety and expanded to seven members, a majority of whom are independent of BPY and Brookfield. The seven members of the board of directors are Gordon E. Arnell, Omar Carneiro da Cunha, Stephen DeNardo, J. Bruce Flatt, Louis Joseph Maroun, Lars Rodert and José Ramón Valente Vías. For biographical information about BPY's directors please refer to the section entitled "Governance" beginning on page 121 of the Form 20-F and page 123 of the Canadian Prospectus and U.S. Information Statement.

Further details regarding the operations of Brookfield Property Partners are set forth in regulatory filings. A copy of the filings may be obtained through the website of the SEC at www.sec.gov and on BPY's SEDAR profile at www.sedar.com.

RioCan has four properties where purchase and sale agreements have been signed and conditions have been waived with two purchasers. The aggregate gross sale price for these four properties is approximately $363.8 million at a weighted average capitalization rate of approximately 5.9%. In connection with the sales, the purchasers (separately) will assume the in place mortgage financing of approximately $66.9 million in aggregate that carry a weighted average interest rate of 5.4%.

In March 2013, RioCan completed the sale of St. Clair Beach Shopping Centre, in Windsor, Ontario at a sale price of $10.5 million which equates to a capitalization rate of 7.8%.

"These dispositions are an excellent opportunity for RioCan to realize the value in these properties and redeploy the capital into RioCan's growing enclosed mall and urban portfolio," said Edward Sonshine, CEO of RioCan. "This disposition allows RioCan to recycle the capital into our recent acquisitions without the need to raise additional capital, which we believe will provide stronger long term returns to our unitholders."

The properties sold or under firm contract are:

  The aggregate IFRS value for these five assets as at December 31, 2012 was $364.9 million.

RioCan also has five properties located in Ontario and Quebec that are in various stages of negotiations that, if completed, represent additional asset sales of approximately $44.4 million in total. RioCan is under no obligation to proceed with such proposed dispositions which, if completed, will be done to facilitate its objective of paring its portfolio and focusing on major markets.

Brookfield Investments Corporation (The Company) announced the acquisition of a 10.6% economic interest in Brookfield Property Partners L.P. (BPY), a newly created company to be spun-off from Brookfield Asset Management Inc. (Brookfield) on April 15, 2013. As consideration for the transaction, the Company sold its 11% common share interest in Brookfield Office Properties Inc., as well as the Company's portfolio of preferred shares of Brookfield Office Properties.

In addition, the Company's 36% limited partnership interest in Brookfield Europe LP sold its interest in Canary Wharf Group plc, as well as certain other European assets, to BPY and received as consideration an indirect 8.9% economic interest in BPY's business The Company will continue to hold a 36% limited partnership interest in Brookfield Europe.

The result of the two transactions is that, in the aggregate, the Company will now hold a 13.8% indirect interest in BPY's businesses. The Company will continue to hold an interest in Brookfield Office Properties, Canary Wharf Group and other global property assets through the Company's interest in BPY.

Upon its spin-off, BPY will be Brookfield's flagship publicly-traded commercial property company and the primary entity through which Brookfield will carry on its commercial property operations on a global basis. BPY's goal is to be the leading global investor in best in class commercial property assets. BPY owns substantially all of Brookfield's commercial property operations, including its office, retail, multi-family and industrial assets. BPY's portfolio includes interests in over 300 office and retail properties encompassing more than 250 million square feet. In addition, BPY has interests in approximately 15,600 multi-family units, 29 million square feet of industrial space and an 18 million square foot office development pipeline. BPY is expected to begin trading on the NYSE and the TSX on April 15, 2013, under the symbols "BPY" and "BPY.UN" respectively.

Brookfield Investments Corporation holds investments in the property and forest products sectors, as well as a portfolio of preferred shares issued by companies within the Brookfield group.

DUNDEE INDUSTRIAL REIT announced that it has entered into an agreement with CanFirst Industrial Realty Fund III LP and CanFirst Industrial Realty Fund IV LP (CanFirst) to acquire a portfolio of 22 industrial properties (the Portfolio) for approximately $151.5 million.

The CanFirst Portfolio comprises 1.6 million square feet of gross leaseable area wholly located across the Greater Toronto Area (GTA) in key industrial markets and along major transportation corridors providing direct highway access.

Highlights:

Further solidifies Dundee Industrial as market leader - Upon completion of the acquisition of the Portfolio and the recently announced acquisition of C2C Industrial Properties Inc. (C2C), Dundee Industrial will own a nationally diversified portfolio totalling 15.6 million square feet of gross leasable area, reinforcing its position as Canada's largest industrial REIT.

Broadens Dundee Industrial's exposure in the GTA - The Portfolio comprises 1.6 million square feet of gross leaseable area located entirely within the GTA. The Portfolio will provide additional scale in the GTA and further enhances the REIT's geographic and tenant diversification.

Immediately accretive - The transaction is immediately accretive to the REIT. The Portfolio has a year-one capitalization rate of 6.5%. Including property management fee income, the capitalization rate increases to 6.7%.

The CanFirst Portfolio complements the REIT's existing assets in terms of asset type and quality, as well as other key portfolio metrics. The Portfolio has a current in-place occupancy rate of 96%, a weighted average lease term of approximately 3.7 years and an average in-place rent of $5.83 per square foot.

The pro forma impact of the acquisition on Dundee Industrial REIT's key portfolio metrics is detailed below:

Dundee Industrial will acquire the Portfolio for a purchase price of approximately $151.5 million, equating to a value of approximately $93/square foot. Year 1 NOI is expected to be $9.9 million, resulting in a capitalization rate of 6.5%. Including property management income, the capitalization rate increases to 6.7%.

The acquisition will be financed with:

• $93.5 million in cash from the Equity Issue that closed last March 6;
• The assumption of $61.7 million existing mortgage debt, with an average term of 1.9 years. The effective interest rate on the assumed debt is 3.1% after giving effect to the vendor's buy down of existing rates.

Subsequent to both the CanFirst and C2C acquisition, the REIT will have approximately $15 million of cash on hand, an undrawn operating facility of $50 million and operate at a debt level of 54% (45% excluding convertible debentures).

The acquisition is subject to certain closing conditions typical for transactions of this type, including lender consents. The acquisition is scheduled to close by the end of April.

"All of the fundamentals seem to be supporting [the] continuation of [an] extended recovery" from the market lows of 2008, says Allan Kimberley, Vice-Chairman, Real Estate Investment Banking at CIBC.

In a series of notes released today at the bank's 18th annual real estate conference in Toronto, CIBC says low interest rates, the continued availability of equity and debt, and healthy supply-demand fundamentals have set up Canada's real estate capital markets for another strong year. These conditions are relatively unchanged from 2012 which saw "record levels of new issuance, total returns exceeding those of the broader S&P/TSX Composite index, a growing list of IPO and M&A activity, against a backdrop of declining volatility," says Mr. Kimberley.

Alex Avery, a CIBC Equity Analyst who covers the commercial real estate sector, also sees favourable property and REIT market conditions continuing in 2013, with one caveat.  "While current real estate and REIT investment market conditions remain highly attractive in many respects, property and REIT pricing have risen largely to reflect the favourable current environment.  We expect attractive returns from Canadian REITs in 2013, but more modest than seen in recent years." 

Mr. Avery says returns from REITs in 2013 will be driven by attractive distribution yields and modest further appreciation in unit prices. Over the next 12-18 months he's forecasting returns to "average 5-10 per cent, comprising close to 6 per cent in average yield and 0-5 per cent in capital appreciation."  REITs most likely to outperform will be ones that deliver the highest funds from operations (FFO) growth, he says.

"With more than a dozen new REIT formations during 2012, and the potential for as many in 2013, the Canadian REIT universe is expanding rapidly to offer investors numerous new alternatives," he adds.  "We believe these new entrants offer the greatest opportunity for investors to outperform the broader REIT group, with smaller, growth-oriented REITs offering significantly higher FFO growth potential than the larger capitalization, more established REITs. However, these new entrants also tend to lack liquidity and a public track record of financial results and/or of management ability to execute strategy."

Two factors that can spoil attractive property fundamentals - the cost and availability of debt and supply of new developments - remain muted and will likely remain so this year, according to Mr. Avery.

"Wide spreads and forecasts for higher, but still low benchmark interest rates suggest favourable borrowing conditions could continue. Committed and proposed development activity currently remains measured in the context of the overall inventory of investment property in Canada, notwithstanding development proposals having picked up sharply in recent months." 

In a separate note, Avery Shenfeld, Chief Economist at CIBC, says the real estate market will be supported by "national vacancy rates for both office and industrial space [which] are likely to remain well-contained" while "retail properties will continue to benefit from new entrants from the U.S."

Meanwhile, the combination of historically low interest rates, accessible credit markets, a high-yield market that continues to expand and healthy corporate fundamentals should support M&A activity. "We expect M&A activity could continue in 2013, with privatizations among the higher-quality and larger capitalization REITs, and mergers between smaller capitalization REITs," says Mr. Avery. 

In 2012, real estate was the third most active sector in Canadian M&A, behind oil and gas, and diversifieds. 

Download the notes by Mr. Avery, Mr. Kimberley, Mr. Shenfeld here

Plazacorp Retail Properties Ltd. (Plazacorp) announced that it has filed its take-over bid circular in connection with the previously announced friendly offer to acquire 100% of the issued and outstanding trust units of KEYreit (KEYreit) for $8.35 per Unit. Under the Plazacorp Offer, KEYreit unitholders will have the option to tender their Units for either $8.35 per Unit in cash, subject to a maximum aggregate cash amount of approximately $62.1 million, 1.7041 common shares of Plazacorp per Unit or any combination thereof, subject to proration.

KEYreit has also filed its trustees' circular, in which the KEYreit Board unanimously recommends that KEYreit unitholders reject the Huntingdon offer, accept the Plazacorp Offer and tender their Units to the Plazacorp Offer. The Trustees' Circular is being mailed to unitholders today together with the Plazacorp Circular. As described in the Plazacorp Circular, the Plazacorp Offer expires at 8:00pm (Toronto time) on May 16, 2013, unless otherwise extended or withdrawn.

The Plazacorp Offer represents a premium of approximately 35% to the closing price of the Units on the Toronto Stock Exchange on January 28, 2013, the last trading day before Huntingdon Capital Corp. (Huntingdon) announced its intention to make an unsolicited partial offer for Units. The Plazacorp Offer is also a significantly more attractive offer than Huntingdon's unsolicited amended offer of $8.00 per Unit.

All of KEYreit's trustees and officers have indicated an intention to tender their Units to the Plazacorp Offer, including John Bitove, CEO of KEYreit, who beneficially owns or controls approximately 16.3% of the issued and outstanding Units. In addition, Mr. Bitove has advised that he intends to elect to receive the consideration for his Units tendered under the Plazacorp Offer solely in Plazacorp Shares.  As a result of this, more cash will be available to other KEYreit unitholders under the Plazacorp Offer. Assuming that all other unitholders elect to tender to the cash alternative under the Plazacorp Offer, unitholders would effectively be entitled to receive approximately $5.00 in cash and 0.6862 of a Plazacorp Share, representing approximately 60% cash consideration for the outstanding Units. Based on the closing price of the Plazacorp Shares on April 9, 2013 of $4.65, and assuming full proration, this implies an $8.18 per Unit value for KEYreit unitholders under the Plazacorp Offer.

Full details of the Plazacorp Offer are included in the take-over bid circular, which along with the Trustees' Circular, has been filed on SEDAR and will be available at www.sedar.com.

KEYreit has retained Kingsdale Shareholder Services Inc. (Kingsdale) as information agent.  Kingsdale can be contacted by holders of Units at 1-888-518-1562 for (i) requests or further information, (ii) advice or assistance in withdrawing their Units from the Huntingdon offer, or (iii) assistance in tendering Units to the Plazacorp Offer. Unitholders who have tendered their Units to Huntingdon by submitting a Letter of Transmittal to Huntingdon can withdraw their Units before they have been taken up by Huntingdon by contacting their broker or by sending a written notice of withdrawal to the Canadian Stock Transfer Company Inc. at its office in Toronto, Ontario specified in Huntingdon's Letter of Transmittal.

Most companies know the kind of talent they need to support their bottom line, such as people with a global mindset, but few have the strategies in place to get the skills they need in the long-term, says Ernst & Young — named today as an eight-time Great Place to Work® award winner in Canada. 

"Building a leading workplace culture is an ongoing journey. Though our work is never done, we're proud of this award, and of our people across the country that make our workplace better every day," says Stephen Shea, Ernst & Young Managing Partner, People. "In our firm and beyond, we've seen repeatedly that high-performing companies successfully strategize to stay competitive in the recruitment and retention landscape, building high-performing teams as a key driver for staying competitive in the overall business landscape"

What are high-performing companies doing differently when it comes to talent management? They're successfully linking pay with performance, developing customized training and development programs, and investing in good people to meet financial targets, according to an Ernst & Young report, Paradigm shift: Building a new talent management model to boost growth. 

These are precisely the types of practices the Great Place to Work award acknowledges — recognizing organizations that actively and successfully foster trust, pride and camaraderie amongst their employees. And a quick look at the award winners confirms the financial results do follow. 

"Businesses need to strategize to attract the right talent to build high-performing teams, while also giving their top performers the opportunity to challenge themselves in new markets, says Shea. "These experiences will help employees gain exposure on a global scale, and grow their agility and appreciation for working across borders and cultures. Today, a strong talent management strategy needs to go well beyond a strong head office."

For its part, Ernst & Young has strengthened its connection to firm counterparts around the world in recent years, earning the firm a Best Multinational Workplace Award last December, in addition to this latest accolade from the Great Place to Work Institute. Internally, employees use a host of tools to promote collaboration and knowledge sharing across borders and service lines.

To keep its talent strategy informed and evolving, Ernst & Young proactively measures its progress for maintaining a leading workplace culture, including its internal Global People Survey (GPS) of employees and an external employee value proposition study, benchmarking results against competing organizations.

The SEMAPA has signed a "promesse unilatérale de vente" (unilateral promise to sell - a provision in the French Civil Code) with Ivanhoé Cambridge enabling the continuation of studies on the project and giving Ivanhoé Cambridge the right to build and to embark upon the next predevelopment steps.

DUO would comprise 87,000 m² of office and commercial space, as well as a 150-room hotel. The DUO project, designed by architect Jean Nouvel, recently earned Ivanhoé Cambridge a win in a major City of Paris architectural competition. Hines, Ivanhoé Cambridge’s developer partner, will be the DUO project’s owner-agent.

William Secnik
Fund Manager,
Standard Life Investments (Real Estate) Inc. 

Standard Life Investments is pleased to announce the appointment of Mr. William Secnik as Fund Manager, Standard Life Investments (Real Estate) Inc. (SLIRE).

William has over 17 years of progressive experience focused on national real estate investments. His extensive experience will make him an excellent asset to the SLIRE team.

SLIRE is a subsidiary of Standard Life Investments Inc. in Canada and functions as the Canadian arm of the Standard Life Investments global real estate group, one of Europe’s largest real estate fund managers with over 500 properties under management.

Standard Life Investments Inc. has been providing investment management services in Canada since 1973 and manages approximately $33.4 billion of assets.

standardlifeinvestments.ca

Standard Life Investments Inc. is a subsidiary of Edinburgh-based Standard Life Investments Limited, a leading asset management company with approximately CDN$271.5 billion of assets under management as at December 31, 2012.

Allied Properties REIT (Allied REIT) announced that it has expanded its leadership team with the appointment of Tina Skinner as VP, National Building Standards and Procurement, Tim Low as National Director, Leasing, and David Pitfield as National Director, Operations, all reporting to Allied's Chief Operating Officer, Tom Burns. Laura Trujillo has been appointed as Regional Director, Central Canada, reporting to the National Director, Operations.

"The process of team-building never stops," said Michael Emory, Allied's President & CEO. "The internal promotions and external recruitment announced today are good examples of the ongoing process of team-building at Allied. We've also bolstered and realigned our IT division and deepened our development and leasing divisions though a combination of internal promotion and external recruitment, all with a view to managing and profiting more fully from our continued growth."

A Certified Property Manager, Tina Skinner has been with Allied since the property management function was internalized in 2005, starting as a Senior Property Manager. She was promoted to Regional Director, Central Canada, in 2007 and most recently to VP, National Building Standards and Procurement. In her new role, Tina will oversee the ongoing development and implementation of national building standards, the execution of capital projects and the national procurement program.

An experienced commercial real estate professional, Tim Low has occupied senior positions at leading real estate organizations in Canada, most recently Northam Realty Advisors Ltd., where he served as Director of Leasing and Asset Management. In his new role, Tim will oversee all aspects of Allied's leasing activity.

An experienced commercial real estate professional, David Pitfield spent 23 years at Cadillac Fairview in various operations and leasing roles, most recently as Senior Director of Leasing. In his new role, David will oversee all aspects of Allied's property management activity.

An Accredited Commercial Manager, Laura Trujillo has been with Allied since the property management function was internalized in 2005, starting as a Property Manager. She was promoted to Senior Property Manager in 2010 and most recently to Regional Director, Central Canada. In her new role, Laura will direct the property management function for almost four million square feet in Toronto and Kitchener.

Allied Properties REIT is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada's major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

For further information, please contact:

Michael R. Emory
President & Chief Executice Officer
416-977-0643

Yorkdale Shopping Centre, one of Canada's leading shopping destinations, announced a new 298,000 square foot retail expansion that will be complete in the Fall of 2016. Construction of Yorkdale's new retail expansion will begin in January 2014.

Yorkdale has a track-record for being the entry point for international retailers entering the Canadian market. The new expansion will be anchored by a 188,000 square foot Nordstrom store. It will also house a diverse range of other retailers that will be announced closer to the expansion's completions.

"This isn't a matter of 'if you build it, they will come'. International brands and enthusiastic shoppers are flocking to Yorkdale and we're growing to meet market demands," said Anthony Casalanguida, General Manager, Yorkdale Shopping Centre. "The new expansion makes it possible for us to continue to provide the very best experience for our shoppers by bringing in the most in-demand retailers from around the world."

"We continue to be impressed by how Oxford and AIMCo are taking steps to make an already great centre even better. We feel fortunate to be part of this expansion at such a strong location, and look forward to the chance to compete for our customers' business when we open at Yorkdale," said Karen McKibbin, President of Nordstrom Canada.

This expansion comes hot on the heels of a $220 million and 145,000 square foot development that opened to the public in November 2012 and featured five first-to-Canada brands. Yorkdale is adding six additional new-to-Canada brands in 2013 including AllSaints, David Yurman, John Varvatos, Mulberry, White House/Black Market and Zara Home.

Owned by Oxford Properties Group and AIMCo, Yorkdale Shopping Centre has undergone four major renovations since opening in 1964. Yorkdale Shopping Centre completed a $110 million dollar expansion in 2005. Since then, the shopping centre has continued to improve its facilities and today serves as the unrivalled gateway for international retailers entering the Canadian market.

Huntingdon's $8.00 Cash Offer - Open For Acceptance Until April 11, 2013

Sales for fiscal 2013 decreased 1.9% to $1,000,513,000 as compared with $1,019,397,000 for the year ended January 28, 2012. This decrease in sales is due primarily to a net reduction of 31 stores in fiscal 2013 and a same stores sales1 decrease of 2.0% partially offset by an additional week of sales.  The Company experienced lower store traffic in a challenging retail environment and was impacted by a disruption in the planned flow of inventory to stores as described below.  The Company's gross margin for fiscal 2013 decreased to 62.8% from 64.4% for fiscal 2012.  Net earnings for fiscal 2013 decreased 44.0% to $26,619,000 ($0.41 diluted earnings per share) as compared with $47,539,000 ($0.72 diluted earnings per share) for fiscal 2012.  For fiscal 2013, adjusted EBITDA1 decreased by $35,837,000 or 28.3% to $90,951,000 as compared with $126,788,000 for fiscal 2012.

Sales for the fourth quarter of fiscal 2013 increased 3.0% to $267,659,000 as compared with $259,954,000 for the fourth quarter of fiscal 2012.  This increase in sales is due to an additional week of sales partially offset by a reduction in the number of stores and a same store sales1 decrease of 1.5%.  The fourth quarter sales of fiscal 2013 were impacted by a difficult retail environment. The Company's gross margin for the fourth quarter of fiscal 2013 decreased to 59.2% from 60.4% for the fourth quarter of fiscal 2012.  The Company recorded a net loss for the fourth quarter of fiscal 2013 of $1,080,000 ($0.01 diluted loss per share) as compared with a profit of $4,674,000 ($0.07 diluted earnings per share) for the fourth quarter of fiscal 2012. This loss reflects operational losses of approximately $1,200,000, including start-up expenses, directly relating to the new Thyme Maternity boutiques initiative in the Babies"R"Us stores in the United States. Adjusted EBITDA1 decreased by $8,881,000 or 40.3% to $13,140,000 as compared with $22,021,000 for the fourth quarter of fiscal 2012.

In June 2012, the Company installed a new warehouse management system.  As previously announced on August 15, 2012, complications associated with the system resulted in a disruption in the flow of inventory to stores in the third quarter of fiscal 2013.  The disruption resulted in estimated loss of sales and a corresponding decline in gross margin, earnings before income taxes and adjusted EBITDA1 between $7,000,000 and $15,000,000 in the third quarter of fiscal 2013.  There was no significant impact in the fourth quarter of fiscal 2013.  The Company has addressed the issues related to the warehouse management system and continues to improve the flow of goods to the stores and optimize system performance.

Management is disappointed with the results for fiscal 2013 and has taken action in the merchandising and marketing efforts of each of its banners to improve sales and profitability.  Additionally, the Company has undertaken an initiative to improve efficiencies and reduce overhead across head office and field activities.

During the year, the Company opened 54 new stores and closed 85.  Accordingly, at February 2, 2013, there were 911 stores in operation, consisting of 361 Reitmans, 146 Smart Set, 73 RW & CO., 72 Thyme Maternity, 153 Penningtons, and 106 Addition Elle, as compared with a total of 942 stores as at January 28, 2012. In addition, there were 20 Thyme Maternity boutiques ("shop-in-shop") in select Babies"R"Us locations in Canada and 154 boutiques in Babies"R"Us stores in the United States.

At the Board of Directors meeting held on April 4, 2013, a quarterly cash dividend (constituting eligible dividends) of $0.20 per share on all outstanding Class A non-voting and Common shares of the Company was declared, payable April 25, 2013 to shareholders of record on April 12, 2013. With regard to dividend policy, the Board of Directors considered the Company's earnings per share, cash flow from operations, the level of planned capital expenditures and its cash and marketable securities. The Board of Directors decided to maintain its quarterly dividend on the basis of a targeted payout ratio of approximately 50% to 80% of sustainable earnings per share, 50% to 75% of cash flow from operations and the ability to augment the dividend from the approximately $170,000,000 of liquidity on the Company's balance sheet, if these targets are missed in a given year. The Board of Directors will review these guidelines again at the end of its current fiscal year.

Read the full report summary here

Video: Here are the top 10 senior stars who participated in the 2012 Étoile des aînés provincial finals talking about their experience following the 10 regional competitions.

Over the years, thousands of talented seniors have performed in front of judges and their community for the regional and provincial finals of Étoile des aînés. Organized by Chartwell Retirement Residences, all seniors 65 and over wishing to participate must complete the registration form before April 30 available on www.chartwell.com or in one of our many residences across Quebec.

"Étoile des aînés is unlike any other contest. It is very heart-warming, with wonderful surprises, not only in terms of the performances but also in the participants' sense of stage presence. It's an important event, and all seniors who love to sing or play an instrument should take part at least once," insisted Serge Laprade who will be the official Étoile des aînés touring judge and who has participated in previous editions of the contest.

The regional competitions for the fourth edition of Étoile des aînés will take place all across Quebec from May 16 to June 13. At each competition, a panel of three judges, including touring judge Serge Laprade, will pick a winner based on a variety of pre-selected criteria. The winners of the nine local competitions will automatically advance to the Quebec finals, which will take place next fall in Montreal.

The winner of Étoile des aînés 2013 will take home $5,000.  The first- and second-place winners will go on to represent Quebec in the Canadian Senior Star final, in Toronto in November 2013.

How to sign up

Seniors over 65 years old can participate by completing and submitting a registration form which can be found in Chartwell residences across Quebec or online at www.chartwell.com. The deadline for registration is April 30.

*Participants do not have to live in Chartwell residences.

View the complete list of Quebec residences where you can register. 

"Oxford has a rich development history in Alberta - it's where we started over 50 years ago," said Blake Hutcheson, President and CEO, Oxford Properties. "We look forward to further committing to the vibrant city of Calgary with the development of Eau Claire Tower, and to growing our existing relationship with the team at MEG as lead tenant. We are very excited about this project and we are as committed to it as we are the City of Calgary."

Rick Artus, Director, Office Leasing, Oxford Properties in Calgary, adds: "MEG has been a great partner to Oxford at Centennial Place and we're very pleased to have them grow their relationship with us so significantly. The East and West towers of Centennial Place were completed in 2010 and are fully leased, and given the amount of leasing interest we have received relating to Eau Claire Tower we are confident this development will be another success."

Designed by renowned architectural firm B+H Architects, Eau Claire Tower will exude a modern aesthetic and showcase the latest in building systems and construction technology. The tower will feature an efficient floor plate and large windows with exceptional views of the Bow River valley and the Rocky Mountains to the West. The building is targeted to achieve a minimum LEED Gold certification. The development will also feature a fitness and gym facility, separate bicycle parking complete with shower and locker facilities for cyclists commuting to work and will be +15 connected to Centennial Place.

"Oxford has developed a reputation internationally for quality, execution and service, and Eau Claire Tower will be no exception," said David Routledge, Vice President, Real Estate Management, Oxford Properties in Calgary.

Regional Market Summaries

Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.  

Awards were presented in the following categories:

Four individuals also were honoured at the REX Awards:

Details of Plazacorp's Increased Offer

Advisors

1. Immediate Accretion: The acquisition is estimated to immediately deliver high single digit percentage accretion to Plazacorp's 2013E Adjusted Funds From Operations (AFFO) per share.  Such accretion assumes completion of the acquisition, the secured term credit facility financing, and anticipated synergies as a result of Plazacorp's internalized management team.  Plazacorp's debt-to-gross-book-value ratio is estimated to be between approximately 57% to 58% post transaction (including KEYreit's convertible debentures, but excluding Plazacorp's well-in-the-money convertible debentures), which is close to its target debt-to-gross book value ratio of 55%.  Modest de-levering may occur after the transaction as a result of a small number of property sales. Given the higher coupon rates on many of KEYreit's mortgages and its convertible debentures, it is expected that many favourable refinancing opportunities will exist over time, which are expected to augment AFFO per share accretion.
2. Compatible Properties: KEYreit's properties are compatible with Plazacorp's portfolio.  Plazacorp is acquiring 227 properties, comprising approximately 1.2 million square feet of gross leasable area (GLA) in nine provinces.  Many of KEYreit's leases are "quadruple net" and the portfolio has an attractive weighted average lease term of approximately 8 years, which is approximately equal to that of Plazacorp. Post closing, Plazacorp will own approximately 345 retail properties totaling approximately 6.4 million square feet.  Shoppers Drug Mart will remain as Plazacorp's largest tenant on a pro forma basis, representing approximately 26% of Plazacorp's combined minimum rent.  Both KEYreit's and Plazacorp's portfolios are approximately 96% to 97% leased.
3. Enhanced Geographic Diversification: The integration of the Properties will enhance the pro forma geographic diversification of Plazacorp.  Plazacorp's properties in Atlantic Canada will change from approximately 71% to 60% of GLA and its Ontario properties will change from approximately 5% to 12% of GLA.
4. Improved Profile for KEYreit Unitholders: KEYreit unitholders who elect to receive Plazacorp shares are expected to benefit from: a pro forma market capitalization that is approximately 3.3x that of KEYreit, a pro forma asset base that is approximately 3x greater than that of KEYreit, greater tenant and geographic diversification, a sustainable AFFO payout ratio, a lower debt level, internal management, and access to lower cost debt and equity to fuel growth. KEYreit unitholders who receive Plazacorp shares will be investing in a public company that has raised its dividends at least once every year for the past 10 years with an average annual growth rate of over 10%. Since the time of KEYreit's IPO in 2005, Plazacorp has provided approximately 123% appreciation in its share price and a total return of approximately 223%.  Plazacorp has received a positive ruling from Canada Revenue Agency in respect of converting to a real estate investment truststructure on a tax-deferred basis and intends to complete this conversion in 2013, subject to shareholder approval.
5. Highly Aligned Management Team: Plazacorp's management team and board of directors will collectively own approximately 34% of Plazacorp (based on estimated pro forma basic shares outstanding) upon completion of the transaction, making them highly aligned with the long-term interests of both Plazacorp's shareholders and KEYreit's unitholders.  In addition, Plazacorp has a fully-internalized management platform, which is attractive to its shareholders given there are no additional fees paid to Plazacorp's management team.

• Net income increases by 28%, at $5.6 million for the quarter ($0.29 per share)
• EBITDA increases 19% for the quarter, fueled by the sales of three master franchise rights and by effective cost containment measures
• Cash and cash equivalent as at February 28, 2013 reach $35.4 million
• The number of locations increases to 2,214 locations, for a net addition of 15 outlets.
• System wide sales decline by 1.1% compared to the same period last year, mainly because of the additional day of business in the first quarter of 2012.
• Same store sales decrease by 3.96% for the period, affected by the reduction of one day of business in 2013, by the difficult retail environment in Canada and by adverse weather trends in December 2012 and February of 2013.

• Acquired five light industrial properties aggregating 646,000 square feet of gross leasable area ("GLA") for total costs of approximately $59.5 million
• Issued 74.9 million units in two equity offerings for total net proceeds of $30.7 million
• Arranged a $32 million revolving credit facility
• Fourth quarter 2012 results show significant growth over third quarter of year

• Trust unit consolidation completed January 28, 2013
• Increased its revolving credit facility to $55 million on February 20, 2013
• Completed offering of 11.1 million units on February 26, 2013 for net proceeds of $70.2 million
• Acquired 15 light industrial properties totaling 2.0 million sq. ft. of GLA for $171.4 million
• Total portfolio now 25 properties aggregating 2.7 million sq. ft. of GLA
• Announced monthly cash distributions of $0.0408 per unit (annualized $0.4896 per unit) resulting in an adjusted funds from operations ("AFFO") payout ratio of between 90% and 95%
• Implemented new distribution reinvestment plan (the "DRIP") at a 5% bonus to market price
• $300 million in acquisitions and property expansions targeted for 2013

Funding position

2012 investment return highlights by asset class

Deloitte Tower: Rising to the World Standard

The property, which is occupied by multiple tenants, is located at 75 Kistlerhofstraße in MunichObersendling, south-west of the city center.

Featuring 32,700 m2 (352,000 ft2 ), it has six floors and 510 parking spaces. Ivanhoé Cambridge was advised by Linklaters and BNP Paribas Real Estate, JP Morgan Asset Management was advised by GSK. 

The net proceeds of the over-allotment option will be used by the REIT to indirectly redeem 2,850,000 class B limited partnership units of Milestone Multifamily Investors L.P.  held by MileSouth Apartment Portfolio LP, an affiliated entity of Invesco Ltd. Following closing of the over-allotment option, MileSouth will hold 14,000,000 units of the REIT and 7,350,590 Class B Units (each of which are redeemable for REIT units) while MST Investors, LLC, an affiliate of The Milestone Group, LLC, will hold 5,513,675 Class B Units, representing an approximate 42.9% and 11.1% retained interest for MileSouth and MST Investors, respectively. TMG Partners, L.P., an affiliate of The Milestone Group, LLC, is the external asset manager of the REIT.

The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the units in the United States or to, or for the account or benefit of, U.S. Persons.

For further information:

Robert P. Landin, CEO
Milestone Apartments Real Estate Investment Trust
Tel: 214.561.1206
Fax: 214.561.1305

Jean Airoldi, Valérie Taillefer, Chuck Hughes, Danny Smiles and  Leigh Oshirak at Pottery Barn.

Pottery Barn, Pottery Barn Kids and Williams Sonoma officially open their doors to the public at the Quartier DIX30 on Thursday March 28th.

Completion of this conversion will occur this year and will be subject to shareholder approval. Further details will be provided to shareholders in due course.

Michael Zakuta, Plazacorp's President and CEO said, "We are excited about this conversion to a REIT. A ruling request was initially submitted to CRA two years ago and we have finally been successful in obtaining a ruling that will permit us to meet our goals. The REIT structure is certainly the more conventional and tax efficient way for investors to hold an interest in real estate today and, for that reason, we believe that this conversion will be beneficial for our shareholders."

Plazacorp acquires, develops and redevelops unenclosed and enclosed retail real estate throughout Atlantic Canada, Quebec and Ontario, which are predominantly occupied by national tenants (approximately 90% of the total). The Company's portfolio includes interests in 118 properties totaling 5.2 million square feet and additional lands held for development. These include properties directly held by Plazacorp, its subsidiaries and through joint ventures.

The property, which is occupied by multiple tenants, is located at 75 Kistlerhofstraße in MunichObersendling, south-west of the city center. Featuring 32,700 m2 (352,000 ft2 ), it has six floors and 510 parking spaces. Ivanhoé Cambridge was advised by Linklaters and BNP Paribas Real Estate, JP Morgan Asset Management was advised by GSK. 

At the latest Quebec Appartment Investment conference in Montreal , The Square Foot gathered valuable information on market trends through interviews with Alexandre Sieber, Senior Vice President & Senior Managing Director, CBRE Limitée, the events chair, financing expert Robert St-Pierre Assistant Vice-President for First National and the latest market statistics with Kevin Hughes, Economist at the CMHC.

• Funds from operations for the year ended December 31, 2012 was $83.4 million, up $3.9 million from the $79.5 million reported for the prior year.  On a per unit diluted basis, funds from operations for the 2012 year was $1.40, as compared to $1.35 reported for the prior year.
• Funds from operations is not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A reconciliation of net income to funds from operations is included.

• Net operating income for the year ended December 31, 2012 was $142.4 million, up $8.6 million from the $133.8 million recorded in 2011.
• Net operating income is an additional GAAP measure, but not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A calculation of net operating income is included.

• Net income for the year ended December 31, 2012 was $228.4 million, an increase of $70.1 million from the $ 158.3 million reported in 2011. The increase was significantly impacted by higher fair value gains on real estate properties recorded in 2012 and strong earnings performance from the Trust's property portfolio mainly resulting from the impact of acquisitions made by the Trust in late 2011.

• The portfolio occupancy remains stable and was 96% at December 31, 2012, 95% at September 30, 2012, and at December 31, 2011.

• The Trust's portfolio remains well leased. The portfolio occupancy remains stable and was 96% at December 31, 2012, 95% at September 30, 2012, and at December 31, 2011.

• Funds from operations (FFO) for the quarter ended December 31, 2012 was $0.31 per unit (payout ratio 72.4%) compared to $0.27 per unit (payout ratio 83.9%) for the same period in 2011. Excluding the impact of non-recurring items (see Non-recurring items below), FFO for the quarter ended December 31, 2012 would have been $0.27 (payout ratio 82.7%).

• FFO for the year ended December 31, 2012 was $1.09 per unit (payout ratio 82.7%) compared to $1.09 per unit (payout ratio 82.3%) for the same period in 2011. Excluding the impact of non-recurring items, FFO for the year ended December 31, 2012 would have been $1.09 (payout ratio 83.1%).

• Adjusted funds from operations (AFFO) for the quarter ended December 31, 2012 was $0.27 per unit (payout ratio 84.6%) compared to $0.23 per unit (payout ratio 100.3%) for the same period in 2011. Excluding the impact of non-recurring items, AFFO for the quarter ended December 31, 2012 would have been $0.23 (payout ratio 99.1%).

• AFFO for the year ended December 31, 2012 was $0.92 per unit (payout ratio 98.0%) compared to $0.88 per unit (payout ratio 102.1%) for the same period in 2011. Excluding the impact of non-recurring items, AFFO for the year ended December 31, 2012 would have been $0.91 (payout ratio 99.5%).

• Crombie completed the acquisition of two properties and also acquired additional development on two properties in the quarter ended December 31, 2012 totaling $53.1 million, excluding closing and transaction costs; 32 properties totaling $394.0 million have been acquired year to date which increases 2012 year end gross book value to $2.4 billion.
   
• Property revenue for the quarter ended December 31, 2012 of $68.5 million; an increase of $9.8 million or 16.7% over the $58.7 million for the quarter ended December 31, 2011 and for the year ended December 31, 2012 was $256.0 million; an increase of $29.9 million or 13.2% over the year ended December 31, 2011.
   
• Same-asset cash net operating income (NOI) for the quarter ended December 31, 2012 of $32.8 million; an increase of $0.8 million or 2.4%, compared to $32.0 million for the quarter ended December 31, 2011 and for the year ended December 31, 2012, same-asset cash NOI of $132.0 million; an increase of $3.2 million or 2.5% over the same period in 2011.
   
• Occupancy on a committed basis was 93.2% at December 31, 2012 compared with 93.5% at September 30, 2012, and 94.7% at December 31, 2011.  Actual occupied space at December 31, 2012 was 92.6% compared with 92.2% at September 30, 2012, and 93.3% at December 31, 2011.
   
• Crombie completed leasing activity on 1,097,000 square feet of GLA during the year ended December 31, 2012, which represents approximately 106.4% of its 2012 expiring lease square footage.
   
• Crombie's 2012 leasing activity included lease renewals during the year on 465,000 square feet at an average rate of $13.49 per square foot; an increase of 5.3% over the expiring lease rate. Crombie's new leasing activity during the year was completed at an average rate of $11.88 per square foot.

• In September 2012, Crombie assigned a portfolio of mortgages on 23 investment properties (the "Refinanced Mortgages") to a new lender. Concurrent with the assignment of the mortgages to the new lender, Crombie renegotiated the terms of the debt, refinancing them with a 30 month floating rate term credit facility. Included in Finance costs - operations are expenses of approximately $3.0 million associated with this transaction (approximately $1.5 million in cash costs related to legal fees, term loan set up fees and a repayment fee paid to the mortgage lender are included in same-asset finance costs and approximately $1.5 million representing the unamortized balance of deferred financing and other costs previously paid in respect of the 2008 mortgage financing are included in Amortization of effective swaps and deferred financing charges). The mortgages, with a weighted average interest rate of 5.91% and terms to maturity from 2013 to 2017, totaled $92.4 million, while the floating rate term credit facility of $92.7 million had an interest rate of 3.08% at December 31, 2012. The floating rate is based on bankers' acceptance rates plus a spread or prime rates plus a spread.

• In December 2012, Crombie reached agreement with a national retailer on early termination of two leases resulting in lease termination income of $3.4 million.  The two leases will terminate April 30, 2013, with the retailer paying rent until that date.  Crombie's leasing and asset management staff are currently working on options for the space including replacement tenants and/or redevelopment opportunities for the properties.

• Property NOI is property revenue less property expenses.

• Property Cash NOI is Property NOI adjusted to remove non-cash straight-line rent and tenant incentive amortization.

• Debt is defined as bank loans plus commercial property debt and convertible debentures.

• Gross book value means, at any time, the book value of the assets of Crombie and its consolidated subsidiaries plus deferred financing charges, accumulated depreciation and amortization in respect of Crombie's properties (and related intangible assets) and cost of any below-market component of properties less (i) the amount of any receivable reflecting interest rate subsidies on any debt assumed by Crombie and (ii) the amount of deferred income tax liability arising out of the fair value adjustment in respect of the indirect acquisitions of certain properties.

• EBITDA is calculated as property revenue, adjusted to remove the impact of amortization of tenant incentives, less property expenses and general and administrative expenses.

• FFO is calculated as Increase (decrease) in net assets attributable to Unitholders (computed in accordance with IFRS), excluding gains (or losses) from sales of depreciable real estate and extraordinary items, plus depreciation and amortization expense, deferred income taxes, finance costs - distributions to Unitholders, finance costs - change in fair value of financial instruments and after adjustments for equity accounted entities and non-controlling interests.

• AFFO is defined as FFO adjusted for non-cash amounts affecting revenue, amortization of effective swap agreements, less maintenance capital expenditures, maintenance tenant incentives and deferred leasing costs, and the settlement of effective interest rate swap agreements.

• TDC's unique Occupant Engagement Program (OEP) produced an award-winning Energy Campaign that reduced total energy use by 2.4 million KWh
• TDC has achieved a 14% reduction in energy use, a 12% reduction in greenhouse gas emissions, a 23% reduction in water usage and has diverted 77% of waste from landfill
• Protecting the architectural design of the iconic Mies van der Rohe buildings while also protecting the environment has been a task worth undertaking. Successful TDC retrofit projects include:
  • a switch to Deep Lake Cooling that resulted in a 15% reduction in water consumption
  • a move to recycle the original single-pane windows to make way for custom units expected to save 5M ekWh in energy and 1,200 tCO2e of GHG emissions per year
• TDC's switch to daytime cleaning saved on energy from after-hours lighting and heating requirements
• TDC's commitment to sustainability extends beyond the property's physical and environmental footprint with support for alternative transportation that includes a secure bicycle parking lot and a partnership with Zipcar