Dundee REIT Reports Strong Q4 2011 Results, 20% Increase in FFO Per Unit


DUNDEE REIT (TSX: D.UN) today posted strong financial results for the three and twelve months ended December 31, 2011, evidencing the success of the Trusts acquisition strategy and the strength of its operations.
HIGHLIGHTS

--  7% increase in per unit funds from operations ("FFO") over Q3 2011 and
    20% over Q4 2010
--  7% increase in per unit adjusted funds from operations ("AFFO") over Q3
    2011 and 13% over Q4 2010
--  49% debt-to-IFRS book value; 2.6 times interest coverage
--  Weighted average interest rate down to 4.96% at year-end (2010 - 5.43%)
--  Average in-place rents 10% below estimated market rents
--  Occupancy stable at 95.6%
--  Improved liquidity with $2.3 billion market cap
--  $1.4 billion corporate acquisition set to close, making Dundee REIT
    Canada's fourth largest real estate investment trust by market cap


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SELECTED FINANCIAL INFORMATION                                             
                                                                Years ended,
(unaudited)                          Three months ended         December 31,
             ------------------------------------------ --------------------
($000's                                                                    
 except unit                                                               
 and per unit  December 31,  September 30, December 31,                    
 amounts)              2011           2011         2010      2011       2010
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Investment                                                                 
 properties                                                                
 revenue (1)   $    136,320   $    118,466  $    78,726 $ 441,347 $  268,218
Net operating                                                              
 income                                                                    
 ("NOI") (2)         78,116         70,639       46,020   261,137    160,965
Funds from                                                                 
 operations                                                                
 ("FFO") (3)         48,210         42,832       28,147   159,397     94,059
Adjusted                                                                   
 funds from                                                                
 operations                                                                
 ("AFFO") (4)        41,047         36,580       25,245   137,675     83,572
Fair value of                                                              
 investment                                                                
 properties                                                                
 portfolio        4,426,383      4,201,767    2,538,741                    
Debt (1)          2,254,756      2,273,376    1,296,851                    

Per unit data                                                              
 (basic)                                                                   
FFO                    0.73           0.68         0.61      2.69       2.43
AFFO                   0.62           0.58         0.55      2.33       2.16
Distributions          0.55           0.55         0.55      2.20       2.20

Units (period                                                              
 end)                                                                      
REIT Units,                                                                
 Series A        66,193,060     61,574,976   45,896,203                    
REIT Units,                                                                
 Series B            16,316         16,316       16,316                    
LP Class B                                                                 
 Units,                                                                    
 Series 1         3,506,107      3,499,953    3,481,733                    
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TOTAL            69,715,483   $ 65,091,245   49,394,252                    
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Occupied and                                                               
 committed                                                                 
 space                95.6%          95.8%        96.1%                    
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"This was a monumental year for Dundee REIT," said Michael Cooper, CEO. "We bought $1.6 billion of great assets that are accretive to our business and make Dundee REIT a more valuable investment vehicle. The fourth quarter, while relatively quiet compared with the balance of the year, demonstrated Dundee REIT's ability to generate strong and growing cash flow. Looking ahead, we have a significant corporate acquisition scheduled to close shortly that will serve to further fortify the stability of our income and provide us with many opportunities to create efficiencies and capitalize on imbedded growth."


Senior management will be hosting a conference call to discuss the results tomorrow, Thursday, February 23, 2012 at 9:00 a.m. (ET). To access the call, please dial: (416) 340-2216 or toll free at 1-866-226-1792. A taped replay of the call will be available for 30 days by dialling (905) 694-9451 OR 1-800-408-3053 and using passcode 6370278. To access the conference call via webcast, please go to Dundee REIT's website at ww.dundeereit.com and click on the link for News & Events, then click on Calendar of Events. The webcast will be archived for 30 days.
 

on February 23, 2012