Canadian Real Estate Investment Trust Announces First Quarter 2008 Results: Financial News

Canadian Real Estate Investment Trust Announces First Quarter 2008 Results
Friday May 9, 10:29 am ET

TORONTO, ONTARIO--(MARKET WIRE)--May 9, 2008 -- Canadian Real Estate Investment Trust ("CREIT") (Toronto:REF-UN.TO - News) today announced results for the first quarter ended March 31, 2008.

For the three months ended March 31, 2008, CREIT reported Funds from Operations (FFO) of $0.550 per unit. This is a $0.037 per unit increase over the three months ended March 31, 2007, representing a 7% improvement.

Stephen Johnson, President and Chief Executive Officer of CREIT, said, "We are satisfied with our performance in the first quarter of 2008. We recorded positive improvements in all three property sectors on a same-asset basis and we continued to retain significant cash for reinvestment in the business. Although our operations have performed well, we remain cautious given the uncertainty in the credit markets and the potential for an economic slowdown in Canada."

Mr. Johnson added, "2007 was a great year for CREIT, and our financial results for the first quarter of 2008 have provided a solid start for this year. Consistent with our steady performance, we will again be increasing the cash distribution we pay to our Unitholders each month."

Effective June 2008, CREIT will increase its monthly distribution (payable in July 2008) to 11.33 cents per Unit ($1.36 annualized) from 11.08 cents per Unit ($1.33 annualized).

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

 

For the three months ended March 31, 2008 and 2007, FFO and Net Income were
as follows:

                                            THREE MONTHS ENDED MARCH 31
                                       ---------------------------------
                                                                 CHANGE
                                                         ---------------
($ millions, except per Unit amounts)      2008     2007       ($)   (%)
------------------------------------------------------------------------
Total FFO                                  33.4     29.7      3.7    12

Per Unit                                $ 0.550  $ 0.513  $ 0.037     7

Per Unit annualized                     $  2.20  $  2.05  $  0.15     7
------------------------------------------------------------------------
------------------------------------------------------------------------



                                            THREE MONTHS ENDED MARCH 31
                                       ---------------------------------
                                                                 CHANGE
                                                         ---------------
($ millions, except per Unit amounts)      2008     2007       ($)   (%)
------------------------------------------------------------------------
Net income                                 18.2     27.8     (9.6)  (35)

Per Unit                                 $ 0.30   $ 0.48  ($ 0.18)  (38)
------------------------------------------------------------------------
------------------------------------------------------------------------

FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by Canadian Generally Accepted Accounting Principles. Readers are directed to the MD&A for a description of the measure and its reconciliation to Net Income.

The Consolidated Financial Statements of the Trust for the three months ended March 31, 2008 and the MD&A are posted on CREIT's website at www.creit.ca. Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.

CREIT is a real estate investment trust focussed on accumulating a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing cash distribution. CREIT owns a portfolio of 150 retail, office and industrial properties.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.