The Becker Milk Company Limited: Nine Month Financial Results and Regular Dividends

TORONTO, ONTARIO--(Marketwire - March 13, 2012) - The Becker Milk Company Limited (the "Company") (TSX:BEK.B) is pleased to report the results for the nine months ending January 31, 2012.

These results are, and all future results will be, reported under International Financial Reporting Standards (IFRS) and historical results have been restated to IFRS for comparison purposes. Reconciliations between IFRS and Canadian Generally Accepted Accounting Principles have been included in the Company's unaudited interim financial statements for the period ended January 31, 2012.

HIGHLIGHTS

• Total revenues for the nine months ended January 31, 2012 were $3,128,671 compared to $3,078,234 for the same period in 2011;
• Total net operating income for the nine months was $2,642,749 compared to $2,587,752 in 2011;
• Adjusted funds from operations for the nine months were $1.46 per share, compared to $1.43 per share in 2011.

FINANCIAL HIGHLIGHTS

		Nine months ended
		January 31
		2012			2011
Property revenue	$	3,081,839		$	3,039,080
Finance income		46,832			39,154
Total revenues	$	3,128,671		$	3,078,234
Property revenue	$	3,081,839		$	3,039,080
Property operating expenses		(439,090	)		(451,328	)
Net operating income	$	2,642,749		$	2,587,752
Adjusted funds from operations	$	1,278,653		$	1,242,935
Net income attributable to common and special shareholders	$	2,214,181		$	2,359,340
Average common and special shares outstanding		1,808,360			1,808,360
Income per share	$	1.22		$	1.30

Significant components of the $145,159 change in net income between the nine months ended January 31, 2012 compared to the nine months ended January 31, 2011 are:

Changes in net income - nine months ended January 31, 2012 compared to nine months ended January 31, 2011
Change in fair value adjustment on investment properties	($536,978	)
Change in deferred taxes on investment properties	379,123
Net operating income	54,996
Increase in administration expenses	(108,947	)
Reduction in current income taxes	58,970
Other items	7,677
Change in net income	($145,159	)

NET OPERATING INCOME

Net operating income for the nine months ended January 31, 2012, increased by $54,997 to $2,642,749 compared to $2,587,752 in 2011. The increase was predominantly the result of the successful completion of a number of lease renewal negotiations and reduced property operating expenses.

ADJUSTED FUNDS FROM OPERATIONS
			Nine months ended
			January 31
Reconciliation of reported income to AFFO			2012			2011
Net income attributable to common and special shareholders		$	2,214,181		$	2,359,340
Items not affecting cash:
	Fair value gains on investment properties		(706,641	)		(1,243,619	)
	Deferred income taxes		(125,527	)		253,596
	Straight line rent		(59,394	)		(55,611	)
	Sustaining capital expenditures		(43,966	)		(70,770	)
Adjusted funds from operations		$	1,278,653		$	1,242,935
Adjusted funds from operations per share		$	0.71		$	0.69

For the nine months ended January 31, 2012 the Company recorded Adjusted funds from operations of $1,278,653 ($0.71 per share) compared to $1,242,935 ($0.69 per share) in 2011. This increase is largely the result of higher operating income combined with reduced current income tax rates and lower sustaining capital expenditures, offset by higher administration expenses related to the implementation of IFRS reporting standards.

DIVIDEND

The Directors of the Company have declared a regular dividend on Class B Special and Common Shares of 35 cents per share. The regular dividend of 35 cents will be paid to those shareholders of record as of March 27, 2012 and payable on April 10, 2012.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

The Company's interim unaudited financial statements for the nine months ended January 31, 2012, along with the Management's Discussion and Analysis will be filed with SEDAR at www.sedar.com.

Readers are cautioned that although the terms "Net Operating Income", and "Funds From Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles. Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.

For the Board of Directors,

G.W.J. Pottow, President