CAPREIT Announces Continuing Strong Growth in Second Quarter 2013

TORONTO, ONTARIO--(Marketwired - Aug. 7, 2013) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today strong operating and financial results for the three and six months ended June 30, 2013.

		Three Months Ended				Six Months Ended
		June 30				June 30
		2013		2012		2013		2012
Operating Revenues (000s)	$	117,686	$	95,932	$	233,010	$	191,194
Net Operating Income ("NOI") (000s) (1)	$	71,475	$	56,714	$	134,966	$	109,452
NOI Margin (1)		60.7%		59.1%		57.9%		57.2%
Normalized Funds From Operations ("NFFO") (000s) (1)	$	42,582	$	31,329	$	78,768	$	59,131
NFFO Per Unit - Basic (1)	$	0.425	$	0.358	$	0.787	$	0.692
Weighted Average Number of Units - Basic (000s)		100,230		87,509		100,086		85,452
NFFO Payout Ratio (1)		68.0%		78.8%		73.2%		81.0%

(1)	NOI, NFFO and NFFO per Unit are measures used by Management in evaluating operating performance. Please refer to the cautionary statements under the heading "Non-IFRS Financial Measures" and the reconciliations provided in this press release.

• Strong occupancies and increased average monthly rents, combined with contributions from acquisitions, drive 22.7% and 21.9% increase in revenues in second quarter and first six months of 2013, respectively
  
  
• Average monthly rents for residential properties up 2.8% compared to last year
  
  
• Portfolio occupancy remains strong at 98.4%
  
  
• NFFO up 35.9% in second quarter and 33.2% in first six months of 2013
  
  
• Strong accretive growth as NFFO per Unit up 18.7% in second quarter and 13.7% in first six months of 2013 despite the 15% and 17% increase in the weighted average number of Units outstanding.
  
  
• Same property NOI up 7.1% in second quarter and 5.5% through first six months of 2013
  
  
• Closed and committed mortgage refinancings for $420.1 million, including $243.2 million for renewals of existing mortgages and $176.9 million for additional top up financing with a weighted average term to maturity of 9.7 years, and at a weighted average rate of 2.92%.

"Our strong and accretive growth continued in the second quarter of 2013 as our record pace of acquisitions, combined with our highly successful property management programs, are driving significant increases in revenues and cash flows," commented Thomas Schwartz, President and CEO. "Looking ahead, we are confident we will achieve our growth targets once again this year, generating another year of record operating and financial performance."

"We were also very pleased to have increased our cash distributions in June to an annualized rate of $1.15 per Unit, our tenth increase since our IPO and a reflection of our positive future outlook and our commitment to enhancing value for our investors," Mr. Schwartz added.

PORTFOLIO OPERATING RESULTS
		Three Months Ended				Six Months Ended
		June 30				June 30
		2013		2012		2013		2012
Overall Portfolio Occupancy (1)						98.4%		98.4%
Overall Portfolio Average Monthly Rents (1),(2)					$	989	$	960
Operating Revenues (000s)	$	117,686	$	95,932	$	233,010	$	191,194
Net Rental Revenue Run-Rate (000s) (1),(3),(4)					$	448,881	$	411,124
Operating Expenses (000s)	$	46,211	$	39,218	$	98,044	$	81,742
NOI (000s) (4)	$	71,475	$	56,714	$	134,966	$	109,452
NOI Margin (4)		60.7%		59.1%		57.9%		57.2%
Number of Suites and Sites Acquired		510		5,594		773		5,594
Number of Suites Disposed		-		199		-		335

(1)	As at June 30.
(2)	Average monthly rents are defined as actual rents, net of vacancies, divided by the total number of suites and sites in the portfolio and do not include revenues from parking, laundry or other sources.
(3)	For a description of net rental revenue run-rate, see the Results of Operations section in the MD&A for the three and six months ended June 30, 2013.
(4)	Net rental revenue run-rate and NOI are measures used by Management in evaluating operating performance. Please refer to the cautionary statements under the heading "Non-IFRS Financial Measures" and the reconciliations provided in this press release.

Operating Revenues

For the three and six months ended June 30, 2013, total operating revenues increased by 22.7% and 21.9%, respectively, compared to the same periods last year primarily due to the contribution from acquisitions, higher average monthly rents, and continuing strong occupancies. For the three and six months ended June 30, 2013, ancillary revenues, including parking, laundry and antenna income, rose by 28.1% and 25.8%, respectively, compared to the same periods last year, due to contributions from acquisitions and Management's continued focus on maximizing the revenue potential of its property portfolio.

CAPREIT's annualized net rental revenue run-rate as at June 30, 2013 increased to $448.9 million, up 9.2% from $411.1 million as at June 30, 2012 primarily due to acquisitions completed within the past twelve months and strong rental growth. Net rental revenue for the twelve months ended June 30, 2013 was $429.6 million (2012 - $356.0 million).

Portfolio Average Monthly Rents ("AMR")
		Total Portfolio					Properties Owned Prior to June 30, 2012
As at June 30,		2013			2012			2013			2012 (1)
		AMR	Occ. %		AMR	Occ. %		AMR	Occ. %		AMR	Occ. %
Average Residential Suites	$	1,044	98.3	$	1,016	98.3	$	1,043	98.2	$	1,015	98.3
Average MHC Land Lease Sites	$	446	99.4	$	432	99.2	$	445	99.4	$	432	99.2
Overall Portfolio Average	$	989	98.4	$	960	98.4	$	985	98.3	$	959	98.4

(1)	Prior period's comparable AMR and occupancy have been restated for properties disposed of between July 1, 2012 and December 31, 2012.

Average monthly rents for total portfolio residential properties increased by 2.8% to $1,044 as at June 30, 2013 compared to the same period last year while occupancy remained strong at 98.3% due to ongoing successful sales and marketing strategies and continued strength in the residential rental sector in the majority of CAPREIT's regional markets. Average monthly rents for properties owned prior to June 30, 2012 increased as at June 30, 2013 to $985 from $959 as at June 30, 2012, an increase of 2.7% from the same period last year. As at June 30, 2013, occupancy remained strong at 98.3%. For the MHC land lease portfolio, average monthly rents increased to $446 as at June 30, 2013, compared to $432 as at June 30, 2012, with nearly full occupancy.

Suite Turnovers and Lease Renewals
For the Three Months Ended June 30,	2013			2012
	Change in AMR		% Turnovers	Change in AMR		% Turnovers
	$	%	& Renewals (1)	$	%	& Renewals (1)
Suite Turnovers	25.8	2.4	7.4	22.7	2.2	7.8
Lease Renewals	28.7	2.7	19.4	34.8	3.3	18.8
Weighted Average of Turnovers and Renewals	27.9	2.6		31.2	3.0
For the Six Months Ended June 30,	2013			2012
	Change in AMR		% Turnovers	Change in AMR		% Turnovers
	$	%	& Renewals (1)	$	%	& Renewals (1)
Suite Turnovers	19.3	1.8	12.7	21.6	2.1	13.1
Lease Renewals	29.3	2.7	34.7	35.5	3.4	34.7
Weighted Average of Turnovers and Renewals	26.6	2.5		31.7	3.0

(1)	Percentage of suites turned over or renewed during the period based on the total number of residential suites (excluding co-ownerships) held at the end of the period.

The lower rate of growth in average monthly rents on lease renewals during 2013 compared to the prior year is primarily due to the lower guideline increases for 2013 (Ontario - 2.5%, British Columbia - 3.8%), compared to the higher permitted guideline increases in 2012 (Ontario - 3.1%, British Columbia - 4.3%). Management continues to pursue Above Guideline Increases ("AGI") applications where it believes increases are supported by market conditions above the annual guideline to raise average monthly rents on lease renewals. For 2014, the permitted guideline increase in Ontario has been set at 0.8%.

Operating Expenses

Overall operating expenses as a percentage of operating revenues decreased in the three and six months ended June 30, 2013, compared to the same period last year as a result of lower realty taxes, utilities, R&M costs, and wage costs as a percentage of operating revenues.

Net Operating Income

In the second quarter of 2013, NOI improved by $14.8 million or 26.0%, and the NOI margin increased to 60.7% from 59.1% for the same period last year. For the six months ended June 30, 2013, NOI increased by $25.5 million or 23.3%, and the NOI margin improved to 57.9% from 57.2% for the same period last year. The significant improvements in NOI were primarily the result of acquisitions completed in the last 12 month period, and the combination of higher operating revenues.

For the three and six months ended June 30, 2013, operating revenues for stabilized suites and sites increased 3.1% and 2.9%, and operating expenses decreased 2.7% and 0.4%, respectively, compared to the same periods last year. For the three and six months ended June 30, 2013, stabilized NOI increased by 7.1% and 5.5%, respectively, compared to the same periods last year.

NON-IFRS FINANCIAL MEASURES
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
NFFO (000s)	$	42,582	$	31,329	$	78,768	$	59,131
NFFO Per Unit - Basic	$	0.425	$	0.358	$	0.787	$	0.692
Cash Distributions Per Unit	$	0.283	$	0.270	$	0.563	$	0.540
NFFO Payout Ratio		68.0%		78.8%		73.2%		81.0%
NFFO Effective Payout Ratio		52.4%		60.5%		56.1%		61.7%

LIQUIDITY AND LEVERAGE
As at June 30,	2013	2012
Total Debt to Gross Book Value	48.42%	50.83%
Total Debt to Gross Historical Cost (1)	58.17%	59.25%
Total Debt to Total Capitalization	51.84%	50.38%
Debt Service Coverage Ratio (times) (2)	1.56	1.44
Interest Coverage Ratio (times) (2)	2.61	2.34
Weighted Average Mortgage Interest Rate (3)	3.81%	4.20%
Weighted Average Mortgage Term to Maturity (years)	6.1	5.0

(1)	Based on historical cost of investment properties.
(2)	Based on the trailing four quarters ended June 30, 2013.
(3)	Weighted average mortgage interest rate includes deferred financing costs and fair value adjustments on an effective interest basis. Including the amortization of the realized component of the loss on settlement of $32.5 million included in Accumulated Other Comprehensive Loss ("AOCL"), the effective portfolio weighted average interest rate at June 30, 2013 would be 4% (June 30, 2012 - 4.34%).

Financial Strength

Management believes CAPREIT's strong balance sheet and liquidity position will enable it to continue to take advantage of acquisition and property capital investment opportunities over the long term.

CAPREIT is achieving its financing goals as demonstrated by the following key indicators:

• The ratio of total debt to gross book value as at June 30, 2013 improved to 48.42% compared to 50.83% for the same period last year;
  
  
• Debt service and interest coverage ratios for the four quarters ended June 30, 2013 improved to 1.56 times and 2.61 times compared to 1.44 times and 2.34 times, respectively, for the same period last year;
  
  
• As at June 30, 2013, 94.0% (June 30, 2012 - 91.8%) of CAPREIT's mortgage portfolio was insured by the Canada Mortgage and Housing Corporation ("CMHC"), excluding the mortgages on CAPREIT's manufactured home communities land lease sites, resulting in improved spreads on mortgages and overall lower interest costs than conventional mortgages.
  
  
• The effective portfolio weighted average interest rate on mortgages has steadily declined from 4.20% as at June 30, 2012, to 3.81% as at June 30, 2013, which will result in significant interest rate savings in future years;
  
  
• Management expects to raise between $575 million and $625 million in total mortgage renewals and refinancings in 2013;
  
  
• Increased weighted average term to maturity of the mortgage portfolio from 5.0 year to 6.1 years;
  
  
• CAPREIT has investment properties with a fair value of $141.2 million as at June 30, 2013 that are not encumbered by mortgages and secure only the Acquisition and Operating Facility;

Property Capital Investment Plan

During the three and six months ended June 30, 2013, CAPREIT made property capital investments (excluding disposed properties, head office assets, tenant improvements and signage) of $53.8 million as compared to $39.7 million for the same period last year. For the full 2013 year, CAPREIT expects to complete property capital investments of approximately $160 million to $170 million, including approximately $71 million targeted at acquisitions completed since January 1, 2011 and approximately $13 million in high-efficiency boilers and other energy-saving initiatives.

Property capital investments include suite improvements, common areas and equipment, which generally tend to increase NOI more quickly. CAPREIT continues to invest in energy-saving initiatives, including boilers, energy-efficient lighting systems, and water-saving programs, which permit CAPREIT to mitigate potentially higher increases in utility and R&M costs and significantly improve overall portfolio NOI.

Subsequent Events

On July 4, 2013 CAPREIT announced that the Toronto Stock Exchange (the "TSX") had approved its notice of intention to make a normal course issuer bid for its units ("Units") as appropriate opportunities arise from time to time. CAPREIT's normal course issuer bid will be made in accordance with the policies of the TSX. CAPREIT may purchase its Units during the period from July 8, 2013 to July 7, 2014. Pursuant to the notice and subject to the market price of its Units and other considerations, CAPREIT may acquire over the next 12 months up to 9,773,361 Units, representing 10% of the public float.

On August 7, 2013, CAPREIT announced that it has entered into agreements to acquire a portfolio of 338 apartment suites and 33,800 square feet of commercial and retail space in four properties in the city of Dublin, Ireland for a purchase price of approximately EUR42.7 million (approximately CDN $59.0 million), excluding transaction costs. CAPREIT will pay for the portfolio using cash from a new Euro-denominated credit facility for a term of 5 years at a rate of approximately 3.45%. CAPREIT plans to enter into a two-year hedging program related to the portfolio's Euro-denominated cash flows. Closing is scheduled for August 30, 2013, and remains conditional on certain closing matters, including third party deliverables.

Additional Information

More detailed information and analysis is included in CAPREIT's unaudited condensed consolidated interim financial statements and MD&A for the three and six months ended June 30, 2013, which have been filed on SEDAR and can be viewed at www.sedar.com under CAPREIT's profile or on CAPREIT's website on the investor relations page at www.capreit.net.

Conference Call

A conference call hosted by Thomas Schwartz, President and CEO and Scott Cryer, Chief Financial Officer, will be held Thursday, August 8, 2013 at 10.00 am EST. The telephone numbers for the conference call are: Local/International: (416) 340-2219, North American Toll Free: (877) 240-9772.

A slide presentation to accompany Management's comments during the conference call will be available one hour and a half prior to the conference call. To view the slides, access the CAPREIT website at www.capreit.net, click on "Investor Relations" and follow the link at the top of the page. Please log on at least 15 minutes before the call commences.

The telephone numbers to listen to the call after it is completed (Instant Replay) are local/international (905) 694-9451 or North American toll free (800) 408-3053. The Passcode for the Instant Replay is 6385495#. The Instant Replay will be available until midnight, August 15, 2013. The call and accompanying slides will also be archived on the CAPREIT website at www.capreit.net. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net.

About CAPREIT

CAPREIT owns interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities located in and near major urban centres across Canada. As at June 30, 2013, CAPREIT had owning interests in 37,998 residential units, comprised of 34,628 residential suites and 14 manufactured home communities ("MHC") comprising 3,370 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net and our public disclosure which can be found under our profile at www.sedar.com.

Non-IFRS Financial Measures

CAPREIT prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT also discloses and discusses certain non-IFRS financial measures, including Net Rental Revenue Run-Rate, NOI, FFO, NFFO and applicable per Unit amounts and payout ratios. These non-IFRS measures are further defined and discussed in the MD&A released on August 7, 2013, which should be read in conjunction with this press release. Since Net Rental Revenue Run-Rate, NOI, FFO and NFFO are not determined by IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT has presented such non-IFRS measures as Management believes these non-IFRS measures are relevant measures of the ability of CAPREIT to earn and distribute cash returns to Unitholders and to evaluate CAPREIT's performance. A reconciliation of Net Income and such non-IFRS measures including Adjusted Funds From Operations ("AFFO") is included in this press release. These non-IFRS measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with IFRS as an indicator of CAPREIT's performance.

Cautionary Statements Regarding Forward-Looking Statements

Certain statements contained, or contained in documents incorporated by reference, in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to CAPREIT's future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital investments, financial results, taxes, plans and objectives of or involving CAPREIT. Particularly, statements regarding CAPREIT's future results, performance, achievements, prospects, costs, opportunities and financial outlook, including those relating to acquisition and capital investment strategy and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian economy will generally experience growth, however, may be adversely impacted by the global economy; that inflation will remain low; that interest rates will remain low in the medium term; that Canada Mortgage and Housing Corporation ("CMHC") mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that conditions within the real estate market, including competition for acquisitions, will become more favourable; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates will grow at levels similar to the rate of inflation on renewal; that rental rates on turnovers will remain stable; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT's financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT's investment priorities, the properties in which investments will be made, the composition of the property portfolio and the projected return on investment in respect of specific capital investments. Although the forward-looking statements contained in this press release are based on assumptions, Management believes they are reasonable as of the date hereof, there can be no assurance actual results will be consistent with these forward-looking statements; they may prove to be incorrect.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT's control, that may cause CAPREIT or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: reporting investment properties at fair value, real property ownership, leasehold interests, co-ownerships, investment restrictions, operating risk, energy costs and hedging, environmental matters, insurance, capital investments, indebtedness, interest rate hedging, taxation, harmonization of federal goods and services tax and provincial sales tax, government regulations, controls over financial accounting, legal and regulatory concerns, the nature of units of CAPREIT ("Trust Units") and of CAPREIT's subsidiary, CAPREIT Limited Partnership ("Exchangeable Units") (collectively, the "Units"), unitholder liability, liquidity and price fluctuation of Units, dilution, distributions, participation in CAPREIT's distribution reinvestment plan, potential conflicts of interest, dependence on key personnel, general economic conditions, competition for residents, competition for real property investments, continued growth and risks related to acquisitions. There can be no assurance the expectations of CAPREIT's Management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT's Annual Information Form, which can be obtained on SEDAR at www.sedar.com, under CAPREIT's profile, as well as under Risks and Uncertainties section of the MD&A released on August 7, 2013. The information in this press release is based on information available to Management as of August 7, 2013. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.

SOURCE: Canadian Apartment Properties Real Estate Investment Trust

SELECTED FINANCIAL INFORMATION
Condensed Balance Sheets
As at	June 30, 2013		December 31, 2012
($ Thousands)
Investment Properties	$	5,058,925	$	4,826,355
Total Assets		5,161,359		4,921,546
Mortgages Payable		2,320,264		2,189,556
Bank Indebtedness		191,721		147,316
Total Liabilities		2,646,215		2,492,332
Unitholders' Equity		2,515,144		2,429,214

Condensed Income Statements
		Three Months Ended						Six Months Ended
		June 30,						June 30,
($ Thousands)			2013			2012			2013			2012
Net Operating Income			71,475			56,714			134,966			109,452
	Trust Expenses		(5,306	)		(3,557	)		(9,681	)		(6,806	)
	Unrealized Gain on Remeasurement of Investment Properties		10,784			95,783			44,439			103,632
	Realized Loss on Disposition of Investment Properties		-			(350	)		-			(528	)
	Remeasurement of Exchangeable Units		415			(550	)		311			(632	)
	Unit-based Compensation Expenses		5,385			(5,738	)		3,675			(7,354	)
	Interest on Mortgages Payable and Other Financing Costs		(23,125	)		(20,670	)		(47,143	)		(41,671	)
	Interest on Bank Indebtedness		(1,490	)		(915	)		(2,984	)		(1,993	)
	Interest on Exchangeable Units		(46	)		(93	)		(105	)		(204	)
	Other Income		780			735			3,265			1,215
	Amortization		(522	)		(548	)		(1,039	)		(1,066	)
	Unrealized and Realized Loss on Derivative Financial Instruments		(170	)		(511	)		(78	)		(1,467	)
	Loss on Foreign Exchange		(6	)		-			(6	)		-
Net Income			58,174			120,300			125,620			152,578
Other Comprehensive Income (Loss)		$	1,593		$	(4,708	)	$	8		$	2,241
Comprehensive Income		$	59,767		$	115,592		$	125,628		$	154,819

Condensed Statements of Cash Flows
				Three Months Ended						Six Months Ended
				June 30,						June 30,
				2013			2012			2013			2012
($ Thousands)
Cash Provided By Operating Activities:
	Net Income		$	58,174		$	120,300		$	125,620		$	152,578
	Items in Net Income Not Affecting Cash:
		Changes in Non-cash Operating Assets and Liabilities		(13,032	)		(4,080	)		(14,390	)		(9,169	)
		Realized and Unrealized Gain on Remeasurements		(11,029	)		(94,372	)		(44,672	)		(101,005	)
		Gain on Sale of Investments		-			(190	)		(1,737	)		(190	)
		Unit-based Compensation Expenses		(5,385	)		5,738			(3,675	)		7,354
		Items Related to Financing and Investing Activities		23,187			19,376			46,125			39,779
		Other		2,707			1,663			2,347			3,395
Cash Provided By Operating Activities				54,622			48,435			109,618			92,742
Cash Used In Investing Activities
	Acquisitions			(72,423	)		(307,886	)		(113,145	)		(307,886	)
	Capital Investments			(28,689	)		(23,789	)		(61,871	)		(46,007	)
	Disposition of Investments			-			1,103			7,815			1,103
	Dispositions			-			17,974			-			25,700
	Other			(291	)		625			(92	)		1,041
Cash Used In Investing Activities				(101,403	)		(311,973	)		(167,293	)		(326,049	)
Cash Provided By Financing Activities
	Mortgages, Net of Financing Costs			19,311			(11,574	)		106,773			(15,126	)
	Bank Indebtedness			74,492			147,795			44,405			159,016
	Interest Paid			(23,504	)		(20,111	)		(46,787	)		(40,994	)
	Hedge Settlement			(2,171	)		(3,048	)		(3,492	)		(3,272	)
	Proceeds on Issuance of Units			682			168,579			785			169,349
	Distributions, Net of DRIP and Other			(22,029	)		(18,103	)		(44,009	)		(35,666	)
Cash Provided By Financing Activities				46,781			263,538			57,675			233,307
Changes in Cash and Cash Equivalents During the Period				-			-			-			-
Cash and Cash Equivalents, Beginning of Period				-			-			-			-
Cash and Cash Equivalents, End of Period			$	-		$	-		$	-		$	-

SELECTED NON-IFRS FINANCIAL MEASURES
Reconciliation of Net Income to FFO and to NFFO
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2013			2012			2013			2012
($ Thousands, except per Unit amounts)
Net Income		$	58,174		$	120,300		$	125,620		$	152,578
Adjustments:
	Unrealized Gain on Remeasurement of Investment Properties		(10,784	)		(95,783	)		(44,439	)		(103,632	)
	Realized Loss on Disposition of Investment Properties		-			350			-			528
	Remeasurement of Exchangeable Units		(415	)		550			(311	)		632
	Remeasurement of Unit-based Compensation Liabilities		(6,076	)		4,599			(4,831	)		5,793
	Interest on Exchangeable Units		46			93			105			204
	Amortization of Property, Plant and Equipment		522			548			1,039			1,066
FFO		$	41,467		$	30,657		$	77,183		$	57,169
Adjustments:
	Unrealized and Realized Loss on Derivative Financial Instruments		170			511			78			1,467
	Amortization of Loss from AOCL to Interest and Other Financing Costs		845			338			1,597			672
	Net Mortgage Prepayment Cost		94			-			1,641			-
	Realized Gain on Sale of Investments		-			(177	)		(1,737	)		(177	)
	Loss on Foreign Exchange		6			-			6			-
NFFO		$	42,582		$	31,329		$	78,768		$	59,131
	NFFO per Unit - Basic	$	0.425		$	0.358		$	0.787		$	0.692
	NFFO per Unit - Diluted	$	0.419		$	0.352		$	0.775		$	0.682
	Total Distributions Declared (1)	$	28,976			24,698		$	57,678		$	47,908
	NFFO Payout Ratio (2)		68.0%			78.8%			73.2%			81.0%
	Net Distributions Paid (1)	$	22,310		$	18,949		$	44,224		$	36,487
	Excess NFFO Over Net Distributions Paid	$	20,272		$	12,380		$	34,544		$	22,644
	Effective NFFO Payout Ratio (3)		52.4%			60.5%			56.1%			61.7%

(1)	For a description of distributions declared and net distributions paid, see the Non-IFRS Financial Measures section in the MD&A for the three and six months ended June 30, 2013.
(2)	The payout ratio compares distributions declared to NFFO.
(3)	The effective payout ratio compares net distributions paid to NFFO.

Reconciliation of NFFO to AFFO
			Three Months Ended						Six Months Ended
			June 30						June 30
			2013			2012			2013			2012
($ Thousands, except per Unit amounts)
NFFO		$	42,582		$	31,329		$	78,768		$	59,131
Adjustments:
	Provision for Maintenance Property Capital Investments (1)		(3,727	)		(3,255	)		(7,455	)		(6,510	)
	Amortization of Fair Value on Grant Date of Unit-based Compensation		691			1,139			1,156			1,561
AFFO		$	39,546		$	29,213		$	72,469		$	54,182
	AFFO per Unit - Basic	$	0.395		$	0.334		$	0.724		$	0.634
	AFFO per Unit - Diluted	$	0.389		$	0.329		$	0.713		$	0.625
	Distributions Declared (2)	$	28,976		$	24,698		$	57,678		$	47,908
	AFFO Payout Ratio (3)		73.3%			84.5%			79.6%			88.4%
	Net Distributions Paid (2)	$	22,310		$	18,949		$	44,224		$	36,487
	Excess AFFO over Net Distributions Paid	$	17,236		$	10,264		$	28,245		$	17,695
	Effective AFFO Payout Ratio (4)		56.4%			64.9%			61.0%			67.3%

(1)	An industry based estimate (see the Non-IFRS Measures section in the MD&A for the three and six months ended June 30, 2013).
(2)	For a description of distributions declared and net distributions paid, see the Non-IFRS Financial Measures section in the MD&A for the three and six months ended June 30, 2013.
(3)	The payout ratio compares distributions declared to AFFO.
(4)	The effective payout ratio compares net distributions paid to AFFO.