CORRECTION: Fronsac REIT Reports a Strong Increase in FFO per Unit for the Period Ended June 30th, 2014

MONTREAL, QUEBEC--(Marketwired - Aug. 14, 2014) -

This document corrects and replaces the press release that was sent today at 2:11 PM EDT.

Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") (TSX VENTURE:GAZ.UN) today released its consolidated financial statements for the quarter ended June 30^th, 2014.

For the three month ended June 30^th of 2014, Fronsac reported funds from operations ("FFO") of $195,170, an increase of 85.44% over the comparable three month period of 2013 ($105,245 in Q2-2013). For the quarter ended June 30^th, 2014, FFO per unit was 0.57¢, compared to 0.32¢ per unit for the the comparable period of 2013, an increase of 78.13%.

For the first six month of 2014, Fronsac reports funds from operations ("FFO") of $412,485, an increase of 76.13% over the comparable six month period of 2013 ($234,191 in Q2-2013). As at June 30^th, 2014, FFO per unit was 1.2¢, compared to 0.72¢ per unit for the the comparable period of 2013, an increase of 66.67%.

Michel Lassonde President and CEO said: "Our second quarter results are strong and show a sustained growth in our FFO and our cash flow. We are very pleased that our growth continues to be accretive on a per unit basis."

The AFFO/FFO summary and the highlights for the quarter ending on June 30^th are presented in the tables below :

OPERATIONAL AND FINANCIAL HIGHLIGHTS
For the periods ended	June 30,		June 30,		June 30,		June 30,
	2014		2013		2014		2013
	(3 months)		(3 months)		(6 months)		(6 months)
OPERATIONAL DATA
Number of properties	10		6		10		6
Occupancy	100	%	100	%	100	%	100	%
Value of properties (including joint venture)	20,128,310		18,464,042		20,128,310		18,464,042
FINANCIAL PERFORMANCE
Property rental revenue	372,517		253,972		749,672		460,480
Funds from operations (FFO)	195,170		105,245		412,485		234,191
Adjusted funds from operations (AFFO)	195,170		105,245		412,485		234,191
EBITDA	303,291		201,020		613,329		377,107
Distributions	127,431		220,902		254,863		220,902
PER UNIT FINANCIAL PERFORMANCE
Weighted average units outstanding	34,440,964		32,645,094		34,435,439		32,630,669
FFO	0.0057		0.0032		0.0120		0.0072
AFFO	0.0057		0.0032		0.0120		0.0072
Variation	78.13	%	n/a		66.67	%	n/a
Distributions per unit	0.0037		0.003375		0.0074		0.00675
AFFO payout ratio	64.91	%	105.47	%	61.67	%	93.75	%
FINANCING
Leverage	50.04	%	42.06	%	50.04	%	42.06	%
Interest coverage ratio	2.8		2.4		2.7		2.9
Debt service coverage ratio	1.9		1.8		1.9		2.1

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties, rented to strong tenants under long term, management free and net leases.

Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws, including statements relating to Fronsac and expectations of the management regarding a proposed transaction and the expected benefits thereof. There is no assurance that the proposed transaction will be carried out and that the anticipated benefits will materialize. The proposed transaction is subject to approval and consent of stakeholders and there is no certainty that these will be achieved. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accept any responsibility for the adequacy or accuracy of this release.

The June 30^th, 2014 financial statements of Fronsac REIT may be viewed on SEDAR at www.sedar.com