MRT.UN Morguard Real Estate Investment Trust

TSX: MRT.UN MISSISSAUGA, ON, Feb. 27, 2012 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") today announced that net income for the year ended December 31, 2011 was $158.3 million or $2.77 per unit, compared with $174.4 million or $3.07 per unit in 2010.  Net income for the three months ended December 31, 2011 was $48.4 million or $0.84 per unit, compared to $56.7 million or $1.00 per unit for the same period in 2010. Funds from operations ("FFO") for the year ended December 31, 2011 was $79.5 million or $1.39 per unit ($1.35 per unit fully diluted), compared to $71.8 million or $1.26 per unit ($1.22 per unit fully diluted) in 2010.  FFO for the three months ended December 31, 2011 was $21.4 million or $0.36 per unit ($0.36 per unit fully diluted) compared to $20.5 million or $0.36 per unit ($0.35 per unit fully diluted) for the same period in 2010. Net operating income for the year ended December 31, 2011 was $133.8 million, compared to $123.6 million in 2010.  Net operating income for the three months ended December 31, 2011 was $35.0 million, compared with $34.4 million during the same period in 2010. DISTRIBUTION INCREASE The board of Trustees of Morguard REIT announced an increase in the distribution paid to unitholders.  The increase to $0.96 per unit per annum (from $0.90 currently) will be effective for unitholders of record at the close of business on March 30, 2012. NET OPERATING INCOME, FFO This press release and accompanying financial information make reference to net operating income and funds from operations ("FFO") on a total and per unit basis.  Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains (losses).  FFO is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any. 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 investment trusts and such terms are defined in the Management's discussion and Analysis, such terms are not recognized terms under IFRS.  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. FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSIS Morguard REIT's 2011 Consolidated Financial Statement and Management's Discussion and Analysis along with its 2010 Annual Report are available on Morguard REIT's website at www.morguardreit.com and have been filed with SEDAR at www.sedar.com ABOUT MORGUARD REAL ESTATE INVESTMENT TRUST Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 53 retail, office and mixed-use properties in Canada with a book value of $2.1 billion and approximately 8.5 million square feet of leaseable space. Consolidated Balance Sheet (In thousands of dollars, except 2011 2010 per-unit amounts) Assets Real estate properties $ 2,119,084 $ 1,935,901 Amounts receivable 8,851 7,756 Other assets 1,321 981 Cash and cash equivalents 8,134 7,441 $ 2,137,390 $ 1,952,079 Liabilities Mortgages and bonds payable $ 799,672 $ 760,219 Convertible debentures payable 86,457 94,974 Accounts payable and other 34,496 34,300 liabilities Bank indebtedness 43,852 8,620 Unitholders' Equity 1,172,913 1,053,966 $ 2,137,390 $ 1,952,079 Consolidated Statements of Income and Comprehensive Income Three months ended December 31, Year ended December31, (In thousands 2011 2010 2011 2010 of dollars, except per-unit amounts) Revenue from $ $ $ 235,693 $ 220,301 real estate 60,673 60,052 properties Property 23,679 23,764 94,238 89,479 operating expenses Property 2,036 1,925 7,676 7,237 management fees Net operating 34,958 34,363 133,779 123,585 income Interest 12,692 12,929 50,833 48,571 expense General and 954 1,240 4,538 4,472 administrative Amortization 11 19 48 79 expense Other expenses 14 (3) 5 (40) / (income) Income before fair value changes on real estate properties and loss on sale of real estate properties 21,287 20,178 78,355 70,503 Fair value 27,086 36,514 79,947 104,137 gains on real estate properties Loss on sale — (1) — (276) of real estate properties Net income for $ 48,373 $ $ 158,302 $ 174,364 the year 56,691 Other comprehensive income Amortization - 240 234 951 930 cash flow hedge Comprehensive $ 48,613 $ $ 159,253 $ 175,294 income 56,925 Net income per-unit Basic $ 0.84 $ $ $ 1.00 2.77 3.07 Diluted $ 0.80 $ $ $ 0.92 2.62 2.85 Reconciliation of Net Income to Funds from Operations Three months ended December31, Year ended December31, (In thousands 2011 2010 2011 2010 of dollars, except per-unit amounts) Net income $ 48,373 $ 56,691 $ 158,302 $ 174,364 for the year Add / (deduct): Accretion of 80 357 1,121 1,250 convertible debentures Fair value (27,086) (36,514) (79,947) (104,137) gains on real estate properties Loss on sale — 1 — 276 of real estate properties Funds from $ 21,367 $ 20,535 $ 79,476 $ 71,753 operations Funds from operations per-unit Basic $ 0.36 $ 0.36 $ 1.39 $ 1.26 Diluted $ 0.36 $ 0.35 $ $ 1.22 1.35   Morguard Real Estate Investment Trust CONTACT: K. (Rai) Sahi, President and Chief Executive Officer, Tel:905.281.4800, or;Tim Walker, Vice President and Chief Financial Officer, Tel:905.281.4800

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