/C O R R E C T I O N -- Morguard Real Estate Investment Trust/

In c9445 which crossed at 17:36e today, an error occurred in bulleted text under "Operations."

The text should have read, "The portfolio occupancy remained stable and was 96% at June 30, 2014, 96% at December 31, 2013 and 96% at June 30, 2013." and not "The portfolio occupancy remained stable and was 97% at June 30, 2014, 96% at December 31, 2013 and 97% at June 30, 2013." Full corrected copy follows:

Morguard Real Estate Investment Trust announces 2014 second quarter results

TSX: MRT.UN

MISSISSAUGA, ON, Aug. 5, 2014 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its financial results for the three and six months ended June 30, 2014 ("Q2"). These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

Highlights

Funds from Operations (FFO)

Funds from operations for the three and six months ended June 30, 2014 was $27.0 million and $53.1 million, respectively, as compared to $24.4 million and $49.3 million, respectively, for the same periods in 2013. On a per unit diluted basis, funds from operations for the three and six months ended June 30, 2014 was $0.42 and $0.83, respectively, as compared to $0.37 and $0.75, respectively for the same periods in 2013. The increase in FFO was primarily the result of the acquisition of Pine Centre completed by the Trust in December 2013.
Funds from operations is not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A reconciliation of net income to funds from operations is included.

Net Operating Income (NOI)

Net operating income for the three and six months ended June 30, 2014 was $42.7 million and $84.3 million, respectively, as compared to $39.2 million and $79.4 million, respectively, for the same periods in 2013.
Net operating income is an additional GAAP measure, but not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A calculation of net operating income is included.

Net Income

Net income for the three and six months ended June 30, 2014 was $34.2 million and $70.4 million, respectively, as compared to $51.3 million and $127.1 million, respectively, for the same periods in 2013. The decrease in net income was mainly the result of lower fair value gains on real estate properties recorded in 2014.

Operations

The portfolio occupancy remained stable and was 96% at June 30, 2014, 96% at December 31, 2013 and 96% at June 30, 2013.

At June 30, 2014, the Trust's total enterprise value was approximately $2.5 billion (based on the market closing price of the Trust's units on June 30, 2014 plus total debt outstanding). At June 30, 2014, the Trust had $1.4 billion of outstanding debt, equating to debt to total value ratio of 55.5%. The Trust's debt consisted of $1.2 billion of fixed-rate debt with weighted average interest rate of 4.2% and weighted average term to maturity of 6.22 years, $146.0 million of 4.85% fixed-rate convertible debentures and $13.8 million debt associated with real estate properties held for sale. The Trust has a debt to total assets ratio of 45.5%.

NET OPERATING INCOME, FUNDS FROM OPERATIONS
This press release and accompanying financial information make reference to net operating income and funds from operations 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). Funds from operations is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any.

FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSIS
Morguard REIT's Q2 2014 Condensed Interim Consolidated Financial Statement and Management's Discussion and Analysis along with its 2013 Annual Report are available on Morguard REIT's website at www.morguard.com and have been filed with SEDAR at www.sedar.com

CONFERENCE CALL DETAILS:

		Date:		Thursday, August 7, 2014 at 4:00 p.m. (ET)
		Conference Call#:		647.427.7450 or 1.888.231.8191
		Conference ID#:		78885729

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 income producing properties in Canada with a book value of $2.9 billion and approximately 9.1 million square feet of leaseable space.

Condensed Interim Consolidated Balance Sheet

(In thousands of Canadian dollars)		June 30,		December 31,
		2014		2013

Assets
Real estate properties	$	2,865,017	$	2,869,358
Equity accounted investments		46,102		44,857
Amounts receivable		15,374		14,505
Other assets		11,848		920
Cash and cash equivalents		42,424		13,159
		2,980,765		2,942,799
Real estate properties classified as held for sale		41,022		—
	$	3,021,787	$	2,942,799

Liabilities
Mortgages and bonds payable	$	1,214,294	$	1,194,682
Convertible debentures payable		146,006		145,460
Accounts payable and other liabilities		55,202		44,919
Bank indebtedness		—		5,000
		1,415,502		1,390,061
Mortgages payable on real estate properties classified as held for sale		13,800		—
Total liabilities		1,429,302		1,390,061

Unitholders' Equity		1,592,485		1,552,738
	$	3,021,787	$	2,942,799

Condensed Interim Consolidated Statements of Income and Comprehensive Income

(In thousands of Canadian dollars)			Three months ended				Six months ended
			June 30,		June 30,		June 30,		June 30,
			2014		2013		2014		2013

Revenue from real estate properties		$	73,925	$	67,155	$	148,129	$	137,584
Property operating expenses			28,832		25,723		59,016		53,744
Property management fees			2,375		2,188		4,784		4,421
Net operating income			42,718		39,244		84,329		79,419

Interest expense			15,334		14,639		30,746		29,825
General and administrative			1,433		1,115		2,662		2,237
Amortization expense			—		10		—		21
Other income			—		—		—		(5)
Income before fair value gains, gain on sale of real estate properties and net income from equity accounted investments			25,951		23,480		50,921		47,341

Fair value gains on real estate properties			7,168		24,843		17,416		74,241
Gain on sale of real estate properties			—		2,058		—		2,058
Net income from equity accounted investments			1,032		909		2,087		3,501
Net income for the period		$	34,151	$	51,290	$	70,424	$	127,141

Other comprehensive income
Items to be reclassified to profit or loss in subsequent periods:
	Amortization - cash flow hedge		252		247		503		493
Comprehensive income		$	34,403	$	51,537	$	70,927	$	127,634

Reconciliation of Net Income to Funds from Operations

(In thousands of Canadian dollars, except per-unit amounts)			Three months ended				Six months ended
			June 30,		June 30,		June 30,		June 30,
			2014		2013		2014		2013

Net income for the period		$	34,151	$	51,290	$	70,424	$	127,141

Add/(deduct) :
Fair value gains on real estate properties⁽¹⁾			(7,129)		(24,787)		(17,362)		(75,793)
Gain on sale of real estate properties			—		(2,058)		—		(2,058)
Funds from operations		$	27,022	$	24,445	$	53,062	$	49,290

Interest expense on convertible debentures			1,814		1,844		3,608		3,638
Diluted FFO		$	28,836	$	26,289	$	56,670	$	52,928

Funds from operations per unit:
	Basic		$0.43		$0.38		$0.85		$0.77
	Diluted⁽²⁾		$0.42		$0.37		$0.83		$0.75

Weighted average units outstanding (in thousands)
	Basic		62,138		64,043		62,181		64,067
	Diluted⁽²⁾		68,235		70,141		68,279		70,165