CAPREIT Reports Record Growth and Record Performance in 2012

CAPREIT Reports Record Growth and Record Performance in 2012 
Acquisitions and Strong Organic Growth Contribute to Solid Accretive
Increase in NFFO 
TORONTO, ONTARIO -- (Marketwire) -- 02/26/13 -- Canadian Apartment
Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN)
announced today strong operating and financial results for the year
ended December 31, 2012.  


 
                                  Three Months Ended        Year Ended      
                                      December 31           December 31     
                                      2012       2011       2012       2011 
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Operating Revenues (000s)        $ 112,109  $  94,564  $ 412,421  $ 361,955 
Net Operating Income ("NOI")                                                
 (000s) (1)                      $  62,651  $  52,563  $ 237,916  $ 206,157 
NOI Margin (1)                        55.9%      55.6%      57.7%      57.0%
Normalized Funds From Operations                                            
 ("NFFO") (000s) (1)             $  33,556  $  25,223  $ 132,553  $ 103,875 
NFFO Per Unit - Basic (1)        $   0.356  $   0.312  $   1.486  $   1.357 
Weighted Average Number of Units                                            
 - Basic (000s)                     94,210     80,715     89,215     76,538 
NFFO Payout Ratio (1)                 81.3%      91.7%      76.4%      82.8%
                                                                            
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(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.                         
 
--  Record portfolio growth in 2012 with purchase of 6,984 residential
    suites and sites for total acquisition costs of $791.3 million 
    
--  To finance growth, CAPREIT issued 15.5 million Trust Units in two
    successful bought-deal equity offerings, including over-allotment
    options, raising aggregate gross proceeds of $361.2 million in 2012. 
    
--  Q4 2012 and year ended 2012 NFFO up 33.0% and 27.6%, respectively,
    primarily due to acquisitions, increased average monthly rents, high
    stable occupancies and strong organic growth. 
    
--  Strong accretive growth as Q4 2012 and year ended 2012 NFFO per Unit
    increased 14.1% and 9.5%, respectively, despite 17% increase in the
    weighted average number of Units outstanding. 
    
--  Stabilized NOI up 3.0% in Q4 2012, capping more than six years of stable
    and increasing year-over-year quarterly same property NOI growth. For
    the year ended December 31, 2012, stabilized NOI up 4.0%. 
    
--  Closed mortgage refinancings for $360.3 million, including $243.9
    million for renewals of existing mortgages and $116.4 million for
    additional top up financing with a weighted average term to maturity of
    8.8 years, and at a weighted average rate of 2.95%. 
    
--  Late in 2012, CAPREIT entered into third party external management
    agreements to perform certain asset management duties and property
    services with a third party real estate investment trust in the United
    States, which owns and operates 16 manufactured home communities in
    Colorado, Texas, Arizona, and Michigan. 

 
"2012 was our most active year to date as we generated record growth
and record operating and financial performance," commented Thomas
Schwartz, President and CEO. "With the significant expansion and
enhanced diversification of our property portfolio, the proven
success of our asset and property management strategies, and the
continuing strong fundamentals in the Canadian residential rental
real estate sector, we expect this strong performance will continue." 
PORTFOLIO OPERATING RESULTS  


 
                                   Three Months Ended        Year Ended     
                                      December 31           December 31     
                                      2012       2011       2012       2011 
----------------------------------------------------------------------------
Overall Portfolio Occupancy (1)                             97.9%      98.5%
Overall Portfolio Average                                                   
 Monthly Rents (1),(2)                                 $     975  $     991 
Operating Revenues (000s)        $ 112,109  $  94,564  $ 412,421  $ 361,955 
Net Rental Revenue Run-Rate                                                 
 (000s) (1),(3),(4)                                    $ 429,822  $ 361,253 
Operating Expenses (000s)        $  49,458  $  42,001  $ 174,505  $ 155,798 
NOI (000s) (4)                   $  62,651  $  52,563  $ 237,916  $ 206,157 
NOI Margin (4)                        55.9%      55.6%      57.7%      57.0%
Number of Suites and Sites                                                  
 Acquired                              980        193      6,984      2,660 
Number of Suites Disposed              438          -        773        143 
                                                                            
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(1) As at December 31.                                                      
(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 year ended December 31, 2012.    
(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 months and year ended December 31, 2012, total
operating revenues increased by 18.6% and 13.9%, 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 months and year ended
December 31, 2012, ancillary revenues, including parking, laundry and
antenna income, rose by 13.8% and 8.2%, 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 December 31,
2012 increased to $429.8 million, up 19.0% from $361.3 million as of
December 31, 2011 primarily due to acquisitions completed within the
past twelve months and strong rental growth. Net rental revenue for
the twelve months ended December 31, 2012 was $386.3 million (2011 -
$343.1 million). 


 
Portfolio Average Monthly Rents ("AMR")                                     
                                                 Properties Owned Prior to  
                        Total Portfolio              December 31, 2011      
As at De
cember        2012           2011           2012         2011 (1)   
 31,                                                                        
                     AMR Occ. %     AMR Occ. %     AMR Occ. %     AMR Occ. %
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Average                                                                     
 Residential                                                                
 Suites          $ 1,030   97.8 $ 1,009   98.5 $ 1,036   98.1 $ 1,008   98.5
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Average MHC Land                                                            
 Lease Sites     $   439   99.2 $   615   99.8 $   632   99.8 $   615   99.8
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Overall Portfolio                                                           
 Average         $   975   97.9 $   991   98.5 $ 1,018   98.2 $   990   98.5
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(1) Prior year's comparable AMR and occupancy have been restated for        
    properties disposed of between January 1, 2012 and December 31, 2012.   

 
Average monthly rents for properties owned prior to December 31, 2011
increased as at December 31, 2012 to $ 1,018 from $990 as at December
31, 2011, an increase of 2.8% from last year. As at December 31,
2012, occupancy remained strong at 98.2%. Average monthly rents for
total portfolio residential properties increased by 2.1% as at
December 31, 2012 compared to the same period last year while
occupancy remained strong at 97.8% 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 MHC land lease sites decreased compared to prior
year due to the acquisitions in the second quarter of 2012 being in
certain lower rent geographic regions. Occupancy remained stable at
99.2% as at December 31, 2012.  


 
Suite Turnovers and Lease Renewals                                          
For the Three Months                                                        
 Ended December 31,                2012                      2011           
                         Change in AMR % Turnovers Change in AMR % Turnovers
                                        & Renewals                & Renewals
                              $      %        (1)       $      %        (1) 
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Suite Turnovers            16.0    1.5         6.3   17.8    1.8         6.9
Lease Renewals             33.7    3.3        15.3   14.4    1.4        15.6
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Weighted Average of                                                         
 Turnovers and Renewals    28.6    2.8               15.5    1.5            
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For the Year Ended                                                          
 December 31,                       2012                      2011          
                                       % Turnovers               % Turnovers
                                        & Renewals                & Renewals
                         Change in AMR         (1) Change in AMR         (1)
                                                                            
                              $      %                  $      %            
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Suite Turnovers            20.3    2.0        26.8   13.2    1.3        31.1
Lease Renewals             34.2    3.3        70.0   14.3    1.4        70.3
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Weighted Average of                                                         
 Turnovers and Renewals    30.3    2.9               14.0    1.4            
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(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 higher rate of growth in average monthly rents on lease renewals
during the year is primarily due to the higher guideline increases
for 2012 (Ontario - 3.1%, British Columbia - 4.3%), which compares
more favourably to the permitted guideline increases in 2011 (Ontario
- 0.7%, British Columbia - 2.3%) as well as above guideline increases
("AGI") applied. Management continues to pursue applications for AGIs
where it believes increases are supported by market conditions above
the annual guideline to raise average monthly rents on lease
renewals. For 2013, the permitted guideline increase in Ontario and
British Columbia have been set at 2.5% and 3.8%, respectively.  
Operating Expenses 
Operating expenses as a percentage of revenues decreased for the
three months and year ended December 31, 2012 to 44.1% from 44.4% and
42.3% from 43.0% respectively, for the same periods last year. The
improvement is primarily due to: (i) the diversification of the
portfolio into regions with lower taxation rates, (ii) lower utility
costs, and (iii) successful energy-saving initiatives and enhanced
procurement strategies.  
Net Operating Income 
In the fourth quarter of 2012, NOI improved by $10.1 million or
19.2%, and the NOI margin increased to 55.9% from 55.6% for last
year. For the year ended December 31, 2012, NOI increased by $31.8
million or 15.4%, and the NOI margin improved to 57.7% from 57.0% 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 and lower
operating expenses.  
For the three months and year ended December 31, 2012, operating
revenues for stabilized suites and sites increased for both periods
2.2%, and operating expenses increased 1.2% and decreased 0.2%,
respectively, compared to the same periods last year. For the three
months and year ended December 31 2012, stabilized NOI increased by
3.0% and 4.0%, respectively, compared to the same periods last year.  


 
NON-IFRS FINANCIAL MEASURES                                                 
                                                                            
                                  Three Months Ended        Year Ended      
                                     December 31,          December 31,     
                                      2012     2011       2012       2011   
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NFFO (000s)                      $  33,556     25,223  $ 132,553  $ 103,875 
NFFO Per Unit - Basic            $   0.356  $
   0.312  $   1.486  $   1.357 
Cash Distributions Per Unit      $   0.280  $   0.270  $   1.097  $   1.080 
NFFO Payout Ratio                     81.3%      91.7%      76.4%      82.8%
NFFO Effective Payout Ratio           62.8%      71.3%      58.7%      64.5%
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LIQUIDITY AND LEVERAGE                                                      
                                                                            
As at December 31,                                           2012      2011 
                                                                            
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Total Debt to Gross Book Value                              47.25%    50.27%
Total Debt to Gross Historical Cost (1)                     56.71%    58.55%
Total Debt to Total Capitalization                          47.82%    50.11%
                                                                            
Debt Service Coverage Ratio (times) (2)                      1.52      1.38 
Interest Coverage Ratio (times) (2)                          2.51      2.20 
                                                                            
Weighted Average Mortgage Interest Rate (3)                  3.87%     4.48%
Weighted Average Mortgage Term to Maturity (years)            5.4       5.7 
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(1) Based on historical cost of investment properties.                      
(2) Based on the trailing four quarters ended December 31, 2012.            
(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 $29.4 million included in Accumulated Other Comprehensive 
    Loss ("AOCL"), the effective portfolio weighted average interest rate at
    December 31, 2012 would be 4.05% (December 31, 2011 - 4.57%).           

 
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 December 31, 2012
    improved to 47.25% compared to 50.27% for last year; 
    
--  Debt service and interest coverage ratios for the four quarters ended
    December 31, 2012 improved to 1.52 times and 2.51 times compared to 1.38
    times and 2.20 times, respectively, for last year; 
    
--  At December 31, 2012, 92.9% (December 31, 2011 - 96.5%) 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.
    During the current year, on certain acquisitions CAPREIT assumed
    conventional mortgages, resulting in a decrease of CAPREIT's mortgage
    portfolio insured by CMHC compared to last year. Management expects to
    convert these mortgages to CMHC-insured mortgages in due course;  
    
--  The effective portfolio weighted average interest rate on mortgages has
    steadily declined from 4.48% as at December 31, 2011, to 3.87% as at
    December 31, 2012, 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; 
    
--  As at December 31, 2012, the Bridge Loan was fully repaid from the net
    proceeds of the equity offering completed on December 4, 2012.  

 
Property Capital Investment Plan 
During the year ended December 31, 2012, CAPREIT made property
capital investments (excluding disposed properties, head office
assets, tenant improvements and signage) of $129.8 million as
compared to $116.6 million for last year. For the full 2013 year,
CAPREIT expects to complete property capital investments of
approximately $160 million to $170 million, including approximately
$67 million targeted at acquisitions completed over the past 2 years
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 Event  
On January 31, 2013, CAPREIT completed the acquisition of a mid-tier
apartment complex in Calgary, Alberta consisting of six three-storey
buildings totalling 263 residential suites. The purchase price of
$47.3 million was satisfied by the assumption of an existing $7.2
million mortgage bearing interest at 6.95% maturing in October 2017,
with the remaining balance funded from CAPREIT's Acquisition and
Operating Facility. 
Additional Information 
More detailed information and analysis is included in CAPREIT's
audited consolidated annual financial statements and MD&A for the
year ended December 31, 2012, 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 Wednesday,
February 27, 2013 at 10.00 am EST. The telephone numbers for the
conference call are: Local/International: (416) 340-2218, 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, March 6, 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. At December
31, 2012, CAPREIT had owning interests in 37,225 residential units,
comprised of 33,855 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
February 26, 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
February 26, 2013. The information in this press release is based on
information available to Management as of February 26, 2013. Subject
to applicable law, CAPREIT does not undertake any obligation to
publicly update or revise any forward-looking information.  


 
SELECTED FINANCIAL INFORMATION                                              
                                                                            
Condensed Balance Sheets                                                    
                                                                            
As at                                    December 31, 2012 December 31, 2011
($ Thousands)                                                               
----------------------------------------------------------------------------
Investment Properties                    $       4,826,355 $       3,713,737
Total Assets                                     4,921,546         3,804,650
Mortgages Payable                                2,189,556         1,848,190
Bank Indebtedness                                  147,316            74,132
Total Liabilities                                2,492,332         2,063,987
Unitholders' Equity                              2,429,214         1,740,663
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Condensed Income Statements                                                 
                                                                            
                                  Three Months Ended        Year Ended      
                                     December 31,          December 31,     
($ Thousands)                         2012       2011       2012       2011 
----------------------------------------------------------------------------
Net Operating Income                62,651     52,563    237,916    206,157 
  Trust Expenses                    (4,399)    (4,647)   (13,904)   (14,797)
  Unrealized Gain on                                                        
   Remeasurement of Investment                                              
   Properties                      133,138    204,281    298,228    231,338 
  Realized Loss on Disposition                                              
   of Investment Properties         (1,085)         -     (1,613)       (95)
  Remeasurement of Exchangeable                                             
   Units                                (8)      (497)      (904)    (2,126)
  Unit-based Compensation                                                   
   Expenses                         (1,840)    (1,563)   (13,333)   (13,936)
  Interest on Mortgages Payable                                             
   and Other Financing Costs       (22,116)   (21,262)   (85,273)   (82,833)
  Interest on Bank Indebtedness     (2,742)    (1,346)    (6,954)    (5,793)
  Interest on Exchangeable Units       (73)      (111)      (354)      (444)
  Other Income                         872        504      3,503      1,899 
  Amortization                        (564)      (420)    (2,195)    (1,613)
  Severance and Other Employee                                              
   Costs                                 -          -          -     (1,352)
  Unrealized and Realized (Loss)                                            
   Gain on Derivative Financial                                             
   Instruments                        (852)    (1,146)    (2,854)      (233)
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Net Income                         162,982    226,356    412,263    316,172 
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Other Comprehensive (Loss)                                                  
 Income                          $     (37) $     957  $   1,499  $ (12,925)
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Comprehensive Income             $ 162,945  $ 227,313  $ 413,762  $ 303,247 
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Condensed Statements of Cash Flows                                          
                                                                            
                                     Three Months Ended      Year Ended     
                                        December 31,        December 31,    
                                         2012      2011      2012       2011
($ Thousands)                                                               
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Cash Provided By Operating                                                  
 Activities:                                                                
  Net Income                        $ 162,982 $ 226,356 $ 412,263 $  316,172
  Items in Net Income Not Affecting                                         
   Cash:                                                                    
    Changes in Non-cash Operating                                           
     Assets and Liabilities             1,122     2,601   (11,995)     (423)
    Realized and Unrealized Gain on                                         
     Remeasurements                  (131,193) (202,638) (292,857) (228,894)
    Gain on Sale of Investments          (290)        -    (1,455)         -
    Unit-based Compensation Expenses    1,840     1,563    13,333     13,936
    Items Related to Financing and                                          
     Investing Activities              23,189    20,747    85,388     81,233
    Other                               1,196     1,603     5,540      6,986
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Cash Provided By Operating                                                  
 Activities                            58,846    50,232   210,217    189,010
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Cash Used In Investing Activities                                           
  Acquisitions                        (99,776)  (32,982) (445,682) (270,536)
  Capital Investments                 (34,255)  (36,624) (131,280) (117,336)
  Disposition of Investments            1,299         -     6,830          -
  Dispositions                         29,944         -    55,644      3,609
  Other                                   605       498     2,831      1,549
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Cash Used In Investing Activities    (102,183)  (69,108) (511,657) (382,714)
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Cash Provided By Financing                                                  
 Activities                                                                 
  Mortgages, Net of Financing Costs    28,176    37,373    45,358    156,313
  Bank Indebtedness                  (118,089) (124,700)   73,184     34,774
  Interest Paid                       (23,892)  (21,251)  (88,722)  (83,132)
  Proceeds on Issuance of Units       177,538   144,927   347,570    147,537
  Distributions, Net of DRIP and                                            
   Other                              (20,396)  (17,473)  (75,950)  (66,138)
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Cash Provided By Financing                                                  
 Activities                            43,337    18,876   301,440    189,354
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Changes in Cash and Cash Equivalents                                        
 During the Period                          -         -         -    (4,350)
Cash and Cash Equivalents, Beginning                                        
 of Period                                  -         -         -      4,350
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Cash and Cash Equivalents, End of                                           
 Period                             $       - $       - $       - $        -
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SELECTED NON-IFRS FINANCIAL MEASURES                                        
                                                                            
Reconciliation of Net Income to FFO and to NFFO                             
                                                                            
                              Three Months Ended           Year Ended       
                                 December 31,             December 31,      
                                 2012          2011        2012        2011 
($ Thousands, except per                                                    
 Unit amounts)                                                              
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Net Income                 $  162,982    $  226,356  $  412,263  $  316,172 
Adjustments:                                                                
  Unrealized Gain on                                                        
   Remeasurement of                                                         
   Investment Properties     (133,138)     (204,281)   (298,228)   (231,338)
  Realized Loss on                                                          
   Disposition of                                                           
   Investment Properties        1,085             -       1,613          95 
  Remeasurement of                       
                                   
   Exchangeable Units               8           497         904       2,126 
  Remeasurement of Unit-                                                    
   based Compensation                                                       
   Liabilities                    669           699      10,053      12,165 
  Interest on Exchangeable                                                  
   Units                           73           111         354         444 
  Amortization of Property,                                                 
   Plant and Equipment            564           392       2,195       1,522 
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FFO                        $   32,243    $   23,774  $  129,154  $  101,186 
Adjustments:                                                                
  Unrealized Loss on                                                        
   Derivative Financial                                                     
   Instruments                    852         1,146       2,854         233 
  Amortization of Loss on                                                   
   Derivative Financial                                                     
   Instruments Included in                                                  
   Mortgage Interest              754           303       2,000       1,104 
  Realized Gain on Sale of                                                  
   Investment                    (293)            -      (1,455)          - 
  Severance and Other                                                       
   Employee Costs                   -             -           -       1,352 
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NFFO                       $   33,556    $   25,223  $  132,553  $  103,875 
  NFFO per Unit - Basic    $    0.356    $    0.312  $    1.486  $    1.357 
  NFFO per Unit - Diluted  $    0.351    $    0.308  $    1.463  $    1.341 
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  Total Distributions                                                       
   Declared (1)            $   27,272        23,139  $  101,210  $   86,054 
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  NFFO Payout Ratio (2)          81.3%         91.7%       76.4%       82.8%
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  Net Distributions Paid                                                    
   (1)                     $   21,069    $   17,973  $   77,836  $   67,045 
  Excess NFFO Over Net                                                      
   Distributions Paid      $   12,487    $    7,250  $   54,717  $   36,830 
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  Effective NFFO Payout                                                     
   Ratio (3)                     62.8%         71.3%       58.7%       64.5%
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(1) For a description of distributions declared and net distributions paid, 
    see the Non-IFRS Financial Measures section in the MD&A for the year    
    ended December 31, 2012.                                                
(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        Year Ended      
                                      December 31           December 31     
                                      2012       2011       2012       2011 
($ Thousands, except per Unit                                               
 amounts)                                                                   
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NFFO                             $  33,556  $  25,223  $ 132,553  $ 103,875 
Adjustments:                                                                
  Provision for Maintenance                                                 
   Property Capital Investments                                             
   (1)                              (3,440)    (3,085)   (13,758)   (12,341)
  Amortization of Fair Value on                                             
   Grant Date of Unit-based                                                 
   Compensation                      1,171        856      3,280      1,741 
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AFFO                             $  31,287  $  22,994  $ 122,075  $  93,275 
  AFFO per Unit - Basic          $   0.332  $   0.285  $   1.368  $   1.219 
  AFFO per Unit - Diluted        $   0.327  $   0.281  $   1.348  $   1.204 
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  Distributions Declared (2)     $  27,272  $  23,139  $ 101,210  $  86,054 
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  AFFO Payout Ratio (3)               87.2%     100.6%      82.9%      92.3%
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  Net Distributions Paid (2)     $  21,069  $  17,973  $  77,836  $  67,045 
  Excess AFFO over Net                                                      
   Distributions Paid            $  10,218  $   5,021  $  44,239  $  26,230 
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  Effective AFFO Payout Ratio (4)     67.3%      78.2%      63.8%      71.9%
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(1) An industry based estimate (see the Non-IFRS Measures section in the    
    MD&A for the year ended December 31, 2012).                             
(2) For a description of distributions declared and net distributions paid, 
    see the Non-IFRS Financial Measures section in the MD&A for the year    
    ended December 31, 2012.                                                
(3) The payout ratio compares distributions declared to AFFO.               
(4) The effective payout ratio compares net distributions paid to AFFO.     

Contacts:
CAPREIT
Mr. Michael Stein
Chairman
(416) 861-5788 
CAPREIT
Mr. Thomas Schwartz
President & CEO
(416) 861-9404 
CAPREIT
Mr. Scott Cryer
Chief Financial Officer
(416) 861-5771
www.capreit.net
 
 
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