CAPREIT Announces Record First Quarter Results

TORONTO, ONTARIO--(Marketwired - May 13, 2014) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today strong operating and financial results for the three months ended March 31, 2014.

Three Months Ended March 31,			2014			2013
Operating Revenues (000s)		$	126,533		$	115,324
Net Operating Income ("NOI") (000s) (1)		$	71,375		$	63,491
NOI Margin (1)			56.4	%		55.1	%
Normalized Funds From Operations ("NFFO") Per Unit - Basic (1)		$	0.395		$	0.362
NFFO Payout Ratio (1)			74.7	%		79.3	%
(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 first quarter NFFO per unit from organic NOI growth and one-time items with NFFO per Unit up 9.1% compared to the same period last year despite 9% increase in the weighted average number of Units outstanding.
• Very strong first quarter operating results despite unseasonably cold temperatures and major Ontario ice storms
• Portfolio growth and strong operating performance generate significant increases in quarterly results
• Operating revenues up 9.7% compared to the same period last year due to high stable occupancies, increased average monthly rents ("AMR"), and contributions from acquisitions
• Overall AMR up 2.9% for residential properties compared to the same period last year
• Overall portfolio occupancy remains strong at 97.9% as at March 31, 2014
• NOI up 12.4% compared to first quarter last year
• NOI margin rises to 56.4% compared to 55.1% for the same period last year
• Same property NOI up 5.3% compared to the same period last year
• NFFO up 18.6% compared to Q1 2013 due to strong operating performance and impact of prior year acquisitions
• NFFO payout ratio improves to 74.7% compared to 79.3% in Q1 2013
• CAPREIT's subsidiary in Ireland, Irish Residential Properties REIT plc ("IRES REIT") completes a EUR200 million offering and announces its admission to trading on the Irish Stock Exchange. Admission took place on April 16, 2014 (see Subsequent Event section for further details).
• Closed or committed mortgage refinancings of $370.5 million, including $224.9 million for renewals of existing mortgages and $145.6 million for additional top up financing with a weighted average term to maturity of 9.8 years, and a reduced weighted average interest rate of 3.39%.

"Despite one of the coldest winters on record and two major ice storms in our large Ontario market, we generated one of the strongest first quarter in CAPREIT's eighteen year history," commented Thomas Schwartz, President and CEO. "In particular, ongoing energy saving initiatives contained energy costs despite the record cold temperatures across the country and effective cost management resulted in reduced costs associated with the ice storms and overall repairs and maintenance. We are very proud of our record performance in the quarter, and look for these strong results to continue through the balance of the year."

"We are also very excited to have launched IRES REIT on the Irish Stock Exchange on April 16, 2014. Through our ongoing ownership of an interest in IRES REIT of approximately EUR42 million, CAPREIT Unitholders will benefit from our participation in the vibrant and growing Irish multi-unit rental residential sector," Mr. Schwartz added. "In addition, as IRES REIT grows its portfolio of properties in Ireland, we will receive a stable and growing stream of fee revenue from our asset and property management activities performed on behalf of IRES REIT."

PORTFOLIO OPERATING RESULTS

Three Months Ended March 31,		2014			2013
Overall Portfolio Occupancy (1)		97.9	%		97.9	%
Overall Portfolio Average Monthly Rents (1),(2)	$	954		$	978
Operating Revenues (000s)	$	126,533		$	115,324
Net Rental Revenue Run-Rate (000s) (1),(3),(4)	$	479,065		$	436,052
Operating Expenses (000s)	$	55,158		$	51,833
NOI (000s) (4)	$	71,375		$	63,491
NOI Margin (4)		56.4	%		55.1	%
Number of Suites and Sites Acquired		-			263

(1)	As at March 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 three months ended March 31, 2014.
(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 ended March 31, 2014, total operating revenues increased by 9.7% compared to the same period last year primarily due to the contribution from 2013 acquisitions, stable high occupancies, and increased average monthly rents on stabilized properties. Ancillary revenues, such as parking, laundry and antenna income, rose by 13.9% for the three months ended March 31, 2014 compared to the same period 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 based on the average monthly rents in place and CAPREIT's share of residential suites and sites as at March 31, 2014 increased to $479.1 million, up 9.9% from $436.1 million as of March 31, 2013 largely due to acquisitions and organic NOI growth. Net rental revenue net of dispositions for the twelve months ended March 31, 2014 was $459.7 million (2013 - $407.5 million).

Portfolio Average Monthly Rents ("AMR")
		Total Portfolio									Properties Owned Prior to March 31, 2013
As at March 31,		2014					2013					2014					2013 (1)
		AMR		Occ. %			AMR		Occ. %			AMR		Occ. %			AMR		Occ. %
Average Residential Suites	$	1,063		97.9		$	1,033		97.8		$	1,064		98.0		$	1,033		97.8
Average MHC Land Lease Sites	$	349		97.7		$	443		99.1		$	456		99.4		$	443		99.1
Overall Portfolio Average	$	954		97.9		$	978		97.9		$	1,006		98.2		$	977		97.9

(1)	Prior period's comparable AMR and occupancy have been restated for properties disposed of since April 1, 2013.

Overall average monthly rents as at March 31, 2014 decreased to $954 compared to $978 for the same period last year due to acquisitions in lower rent geographic regions. Average monthly rents for properties owned prior to March 31, 2013 increased as at March 31, 2014 to $1,006 from $977 as at March 31, 2013, an increase of 3.0% from the same period last year. As at March 31, 2014, occupancy remained strong at 98.2%. Average monthly rents for total portfolio residential properties increased by 2.9% as at March 31, 2014 compared to the same period last year while occupancy remained strong at 97.9% 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 fourth quarter of 2013 being in certain lower rent geographic regions.

Suite Turnovers and Lease Renewals
For the Three Months Ended March 31,	2014						2013
	Change in AMR				% Turnovers		Change in AMR				% Turnovers
	$		%		& Renewals (1)		$		%		& Renewals (1)
Suite Turnovers	23.6		2.2		5.3		10.2		1.0		5.4
Lease Renewals	17.3		1.6		15.6		29.9		2.8		15.5
Weighted Average of Turnovers and Renewals	18.9		1.8				24.8		2.3

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

The rate of growth in average monthly rents on lease renewals during the period is lower primarily due to the lower guideline increases for 2014 (Ontario - 0.8%, British Columbia - 2.2%), which compare less favourably to the permitted guideline increases in 2013 (Ontario - 2.5%, British Columbia - 3.8%) offset by above guideline increases ("AGI") applied. However, increased portfolio diversification helped mitigate the lower guideline increases. 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.

Operating Expenses
For the Three Months Ended March 31,		2014		% (1	)	2013		% (1	)
($ Thousands)
Operating Expenses
	Realty Taxes	14,210		11.2		14,125		12.2
	Utilities	17,980		14.2		15,616		13.5
	Other (2)	22,968		18.2		22,092		19.2
Total Operating Expenses		55,158		43.6		51,833		44.9

(1)	As a percentage of total operating revenues.
(2)	Comprises R&M, wages, general and administrative, insurance, advertising, and legal costs.

Overall operating expenses as a percentage of operating revenues decreased in the three months ended March 31, 2014, compared to the same period last year as a result of lower realty taxes and repairs and maintenance ("R&M") offset partially by higher utility costs.

Net Operating Income

Overall NOI improved in the current quarter by $7.9 million or 12.4% and the NOI margin increased to 56.4% from 55.1% for the same period last year due to higher operating revenues.

For the three months ended March 31, 2014, operating revenues for stabilized suites and sites increased 3.7% while operating costs only increased 1.6% compared to the same period last year. As a result, stabilized NOI increased by 5.3% for the three months ended March 31, 2014.

NON-IFRS FINANCIAL MEASURES

Three Months Ended March 31,		2014			2013
NFFO (000s)	$	42,913		$	36,186
NFFO Per Unit - Basic	$	0.395		$	0.362
Cash Distributions Per Unit	$	0.288		$	0.280
NFFO Payout Ratio		74.7	%		79.3	%
NFFO Effective Payout Ratio		50.5	%		60.6	%

LIQUIDITY AND LEVERAGE

As at March 31,	2014		2013
Total Debt to Gross Book Value	47.63	%	47.62	%
Total Debt to Gross Historical Cost (1)	57.08	%	57.38	%
Total Debt to Total Capitalization	52.97	%	48.13	%
Debt Service Coverage Ratio (times) (2)	1.58		1.53
Interest Coverage Ratio (times) (2)	2.69		2.55
Weighted Average Mortgage Interest Rate (3)	3.77	%	3.83	%
Weighted Average Mortgage Term to Maturity (years)	6.3		6.0

(1)	Based on historical cost of investment properties.
(2)	Based on the trailing four quarters ended March 31, 2014.
(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 March 31, 2014 would be 3.94% (March 31, 2013 - 4.02%).

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:

• Continues to maintain conservative ratio of total debt to gross book value as at March 31, 2014 of 47.63%;
• Debt service and interest coverage ratios for the quarter ended March 31, 2014 improved to 1.58 times and 2.69 times compared to 1.53 times and 2.55 times, respectively, for the same period last year;
• As at March 31, 2014, 96.5% (March 31, 2013 - 93.3%) of CAPREIT's mortgage portfolio was insured by the Canada Mortgage and Housing Corporation ("CMHC"), excluding the mortgages on CAPREIT's MHC land lease sites and the Ireland portfolio, 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 to 3.77% as at March 31, 2014 from 3.83% as at March 31, 2013, resulting in significant potential interest rate savings in future years;
• Management expects to raise between $600 million and $650 million in total mortgage renewals and refinancings in 2014, most of which is expected to be completed by end of second quarter of 2014. Unencumbered investment properties with a fair value over $110 million are expected to be financed for the remainder of 2014 reducing the total unencumbered investment properties to approximately $139 million;
• The weighted average term to maturity of the mortgage portfolio has improved from 6.0 years to 6.3 years as at March 31, 2014;
• As at March 31, 2014, CAPREIT has investment properties with a fair value of $248.8 million that are not encumbered by mortgages and secure only the Acquisition and Operating Facility;

Property Capital Investment Plan

During the three months ended March 31, 2014, CAPREIT made property capital investments (excluding disposed properties, head office assets, tenant improvements and signage) of $23.9 million as compared to $19.3 million the same period last year. For the full 2014 year, CAPREIT expects to complete property capital investments of approximately $165 million to $175 million, including approximately $87 million targeted at acquisitions completed since January 1, 2011 and approximately $22 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 April 15, 2014, CAPREIT announced that its indirect, wholly-owned subsidiary in Ireland, Irish Residential Properties REIT plc ("IRES REIT", formerly CAPREIT Ireland Limited) had published its prospectus dated April 15, 2014 related to the admission of its Ordinary Shares to the primary listing segment of the Official List of the Irish Stock Exchange and to trading on the regulated market for listed securities of the Irish Stock Exchange ("Admission"). Admission took place on April 16, 2014. On Admission, CAPREIT had an aggregate investment in the REIT valued at EUR42.0 million or 21% of the Ordinary Shares. The Irish assets' fair value at Admission was EUR46.5 million which is approximately EUR2.0 million in excess of the original acquisition costs (including transaction costs). Asset and property management functions will be provided to IRES REIT by IRES Fund Management Limited (formerly CR Fund Management Limited), a wholly-owned subsidiary of CAPREIT with an office in Dublin, Ireland, once it is approved as an Alternative Investment Fund Manager by the Central Bank of Ireland pursuant to the European Union (Alternative Investment Fund Managers) Regulations in Ireland. CAPREIT expects to account for its investment in IRES REIT using the equity investment method under IFRS.

Additional Information

More detailed information and analysis is included in CAPREIT's unaudited condensed consolidated interim financial statements and MD&A for the three months ended March 31, 2014, 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 the CAPREIT Management Team, will be held Wednesday, May 14, 2014 at 10:00 am EST. The telephone numbers for the conference call are: Local/International: (416) 340-2216, North American Toll Free: (866) 223-7781.

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 6724829#. The Instant Replay will be available until midnight, May 21, 2014. 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 primarily located in and near major urban centres across Canada and in Dublin, Ireland. As at March 31, 2014, CAPREIT had owning interests in 41,552 residential units, comprised of 35,372 residential suites and 29 manufactured home communities ("MHC") comprising 6,180 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 May 13, 2014, 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 and Ireland economies 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 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, foreign operation and currency risks, 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 May 13, 2014. The information in this press release is based on information available to Management as of May 13, 2014. 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	March 31, 2014			December 31, 2013
($ Thousands)
Investment Properties	$	5,501,578		$	5,459,218
Total Assets		5,600,626			5,558,934
Mortgages Payable		2,481,986			2,457,182
Bank Indebtedness		200,327			187,030
Total Liabilities		2,822,409			2,801,465
Unitholders' Equity		2,778,217			2,757,469

For The Three Months Ended March 31,			2014			2013
($ Thousands)
Net Operating Income		$	71,375		$	63,491
(Less) Plus:
	Trust Expenses (1)		(4,729	)		(4,375	)
	Unrealized Gain on Remeasurement of Investment Properties		4,202			33,655
	Remeasurement of Exchangable Units		(11	)		(104	)
	Unit-based Compensation Expenses		(1,070	)		(1,710	)
	Interest on Mortgages Payable and Other Financing Costs		(23,919	)		(24,018	)
	Interest on Bank Indebtedness		(1,892	)		(1,494	)
	Interest on Exchangeable Units		(46	)		(59	)
	Other Income (2)		2,059			2,485
	Amortization		(594	)		(517	)
	Unrealized and Realized Loss on Derivative Financial Instruments		(76	)		92
Net Income		$	45,333		$	67,446
Other Comprehensive Loss		$	(2,513	)	$	(1,585	)
Comprehensive Income		$	42,820		$	65,861

(1)	Includes a reversal of a legal provision of approximately $0.5 million in 2014.
(2)	Includes a one-time termination income of $1.2 million relating to the termination of the property and asset management services and a reversal of a legal provision which was assumed on acquisition of approximately $0.5 million in 2014.

Condensed Statements of Cash Flows
Three Months Ended March 31,				2014			2013
($ Thousands)
Cash Provided By Operating Activities:
	Net Income		$	45,333		$	67,446
	Items in Net Income Not Affecting Cash:
		Changes in Non-cash Operating Assets and Liabilities		499			(1,358	)
		Realized and Unrealized Gain on Remeasurements		(4,115	)		(33,643	)
		Gain on Sale of Investments		-			(1,737	)
		Unit-based Compensation Expenses		1,070			1,710
		Recovery of Deferred Income Taxes		-			-
		Items Related to Financing and Investing Activities		23,769			22,938
		Other		1,888			(360	)
Cash Provided By Operating Activities			$	68,444		$	54,996
Cash Used In Investing Activities
	Acquisitions			(11,356	)		(40,722	)
	Capital Investments			(43,533	)		(33,182	)
	Disposition of Investments			-			7,815
	Other			398			199
Cash Used In Investing Activities			$	(54,491	)	$	(65,890	)
Cash Provided By (Used In) Financing Activities
	Mortgages, Net of Financing Costs			19,174			87,462
	Bank Indebtedness, Net			13,297			(30,087	)
	Interest Paid			(24,516	)		(23,283	)
	Hedge Settlement			-			(1,321	)
	Proceeds on Issuance of Units			149			103
	Distributions, Net of DRIP and Other			(22,057	)		(21,980	)
Cash Provided By (Used In) Financing Activities			$	(13,953	)	$	10,894
Changes in Cash and Cash Equivalents During the Period				-			-
Cash and Cash Equivalents, Beginning of Period				-			-
Cash and Cash Equivalents, End of Period			$	-		$	-

Reconciliation of Net Income to FFO and to NFFO
Three Months Ended March 31,			2014			2013
($ Thousands, except per Unit amounts)
Net Income		$	45,333		$	67,446
Adjustments:
	Unrealized Gain on Remeasurement of Investment Properties		(4,202	)		(33,655	)
	Remeasurement of Exchangeable Units		11			104
	Remeasurement of Unit-based Compensation Liabilities		254			1,245
	Interest on Exchangeable Units		46			59
	Amortization of Property, Plant and Equipment		594			517
FFO		$	42,036		$	35,716
Adjustments:
	Unrealized and Realized (Gain) Loss on Derivative Financial Instruments		76			(92	)
	Amortization of Loss from AOCL to Interest and Other Financing Costs		821			752
	Net Mortgage Prepayment Cost		14			1,547
	Realized Gain on Sale of Investment		-			(1,737	)
	Gain on Foreign Exchange		(34	)		-
NFFO		$	42,913		$	36,186
	NFFO per Unit - Basic	$	0.395		$	0.362
	NFFO per Unit - Diluted	$	0.390		$	0.356
	Total Distributions Declared (1)	$	32,038		$	28,702
	NFFO Payout Ratio (2)		74.7	%		79.3	%
	Net Distributions Paid (1)	$	21,692		$	21,914
	Excess NFFO Over Net Distributions Paid	$	21,221		$	14,272
	Effective NFFO Payout Ratio (3)		50.5	%		60.6	%

(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 months ended March 31, 2014.
(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 March 31,			2014			2013
($ Thousands, except per Unit amounts)
NFFO		$	42,913		$	36,186
Adjustments:
	Provision for Maintenance Property Capital Investments (1)		(3,850	)		(3,708	)
	Amortization of Fair Value on Grant Date of Unit-based Compensation		816			465
AFFO		$	39,879		$	32,943
	AFFO per Unit - Basic	$	0.367		$	0.330
	AFFO per Unit - Diluted	$	0.362		$	0.325
	Total Distributions Declared (2)	$	32,038		$	28,702
	AFFO Payout Ratio (3)		80.3	%		87.1	%
	Net Distributions Paid (2)	$	21,692		$	21,914
	Excess AFFO Over Net Distributions Paid	$	18,187		$	11,029
	Effective AFFO Payout Ratio (4)		54.4	%		66.5	%

(1)	An industry based estimate (see the Non-IFRS Measures section in the MD&A for the three months ended March 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 three months ended March 31, 2014.
(3)	The payout ratio compares distributions declared to AFFO.
(4)	The effective payout ratio compares net distributions paid to AFFO.