CAPREIT Reports Another Quarter of Strong Performance

TORONTO, ONTARIO–(Marketwired – Nov. 7, 2016) – Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today solid portfolio growth and strong operating and financial results for the three and nine months ended September 30, 2016.

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2016			2015			2016			2015
Operating Revenues (000s)	$	151,812		$	131,812		$	444,106		$	391,022
Net Rental Income (“NOI”) (000s) (1)	$	96,274		$	82,087		$	271,737		$	238,187
NOI Margin (1)		63.4	%		62.3	%		61.2	%		60.9	%
Normalized Funds From Operations (“NFFO”) (000s) (1)	$	62,201		$	51,830		$	172,948		$	147,214
NFFO Per Unit – Basic (1)	$	0.470		$	0.440		$	1.335		$	1.275
Weighted Average Number of Units – Basic (000s)		132,246			117,912			129,520			115,425
NFFO Payout Ratio (1)		67.5	%		70.7	%		70.4	%		72.5	%

(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.

• Accretive acquisitions of 1,981 suites and sites further strengthens and diversifies property portfolio
• Stabilized portfolio occupancy strengthens to 98.8% with solid 2.7% increase in average monthly rents
• Portfolio growth and strong operating performance generates 15.2% and 13.6% increase in revenues for three and nine months ended September 30, 2016, respectively
• NOI up 17.3% and 14.1% in third quarter and first nine months of 2016
• Continuing strong organic growth as same property NOI up 3.6% and 2.5% for the three and nine months ended September 30, 2016, respectively
• NFFO up 20.0% in third quarter, 17.5% for nine months ended September 30, 2016
• NFFO payout ratio strengthens to 70.4% for nine months ended September 30, 2016
• Continued accretive growth as NFFO per Unit up 6.8% and 4.7% for the three and nine months ended September 30, 2016 despite 12% increase in the weighted average number of Units outstanding
• Asset and property management fees for IRES rise to $3.8 million for first nine months of 2016
• Financial position continues to strengthen with reduced leverage, lower interest costs, increased growth capacity, and $278.5 million in unencumbered assets

“Our proven value-enhancing strategies continue to deliver significant benefits to our Unitholders,” commented Thomas Schwartz, President and CEO. “Our track record of accretive portfolio growth over the last few years is generating impressive increases in revenues, while our focus on operating performance and tenant satisfaction continues to drive our strong organic growth. Combined with strong demand for quality rental residential properties in the majority of our markets across Canada, we look for another record year in 2016 and going forward.”

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2016			2015			2016			2015
Overall Portfolio Occupancy (1)								98.7	%		98.0	%
Overall Portfolio Average Monthly Rents (1),(2)							$	999		$	964
Operating Revenues (000s)	$	151,812		$	131,812		$	444,106		$	391,022
Annualized Net Rental Revenue Run-Rate (000s) (1),(3),(4)							$	581,575		$	542,723
Operating Expenses (000s)	$	55,538		$	49,725		$	172,369		$	152,835
NOI (000s) (4)	$	96,274		$	82,087		$	271,737		$	238,187
NOI Margin (4)		63.4	%		62.3	%		61.2	%		60.9	%
Number of Suites and Sites Acquired		158			4,638			1,981			5,459
Number of Suites Disposed		579			–			579			530

(1)	As at September 30.
(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 and nine months ended September 30, 2016.
(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 and nine months ended September 30, 2016, total operating revenues increased by 15.2% and 13.6%, respectively, compared to the same periods last year primarily due to the contribution from acquisitions, higher same property average monthly rents, and continuing strong occupancies. For the three and nine months ended September 30, 2016, ancillary revenues, such as parking, laundry and antenna income, increased 10.6% and 10.1% for the three and nine months ended September 30, 2016 respectively compared to the same periods last year.

CAPREIT’s annualized net rental revenue run-rate as at September 30, 2016 increased to $581.6 million, up 7.2% from $542.7 million as at September 30, 2015 primarily due to acquisitions completed within the last twelve months and strong increases in average monthly rents on properties owned prior to September 30, 2015. Net rental revenue run-rate net of dispositions for the twelve months ended September 30, 2016 was $551.6 million (2015 – $488.6 million).

Portfolio Average Monthly Rents (“AMR”)
		Total Portfolio												Properties Owned Prior to September 30, 2015
As at September 30,		2016						2015						2016						2015
			AMR		Occ.	%			AMR		Occ.	%			AMR		Occ.	%			AMR		Occ.	%
Average Residential Suites		$	1,097		98.8			$	1,060		97.9			$	1,094		98.8			$	1,065		97.9
Average MHC Land Lease Sites		$	377		98.2			$	364		98.6			$	376		98.2			$	364		98.6
Overall Portfolio Average		$	999		98.7			$	964		98.0			$	994		98.8			$	967		98.0

Overall average monthly rents for the stabilized residential suite portfolio (properties owned prior to September 30, 2015) increased 2.7% to $1,094 at September 30, 2016 from $1,065 at September 30, 2015. The increases were due primarily to a combination of ongoing successful sales and marketing strategies, above guideline rent increases, and continued strength in the residential rental sector in the majority of CAPREIT’s regional markets. Occupancy for the stabilized residential suite portfolio increased to 98.8% as at September 30, 2016 compared to 97.9% for the same period last year.

For the stabilized MHC land lease portfolio, average monthly rents increased to $376 as at September 30, 2016, compared to $364 as at September 30, 2015 while occupancy remained strong at 98.2% compared to 98.6% for the same period last year. Management believes MHC land lease sites provide secure and stable cash flows due to long-term tenancies, high occupancies, steady increases in average monthly rents, and significantly lower capital and maintenance costs.

Suite Turnovers and Lease Renewals
For the Three Months Ended September 30,				2016				2015
				Change in AMR		% Turnovers		Change in AMR		% Turnovers
				$	%	& Renewals (1)		$	%	& Renewals (1)
Suite Turnovers				25.8	2.4	9.4		21.4	2.0	8.2
Lease Renewals				20.7	2.0	27.7		20.4	1.9	23.7
Weighted Average of Turnovers and Renewals				22.0	2.1			20.6	1.9
For the Nine Months Ended September 30,				2016				2015
				Change in AMR		% Turnovers		Change in AMR		% Turnovers
				$	%	& Renewals (1)		$	%	& Renewals (1)
Suite Turnovers				7.0	0.6	21.7		18.6	1.7	19.4
Lease Renewals				21.4	2.0	62.3		21.9	2.0	55.6
Weighted Average of Turnovers and Renewals				17.7	1.6			21.1	1.9

(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.

Suite turnovers in the residential suite portfolio (excluding co-ownerships) during the three months ended September 30, 2016 resulted in average monthly rent increasing by approximately $26 or 2.4% per suite compared to an increase of approximately $21 or 2.0% in the same period last year. For the nine months ended September 30, 2016, suite turnovers resulted in average monthly rent increasing by approximately $7 or 0.6% compared to an increase of approximately $19 or 1.7% in the same period last year.

During 2016, Management made a strategic decision to reduce rents in Alberta and Saskatchewan in order to increase occupancies and reduce turnovers in these regions. Alberta and Saskatchewan have been facing increased pressure due to falling energy prices resulting in a weaker economy in these regions than in the rest of Canada. Excluding Alberta and Saskatchewan, average monthly rents increased strongly by approximately $43 or 4.0% and $38 or 3.5% on suite turnovers for the three and nine months ended September 30, 2016, respectively, compared to an increase of $29 or 2.7% and $25 or 2.4% on suite turnovers, respectively for the same period last year, primarily due to the strong rental markets of British Columbia and Ontario.

Pursuant to Management’s focus on increasing overall portfolio rents for the three months ended September 30, 2016 average monthly rents on lease renewals increased by approximately $21 or 2.0% per suite compared to an increase of approximately $20 or 1.9% for the same period last year. For the nine months ended September 30, 2016, average monthly rents on lease renewals increased by approximately $21 or 2.0%, compared to an increase of approximately $22 or 2.0% for the same period last year. The stable rate of growth in average monthly rents on lease renewals during the period is due primarily to the strategically reduced rents in Alberta to increase occupancy, offset by higher guideline increases for 2016 (Ontario – 2.0%, British Columbia – 2.9%), compared to the permitted guideline increases in 2015 (Ontario – 1.6%, British Columbia – 2.5%), and by increases due to above guideline increases (“AGI”) achieved in Ontario. Increased portfolio diversification helped mitigate geographical risk in particular areas of Canada. Management continues to pursue applications in Ontario for AGIs where it believes increases above the annual guideline are supported by market conditions to raise average monthly rents on lease renewals (see discussion in the Future Outlook section). For 2017, the permitted guideline increase in Ontario and British Columbia has been set to 1.5% and 3.7%, respectively.

Operating Expenses
		Three Months Ended						Nine Months Ended
		September 30						September 30
($ Thousands)		2016		%(1)	2015		%(1)	2016		%(1)	2015		%(1)
Operating Expenses
	Realty Taxes	$	16,976	11.2	$	14,617	11.1	$	49,165	11.1	$	43,801	11.2
	Utilities		12,361	8.1		10,422	7.9		44,747	10.1		39,426	10.1
	Other (2)		26,201	17.3		24,686	18.7		78,457	17.6		69,608	17.8
Total Operating Expenses		$	55,538	36.6	$	49,725	37.7	$	172,369	38.8	$	152,835	39.1

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

Operating Expenses

Overall operating expenses as a percentage of operating revenues decreased to 36.6% and 38.8%, respectively, for the three and nine months ended September 30, 2016 compared to 37.7% and 39.1%, respectively, for the same periods last year, due primarily to reduced R&M expenses in the three months ended September 30, 2016, and lower R&M and advertising expenses for the nine months ended September 30, 2016.

NOI

For the three months ended September 30, 2016, NOI increased by $14.2 million or 17.3%, and the NOI margin strengthened to 63.4% compared to 62.3% for the same period last year. For the nine months ended September 30, 2016, NOI increased by $33.6 million or 14.1%, and the NOI margin improved to 61.2% compared to 60.9% last year.

For the three and nine months ended September 30, 2016, operating revenues for stabilized suites and sites increased 1.8% and 1.8% respectively, while operating expenses increased 1.2% and 0.8%, respectively, compared to the same periods last year. As a result, for the three and nine months ended September 30, 2016, stabilized NOI increased by 3.6% and 2.5%, respectively, compared to the same periods last year, showing the positive effects of CAPREIT’s geographic diversification across Canada and its proven property management programs.

NON-IFRS FINANCIAL MEASURES
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
NFFO (000s)	$	62,201		51,830	$	172,948	$	147,214
NFFO Per Unit – Basic	$	0.470	$	0.440	$	1.335	$	1.275
Cash Distributions Per Unit	$	0.313	$	0.305	$	0.925	$	0.902
NFFO Payout Ratio		67.5%		70.7%		70.4%		72.5%
NFFO Effective Payout Ratio		45.1%		48.5%		47.0%		48.7%

CAPREIT’s track record of strong accretive growth continued in 2016 as basic NFFO per Unit increased by 4.7% for the nine months ended September 30, 2016 compared to the same period last year despite the approximate 12% increase in the weighted average number of Units outstanding due to successful equity offerings completed since March 2015. For the three months ended September 30, 2016, basic NFFO per Unit increased by a very strong 6.8% compared to the same period last year despite the approximate 12% increase in the weighted average number of Units outstanding.

LIQUIDITY AND LEVERAGE
As at September 30,	2016		2015
Total Debt to Gross Book Value	44.31	%	49.27	%
Total Debt to Gross Historical Cost (1)	54.17	%	59.21	%
Total Debt to Total Capitalization	45.05	%	50.14	%
Debt Service Coverage Ratio (times) (2)	1.63		1.61
Interest Coverage Ratio (times) (2)	3.05		2.93
Weighted Average Mortgage Interest Rate (3)	3.25	%	3.53	%
Weighted Average Mortgage Term to Maturity (years)	6.2		6.2

(1)	Based on historical cost of investment properties.
(2)	Based on the trailing four quarters ended September 30, 2016.
(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 interest rate hedge settlement of $32.5 million included in Accumulated Other Comprehensive Loss (“AOCL”), the effective portfolio weighted average interest rate at September 30, 2016 would be 3.37% (September 30, 2015 – 3.67%).

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:

• Total debt to gross book value ratio strengthened to 44.3% as at September 30, 2016 compared to 49.3% for the same period last year;
• Debt service and interest coverage ratio as at September 30, 2016 improved to 1.63 times and 3.05 times, respectively, compared to 1.61 times and 2.93 times last year;
• As at September 30, 2016, 96.5% (September 30, 2015 – 96.0%) 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 Euro LIBOR borrowings, resulting in improved spreads on mortgages and lower overall interest costs than conventional mortgages.
• The effective portfolio weighted average interest rate on mortgages has steadily declined to 3.25% as at September 30, 2016 from 3.53% as at September 30, 2015, resulting in significant potential interest rate savings in future years;
• Management expects to raise between $275 million and $325 million in total mortgage renewals and refinancings in 2016;
• The weighted average term to maturity of the mortgage portfolio was 6.2 years as at September 30, 2016 compared to 6.2 years at September 30, 2015;
• As at September 30, 2016, CAPREIT has investment properties with a fair value of $278.5 million not encumbered by mortgages and securing only the Acquisition and Operating Facility. CAPREIT intends to maintain unencumbered investment properties with an aggregate fair value in the range of $150 and $180 million over the long term.
• On August 3, 2016 CAPREIT completed the sale of 5,126,000 Units, including an over-allotment option, for $32.20 per Unit for aggregate gross proceeds of $165.1 million. The net proceeds of the offering were used to repay a portion of borrowings under the REIT’s Acquisition and Operating Facility.

Property Capital Investments

During the nine months ended September 30, 2016, CAPREIT made property capital investments (excluding head office assets) of $124.3 million as compared to $106.0 million in the same period last year. For the full 2016 year, CAPREIT expects to complete property capital investments of approximately $175 million to $185 million, including approximately $96 million targeted at acquisitions completed since January 1, 2011, and approximately $25 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 also 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.

Additional Information

More detailed information and analysis is included in CAPREIT’s unaudited condensed consolidated interim financial statements and MD&A for the three and nine months ended September 30, 2016, 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.caprent.com or www.capreit.net.

Conference Call

A conference call hosted by Thomas Schwartz, President and CEO and the CAPREIT Management Team, will be held Tuesday, November 8, 2016 at 10:00 am EST. The telephone numbers for the conference call are: Local/International: (416) 340-2216, North American Toll Free: (866) 225-0198.

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.caprent.com or 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 7385210#. The Instant Replay will be available until midnight, November 15, 2016. The call and accompanying slides will also be archived on the CAPREIT website at www.caprent.com or www.capreit.net. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or 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. As at September 30, 2016, CAPREIT had owning interests in 48,190 residential units, comprised of 41,747 residential suites and 31 manufactured home communities (“MHC”) comprising 6,443 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or 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. These include Net Rental Revenue Run-Rate, stabilized NOI, FFO, NFFO, Adjusted Cash Flow from Operating Activities, and applicable per Unit amounts and payout ratios (collectively, the “Non-IFRS Measures”). These Non-IFRS Measures are further defined and discussed in the MD&A released on November 7, 2016, which should be read in conjunction with this press release. Since Net Rental Revenue Run-Rate, stabilized NOI, FFO, NFFO, and Adjusted Cash Flow from Operating Activities are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT has presented the Non-IFRS Measures because Management believes the Non-IFRS Measures are relevant measures of the ability of CAPREIT to earn and to evaluate CAPREIT’s performance. A reconciliation of Net Income and the Non-IFRS Measures including Adjusted Funds From Operations (“AFFO”) is included in this press release. The 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 Irish 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; however there can be no assurance actual results will be consistent with these forward-looking statements, and 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, land transfer tax, government regulations, controls over financial accounting, legal and regulatory concerns, the nature of units of CAPREIT (“Trust Units”), Preferred Units, and units 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 November 7, 2016. The information in this press release is based on information available to Management as of November 7, 2016. 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	September 30, 2016		December 31, 2015
($ Thousands)
Investment Properties	$	7,409,460	$	6,863,140
Total Assets		7,663,792		7,102,828
Mortgages Payable		3,355,066		3,097,773
Bank Indebtedness		61,595		168,211
Total Liabilities		3,599,825		3,442,875
Unitholders’ Equity		4,063,967		3,659,953

Condensed Income Statements
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
($ Thousands)		2016			2015			2016			2015
NOI			96,274			82,087			271,737			238,187
	Trust Expenses		(6,301	)		(5,537	)		(23,246	)		(17,338	)
	Unrealized Gain on Remeasurement of Investment Properties		67,130			(42,143	)		161,967			92,212
	Realized Loss on Disposition of Investment Properties		(1,485	)		–			(1,485	)		(639	)
	Remeasurement of Exchangeable Units		409			126			(610	)		(272	)
	Unit-based Compensation (Expenses) Recoveries		5,417			(4,296	)		(15,073	)		(15,492	)
	Interest on Mortgages Payable and Other Financing Costs		(28,867	)		(25,857	)		(83,700	)		(76,769	)
	Interest on Bank Indebtedness		(1,074	)		(668	)		(3,932	)		(1,997	)
	Interest on Exchangeable Units		(52	)		(49	)		(150	)		(145	)
	Other Income		2,908			2,072			11,873			8,218
	Amortization		(725	)		(715	)		(2,645	)		(2,036	)
	Severance and Other Employee Costs		–			(2,425	)		–			(4,842	)
	Unrealized and Realized (Loss) Gain on Derivative Financial Instruments		(464	)		221			(1,315	)		437
	Dilution Loss on Equity Accounted Investments		–			–			–			(4,346	)
	Gain (Loss) on Foreign Currency Translation		(2,507	)		(6,543	)		1,721			(6,920	)
Net Income			130,663			(3,727	)		315,142			208,258
Other Comprehensive Income		$	3,520		$	6,568		$	3,782		$	10,031
Comprehensive Income		$	134,183		$	2,841		$	318,924		$	218,289

Condensed Statements of Cash Flows
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2016			2015			2016			2015
($ Thousands)
Cash Provided By Operating Activities:
	Net Income	$	130,663		$	(3,727	)	$	315,142		$	208,258
	Items in Net Income Not Affecting Cash:
	Changes in Non-cash Operating Assets and
	Liabilities		10,285			21,954			(5,725	)		(3,518	)
	Realized and Unrealized (Gain) Loss on
	Remeasurements		(65,590	)		41,796			(158,557	)		(91,738	)
	Unit-based Compensation (Recoveries) Expenses		(5,417	)		4,296			15,073			15,492
	Items Related to Financing and Investing
	Activities		27,510			24,344			77,497			71,660
	Other		5,276			8,895			6,717			18,153
Cash Provided By Operating Activities			102,727			97,558			250,147			218,307
Cash Used In Investing Activities
	Acquisitions		(40,987	)		(689,957	)		(293,052	)		(906,944	)
	Capital Investments		(56,044	)		(53,038	)		(133,328	)		(115,375	)
	Acquisition of investments		–			–			–			(32,305	)
	Dispositions		31,648			–			31,648			24,004
	Other		446			287			3,185			1,050
Cash Used In Investing Activities			(64,937	)		(742,708	)		(391,547	)		(1,029,570	)
Cash (Used) Provided By Financing Activities
	Mortgages, Net of Financing Costs		11,819			32,164			248,921			237,436
	Bank Indebtedness		(152,067	)		657,093			(106,616	)		557,255
	Interest Paid		(27,839	)		(24,658	)		(81,689	)		(74,133	)
	Proceeds on Issuance of Units		157,710			4,536			161,541			161,181	)
	Distributions, Net of DRIP and Other		(27,413	)		(23,985	)		(80,757	)		(70,476	)
Cash (Used) Provided By Financing Activities			(37,790	)		645,150			141,400			811,263
Changes in Cash and Cash Equivalents During the Period			–			–			–			–
Cash and Cash Equivalents, Beginning of Period			–			–			–			–
Cash and Cash Equivalents, End of Period		$	–		$	–		$	–		$	–

SELECTED NON-IFRS FINANCIAL MEASURES
Reconciliation of Net Income to FFO and to NFFO
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2016			2015			2016			2015
($ Thousands, except per Unit amounts)
Net Income		$	130,663		$	(3,727	)	$	315,142		$	208,258
Adjustments:
	Unrealized (Gain) Loss on Remeasurement of Investment Properties		(67,130	)		42,143			(161,967	)		(92,212	)
	Realized Loss on Disposition of Investment Properties		1,485			–			1,485			639
	Remeasurement of Exchangeable Units		(409	)		(126	)		610			272
	Remeasurement of Unit-based Compensation Liabilities		(6,933	)		3,030			11,080			11,820
	Interest on Exchangeable Units		52			49			150			145
	Corporate taxes expense		–			28			–			28
	Loss (Gain) on Foreign Currency Translation		2,507			6,543			(1,721	)		6,920
	FFO Adjustment for Income from Equity Accounted Investments		–			–			(3,595	)		(2,099	)
	Unrealized and Realized Loss (Gain) on Derivative Financial Instruments		464			(221	)		1,315			(437	)
	Dilution Loss on Equity Accounted Investments		–			–			–			4,346
	Amortization of Property, Plant and Equipment		725			715			2,645			2,036
FFO		$	61,424		$	48,434		$	165,144		$	139,716
Adjustments:
	Amortization of Loss from AOCL to Interest and Other Financing Costs		777			848			2,330			2,533
	Acquisition Research Costs(4)		–			–			5,474			–
	Net Mortgage Prepayment Cost		–			123			–			123
	Severance and Other Employee Costs		–			2,425			–			4,842
NFFO		$	62,201		$	51,830		$	172,948		$	147,214
	NFFO per Unit – Basic	$	0.470		$	0.440		$	1.335		$	1.275
	NFFO per Unit – Diluted	$	0.464		$	0.433		$	1.318		$	1.256
	Total Distributions Declared (1)	$	41,987			36,653		$	121,737		$	106,729
	NFFO Payout Ratio (2)		67.5	%		70.7	%		70.4	%		72.5	%
	Net Distributions Paid (1)	$	28,037		$	25,129		$	81,227		$	71,663
	Excess NFFO Over Net Distributions Paid	$	34,164		$	26,701		$	91,721		$	75,551
	Effective NFFO Payout Ratio (3)		45.1	%		48.5	%		47.0	%		48.7	%

(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 and nine months ended September 30, 2016.
(2)	The payout ratio compares distributions declared to NFFO.
(3)	The effective payout ratio compares net distributions paid to NFFO.
(4)	Expenses incurred relates to transactions that were not completed included in trust expenses.

Reconciliation of cash generated from operating activities to Adjusted Cash Flows from Operating Activities:
		Three Months Ended						Nine Months Ended
		September 30						September 30
($ Thousands, except per Unit amounts)		2016			2015			2016			2015
Cash Generated From Operating Activities		$	102,727		$	97,558		$	250,147		$	218,307
Adjustments
	Interest Paid		(27,839	)		(24,658	)		(81,689	)		(74,133	)
Adjusted Cash Flow from Operating Activities		$	74,888		$	72,900		$	168,458		$	144,174

Reconciliation of NFFO to AFFO
		Three Months Ended						Nine Months Ended
		September 30						September 30
		2016			2015			2016			2015
($ Thousands, except per Unit amounts)
NFFO		$	62,201		$	51,830		$	172,948		$	147,214
Adjustments:
	Provision for Maintenance Property Capital Investments (1)		(4,606	)		(4,101	)		(13,667	)		(11,926	)
	Amortization of Fair Value on Grant Date of Unit-based Compensation		1,516			1,266			3,993			3,672
AFFO		$	59,111		$	48,995		$	163,274		$	138,960
	AFFO per Unit – Basic	$	0.447		$	0.416		$	1.261		$	1.204
	AFFO per Unit – Diluted	$	0.441		$	0.410		$	1.244		$	1.186
	Distributions Declared (2)	$	41,987		$	36,653		$	121,737		$	106,729
	AFFO Payout Ratio (3)		71.0	%		74.8	%		74.6	%		76.8	%
	Net Distributions Paid (2)	$	28,037		$	25,129		$	81,227		$	71,663
	Excess AFFO over Net Distributions Paid	$	31,074		$	23,866		$	82,047		$	67,297
	Effective AFFO Payout Ratio (4)		47.4	%		51.3	%		49.7	%		51.6	%

(1)	An industry based estimate (see the Non-IFRS Measures section in the MD&A for the three and nine months ended September 30, 2016).
(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 and nine months ended September 30, 2016.
(3)	The payout ratio compares distributions declared to AFFO.
(4)	The effective payout ratio compares net distributions paid to AFFO.