CAPREIT Reports Continued Strong Growth in Second Quarter 2015

TORONTO, ONTARIO–(Marketwired – Aug. 10, 2015) – Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today strong operating and financial results for the three and six months ended June 30, 2015.

		Three Months Ended				Six Months Ended
		June 30				June 30
		2015		2014		2015		2014
Operating Revenues (000s)	$	130,256	$	125,411	$	259,210	$	251,944
Net Operating Income (“NOI”) (000s) (1)	$	81,276	$	78,089	$	156,100	$	149,464
NOI Margin (1)		62.4%		62.3%		60.2%		59.3%
Normalized Funds From Operations (“NFFO”) (000s) (1)	$	51,665	$	47,113	$	95,384	$	90,026
NFFO Per Unit – Basic (1)	$	0.441	$	0.431	$	0.836	$	0.826
Weighted Average Number of Units – Basic (000s)		117,081		109,211		114,161		108,964
NFFO Payout Ratio (1)		69.8%		68.9%		73.5%		71.7%

(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.

• Strong occupancies, increased average monthly rents and contributions from acquisitions, drive 3.9% and 2.9% increase in revenues for three and six months ended June 30, 2015, respectively
• Average monthly rents for same residential properties up 2.0% as at June 30, 2015 compared to last year
• Portfolio occupancy remains strong at 98.2%
• NFFO up 9.7% in second quarter, 6.0% for six months ended June 30, 2015
• Continued accretive growth as NFFO per Unit for the second quarter and six months ended June 30, 2015 up 2.3% and 1.2%, respectively, despite 7% and 5% increase in the weighted average number of Units outstanding.
• Same property NOI up 2.0% and 3.7% for the three and six months ended June 30, 2015, respectively
• NOI margin increased to 62.4% and 60.2% for the three and six months ended June 30, 2015
• Closed and committed mortgage refinancings for $277.8 million to date, including $119.9 million for renewals of existing mortgages and $157.9 million for additional top up financing with a weighted average term to maturity of 10.2 years, and a weighted average interest rate of 2.66%.
• Subsequent to quarter end entered into agreement to acquire interest in residential component of downtown Toronto’s King High Line Project, CAPREIT’s first joint venture property development.

“Following another record year in 2014, our growth and strong operating performance continued in the second quarter and first half of 2015, driven by our strong increases in same property NOI, our prudent acquisition program, and our commitment to delivering value to our Unitholders,” commented Thomas Schwartz, President and CEO. “Looking ahead, we are confident 2015 will be another record year for CAPREIT as we capitalize on continuing high demand for our quality properties in majority of our target markets.”

		Three Months Ended				Six Months Ended
		June 30				June 30
		2015		2014		2015		2014
Overall Portfolio Occupancy (1)						98.2%		98.3%
Overall Portfolio Average Monthly Rents (1),(2)					$	976	$	958
Operating Revenues (000s)	$	130,256	$	125,411	$	259,210	$	251,944
Annualized Net Rental Revenue Run-Rate (000s) (1),(3),(4)					$	494,832	$	477,905
Operating Expenses (000s)	$	48,980	$	47,322	$	103,110	$	102,480
NOI (000s) (4)	$	81,276	$	78,089	$	156,100	$	149,464
NOI Margin (4)		62.4%		62.3%		60.2%		59.3%
Number of Suites and Sites Acquired		140		2		821		2
Number of Suites Disposed		–		–		530		338

(1)	As at June 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 six months ended June 30, 2015.
(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 six months ended June 30, 2015, total operating revenues increased by 3.9% and 2.9%, 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 and six months ended June 30, 2015, ancillary revenues, including parking, laundry and antenna income, rose by 11.1% and 5.5%, 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 June 30, 2015 increased to $494.8 million, up 3.5% from $477.9 million as at June 30, 2014 primarily due to acquisitions completed within the last twelve months and strong increases in average monthly rents. Net rental revenue run-rate net of dispositions for the twelve months ended June 30, 2015 was $483.1 million (2014 – $468.9 million).

Portfolio Average Monthly Rents (“AMR”)
		Total Portfolio					Properties Owned Prior to June 30, 2014
As at June 30,		2015			2014			2015			2014 (1)
		AMR	Occ. %		AMR	Occ. %		AMR	Occ. %		AMR	Occ. %
Average Residential Suites	$	1,088	98.0	$	1,069	98.4	$	1,091	98.1	$	1,070	98.4
Average MHC Land Lease Sites	$	360	99.0	$	350	97.7	$	359	99.0	$	350	97.7
Overall Portfolio Average	$	976	98.2	$	958	98.3	$	977	98.3	$	958	98.3

(1)	Prior period’s comparable AMR and occupancy have been restated for properties disposed of since June 30, 2014.

Average monthly rents for residential suites increased by 1.8% to $1,088 and occupancy remained stable at 98.0% as at June 30, 2015 due to ongoing successful sales and marketing strategies and continued strength in the residential rental sector in the majority of CAPREIT’s regional markets. For the Manufactured Housing Community (“MHC”) land lease portfolio, average monthly rents increased to $360 as at June 30, 2015, compared to $350 as at June 30, 2014. Occupancy for the MHC portfolio rose to 99.0% at June 30, 2015 from 97.7% at the same time last year.

Average monthly rents for residential suites owned prior to June 30, 2014 also increased as at June 30, 2015 to $1,091 from $1,070 as at June 30, 2014, an increase of 2.0% from the same period last year with occupancies remaining strong at 98.1%.

Suite Turnovers and Lease Renewals
For the Three Months Ended June 30,
	2015			2014
	Change in AMR		% Turnovers	Change in AMR		% Turnovers
	$	%	& Renewals(1)	$	%	& Renewals(1)
Suite Turnovers	20.8	1.9	6.7	34.4	3.2	7.2
Lease Renewals	22.3	2.0	20.7	17.2	1.6	20.5
Weighted Average of Turnovers and Renewals	22.0	2.0		21.7	2.0

For the Six Months Ended June 30,
	2015			2014
	Change in AMR		% Turnovers	Change in AMR		% Turnovers
	$	%	& Renewals(1)	$	%	& Renewals(1)
Suite Turnovers	16.5	1.5	12.8	29.8	2.8	12.6
Lease Renewals	23.1	2.1	36.3	17.3	1.6	36.2
Weighted Average of Turnovers and Renewals	21.4	1.9		20.5	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.

The higher rate of growth in average monthly rents on lease renewals during 2015 compared to the prior year is primarily due to the higher mandated guideline increases for 2015 (Ontario – 1.6%, British Columbia – 2.5%), compared to the lower guideline increases in 2014 (Ontario – 0.8%, British Columbia – 2.2%) and by increases due to above guideline increases (“AGI”) achieved in Ontario in 2015. Management continues to pursue AGI applications where it believes increases are supported by market conditions above the annual guideline to raise average monthly rents on lease renewals. For 2016, the permitted guideline increase in Ontario has been increased to 2.0%.

Operating Expenses
			Three Months Ended							Six Months Ended
			June 30							June 30
($ Thousands)			2015	%(1)		2014	%(1)			2015	%(1)		2014	%(1)
Operating Expenses
	Realty Taxes	$	14,519	11.1	$	13,749	11.0		$	29,184	11.3	$	27,959	11.1
	Utilities		11,169	8.6		10,947	8.7			29,004	11.2		29,037	11.5
	Other (2)		23,292	17.9		22,626	18.0			44,922	17.3		45,484	18.1
Total Operating Expenses		$	48,980	37.6	$	47,322	37.7		$	103,110	39.8	$	102,480	40.7

(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 improved to 37.6% and 39.8%, respectively, for the three and six months ended June 30, 2015 compared to 37.7% and 40.7%, respectively, for the same periods last year, due to lower repairs and maintenance (“R&M”), wages, and utility costs as a percentage of operating revenues.

Net Operating Income

For the three months ended June 30, 2015, NOI improved by $3.2 million or 4.1%, and the NOI margin increased to 62.4% from 62.3% for the same period last year. For the six months ended June 30, 2015, NOI increased by $6.6 million or 4.4%, and the NOI margin increased to 60.2% compared to 59.3% last year. The increase in NOI margin for the three and six months ended June 30, 2015 was primarily the result of higher operating revenues, lower R&M, wages and utility costs partially offset by higher realty taxes costs as a percentage of operating revenues.

For the three and six months ended June 30, 2015, operating revenues for stabilized suites and sites increased 2.1% and 1.9% respectively, while operating expenses increased 2.2% and decreased 0.6%, respectively, compared to the same periods last year. As a result, for the three and six months ended June 30, 2015, stabilized NOI increased by a strong 2.0% and 3.7%, respectively, compared to the same periods last year.

NON-IFRS FINANCIAL MEASURES

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2015		2014		2015		2014
NFFO (000s)	$	51,665		47,113	$	95,384	$	90,026
NFFO Per Unit – Basic	$	0.441	$	0.431	$	0.836	$	0.826
Cash Distributions Per Unit	$	0.302	$	0.290	$	0.597	$	0.578
NFFO Payout Ratio		69.8%		68.9%		73.5%		71.7%
NFFO Effective Payout Ratio		44.4%		47.3%		48.8%		48.9%

For the six months ended June 30, 2015, basic NFFO per Unit increased by 1.2% compared to the same period last year despite the approximate 5% increase in the weighted average number of Units outstanding due to the equity offering completed in March 2015. For the three months ended June 30, 2015, basic NFFO per Unit increased by 2.3% compared to the same period last year despite the approximate 7% increase in the weighted average number of Units outstanding.

LIQUIDITY AND LEVERAGE

As at June 30,	2015	2014
Total Debt to Gross Book Value	43.71%	47.22%
Total Debt to Gross Historical Cost (1)	54.22%	56.79%
Total Debt to Total Capitalization	45.30%	51.23%
Debt Service Coverage Ratio (times) (2)	1.60	1.59
Interest Coverage Ratio (times) (2)	2.88	2.71
Weighted Average Mortgage Interest Rate (3)	3.57%	3.72%
Weighted Average Mortgage Term to Maturity (years)	6.2	6.7

(1)	Based on historical cost of investment properties.
(2)	Based on the trailing four quarters ended June 30, 2015.
(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 June 30, 2015 would be 3.72% (June 30, 2014 – 3.88%).

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 has improved significantly to 43.71% as at June 30, 2015 compared to 47.22% for the same period last year;
• Debt service and interest coverage ratios for the quarter ended June 30, 2015 improved to 1.60 times and 2.88 times, respectively, compared to 1.59 times and 2.71 times last year;
• As at June 30, 2015, 95.9% (June 30, 2014 – 97.0%) 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, 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 3.57% as at June 30, 2015 from 3.72% as at June 30, 2014, resulting in significant potential interest rate savings in future years;
• Management expects to raise between $325 million and $375 million in total mortgage renewals and refinancings in 2015;
• The weighted average term to maturity of the mortgage portfolio remained stable at 6.2 years as at June 30, 2015 compared to 6.7 years at June 30, 2014;
• As at June 30, 2015, CAPREIT has investment properties with a fair value of $252.3 million not encumbered by mortgages and secure 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.

Property Capital Investments

During the six months ended June 30, 2015, CAPREIT made property capital investments (excluding disposed properties, head office assets, tenant improvements and signage) of $58.2 million as compared to $56.4 million in the same period last year. For the full 2015 year, CAPREIT expects to complete property capital investments of approximately $145 million to $155 million, including approximately $51 million targeted at acquisitions completed since January 1, 2011, and approximately $15 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.

Subsequent Events

On July 23, 2015 CAPREIT announced that the Toronto Stock Exchange (the “TSX”) approved its notice of intention to make a normal course issuer bid for its Units as appropriate opportunities arise from time to time. CAPREIT’s normal course issuer bid will be made in accordance with the policies of the TSX. CAPREIT may purchase its Units during the period from July 28, 2015 to July 27, 2016. Pursuant to the notice and subject to the market price of its Units and other considerations, CAPREIT may acquire over the next 12 months up to 11,493,069 Units, representing 10% of the public float. The average daily trading volume (“ADTV”) for the six calendar months prior to the date hereof was 212,824 Units and CAPREIT will be permitted to re-purchase up to 25% of the ADTV on any trading day (25% being 53,206 Units).

On July 29, 2015, CAPREIT entered into an agreement to acquire a one-third undivided interest in the residential component of the King High Line Project, a mixed-use property development located at 1100 King Street West in downtown Toronto, Ontario (Liberty Village). The property will consist of approximately 160,000 square feet of commercial retail space (which will not be owned by CAPREIT), and three rental residential towers containing 506 apartment suites of various sizes, including some designed for families, over four levels of below-grade parking. CAPREIT will pay $60.3 million for its interest in the residential component of the development, financed by cash from CAPREIT’s Acquisition and Operating credit facility. CAPREIT has been granted the property management contract and will be responsible for the lease-up of the residential towers for a market fee. Closing will take place upon substantial completion of construction, which is expected to occur in 2018. CAPREIT is partnering with First Capital Realty Inc. (TSX:FCR), Canada’s leading owner, developer and manager of well-located grocery anchored retail properties, and First Capital Realty Inc.’s existing partner, an experienced developer of residential properties in Toronto’s King West neighbourhood.

On July 31, 2015, CAPREIT completed the acquisition of Yorkson Grove, a 58 suite luxury apartment property located in Langley, British Columbia for a purchase (excluding transaction costs) of approximately $17.0 million. The purchase was funded with CAPREIT’s Acquisition and Operating credit facility.

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 six months ended June 30, 2015, 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 Tuesday, August 11, 2015 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.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 2931832#. The Instant Replay will be available until midnight, August 18, 2015. 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. As at June 30, 2015, CAPREIT had owning interests in 41,979 residential units, comprised of 35,694 residential suites and 30 manufactured home communities (“MHC”) comprising 6,285 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 August 10, 2015, 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 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, 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 August 10, 2015. The information in this press release is based on information available to Management as of August 10, 2015. 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	June 30, 2015		December 31, 2014
($ Thousands)
Investment Properties	$	5,999,870	$	5,749,640
Total Assets		6,212,993		5,926,161
Mortgages Payable		2,718,923		2,658,454
Bank Indebtedness		13,729		113,167
Total Liabilities		2,893,437		2,943,056
Unitholders’ Equity		3,319,556		2,983,105

Condensed Income Statements
		Three Months Ended						Six Months Ended
		June 30,						June 30,
($ Thousands)			2015			2014			2015			2014
Net Operating Income			81,276			78,089			156,100			149,464
	Trust Expenses		(5,337	)		(6,640	)		(11,801	)		(11,369	)
	Unrealized Gain on Remeasurement of Investment Properties		103,230			32,935			134,355			37,137
	Realized Loss on Disposition of Investment Properties		–			–			(639	)		–
	Remeasurement of Exchangeable Units		258			(249	)		(398	)		(260	)
	Unit-based Compensation Recoveries (Expenses)		3,782			(6,225	)		(11,196	)		(7,295	)
	Interest on Mortgages Payable and Other Financing Costs		(25,260	)		(24,926	)		(50,912	)		(48,845	)
	Interest on Bank Indebtedness		(420	)		(1,486	)		(1,329	)		(3,378	)
	Interest on Exchangeable Units		(48	)		(47	)		(96	)		(93	)
	Other Income		3,904			1,355			6,146			3,414
	Amortization		(678	)		(596	)		(1,321	)		(1,190	)
	Severance and Other Employee Costs		–			–			(2,417	)		–
	Unrealized and Realized Gain (Loss) on Derivative Financial Instruments		188			(2,574	)		216			(2,650	)
	Dilution Loss on Equity Accounted Investments		–			–			(4,346	)		–
	(Loss) Gain on Foreign Currency Translation		(1,777	)		2,646			(377	)		2,680
Net Income			159,118			72,282			211,985			117,615
Other Comprehensive Income (Loss)		$	1,903		$	2,323		$	3,463		$	(190	)
Comprehensive Income		$	161,021		$	74,605		$	215,448		$	117,425

Condensed Statements of Cash Flows
					Three Months Ended						Six Months Ended
					June 30,						June 30,
					2015			2014			2015			2014
($ Thousands)
Cash Provided By Operating Activities:
	Net Income			$	159,118		$	72,282		$	211,985		$	117,615
	Items in Net Income Not Affecting Cash:
		Changes in Non-cash Operating Assets and Liabilities			(18,226	)		(6,356	)		(25,472	)		(5,822	)
		Realized and Unrealized Gain on Remeasurements			(103,676	)		(30,112	)		(133,534	)		(34,227	)
		Gain on Sale of Investments			–			(717	)		–			(717	)
		Unit-based Compensation Expenses			(3,782	)		6,225			11,196			7,295
		Items Related to Financing and Investing Activities			24,051			23,897			47,316			47,666
		Other			4,042			(733	)		9,258			1,120
Cash Provided By Operating Activities					61,527			64,486			120,749			132,930
Cash Used In Investing Activities
	Acquisitions				(18,489	)		(141	)		(216,987	)		(11,497	)
	Capital Investments				(34,696	)		(32,476	)		(62,337	)		(76,009	)
	Acquisition of investments				–			–			(32,305	)		–
	Disposition of Investments				–			7,599			–			7,599
	Dispositions				–			–			24,004			–
	Other				364			(50	)		763			348
Cash Used In Investing Activities					(52,821	)		(25,068	)		(286,862	)		(79,559	)
Cash (Used) Provided By Financing Activities
	Mortgages, Net of Financing Costs				25,132			91,548			205,272			110,722
	Bank Indebtedness				8,706			(85,348	)		(99,838	)		(72,051	)
	Interest Paid				(24,406	)		(24,122	)		(49,475	)		(48,638	)
	Proceeds on Issuance of Units				4,720			235			156,645			384
	Distributions, Net of DRIP and Other				(22,858	)		(21,731	)		(46,491	)		(43,788	)
Cash (Used) Provided By Financing Activities					(8,706	)		(39,418	)		166,113			(53,371	)
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						Six Months Ended
			June 30,						June 30,
			2015			2014			2015			2014
($ Thousands, except per Unit amounts)
Net Income		$	159,118		$	72,282		$	211,985		$	117,615
Adjustments:
	Unrealized Gain on Remeasurement of Investment Properties		(103,230	)		(32,935	)		(134,355	)		(37,137	)
	Realized Loss on Disposition of Investment Properties		–			–			639			–
	Remeasurement of Exchangeable Units		(258	)		249			398			260
	Remeasurement of Unit-based Compensation Liabilities		(5,025	)		4,681			8,790			4,935
	Interest on Exchangeable Units		48			47			96			93
	Corporate taxes expense		–			1,405			–			1,405
	Loss (Gain) on Foreign Currency Translation		1,777			(2,646	)		377			(2,680	)
	FFO Adjustment for Income from Equity Accounted Investments		(2,099	)		–			(2,099	)		–
	Unrealized and Realized (Gain) Loss on Derivative Financial Instruments		(188	)		2,574			(216	)		2,650
	Dilution Loss on Equity Accounted Investments		–			–			4,346			–
	Amortization of Property, Plant and Equipment		678			596			1,321			1,190
FFO		$	50,821		$	46,253		$	91,282		$	88,331
Adjustments:
	Amortization of Loss from AOCL to Interest and Other Financing Costs		844			828			1,685			1,649
	Net Mortgage Prepayment Cost		–			749			–			763
	Realized Gain on Sale of Investments		–			(717	)		–			(717	)
	Severance and Other Employee Costs		–			–			2,417			–
NFFO		$	51,665		$	47,113		$	95,384		$	90,026
	NFFO per Unit – Basic	$	0.441		$	0.431		$	0.836		$	0.826
	NFFO per Unit – Diluted	$	0.435		$	0.425		$	0.822		$	0.815
	Total Distributions Declared (1)	$	36,054			32,484		$	70,076		$	64,522
	NFFO Payout Ratio (2)		69.8%			68.9%			73.5%			71.7%
	Net Distributions Paid (1)	$	22,938		$	22,306		$	46,534		$	43,999
	Excess NFFO Over Net Distributions Paid	$	28,727		$	24,807		$	48,850		$	46,027
	Effective NFFO Payout Ratio (3)		44.4%			47.3%			48.8%			48.9%

(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 six months ended June 30, 2015.
(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						Six Months Ended
			June 30						June 30
			2015			2014			2015			2014
($ Thousands, except per Unit amounts)
NFFO		$	51,665		$	47,113		$	95,384		$	90,026
Adjustments:
	Provision for Maintenance Property Capital Investments (1)		(3,913	)		(3,849	)		(7,825	)		(7,699	)
	Amortization of Fair Value on Grant Date of Unit-based Compensation		1,243			1,544			2,406			2,360
AFFO		$	48,995		$	44,808		$	89,965		$	84,687
	AFFO per Unit – Basic	$	0.418		$	0.410		$	0.788		$	0.777
	AFFO per Unit – Diluted	$	0.412		$	0.405		$	0.776		$	0.767
	Distributions Declared (2)	$	36,054		$	32,484		$	70,076		$	64,522
	AFFO Payout Ratio (3)		73.6%			72.5%			77.9%			76.2%
	Net Distributions Paid (2)	$	22,938		$	22,306		$	46,534		$	43,999
	Excess AFFO over Net Distributions Paid	$	26,057		$	22,502		$	43,431		$	40,688
	Effective AFFO Payout Ratio (4)		46.8%			49.8%			51.7%			52.0%

(1)	An industry based estimate (see the Non-IFRS Measures section in the MD&A for the three and six months ended June 30, 2015).
(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 six months ended June 30, 2015.
(3)	The payout ratio compares distributions declared to AFFO.
(4)	The effective payout ratio compares net distributions paid to AFFO.