Mr. Michel Dallaire reports

COMINAR ACHIEVES A NEW MILESTONE IN THE FIRST QUARTER OF 2012

Cominar Real Estate Investment Trust achieved strong financial performance in its first quarter ended March 31, 2012, during which it closed the acquisition of Canmarc Real Estate Investment Trust. "On March 1, we completed the largest acquisition in our history, positioning Cominar as the third-largest diversified real estate investment trust in Canada, with assets of approximately $4.7-billion divided among our three sectors of activity, in Quebec, Ontario, the Atlantic provinces and Western Canada. We are pleased to announce that as a result of our enhanced market positioning, our success and our solid financial health, we have been assigned a BBB (low) credit rating by the DBRS credit rating agency. Its primary advantages are that it will lower our financing cost and provide Cominar with access to new financing sources," said Michel Dallaire, president and chief executive officer of Cominar.

Closing of the acquisition of Canmarc

Upon closing the acquisition of Canmarc, Cominar added assets of $1.9-billion covering an area of 9.4 million square feet to its real estate portfolio. This transaction provides it with better-segmented diversification of its assets, expands its presence in Quebec and the Atlantic provinces, and enables it to achieve a major breakthrough in Western Canada and Ontario. Today, Cominar's assets comprise a unique portfolio of high-quality properties, including many prestigious buildings such as the Scotia Centre (Calgary, Alta.), Woodside Square (Toronto, Ont.), Central Station (Montreal, Que.), Centre Laval (Laval, Que.), Place Longueuil (Longueuil, Que.), Place Alexis Nihon (Montreal, Que.), Place de la Cite (Quebec City, Que.), Complexe Jules Dallaire (Quebec City, Que.) and the McGill College property (Montreal, Que.). While ranking as the third-largest diversified real estate investment trusts in Canada, Cominar currently remains the largest commercial property owner in the province of Quebec.

Offering of $548.3-million in units

On Feb. 28, 2012, Cominar closed a bought-deal offering of 9.2 million units. The units were sold to a syndicate of underwriters for total gross proceeds of $201.3-million.

Cominar also issued 16 million units for a total of $347-million as part of its acquisition of Canmarc.

Analysis of financial results

For the first quarter of 2012, operating revenues totalled $126.3-million, up 58.5 per cent. This increase is due mainly to the contribution of the property acquisitions completed by Cominar in 2011, along with the contribution of Canmarc's income-producing properties integrated during the quarter.

Net operating income reached $66.9-million, up 54.9 per cent over the first quarter of 2011.

Net income grew to $32.7-million, an increase of 27.7 per cent over the first quarter of 2011. Net income per fully diluted unit amounted to 36 cents, down 7.7 per cent from the same period of the previous year. This decline is attributable to non-recurring costs related to the acquisition of Canmarc. Excluding these unusual items, adjusted net income per fully diluted unit amounted to 41 cents, an increase of 5.1 per cent.

Recurring distributable income totalled $35.2-million, up 54.7 per cent over the first quarter of 2011. Recurring distributable income per fully diluted unit amounted to 38 cents, compared with 36 cents for the first quarter of 2011, an increase of 5.6 per cent.

Recurring funds from operations totalled $42.5-million, up 65.1 per cent. Recurring adjusted funds from operations per fully diluted unit amounted to 38 cents, compared with 35 cents for the first quarter of 2011, an increase of 8.6 per cent.

In the first quarter of 2012, Cominar paid distributions totalling $35.6-million to unitholders, compared with $22.8-million for the corresponding quarter of 2011, an increase of 56.3 per cent. Distributions per unit remained stable with those for the first quarter of 2011, at 36 cents.

As at March 31, 2012, Cominar's overall annualized debt ratio stood at 54.4 per cent and its interest coverage ratio at 2.6 to 1, comparing favourably with its peers.

Leasing activities

As at March 31, 2012, the occupancy rate of Cominar's leased properties stood at 94.6 per cent. The leasing teams are pursuing their intensive efforts, especially in the industrial and mixed-use sector in the Montreal region. Thus, during the first quarter, Cominar already renewed 35.9 per cent of all leases expiring in 2012. In addition, new leases were signed for an area of 400,000 square feet during the period.

Increase in operating and acquisition credit facilities

In January, 2012, Cominar raised its operating and acquisition credit facilities to $550-million, an increase of $289-million. As at March 31, 2012, bank loans amounted to $366.7-million.

Appointment of Guy Charron

Cominar is pleased to announce the nomination of Guy Charron as executive vice-president, operations, retail sector. Prior to joining Cominar, he was executive vice-president and chief operating officer, Quebec, of Canmarc. He has also held a number of positions, including president and COO of a publicly listed retail business. He has been a member of the Ordre des comptables agrees du Quebec and the Canadian Institute of Chartered Accountants since 1981.

Dividend reinvestment plan

Cominar has a dividend reinvestment plan for its unitholders that allows participants to reinvest their monthly distributions in additional trust units. Participants receive an effective discount of 5 per cent of distributions in the form of additional units. Information and enrolment forms are available at Cominar's website.

Additional financial information

Cominar's condensed consolidated interim financial statements, prepared in accordance with IFRS (international financial reporting standards), and the interim management's discussion and analysis for the first quarter ended March 31, 2012, will be filed with SEDAR, and are available on Cominar's website.

May 15, 2012, conference call

On Tuesday, May 15, 2012, at 11 a.m. ET, Cominar's management will hold a conference call to discuss the results for the first quarter of 2012. Anyone who is interested may take part in this call by dialling 1-888-231-8191. To ensure your participation, please dial in five minutes before the start of the call. For those unable to participate, a taped rebroadcast will be available from Tuesday, May 15, 2012, at 2 p.m. to Tuesday, May 22, 2012, at 11:59 p.m., by dialling 1-855-859-2056 and using passcode 69628680.

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