Mr. Kelly Hanczyk reports

EDGEFRONT REAL ESTATE INVESTMENT TRUST ANNOUNCES COMPELLING YEAR END RESULTS AND STRONG UNITHOLDER APPROVAL OF MERGER WITH NOBEL REIT

Edgefront Real Estate Investment Trust has released its results for the three months and year ended Dec. 31, 2016, and has released the results of voting at its special meeting of unitholders.

Highlights:

• Adjusted funds from operations per unit of 5.4 cents for the quarter, increase of 3.1 per cent over fourth quarter 2015; normalized AFFO for the year of 21.6 cents per unit, increase of 4.6 per cent over the year ended Dec. 31, 2015;
• AFFO payout ratio of 73.8 per cent for the quarter, down from the AFFO payout ratio of 78.4 per cent in the same quarter of the prior year;
• Conservative debt-to-total-asset ratio of 48.7 per cent;
• Industry-leading 100-per-cent occupancy for 16th straight quarter;
• Unitholders voted overwhelmingly in support of the merger with Nobel REIT; combined entity to be renamed Nexus REIT upon closing of the plan of arrangement;
• Strategic relationship established with RFA Capital complementing existing relationship with TriWest Capital Partners.

"We are extremely pleased to announce the results of another very successful year and to enter the next phase of the REIT's growth," stated Kelly Hanczyk, the REIT's chief executive officer. "We anticipate that the merger with Nobel REIT will close on April 3, and Nexus REIT will be created. Nexus will be managed to achieve the same prudent and consistent growth and balance sheet strength that Edgefront has consistently delivered quarter over quarter. With our significantly larger scale, increased diversification and new strategic partnership with RFA Capital, the future holds substantial opportunity for the REIT."

Summary of results

Included in the attached financial highlights table in this news release are non-international financial reporting standard measures that should not be construed as an alternative to net income/loss, cash from operating activities or other measures of financial performance calculated in accordance with IFRS, and may not be comparable with similar measures as reported by other issuers. Readers are encouraged to refer to the REIT's management's discussion and analysis for further discussion of the non-IFRS measures presented.

                                     FINANCIAL HIGHLIGHTS

                                           Three months ended Dec. 31,         Year ended Dec. 31,
                                                   2016          2015          2016          2015

FFO (1) (3)                                  $2,042,133    $1,727,136    $8,099,254    $5,818,718
AFFO (1) (3)                                  2,259,231     1,934,492     9,021,624     6,719,995
Distributions declared (2)                    1,668,306     1,516,293     6,522,392     5,266,977
Distributions per unit (2)                        0.040         0.041         0.160         0.161
FFO per unit, basic and diluted (1) (3)           0.049         0.047         0.199         0.178
AFFO per unit, basic and diluted (1) (3)          0.054         0.053         0.222         0.206
AFFO payout ratio, basic (1) (2) (4)               73.8%         78.4%         72.3%         78.4%
Debt-to-total-asset ratio                          48.7%         50.5%         48.7%         50.5%

(1) A non-international financial reporting standard measure.
(2) Includes distributions payable to holders of Class B LP units, which are accounted for as interest
expense in the consolidated financial statements.                                                   
(3) For the year ended Dec. 31, 2016, FFO and AFFO include $256,528 of other income relating to 
the release in the first quarter of 2016 of funds previously held in an environmental escrow in 
connection with the acquisition of 10 industrial properties on Jan. 14, 2014. This is a one-time
item, which is excluded from normalized FFO and normalized AFFO of $7,842,726 and $8,765,096, 
respectively, for the year ended Dec. 31, 2016. Normalized FFO per unit, normalized AFFO per unit 
and the normalized AFFO payout ratio for the year ended Dec. 31, 2016, are 19.3 cents, 21.6 cents
and 74.4 per cent, respectively.

                     
                                FINANCIAL RESULTS

                         Three months ended Dec. 31,           Year ended Dec. 31,
                                2016           2015           2016           2015

Property revenue          $3,989,859     $3,585,247    $15,407,328    $11,985,001
Net operating income       3,341,920      2,935,455     12,822,691      9,910,318
Net income                 5,694,279      1,797,324     10,478,291      5,803,962

Revenues and results from operations in line with expectations

Property revenue increased to $3,989,859 in the quarter as compared with $3,585,247 in the same quarter of 2015. Net operating income grew to $3,341,920 in the quarter as compared with $2,935,455 in same quarter of 2015. The growth in property revenue and net operating income is primarily attributable to the impact of acquisitions completed late in the fourth quarter of 2015 and the acquisition completed on Aug. 22, 2016, which contributed approximately $160,000 to property revenue and net operating income in the quarter. Contractual rent increases added $34,000 of operating income in the quarter as compared with the same quarter of 2015.

Balance sheet and liquidity

The REIT's debt-to-total-asset ratio was 48.7 per cent at Dec. 31, 2016, down from 50.4 per cent at Sept. 30, 2016. The decrease in debt to total assets was primarily related to the increase in the fair value of investment properties in the quarter. The REIT intends to maintain a debt-to-total-asset ratio of less than 55 per cent.

Special meeting results of voting

The REIT is pleased to announce that the unit issuance resolution, as set out in the REIT's management information circular dated Feb. 27, 2017, for the special meeting of unitholders held on March 27, 2017, was approved by the requisite majority of unitholders, with 95.77 per cent of all votes cast voting in favour of the resolution.

About Edgefront Real Estate Investment Trust

Edgefront REIT is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 20 properties comprising approximately 1.18 million square feet of rentable area.

We seek Safe Harbor.