Mr. Scott Antoniak reports

FAM REIT ANNOUNCES NAME CHANGE TO SLATE OFFICE REIT, 2015 STRATEGY UPDATE AND FOURTH QUARTER AND FISCAL 2014 RESULTS

FAM Real Estate Investment Trust plans to change its name to Slate Office Real Estate Investment Trust. It is also providing an update on the REIT's outlook as it enters a transformational year under new management. The REIT also announced its financial results for the three months and full year ended Dec. 31, 2014.

Scott Antoniak, chief executive officer of the REIT, said:

"We are excited to be embarking on a new course for the REIT, having completed the purchase of an attractive portfolio of office buildings in the GTA that we believe will be a solid foundation for our new focus on the office sector. We are currently reviewing further accretive opportunities that are complementary to this strategy, which we believe will create a stronger platform for value creation and will be an attractive alternative for investors.

"We are also leveraging the significant operational expertise and resources of our new manager, Slate Asset Management LP, to ensure we provide the best value to our investors and tenants," added Mr. Antoniak.

2015 strategy update

Under its new management by Slate and new leadership team, the REIT has renewed its strategic objectives:

• Focus growth on high-quality, non-core assets, including downtown and suburban office properties;
• Create an institutional-quality investment vehicle leveraging Slate's sophisticated and professional management resources;
• Reposition the REIT as a pure-play office REIT by divesting existing retail and industrial portfolios in a disciplined and orderly fashion to maximize unitholder value. The acquisitions made by the REIT in December, 2014, are consistent with this strategy.

As a manager and the largest single unitholder, with an approximate 33.8-per-cent interest in the REIT as at Dec. 31, 2014, Slate is highly motivated to increase the value of the portfolio and provide stable, reliable and growing returns to the REIT's unitholders.

In addition, the REIT's repositioning as a pure play on office real estate has created increased institutional ownership. Greystone Managed Investments, a leading pension fund manager, acquired a 13.8-per-cent interest in the Dec. 17 transaction in which the REIT took ownership of the acquired properties.

Operations

The REIT's strong financial position and liquidity allow it to withstand unforeseen short-term challenges while remaining focused on long-term value creation. It is aggressively focused on improving the quality and reliability of its cash flow and addressing the occupancy issues it faced during the third quarter.

During the fourth quarter of 2014, the REIT continued to work on further derisking its leasing profile. In particular, it executed a 25-year lease renewal with the Province of Manitoba for 74,000 square feet at 114 Garry St. in Winnipeg. The province occupies 100 per cent of the property.

The new MTS data centre is a fully preleased development in Winnipeg. In 2014 the REIT acquired a 50-per-cent equity ownership interest in a limited partnership that will own the data centre through a $9.5-million investment. The 15-year lease with MTS is on a quadruple net basis and is slated to commence in June, 2015. The data centre is expected to have a significant positive impact on FAM REIT's financial performance. On an annualized basis, the incremental year one contribution to FFO will be approximately $2.3-million or 12 cents per unit.

Outlook

Management believes that the elevated adjusted funds from operations payout ratio is temporary and the current level of distributions is sustainable, as the newly acquired office properties will generate cash flow growth through near-term leasing opportunities. In addition, several vacancies encountered in 2014 have or are expected to be occupied in 2015. The data centre development is also scheduled for substantial completion in May, 2015, with lease commencement in June, 2015. The cash required for future capital expenditures and leasing costs will be financed using the REIT's existing revolving credit facility and from the proceeds arising from the divestment of existing retail and industrial portfolios.

We seek Safe Harbor.