Edgefront Real Estate Investment Trust Announces Stable Q1 Results and June Distribution

CALGARY, ALBERTA--(Marketwired - May 27, 2016) - Edgefront Real Estate Investment Trust (the "REIT") (TSX VENTURE:ED.UN) announced today its results for the three months ended March 31, 2016 and June distribution.

Highlights

• Rental revenues from stable, strong-covenant tenants under long-term leases with a weighted average 9.7 year remaining lease term.
• Industry leading 100% occupancy rate.
• Normalized AFFO per unit of $0.053 for the quarter, increase of 2.7% over Q1 2015; increase of 0.5% over Q4 2015.
• Normalized AFFO payout ratio of 75.7% for the quarter, down from 78.4% in the previous quarter, down from 77.84% in Q1 2015.
• Other income of $256,528 in the quarter relating to the release of funds held in escrow on the acquisition completed January 14, 2014; this amount is excluded from normalized figures.
• Conservative debt to total assets ratio of 49.6%.
• Earnings call scheduled for May 30, 2016 at 1PM Eastern Standard Time.

"Since our inception in January 2014, Edgefront's model has provided investors stable and predictable results derived from our triple-net long-term leases," stated Kelly Hanczyk, the REIT's Chief Executive Officer. "Our assets continue to perform as expected and our Western Canadian tenants' businesses continue to perform without a significant impact from this period of depressed oil pricing. Contractual rental rate increases added $34,000 of rental income for the quarter and our payout ratio has continued to decrease. We are extremely pleased with our first quarter results and look forward to growing our free cash flow in the quarters ahead."

Summary of Results

Included in the table that follows and elsewhere in this news release are non-IFRS 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 to similar measures as reported by other issuers. Readers are encouraged to refer to the REIT's MD&A for further discussion of the non-IFRS measures presented.

		Three months ended March 31,
		2016			2015
Financial Highlights		$			$
Normalized FFO (1) (4)		1,875,792			1,258,600
Normalized AFFO (1) (4)		2,112,375			1,487,544
Distributions declared (2)		1,599,578			1,157,839
Weighted average units outstanding - basic and diluted (3)		39,954,855			28,910,053
Distributions per unit (2) (3)		0.040			0.040
Normalized FFO per unit, basic and diluted (1) (3) (4)		0.047			0.044
Normalized AFFO per unit, basic and diluted (1) (3) (4)		0.053			0.051
Normalized AFFO payout ratio, basic (1) (2) (3) (4)		75.7	%		77.8	%
Debt to total assets ratio		49.6	%		48.2	%

(1)	See Non-IFRS Measures
(2)	Includes distributions payable to holders of Class B LP Units which are accounted for as interest expense in the consolidated financial statements.
(3)	Weighted average number of units includes the Class B LP Units.
(4)	Normalized FFO and Normalized AFFO exclude other income relating to the release in the quarter of funds previously held in an environmental escrow in connection with the acquisition ten industrial properties on January 14, 2014.

		Three months ended March 31,
		2016		2015
Financial Results		$		$
Property revenue		3,724,541		2,714,375
Net operating income		3,150,355		2,203,093
Net income		2,326,752		1,219,336
Net income excluding fair value adjustments and other income		1,647,213		1,561,366

Revenues and Results from Operations in Line with Expectations