Edgefront Real Estate Investment Trust Announces Strong Q2 Results, Trustee Changes, Distributions, and Update on Acquisition

CALGARY, ALBERTA--(Marketwired - Aug. 17, 2016) - Edgefront Real Estate Investment Trust (the "REIT") (TSX VENTURE:ED.UN) announced today its results for the three and six months ended June 30, 2016, trustee changes, August and September distributions and an update on the previously announced acquisition.

Highlights

• AFFO per unit of $0.055 for the quarter, increase of 6.4% over Q2 2015; increase of 3.2% over Q1 2016 normalized AFFO.
• AFFO payout ratio of 73.4% for the quarter, down from the normalized AFFO payout ratio of 75.7% in the previous quarter; down from 78.1% in Q2 2015.
• Conservative debt to total assets ratio of 49.2%.
• Attractive yield of 8.9% based on June 30^th closing price of $1.80 per unit and $0.16 annual distributions
• $8.4 million acquisition announced subsequent to quarter end
• Earnings call scheduled for August 18, 2016 at 1PM Eastern Standard Time.

"We continue to provide a unique investment vehicle for investors," stated Kelly Hanczyk, the REIT's Chief Executive Officer. "Our long-term leases, combined with embedded rental increases and minimal capital expenditures provide stability to our cash flow, as we have maintained a 100% occupancy rate since inception. We will continue to source accretive acquisitions from across Canada in the second half of the year that will add to our free cash flow."

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 June 30,		Six months ended June 30,
	2016	2015	2016	2015
Financial Highlights	$	$	$	$
FFO (1) (4)	1,958,865	1,258,375	4,091,185	2,516,975
AFFO (1) (4)	2,193,380	1,489,895	4,562,283	2,977,439
Distributions declared (2) declared (2)	1,609,305	1,163,412	3,208,882	1,157,839
Weighted average units outstanding - basic and diluted (3)	40,193,668	29,049,258	40,074,261	28,910,053
Distributions per unit (2)	0.040	0.040	0.080	0.080
FFO per unit, basic and diluted (1) (4)	0.049	0.043	0.102	0.087
AFFO per unit, basic and diluted (1) (4)	0.055	0.051	0.114	0.103
AFFO payout ratio, basic (1) (2) (4)	73.4%	78.1%	70.3%	78.0%
Debt to total assets ratio	49.2%	46.8%	49.2%	46.8%

(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) For the six months ended June 30, 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 ten industrial properties on January 14, 2014. This is a one-time item which is excluded from normalized FFO and normalized AFFO of $3,834,657 and $4,305,755, respectively for the six months ended June 30, 2016. Normalized FFO per unit, normalized AFFO per unit and the normalized AFFO payout ratio for the six months ended June 30, 2016 are $0.096, $0.107, and 74.5%, respectively.

	Three months ended