CAPREIT Reports Continued Growth and Strong Operating Performance in First Quarter of 2016

TORONTO, ONTARIO–(Marketwired – May 6, 2016) – Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today record portfolio growth and strong operating and financial results for the three months ended March 31, 2016.

Three Months Ended March 31,		2016		2015
Operating Revenues (000s)	$	145,638	$	128,954
Net Operating Income (“NOI”) (000s) (1)	$	84,380	$	74,824
NOI Margin (1)		57.9%		58.0%
Normalized Funds From Operations (“NFFO”) Per Unit – Basic (1)	$	0.409	$	0.393
NFFO Payout Ratio (1)		75.8%		77.8%

(1) NOI, NFFO and NFFO per Unit are measures used by Management in evaluating operating performance. Please refer to the cautionary statements under the heading “Non-IFRS Financial Measures” and the reconciliations provided in this press release.

Q1 2016 HIGHLIGHTS:

• Operating revenues up 12.9% from last year due to increased average monthly rents (“AMR”) on stabilized properties, high stable occupancies, and contributions from acquisitions
• AMR up 1.7% for stabilized residential suites
• Portfolio occupancy remains stable at 98.3% at March 31, 2016
• NOI up 12.8% compared to first quarter last year
• NOI margin remains stable at 57.9%
• Same property NOI up a strong 2.6% in the quarter, despite challenges in the Alberta market
• Trust Expenses increase by $5.5 million due to costs related to transactions that were not completed
• NFFO up 19.6% due to strong operating performance, acquisitions and organic growth
• Strong accretive growth as NFFO per Unit up 4.1% despite 15% increase in weighted average Units outstanding
• NFFO payout ratio remains conservative at 75.8%
• Closed or committed mortgage refinancings and new financings of $164.8 million, including $53.5 million for renewals of existing mortgages and $111.3 million for additional top ups and new financings with a weighted average term to maturity of 9.3 years, and a reduced weighted average interest rate of 2.44%.

“Following another record year in 2015, our growth and strong operating performance continued in the first quarter of 2016,” commented Thomas Schwartz, President and Chief Executive Officer. “Looking ahead, with a full year’s contribution from the significant number of acquisitions completed in 2015, and continued industry-leading organic growth, we expect 2016 will be another year of stable, consistent and sustainable growth.”

PORTFOLIO OPERATING RESULTS

Three Months Ended March 31,		2016		2015
Overall Portfolio Occupancy (1)		98.3%		98.6%
Overall Portfolio Average Monthly Rents (1),(2)	$	971	$	975
Operating Revenues (000s)	$	145,638	$	128,954
Annualized Net Rental Revenue Run-Rate (000s) (1),(3),(4)	$	557,404	$	492,734
Operating Expenses (000s)	$	61,258	$	54,130
NOI (000s) (4)	$	84,380	$	74,824
NOI Margin (4)		57.9%		58.0%
Number of Suites and Sites Acquired		670		681
Number of Suites Disposed		–		530
(1) As at March 31.
(2) Average monthly rents are defined as actual rents, net of vacancies, divided by the total number of suites and sites in the portfolio
and do not include revenues from parking, laundry or other sources.
(3) For a description of net rental revenue run-rate, see the Results of Operations section in the MD&A for the three months ended
March 31, 2016.
(4) Net rental revenue run-rate and NOI are measures used by Management in evaluating operating performance. Please refer to the
cautionary statements under the heading “Non-IFRS Financial Measures” and the reconciliations provided in this press release.

Operating Revenues

For the three months ended March 31, 2016, total operating revenues increased by 12.9% compared to the same period last year due primarily to the contribution from acquisitions, increased average monthly rents on stabilized properties, and continuing high stable occupancies. Ancillary revenues, such as parking, laundry and antenna income, increased 13% for the three months ended March 31, 2016 compared to the same period last year due to Management’s continued focus on maximizing the revenue potential of its property portfolio.

CAPREIT’s annualized net rental revenue run-rate, based on the average monthly rents in place and CAPREIT’s share of residential suites and sites as at March 31, 2016, increased to $557.4 million, up 13.1% from $492.7 million as of March 31, 2015 largely due to acquisitions and organic NOI growth. Net rental revenue net of dispositions for the twelve months ended March 31, 2016 was $521.0 million (2015 – $478.2 million).

Portfolio Average Monthly Rents (“AMR”)
		Total Portfolio					Properties Owned Prior to March 31, 2015
As at March 31,		2016			2015			2016			2015 (1)
		AMR	Occ. %		AMR	Occ. %		AMR	Occ. %		AMR	Occ. %
Average Residential Suites	$	1,065	98.2	$	1,088	98.5	$	1,106	98.2	$	1,088	98.5
Average MHC Land Lease Sites	$	369	98.3	$	359	99.3	$	369	98.3	$	359	99.3
Overall Portfolio Average	$	971	98.3	$	975	98.6	$	992	98.2	$	975	98.6
(1) Prior period’s comparable AMR and occupancy have been restated for properties disposed of since March 31, 2015.

Overall average monthly rents for the stabilized residential suite portfolio (properties owned prior to March 31, 2015) increased 1.7% to $1,106 at March 31, 2016 from $1,088 at March 31, 2015. Excluding Alberta, average monthly rents for the stabilized residential suite portfolio increased a solid 2.2% to $987 at March 31, 2016 from $966 at March 31, 2015. This was due primarily to a combination of ongoing successful sales and marketing strategies, above guideline rent increases, and continued strength in the residential rental sector in the majority of CAPREIT’s regional markets. Occupancy for the stabilized residential suite portfolio remained strong at 98.2% as at March 31, 2016 compared to 98.5% for the same period last year. While occupancies remained stable for the total portfolio, average monthly rents declined marginally due to acquisitions completed late in 2015 in lower-rent markets.

Suite Turnovers and Lease Renewals – Excluding Alberta and Saskatchewan
For the Three Months Ended March 31,	2016			2015
	Change in AMR		% Turnovers	Change in AMR		% Turnovers
	$	%	& Renewals (1)	$	%	& Renewals (1)
Suite Turnovers	34.0	3.2	4.5	17.2	1.6	4.6
Lease Renewals	25.9	2.4	13.8	21.9	2.0	12.5
Weighted Average of Turnovers and Renewals	27.9	2.6		20.6	1.9
(1) Percentage of suites turned over or renewed during the year based on the total number of residential suites (excluding co-ownerships) held at the end of the period.

Suite Turnovers and Lease Renewals – Total Residential Portfolio
For the Three Months Ended March 31,	2016			2015
	Change in AMR		% Turnovers	Change in AMR		% Turnovers
	$	%	& Renewals (1)	$	%	& Renewals (1)
Suite Turnovers	(23.6)	(2.1)	5.8	11.9	1.1	6.1
Lease Renewals	24.2	2.2	14.8	24.2	2.2	15.7
Weighted Average of Turnovers and Renewals	10.7	1.0		20.7	1.9
(1) Percentage of suites turned over or renewed during the year based on the total number of residential suites (excluding co-ownerships) held at the end of the period.

For suite turnovers in the residential suite portfolio (excluding co-ownerships and the Alberta and Saskatchewan regions) during the three months ended March 31, 2016, average monthly rents increased strongly by approximately $34 or 3.2% compared to an increase of $17 or 1.6% for the same period last year, primarily due to the strong rental markets of British Columbia and Ontario.

Overall, suite turnovers in the residential suite portfolio (excluding co-ownerships) during the three months ended March 31, 2016, resulted in average monthly rents decreasing by approximately $24 or 2.1%, compared to an increase of approximately $12 or 1.1% for the same period last year primarily due to strategically reduced rents in the Alberta and Saskatchewan rental markets to increase occupancy and higher unit turnover than in previous years, offset by the strong rental markets of British Columbia and Ontario.

The rate of growth in average monthly rents on lease renewals during the period remained stable primarily due to the increased guideline increases for 2016 (Ontario – 2.0%, British Columbia – 2.9%), which compare more favourably to the permitted guideline increases in 2015 (Ontario – 1.6%, British Columbia – 2.5%) and by above guideline increases (“AGI”) applied, offset by weakness in the Alberta market. Management’s continues to believe that its well-diversified portfolio serves to mitigate weakness in any specific geographic region. Management continues to pursue applications for AGIs where it believes increases are supported by market conditions above the annual guideline to raise average monthly rents on lease renewals.

Operating Expenses
For the Three Months Ended March 31,			2016	% (1)		2015	% (1)
($ Thousands)
Operating Expenses
	Realty Taxes	$	16,007	11.0	$	14,665	11.4
	Utilities		18,943	13.0		17,835	13.8
	Other (2)		26,308	18.1		21,630	16.8
Total Operating Expenses		$	61,258	42.1	$	54,130	42.0
(1) As a percentage of total operating revenues.
(2) Comprises R&M, wages, general and administrative, insurance, advertising, and legal costs.

Operating Expenses

Overall operating expenses increased in the three months ended March 31, 2016, compared to the same period last year, due primarily to the increased size of the portfolio. Total operating expenses as a percentage of operating revenues remained stable at 42.1% for the three months ended March 31, 2016 compared to 42.0% in the same period last year.

Net Operating Income

Overall NOI rose by 12.8% in the first quarter of 2016 and the NOI margin remained stable at 57.9% compared to 58.0% for the same period last year.

For the three months ended March 31, 2016, operating revenues for stabilized suites and sites increased 2.1% while operating costs increased by 1.4% compared to the same period last year. As a result, stabilized NOI increased by 2.6% for the three months ended March 31, 2016.

Trust Expenses

Trust expenses increased to $11.1 million in the first quarter of 2016 from $6.5 million in the prior year’s first quarter due to costs of $5.5 million related to transactions that were not completed.

NON-IFRS FINANCIAL MEASURES

Three Months Ended March 31,		2016		2015
NFFO (000s)	$	52,295	$	43,719
NFFO Per Unit – Basic	$	0.409	$	0.393
Cash Distributions Per Unit	$	0.305	$	0.295
NFFO Payout Ratio		75.8%		77.8%
NFFO Effective Payout Ratio		50.8%		54.0%

For the three months ended March 31, 2016, basic NFFO per Unit increased by 4.1% compared to the same period last year despite the approximate 15% increase in the weighted average number of Units outstanding due to the two successful equity offerings completed in March 2015 and October 2015.

LIQUIDITY AND LEVERAGE

As at March 31,	2016	2015
Total Debt to Gross Book Value	45.80%	44.32%
Total Debt to Gross Historical Cost (1)	55.72%	54.20%
Total Debt to Total Capitalization	47.06%	45.25%
Debt Service Coverage Ratio (times) (2)	1.64	1.59
Interest Coverage Ratio (times) (2)	3.00	2.82
Weighted Average Mortgage Interest Rate (3)	3.36%	3.60%
Weighted Average Mortgage Term to Maturity (years)	6.1	6.2
(1) Based on historical cost of investment properties.
(2) Based on the trailing four quarters ended March 31, 2016.
(3) Weighted average mortgage interest rate includes deferred financing costs and fair value adjustments on an effective interest basis. Including the amortization of the realized component of the loss on interest rate hedge settlement of $32.5 million included in Accumulated Other Comprehensive Loss (”AOCL”), the effective portfolio weighted average interest rate at March 31, 2016 would be 3.49% (March 31, 2015 – 3.75%).

Financial Strength

Management believes CAPREIT’s strong balance sheet and liquidity position will enable it to continue to take advantage of acquisition and property capital investment opportunities over the long term.

CAPREIT is achieving its financing goals as demonstrated by the following key indicators:

• Total debt to gross book value ratio remained strong at 45.8% as at March 31, 2016 compared to 44.3% for the same period last year, both well below our target debt ratio;
• Debt service and interest coverage as at March 31, 2016 improved to 1.64 times and 3.00 times, respectively, compared to 1.59 times and 2.82 times last year;
• As at March 31, 2016, 96.8% (March 31, 2015 – 95.8%) of CAPREIT’s mortgage portfolio was insured by the Canada Mortgage and Housing Corporation (“CMHC”), excluding the mortgages on CAPREIT’s MHC land lease sites and Euro LIBOR borrowings, resulting in improved spreads on mortgages and lower overall interest costs than conventional mortgages.
• The effective portfolio weighted average interest rate on mortgages has steadily declined to 3.36% as at March 31, 2016 from 3.60% as at March 31, 2015, resulting in significant potential interest rate savings in future years;
• Management expects to raise between $275 million and $325 million in total mortgage renewals and refinancings in 2016;
• The weighted average term to maturity of the mortgage portfolio remained stable at 6.1 years as at March 31, 2016 compared to 6.2 years at March 31, 2015;
• As at March 31, 2016, CAPREIT has investment properties with a fair value of $299.7 million not encumbered by mortgages and securing only the Acquisition and Operating Facility. CAPREIT intends to maintain unencumbered investment properties with an aggregate fair value in the range of $150 and $180 million over the long term.

Property Capital Investments

During the three months ended March 31, 2016, CAPREIT made property capital investments (excluding disposed properties, head office assets, tenant improvements and signage) of $30.5 million as compared to $24.9 million in the same period last year. For the full 2016 year, CAPREIT expects to complete property capital investments of approximately $170 million to $180 million, including approximately $92 million targeted at acquisitions completed since January 1, 2011, and approximately $21 million in high-efficiency boilers and other energy-saving initiatives.

Property capital investments include suite improvements, common areas and equipment, which generally tend to increase NOI more quickly. CAPREIT also continues to invest in energy-saving initiatives, including boilers, energy-efficient lighting systems, and water-saving programs, which permit CAPREIT to mitigate potentially higher increases in utility and R&M costs and significantly improve overall portfolio NOI.

Subsequent Events

On April 12, 2016, CAPREIT completed the acquisition of a property located in Charlottetown, Prince Edward Island totaling 12 residential suites. The purchase price (excluding transaction costs) of approximately $1.2 million was funded with cash from CAPREIT’s Acquisition and Operating credit facility.

On April 26, 2016, CAPREIT completed the acquisition of a property located in Markham, Ontario totaling 71 residential townhome suites. The purchase price (excluding transaction costs) of approximately $16.4 million was funded with cash from CAPREIT’s Acquisition and Operating credit facility.

Additional Information

More detailed information and analysis is included in CAPREIT’s unaudited condensed consolidated interim financial statements and MD&A for the three months ended March 31, 2016, which have been filed on SEDAR and can be viewed at www.sedar.com under CAPREIT’s profile or on CAPREIT’s website on the investor relations page at www.caprent.com or www.capreit.net.

Conference Call

A conference call hosted by Thomas Schwartz, President and CEO and the CAPREIT Management Team, will be held Monday, May 9, 2016 at 10:00 am EST. The telephone numbers for the conference call are: Local/International: (416) 340-2216, North American Toll Free: (866) 225-0198.

A slide presentation to accompany Management’s comments during the conference call will be available one hour and a half prior to the conference call. To view the slides, access the CAPREIT website at www.caprent.com or www.capreit.net, click on “Investor Relations” and follow the link at the top of the page. Please log on at least 15 minutes before the call commences.

The telephone numbers to listen to the call after it is completed (Instant Replay) are local/international (905) 694-9451 or North American toll free (800) 408-3053. The Passcode for the Instant Replay is 5687860#. The Instant Replay will be available until midnight, May 16, 2016. The call and accompanying slides will also be archived on the CAPREIT website at www.caprent.com or www.capreit.net. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net.

About CAPREIT

CAPREIT owns interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities primarily located in and near major urban centres across Canada. As at March 31, 2016, CAPREIT had owning interests in 47,476 residential units, comprised of 41,177 residential suites and 30 manufactured home communities (“MHC”) comprising 6,299 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net and our public disclosure which can be found under our profile at www.sedar.com.

Non-IFRS Financial Measures

CAPREIT prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT also discloses and discusses certain non-IFRS financial measures, including Net Rental Revenue Run-Rate, NOI, FFO, NFFO and applicable per Unit amounts and payout ratios. These non-IFRS measures are further defined and discussed in the MD&A released on May 6, 2016, which should be read in conjunction with this press release. Since Net Rental Revenue Run-Rate, NOI, FFO and NFFO are not determined by IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT has presented such non-IFRS measures as Management believes these non-IFRS measures are relevant measures of the ability of CAPREIT to earn and distribute cash returns to Unitholders and to evaluate CAPREIT’s performance. A reconciliation of Net Income and such non-IFRS measures including Adjusted Funds From Operations (“AFFO”) is included in this press release. These non-IFRS measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with IFRS as an indicator of CAPREIT’s performance.

Cautionary Statements Regarding Forward-Looking Statements

Certain statements contained, or contained in documents incorporated by reference, in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to CAPREIT’s future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital investments, financial results, taxes, plans and objectives of or involving CAPREIT. Particularly, statements regarding CAPREIT’s future results, performance, achievements, prospects, costs, opportunities and financial outlook, including those relating to acquisition and capital investment strategy and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or the negative thereof or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian and Irish economies will generally experience growth, however, may be adversely impacted by the global economy; that inflation will remain low; that interest rates will remain low in the medium term; that Canada Mortgage and Housing Corporation (“CMHC”) mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates will grow at levels similar to the rate of inflation on renewal; that rental rates on turnovers will remain stable; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT’s financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT’s investment priorities, the properties in which investments will be made, the composition of the property portfolio and the projected return on investment in respect of specific capital investments. Although the forward-looking statements contained in this press release are based on assumptions, Management believes they are reasonable as of the date hereof, there can be no assurance actual results will be consistent with these forward-looking statements; they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT’s control, that may cause CAPREIT or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: reporting investment properties at fair value, real property ownership, leasehold interests, co-ownerships, investment restrictions, operating risk, energy costs and hedging, environmental matters, insurance, capital investments, indebtedness, interest rate hedging, foreign operation and currency risks, taxation, harmonization of federal goods and services tax and provincial sales tax, government regulations, controls over financial accounting, legal and regulatory concerns, the nature of units of CAPREIT (“Trust Units”) and of CAPREIT’s subsidiary, CAPREIT Limited Partnership (“Exchangeable Units”) (collectively, the “Units”), unitholder liability, liquidity and price fluctuation of Units, dilution, distributions, participation in CAPREIT’s distribution reinvestment plan, potential conflicts of interest, dependence on key personnel, general economic conditions, competition for residents, competition for real property investments, continued growth and risks related to acquisitions. There can be no assurance the expectations of CAPREIT’s Management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT’s Annual Information Form, which can be obtained on SEDAR at www.sedar.com, under CAPREIT’s profile, as well as under Risks and Uncertainties section of the MD&A released on May 6, 2016. The information in this press release is based on information available to Management as of May 6, 2016. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.

SOURCE: Canadian Apartment Properties Real Estate Investment Trust

SELECTED FINANCIAL INFORMATION
Condensed Balance Sheets
As at	March 31, 2016		December 31, 2015
($ Thousands)
Investment Properties	$	6,995,720	$	6,863,140
Total Assets		7,242,736		7,102,828
Mortgages Payable		3,122,929		3,097,773
Bank Indebtedness		214,589		168,211
Total Liabilities		3,517,596		3,442,875
Unitholders’ Equity		3,725,140		3,659,953

For The Three Months Ended March 31,			2016			2015
($ Thousands)
Net Operating Income		$	84,380		$	74,824
(Less) Plus:
	Trust Expenses (1)		(11,080	)		(6,464	)
	Unrealized Gain on Remeasurement of Investment Properties		45,842			31,125
	Realized Loss on Disposition of Investment Properties		–			(639	)
	Remeasurement of Exchangable Units		(329	)		(656	)
	Unit-based Compensation Expenses		(7,250	)		(14,978	)
	Interest on Mortgages Payable and Other Financing Costs		(27,261	)		(25,704	)
	Interest on Bank Indebtedness		(1,414	)		(857	)
	Interest on Exchangeable Units		(49	)		(48	)
	Other Income (2)		2,653			2,242
	Amortization		(818	)		(643	)
	Severance and Other Employee Costs		–			(2,417	)
	Unrealized and Realized Gain (Loss) on Derivative Financial Instruments		(147	)		28
	Dilution Loss on Equity Accounted Investments		–			(4,346	)
	Gain on Foreign Currency Translation		1,571			1,400
Net Income		$	86,098		$	52,867
Other Comprehensive Income		$	76		$	1,560
Comprehensive Income		$	86,174		$	54,427
(1) Includes a special one-time bonus to senior management of $0.8 million in 2015. Includes acquisition research costs of $5.5 million relating to transactions that were not completed.

Condensed Statements of Cash Flows
Three Months Ended March 31,				2016			2015
($ Thousands)
Cash Provided By Operating Activities:
	Net Income		$	86,098		$	52,867
		Items in Net Income Not Affecting Cash:
		Changes in Non-cash Operating Assets and Liabilities		(7,812	)		(7,246	)
		Realized and Unrealized Gain on Remeasurements		(45,366	)		(29,858	)
		Unit-based Compensation Expenses		7,250			14,978
		Items Related to Financing and Investing Activities		23,460			23,265
		Other		1,062			5,216
Cash Provided By Operating Activities			$	64,692		$	59,222
Cash Used In Investing Activities
	Acquisitions			(55,011	)		(198,498	)
	Capital Investments			(33,278	)		(27,641	)
	Acquisition of Investments			–			(32,305	)
	Dispositions			–			24,004
	Other			3,480			399
Cash Used In Investing Activities			$	(84,809	)	$	(234,041	)
Cash Used In Financing Activities
	Net Mortgages, Net of Financing Costs			25,021			180,140
	Bank Indebtedness, Net			46,378			(108,544	)
	Interest Paid			(26,903	)		(25,069	)
	Proceeds on Issuance of Units			2,623			151,925
	Distributions, Net of DRIP and Other			(27,002	)		(23,633	)
Cash Used In Financing Activities			$	20,117		$	174,819
Changes in Cash and Cash Equivalents During the Period				–			–
Cash and Cash Equivalents, Beginning of Period				–			–
Cash and Cash Equivalents, End of Period			$	–		$	–

Reconciliation of Net Income to FFO and to NFFO
Three Months Ended March 31,			2016			2015
($ Thousands, except per Unit amounts)
Net Income		$	86,098		$	52,867
Adjustments:
	Unrealized Gain on Remeasurement of Investment Properties		(45,842	)		(31,125	)
	Realized Loss on Disposition of Investment Properties		–			639
	Remeasurement of Exchangeable Units		329			656
	Remeasurement of Unit-based Compensation Liabilities		6,022			13,815
	Interest on Exchangeable Units		49			48
	Gain on Foreign Exchange		(1,571	)		(1,400	)
	Unrealized and Realized Loss (Gain) on Derivative Financial Instruments		147			(28	)
	Dilution Loss on Equity Accounted Investments		–			4,346
	Amortization of Property, Plant and Equipment		818			643
FFO		$	46,050		$	40,461
Adjustments:
	Amortization of Loss from AOCL to Interest and Other Financing Costs		771			841
	Acquisition Research Costs(4)		5,474			–
	Severance and Other Employee Costs		–			2,417
NFFO		$	52,295		$	43,719
	NFFO per Unit – Basic	$	0.409		$	0.393
	NFFO per Unit – Diluted	$	0.404		$	0.387
	Total Distributions Declared (1)	$	39,630		$	34,022
	NFFO Payout Ratio (2)		75.8%			77.8%
	Net Distributions Paid (1)	$	26,567		$	23,597
	Excess NFFO Over Net Distributions Paid	$	25,728		$	20,122
	Effective NFFO Payout Ratio (3)		50.8%			54.0%
(1) For a description of distributions declared and net distributions paid, see the Non-IFRS Financial Measures section in the MD&A for the three months ended March 31, 2016.
(2) The payout ratio compares distributions declared to NFFO.
(3) The effective payout ratio compares net distributions paid to NFFO.
(4) Expenses incurred relates to transactions that were not completed included in trust expenses.

Reconciliation of NFFO to AFFO
Three Months Ended March 31,			2016			2015
($ Thousands, except per Unit amounts)
NFFO		$	52,295		$	43,719
Adjustments:
	Provision for Maintenance Property Capital Investments (1)		(4,502	)		(3,912	)
	Amortization of Fair Value on Grant Date of Unit-based Compensation		1,228			1,163
AFFO		$	49,021		$	40,970
	AFFO per Unit – Basic	$	0.384		$	0.368
	AFFO per Unit – Diluted	$	0.379		$	0.362
	Total Distributions Declared (2)	$	39,630		$	34,022
	AFFO Payout Ratio (3)		80.8%			83.0%
	Net Distributions Paid (2)	$	26,567		$	23,597
	Excess AFFO Over Net Distributions Paid	$	22,454		$	17,373
	Effective AFFO Payout Ratio (4)		54.2%			57.6%
(1) An industry based estimate (see the Non-IFRS Measures section in the MD&A for the three months ended March 31, 2016).
(2) For a description of distributions declared and net distributions paid, see the Non-IFRS Financial Measures section in the MD&A for the three months ended March 31, 2016.
(3) The payout ratio compares distributions declared to AFFO.
(4) The effective payout ratio compares net distributions paid to AFFO.

CAPREIT
Mr. Michael Stein
Chairman
(416) 861-5788

CAPREIT
Mr. Thomas Schwartz
President & CEO
(416) 861-9404

CAPREIT
Mr. Scott Cryer
Chief Financial Officer
(416) 861-5771