Slate U.S. Opportunity (No. 1) Realty Trust Provides Update on Recent Acquisition Activity

/NOT FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Sept. 28, 2012 /CNW/ - Slate U.S. Opportunity (No. 1) Realty Trust (the "Trust") today provided an update on its recent acquisition activity.

Since completing its initial public offering in April 2012, the Trust has acquired six properties with an aggregate purchase price of U.S.$44,075,000 and has also entered into binding agreements to purchase an additional three properties for an aggregate purchase price of U.S.$39,400,000. The properties under binding agreement are scheduled to close before the end of 2012, subject to customary closing conditions. Thus, the aggregate purchase price for both acquired and committed transactions amounts to U.S.$83,475,000. In addition to these acquired and committed transactions, the Trust has entered into conditional purchase agreements to acquire three properties for an aggregate purchase price of U.S.$21,175,000 and has entered into an LOI for one property for a purchase price of U.S.$26,900,000.

Assuming that these four properties close as anticipated, anchor tenants are expected to account for approximately 60% of the Trust's gross revenue for the 12 months ended November 30, 2013, with 13 grocery-anchor tenants together comprising 83% of such revenue. Under this scenario, Slate anticipates that the Trust's net operating income will be U.S.$10,900,000 and its adjusted funds from operations will be approximately U.S.$6,100,000. Should these four properties be acquired, Slate will have invested U.S.$45,600,000 of equity in acquisitions for a total purchase price of U.S.$131,550,000 and will have deployed approximately 84% of its available capital.

About Slate: Slate is a Toronto-based commercial real estate investor and asset manager. Slate's founding partners have significant experience managing complex real estate transactions in domestic and international markets. Since 2005, the company has acquired 42 commercial real estate assets across North America with a total value of approximately C$1 billion. Slate's in-house team of asset management professionals have over 80 years of combined experience. The company manages and co-invests in a closed-end fund of U.S. retail assets. Slate's hands-on approach differentiates the firm across the acquisition, management and disposition phases of real estate investment.

Forward-Looking Information: This News Release includes statements with respect to the Trust, including its business operations and strategy, and financial performance and condition, which may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, "forward-looking information") within the meaning of Canadian securities laws.  Forward-looking information may relate to this News Release, the Trust's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "should", "believe" or "continue", or the negative thereof, or other similar expressions concerning matters that are not historical facts.

Forward-looking information in this News Release includes, but is not limited to, statements with respect to the Trust's anticipated net operating income and adjusted funds from operations for the 12 months ended November 30, 2013. Statements with respect to the Trust's anticipated net operating income and adjusted funds from operations for the 12 months ended November 30, 2013 assume that the properties currently under contract and LOI are acquired by the Trust in the third or fourth quarter of 2012 and that all of the Trust's properties, including properties under contract and LOI, operate as expected including with respect to occupancy levels, property expenses and capital expenditures.

Although Slate believes that the expectations reflected in such forward-looking statements are reasonable and represent the Trust's internal projections, expectations and belief at this time, such statements involve known and unknown risks and uncertainties which may cause the Trust's actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Investors are cautioned against placing undue reliance on forward-looking statements.

Net operating income and adjusted funds from operations are key measures of performance used by real estate businesses. However, such measures are not defined by IFRS and do not have standardized meanings prescribed by IFRS. The Trust believes that AFFO is an important measure of economic performance while NOI is an important measure of operating performance and the performance of real estate properties owned by an entity. AFFO and NOI should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS as indicators of SUSO 1's performance. The Trust's method of calculating AFFO and NOI may differ from other issuers' methods and accordingly may not be comparable to measures used by other issuers.

This news release, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This offering is only made by prospectus, only to Canadian residents, and only as permitted by law. This news release contains forward-looking information, and actual future results may differ from the Corporation's objectives. The risks, uncertainties and other factors that could influence actual results are described in the prospectus, which contains important detailed information about the securities being offered, and which investors should read before making an investment decision.

SOURCE: Slate Properties Inc.

For further information:

Blair Welch (416) 644-4267 or Brady Welch (416) 644-4263

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Slate Properties Inc.

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