Cominar announces excellent results for its third quarter ended September 30, 2007



    
    - Increases of 71.0% in operating revenues and 70.0% in net operating
      income
    - Recurring distributable income and funds from operations respectively
      up 41.7% and 41.0%
    - Acquisition of an interest in seven industrial properties for a
      consideration of $17.3 million
    

    -------------------------------------------------------------------------
    TSX - CUF.UN

    QUEBEC CITY, Nov. 7 /CNW Telbec/ - Cominar ("Cominar" or the "REIT")
announces its results for the third quarter and nine-month period ended
September 30, 2007.

    
    Financial Highlights (unaudited) (in thousands of $, except per-unit
    amounts)
    -------------------------------------------------------------------------
    For the
     periods ended        Quarter                    Cumulative (nine months)
     September 30     2007      2006  % change      2007      2006  % change
    -------------------------------------------------------------------------
    Operating
     revenues       53,077    31,042      71.0   128,824    94,492      36.3
    Net operating
     income         33,487    19,704      70.0    77,389    56,680      36.5
    Net income       6,868     9,100     (24.5)   22,882    23,628      (3.2)
    RDI             18,307    12,919      41.7    44,929    35,221      27.6
    Recurring FFO   20,830    14,778      41.0    51,668    40,871      26.4
    Distributions   14,640    10,744      36.3    39,224    31,069      26.2

    Per unit
     (fully
     diluted)
    RDI               0.40      0.36      11.1      1.09      1.01       7.9
    Recurring FFO     0.45      0.41       9.8      1.24      1.15       7.8
    Distributions    0.325     0.306       6.2     0.943     0.914       3.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    For the third quarter ended September 30, 2007, operating revenues
totalled $53.1 million, up 71.0% over 2006. This increase is due to the
contribution of the acquisitions integrated since the beginning of 2007, to
which is added the strong performance of the portfolio. Combined with the
solid results of the two previous quarters, this growth brought operating
revenues for the first nine months of 2007 to $128.8 million, up $34.3 million
or 36.3% over the same period in 2006.
    Net operating income for the third quarter amounted to $33.5 million, up
70.0% over the equivalent period of 2006. For the first nine months, net
operating income rose 36.5% to $77.4 million.
    Recurring distributable income ("RDI") for the third quarter grew 41.7% to
$18.3 million, up from $12.9 million in 2006. Fully diluted RDI per unit
amounted to $0.40, compared with $0.36 for the third quarter of 2006. For the
first nine months, RDI totalled $44.9 million, up 27.6% over $35.2 million in
2006. Fully diluted RDI per unit rose to $1.09 from $1.01 in 2006.
    Recurring funds from operations ("recurring FFO") rose 41.0% to
$20.8 million for the third quarter, up from $14.8 million for the
corresponding quarter of 2006. Fully diluted recurring FFO per unit amounted
to $0.45, up 9.8% over 2006. For the first nine months, recurring FFO grew
26.4% to $51.7 million, compared with $40.9 million for the same period in
2006. Fully diluted recurring FFO per unit grew to $1.24, up 7.8% over 2006.
    During the quarter, Cominar paid distributions of $14.6 million to
unitholders, up 36.3% over the distributions paid in the corresponding quarter
of 2006. Distributions per unit rose to $0.325 from $0.306 the previous year.
    "The third quarter was a very active and profitable one. We pursued the
integration of the major acquisition we closed in June 2007. Combined with the
other acquisitions closed since the beginning of 2007, we have added a total
of 67 properties to our portfolio in the last nine months, representing
approximately 7 million square feet. This expansion has increased our
portfolio's total leasable space by 67.2% and its gross book value by 80.0%,
from $846.0 million to $1.52 billion as at September 30, 2007. In addition, it
has greatly improved the geographic breakdown of our portfolio and of our net
operating income, 51.1% of which came from the Montreal region in the third
quarter, 42.5% from the Greater Quebec City area where we maintain our
dominant position, and 6.4% from the Ottawa area," indicated Michel Dallaire,
President and Chief Executive Officer of Cominar.

    Debt Ratio
    ----------

    As at September 30, 2007, Cominar had a debt to gross book value ratio of
55.8%, which would allow it to acquire up to $401 million in properties at the
maximum debt ratio of 65% authorized by its Contract of Trust at the last
Annual Meeting of Unitholders.

    Operational Highlights
    ----------------------

    The portfolio occupancy rate stood at 94.3% as at September 30, 2007,
compared with 93.5% as at June 30, 2007, almost reaching the 94.4% occupancy
rate posted at December 31, 2006. The significant increase in the
third-quarter occupancy rate is due to the intensive efforts made by Cominar's
leasing team to raise the occupancy rate of the properties recently acquired
from Alexis Nihon, which had a lower occupancy rate than Cominar.

    Subsequent Events
    -----------------

    On October 10, 2007, Cominar issued $110.0 million in unsecured
subordinated convertible debentures bearing interest at 5.80% per annum and
maturing September 30, 2014. The net proceeds from the issue was used for the
repayment of outstanding credit facilities.
    On October 15, 2007, Cominar acquired land covering 119,986 square feet
for future development, located on one of the main arteries in Downtown Quebec
City, for a cash consideration of $9.7 million.

    Outlook
    -------

    "We expect to achieve satisfactory growth for the year ending December 31,
2007. In order to create further value, we will continue to carefully manage
Cominar's portfolio, by tightly controlling operating costs and maintaining
optimal internal growth, while remaining on the lookout for
expansion-by-acquisition and development in line with our earnings and
long-term growth criteria," concluded Michel Dallaire.

    Additional Financial Information
    --------------------------------

    Cominar's interim consolidated financial statements and the management's
discussion and analysis for the third quarter and first nine months ended
September 30, 2007 will be filed with SEDAR at www.sedar.com and are available
on Cominar's website at www.cominar.com.

    Conference Call and Webcast
    ---------------------------

    On Wednesday, November 7, 2007, at 11:30 a.m. (EST), Cominar's management
will hold a conference call to discuss the third-quarter results. Anyone who
is interested may take part in this call by dialing 1-800-590-1508. A
presentation of the third-quarter results will be available at www.cominar.com
under the title "Conference Call." The event will also be webcast on
www.q1234.com and a presentation of results will also be available on
Cominar's website under "Conference Call".

    PROFILE as at November 7, 2007
    ------------------------------

    Cominar is one of the largest retail property owners and managers in the
Province of Quebec. The REIT owns a real estate portfolio of 205 high-quality
properties, consisting of 36 office, 36 retail and 133 industrial and
mixed-use buildings that cover a total area of over 17.0 million square feet
in the Greater Quebec City, Montreal and Ottawa areas. Cominar's objectives
are to deliver growing cash distributions to its unitholders and to maximize
unitholder value through proactive management and the growth of its portfolio.
    The REIT has a distribution reinvestment plan for its unitholders that
allows participants to reinvest their monthly distributions in additional
Trust units. Participants will be given the right to receive an effective
discount of 5% of distributions to which they are entitled in the form of
additional units. Additional information and enrolment forms are available at
www.cominar.com

    Forward-Looking Statements and Non-GAAP Financial Measures
    ----------------------------------------------------------

    This press release may contain forward-looking statements with respect to
Cominar and its operations, strategy, financial performance and financial
condition. These statements generally can be identified by use of forward
looking words such as "may", "will", "expect", "estimate", "anticipate",
"intends", "believe" or "continue" or the negative thereof or similar
variations. The actual results and performance of Cominar discussed herein
could differ materially from those expressed or implied by such statements.
Such statements are qualified in their entirety by the inherent risks and
uncertainties surrounding future expectations. Some important factors that
could cause actual results to differ materially from expectations include,
among other things, general economic and market factors, competition, changes
in government regulation and the factors described under "Risk Factors" in the
Annual Information Form of Cominar. The cautionary statements qualify all
forward-looking statements attributable to Cominar and persons acting on its
behalf. Unless otherwise stated, all forward-looking statements speak only as
of the date of this press release.
    Net operating income ("NOI"), distributable income ("DI"), funds from
operations ("FFO") and adjusted funds from operations ("AFFO") are not
measures recognized under Canadian generally accepted accounting principles
("GAAP") and do not have standardized meanings prescribed by GAAP.  NOI, DI,
FFO and AFFO computed by Cominar may differ from similar computations as
reported by other similar organizations and, accordingly, may not be
comparable to similar measures reported by such organizations.


    The complete interim consolidated financial statements, including the
notes thereto, are available on Cominar website at www.cominar.com under
"Investor Relations - Quarterly Reports".


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Balance Sheets

    -------------------------------------------------------------------------
                                                         As at         As at
                                                 September 30,  December 31,
                                                          2007          2006
                                                   (unaudited)     (audited)
    (In thousands of dollars)                                $             $
    -------------------------------------------------------------------------
    ASSETS
    Income properties                                1,324,189       711,441
    Properties under development                        37,497        16,628
    Land held for future development                    15,902         7,604
    Deferred expenses and other assets                  30,988        28,057
    Prepaid expenses                                    12,382         2,654
    Accounts receivable                                 21,051        20,071
    -------------------------------------------------------------------------
                                                     1,442,009       786,455
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES AND UNITHOLDERS' EQUITY
    Liabilities
    Mortgages payable                                  626,052       270,142
    Convertible debentures                              99,155        39,984
    Bank indebtedness                                  124,281        73,616
    Accounts payable and accrued liabilities            38,199        21,606
    Distributions payable to unitholders                 4,966         4,099
    -------------------------------------------------------------------------
                                                       892,653       409,447
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Unitholders' equity
    Unitholders' contributions                         589,329       400,698
    Cumulative net income                              241,420       218,538
    Cumulative distributions                          (281,850)     (242,626)
    Contributed surplus                                    457           398
    -------------------------------------------------------------------------
                                                       549,356       377,008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                     1,442,009       786,455
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Unitholders' Equity

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Period ended                    Quarter         Cumulative (nine months)
     September 30,            2007          2006          2007          2006

    (unaudited, in               $             $             $             $
     thousands of dollars)
    -------------------------------------------------------------------------
    Unitholders'
     contributions
    Balance, beginning
     of period             580,683       362,384       400,698       338,230
    Issue of units           8,697        31,813       194,534        55,967
    Underwriters' fees
     and offering costs        (51)            -        (5,903)           -
    -------------------------------------------------------------------------
    Balance, end
     of period             589,329       394,197       589,329       394,197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cumulative net income
    Balance, beginning
     of period             234,552       198,991       218,538       184,463
    Net income               6,868         9,100        22,882        23,628
    -------------------------------------------------------------------------
    Balance, end
     of period             241,420       208,091       241,420       208,091
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cumulative
     distributions
    Balance, beginning
     of period            (267,210)     (220,227)     (242,626)     (199,902)
    Distributions
     to unitholders        (14,640)      (10,744)      (39,224)      (31,069)
    -------------------------------------------------------------------------
    Balance, end
     of period            (281,850)     (230,971)     (281,850)     (230,971)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Contributed surplus
    Balance, beginning
     of period                 407           342           398           351
    Unit option plan            50            44            59            35
    -------------------------------------------------------------------------
    Balance, end of period     457           386           457           386
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Unitholders' equity    549,356       371,703       549,356       371,703
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Income and Comprehensive Income

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                    Quarter         Cumulative (nine months)
    -------------------------------------------------------------------------
    Period ended
     September 30,            2007          2006          2007          2006

    (unaudited, in
     thousands of dollars
     except per unit amounts)    $             $             $             $
    -------------------------------------------------------------------------
    Operating revenues
    Rental revenue
     from income
     properties             53,077        31,042       128,824        94,492
    -------------------------------------------------------------------------
    Operating expenses
    Operating costs          9,135         5,551        24,059        18,394
    Realty taxes
     and services            9,900         5,566        26,210        18,624
    Property management
     expenses                  555           221         1,166           794
    -------------------------------------------------------------------------
                            19,590        11,338        51,435        37,812
    -------------------------------------------------------------------------
    Operating income
     before the
     undernoted             33,487        19,704        77,389        56,680
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Interest on borrowings  12,468         5,584        25,533        17,033
    Depreciation of
     income properties      12,047         3,889        23,410        11,327
    Amortization of
     deferred leasing costs  1,761         1,537         5,180         4,601
    Amortization of
     other assets               59            43           161           128
    -------------------------------------------------------------------------
                            26,335        11,053        54,284        33,089
    -------------------------------------------------------------------------
    Operating income from
     real estate assets      7,152         8,651        23,105        23,591
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Trust administrative
     expenses                  749           557         2,201         1,628
    Other revenues             133            48           308           201
    Unusual items                -             -           422          (554)
    -------------------------------------------------------------------------
    Net income from
     continuing
     operations              6,536         8,142        21,634        21,610
    Net income from
     discontinued
     operations                332           958         1,248         2,018
    -------------------------------------------------------------------------
    Net income and
     comprehensive income    6,868         9,100        22,882        23,628
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic net income
     per unit                0,153         0,263         0,567         0,701
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted net income
     per unit                0,152         0,259         0,558         0,691
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Cash Flows

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    Quarter         Cumulative (nine months)
    Period ended
     September 30,            2007          2006          2007          2006

    (unaudited,
     in thousands of dollars)    $             $             $             $
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net income               6,868         9,100        22,882        23,628
    Adjustments for:
      Depreciation of
       income properties    12,201         4,141        24,028        12,088
      Amortization
       of above-(below-)
       market leases          (170)           30          (178)           90
      Amortization of
       deferred leasing
       costs                 1,761         1,537         5,180         4,601
      Amortization of
       deferred financing
       costs and other assets  243           183           601           535
      Compensation costs
       related to unit
       option plan              70            83           169           145
    -------------------------------------------------------------------------
                            20,973        15,074        52,682        41,087
    Change in non-cash
     working capital items   9,738         2,682         5,740        (7,978)
    -------------------------------------------------------------------------
                            30,711        17,756        58,422        33,109
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Mortgages payable            -             -       167,987        59,433
    Repayments of
     mortgages payable      (4,061)      (21,931)      (60,811)      (39,267)
    Bank indebtedness      (19,509)       39,566        50,666        21,688
    Distributions to
     unitholders           (13,739)      (10,250)      (37,028)      (30,095)
    Net proceeds from
     issue of units            201           716       168,781         5,487
    Net proceeds from issue
     of convertible
     debentures                  -             -        77,386             -
    -------------------------------------------------------------------------
                           (37,108)        8,101       366,981        17,246
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Additions to
     income properties      (9,666)      (12,472)     (413,631)      (31,080)
    Additions to properties
     under development
     and land held for
     future development     (9,526)      (10,825)      (32,358)      (13,816)
    Compensation on
     disposal of a real
     estate asset           28,000             -        28,000             -
    Leasing costs           (2,353)       (2,526)       (7,171)       (5,252)
    Other assets               (58)          (34)         (243)         (207)
    -------------------------------------------------------------------------
                             6,397       (25,857)     (425,403)      (50,355)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net change in cash
     and cash equivalents        -             -             -             -
    Cash and cash equivalents,
     beginning of period         -             -             -             -
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period               -             -             -             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00010204EF




For further information:

For further information: Michel Dallaire, Eng., President and Chief
Executive Officer, (418) 681-8151, mdallaire@cominar.com; Michel Berthelot,
CA, Executive Vice-President and Chief Financial Officer, (418) 681-8151,
mberthelot@cominar.com

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Cominar Real Estate Investment Trust

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