Cominar announces excellent results and achievements for the second quarter ended June 30, 2007



    
    - Closing of the acquisition of Alexis Nihon Real Estate Investment
      Trust's industrial and office property portfolio
    - Increases of 29.0% in operating revenues and 27.4% in net operating
      income
    - Recurring distributable income and funds from operations respectively
      up by 24.8% and 23.7%
    - Issues of convertible debentures and units for $250.5 million net
      proceeds

    Subsequent event

    - Monthly cash distributions increased from 10.5 cents to 11.0 cents per
      unit
    -------------------------------------------------------------------------
    

    TSX - CUF.UN

    QUEBEC, Aug. 13 /CNW Telbec/ - Cominar Real Estate Investment Trust
("Cominar" or the "REIT") announces its results for the second quarter and
six-month period ended June 30, 2007.

    
    Financial Highlights
    --------------------
    (unaudited) (in thousands of $, except per-unit amounts)
    -------------------------------------------------------------------------
                                                        Quarter
    For the periods ended June 30           2007          2006      % Change
    -------------------------------------------------------------------------
    Operating revenues                    42,615        33,045          29.0
    Net operating income                  25,456        19,984          27.4
    Net income                             8,690         8,364           3.9
    RDI(1)                                15,014        12,030          24.8
    Recurring FFO                         17,222        13,923          23.7
    Distributions                         13,206        10,305          28.2

    Per unit (fully diluted)
    RDI(1)                                  0.37          0.34           8.8
    Recurring FFO(1)                        0.42          0.39           7.7
    Distributions (basic)                  0.312         0.306           2.0
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                Year-to-Date (Six Months)
    For the periods ended June 30           2007          2006      % Change
    -------------------------------------------------------------------------
    Operating revenues                    78,049        65,648          18.9
    Net operating income                  45,282        38,325          18.2
    Net income                            16,014        14,528          10.2
    RDI(1)                                26,622        22,302          19.4
    Recurring FFO                         30,838        26,093          18.2
    Distributions                         24,584        20,325          21.0

    Per unit (fully diluted)
    RDI(1)                                  0.68          0.65           4.6
    Recurring FFO(1)                        0.78          0.74           5.4
    Distributions (basic)                  0.618         0.608           1.6
    -------------------------------------------------------------------------
    (1) Cominar incurred non-recurring expenses of $0.6 million in the first
        quarter of 2006 in connection with its offer to acquire Alexis Nihon
        Real Estate Investment Trust.
        Cominar recorded non-recurring revenue of $0.4 million from the
        public offering of subscription receipts issued in May 2007 and
        converted into units in June 2007 on the closing of the acquisition
        of the Alexis Nihon REIT properties.
    -------------------------------------------------------------------------


    Closing of the acquisition of Alexis Nihon's industrial and office
    ------------------------------------------------------------------
    property portfolio
    ------------------

    Cominar closed the acquisition of Alexis Nihon's industrial and office
property portfolio, consisting of 35 industrial and 19 office buildings
representing 6.5 million square feet of leasable space for a consideration of
$592.0 million.

    For the second quarter ended June 30, 2007, operating revenues totalled
$42.6 million, up 29.0% over 2006. This increase is due to the contribution
for approximately one month of the acquisition of Alexis Nihon's industrial
and office property portfolio and the other acquisitions integrated since the
beginning of 2006, to which is added the strong performance of the existing
property portfolio. This growth, combined with the solid first-quarter
results, brought operating revenues for the first six months of 2007 to
$78.0 million, an increase of $12.4 million or 18.9% over the same period in
2006.

    Second-quarter net operating income totalled $25.5 million, up 27.4% over
the equivalent period of 2006. Net operating income for the first six months
grew by 18.2% to $45.3 million.

    Recurring distributable income ("RDI") for the second quarter amounted to
$15.0 million, up 24.8% over $12.0 million in 2006. Fully diluted RDI per unit
rose to $0.37 from $0.34 in the second quarter of 2006. RDI for the first six
months grew by 19.4% to $26.6 million from $22.3 million in 2006. Fully
diluted RDI per unit totalled $0.68, compared with $0.65 in 2006.

    Recurring funds from operations ("recurring FFO") increased by 23.7% to
$17.2 million for the second quarter, compared with $13.9 million for the
corresponding quarter of 2006. Fully diluted recurring FFO per unit amounted
to $0.42, up 7.7% over 2006. For the first six months, recurring FFO grew by
18.2% to $30.8 million, compared with $26.1 million for the equivalent period
of 2006. Fully diluted recurring FFO per unit rose to $0.78, an increase of
5.4% over 2006.
    In the second quarter, Cominar paid distributions of $13.2 million to
unitholders, an increase of 28.2% over the distributions paid in the
corresponding quarter of 2006. Distributions per unit rose to $0.312 from
$0.306 the previous year.
    "The closing of the Alexis Nihon acquisition was the highlight of our
second quarter, which also reflected excellent results. During the first six
months, we acquired land in the Greater Quebec City and Montreal areas
representing 2.6 million square feet and a $10.7 million investment. We have
acquired a total of 67 properties so far in 2007. Since its inception, our
real estate portfolio's has increased more than sixfold, as well as its gross
book value which has grown to approximately $1.5 billion," indicated Michel
Dallaire, President and Chief Executive Officer of Cominar.

    Debenture and Unit Issues
    -------------------------

    On May 8, 2007, Cominar issued $80.5 million in Series B convertible
unsecured subordinated debentures bearing interest at a rate of 5.70% per
annum and maturing in June 2014.
    On June 5, 2007, the REIT issued 7,113,000 units for total gross proceeds
of $170.0 million pursuant to the exchange of the subscription receipts issued
under the prospectus dated April 27, 2007. This exchange was conditional on
the acquisition of Alexis Nihon's industrial and office properties.

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

    As at June 30, 2007, Cominar's ratio of debt to gross book value stood at
56.8%, which would allow it to acquire up to $358 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
    ----------------------

    Portfolio occupancy stood at 93.5% on June 30, 2007, compared with 94.8%
as at March 31, 2007. This variation is primarily attributable to the
properties acquired from Alexis Nihon, which had lower occupancy rate than
those of Cominar at that date.

    Increased Monthly Cash Distributions
    ------------------------------------

    Considering Cominar's strong performance as well as the quality of its
acquisitions and developments, the Board of Trustees elected to increase
monthly cash distributions to unitholders from 10.5 cents per unit to
11.0 cents per unit, representing a 4.8% increase. The increase will be
effective with the August 2007 distribution payable in September 2007.

    Outlook
    -------

    "In upcoming quarters, we will pursue our scheduled development program
while completing the integration of our latest acquisitions. We are confident
we will identify new expansion opportunities that will create value for the
long term. Cominar is better positioned than ever to achieve growing returns
in the future," concluded Michel Dallaire.

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

    Cominar's interim consolidated financial statements and the management's
discussion and analysis for the second quarter and six-month period ended June
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 Monday, August 13, 2007, at 11:30 a.m. (EDT), Cominar's management will
hold a conference call to discuss the second-quarter results. Anyone who is
interested may take part in this call by dialing 1-866-249-2157. A
presentation of the second-quarter results will be available at
www.cominar.com under the title "Conference Call." The event will also be
webcast on www.q1234.com.

    PROFILE as at August 13, 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 206 high-quality
properties, consisting of 37 office, 36 retail and 133 industrial and
mixed-use buildings that cover a total area of over 17.2 million square feet
in the Greater Quebec City, Montreal and Gatineau/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 and Cominar has no obligation to update such
statements.
    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
                                                       June 30,  December 31,
                                                          2007          2006
                                                    (unaudited)     (audited)
    (In thousands of dollars)                                $             $
    -------------------------------------------------------------------------
    ASSETS
    Income properties                                1,359,598       711,441
    Properties under development                        31,455        16,628
    Land held for future development                    14,637         7,604
    Deferred expenses and other assets                  30,490        28,057
    Prepaid expenses                                    17,826         2,654
    Accounts receivable                                 18,512        20,071
    -------------------------------------------------------------------------
                                                     1,472,518       786,455
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES AND UNITHOLDERS' EQUITY
    Liabilities
    Mortgages payable                                  626,777       270,142
    Convertible debentures                             106,947        39,984
    Bank indebtedness                                  143,791        73,616
    Accounts payable and accrued liabilities            41,882        21,606
    Distributions payable to unitholders                 4,689         4,099
    -------------------------------------------------------------------------
                                                       924,086       409,447
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Unitholders' equity
    Unitholders' contributions                         580,683       400,698
    Cumulative net income                              234,552       218,538
    Cumulative distributions                          (267,210)     (242,626)
    Contributed surplus                                    407           398
    -------------------------------------------------------------------------
                                                       548,432       377,008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                     1,472,518       786,455
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Unitholders' Equity
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    Quarter           Cumulative (six months)
    -------------------------------------------------------------------------
    Period ended June 30,     2007          2006          2007          2006
    (unaudited, in
     thousands of dollars)       $             $             $             $
    -------------------------------------------------------------------------
    Unitholders'
     contributions
    Balance, beginning
     of period             412,707       343,975       400,698       338,230
    Issue of units         173,828        18,409       185,837        24,154
    Underwriters' fees
     and offering costs     (5,852)            -        (5,852)            -
    -------------------------------------------------------------------------
    Balance, end of
     period                580,683       362,384       580,683       362,384
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cumulative net
     income
    Balance, beginning
     of period             225,862       190,627       218,538       184,463
    Net income               8,690         8,364        16,014        14,528
    -------------------------------------------------------------------------
    Balance, end of
     period                234,552       198,991       234,552       198,991
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cumulative
     distributions
    Balance, beginning
     of period            (254,004)     (209,922)     (242,626)     (199,902)
    Distributions to
     unitholders           (13,206)      (10,305)      (24,584)      (20,325)
    -------------------------------------------------------------------------
    Balance, end of
     period               (267,210)     (220,227)     (267,210)     (220,227)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Contributed surplus
    Balance, beginning
     of period                 403           361           398           351
    Unit option plan             4           (19)            9            (9)
    -------------------------------------------------------------------------
    Balance, end of
     period                    407           342           407           342
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Unitholders' equity    548,432       341,490       548,432       341,490
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Income and Comprehensive Income
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    Quarter           Cumulative (six months)
    -------------------------------------------------------------------------
    Period ended June 30,     2007          2006          2007          2006
    (unaudited, in
     thousands of dollars
     except per unit
     amounts)                    $             $             $             $
    -------------------------------------------------------------------------
    Operating revenues
    Rental revenue from
     income properties      42,615        33,045        78,049        65,648
    -------------------------------------------------------------------------
    Operating expenses
    Operating costs          7,533         6,034        15,355        13,286
    Realty taxes and
     services                9,228         6,741        16,792        13,459
    Property management
     expenses                  398           286           620           578
    -------------------------------------------------------------------------
                            17,159        13,061        32,767        27,323
    -------------------------------------------------------------------------
    Operating income
     before the
     undernoted             25,456        19,984        45,282        38,325
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Interest on
     borrowings              7,434         5,739        13,065        11,449
    Depreciation of
     income properties       7,207         4,019        11,827         7,902
    Amortization of
     deferred leasing
     costs                   1,747         1,517         3,419         3,064
    Amortization of
     other assets               52            40           102            85
    -------------------------------------------------------------------------
                            16,440        11,315        28,413        22,500
    -------------------------------------------------------------------------
    Operating income
     from real estate
     assets                  9,016         8,669        16,869        15,825
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Trust administrative
     expenses                  831           498         1,452         1,071
    Other revenues              83           105           175           153
    Unusual items              422             -           422          (554)
    -------------------------------------------------------------------------
    Net income from
     continuing
     operations              8,690         8,276        16,014        14,353
    Net income from
     discontinued
     operations                  -            88             -           175
    -------------------------------------------------------------------------
    Net income and
     comprehensive
     income                  8,690         8,364        16,014        14,528
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic net income
     per unit                0.221         0.250         0.420         0.451
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted net
     income per unit         0.217         0.246         0.413         0.430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    COMINAR REAL ESTATE INVESTMENT TRUST
    Consolidated Statements of Cash Flows
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    Quarter           Cumulative (six months)
    -------------------------------------------------------------------------
    Period ended June 30,     2007          2006          2007          2006
    (unaudited, in
     thousands of dollars)       $             $             $             $
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net income               8,690         8,364        16,014        14,528
    Adjustments for:
      Depreciation of
       income properties     7,207         4,042        11,827         7,947
      Amortization of
       above- (below-)
       market leases           (38)           30            (8)           60
      Amortization of
       deferred leasing
       costs                 1,747         1,517         3,419         3,064
      Amortization of
       deferred financing
       costs and other
       assets                  169           177           358           352
      Compensation costs
       related to unit
       option plan              50            31            99            62
    -------------------------------------------------------------------------
                            17,825        14,161        31,709        26,013
    Change in non-cash
     working capital
     items                  (1,729)       (3,951)       (3,998)      (10,660)
    -------------------------------------------------------------------------
                            16,096        10,210        27,711        15,353
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Mortgages payable      132,947        59,433       167,987        59,433
    Repayments of
     mortgages payable     (44,324)      (12,829)      (56,750)      (17,336)
    Bank indebtedness       45,405       (40,801)       70,175       (17,878)
    Distributions to
     unitholders           (11,893)       (9,948)      (23,289)      (19,845)
    Net proceeds from
     issue of units        165,503         1,186       168,580         4,771
    Net proceeds
     from issue of
     convertible
     debentures             77,386             -        77,386             -
    -------------------------------------------------------------------------
                           365,024        (2,959)      404,089         9,145
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Additions to
     income properties    (363,555)       (4,888)     (403,965)      (18,608)
    Additions to
     properties under
     development and
     land held for
     future development    (14,383)         (198)      (22,832)       (2,991)
    Leasing costs           (3,062)       (2,165)       (4,818)       (2,726)
    Other assets              (120)            -          (185)         (173)
    -------------------------------------------------------------------------
                          (381,120)       (7,251)     (431,800)      (24,498)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    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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