Crombie REIT provides improved clarity to "REIT" tax status

    STELLARTON, NS, Jan. 18 /CNW/ - Crombie Real Estate Investment Trust
("Crombie") (TSX: CRR.UN) announced that, as of January 1, 2008, Crombie
believes it has organized its assets and operations to permit Crombie to
satisfy the criteria contained in the Income Tax Act (Canada), and as further
clarified in the proposed technical amendments issued by the Department of
Finance (Canada) on December 20, 2007, in regard to the definition of "real
estate investment trust" ("REIT"). The relevant tests apply throughout the
taxation year of Crombie and, as such, the actual status of Crombie for any
particular taxation year can only be ascertained at the end of the particular
    During the fourth quarter of 2007 Crombie's management and their advisors
underwent an extensive review of Crombie's organizational structure and
operations to support Crombie's assertion that it meets the REIT criteria at
January 1, 2008.
    In addition, the issuance of proposed technical amendments on
December 20, 2007 provided further clarity to the tax rules and criteria that
were part of Bill C-52 and applicable to Crombie. These technical amendments
provided more certainty that Crombie qualifies as a REIT.
    A trust that satisfies the criteria of a REIT throughout its taxation
year will not be subject to income tax in respect of distributions to its
Unitholders or be subject to the restrictions on its growth that would apply
to trusts classified as specified investment flow-through entities ("SIFTs").
Thus Crombie will continue its activities in accordance with its business

    About Crombie

    Crombie is an open-ended real estate investment trust established under,
and governed by, the laws of the Province of Ontario. The trust invests in
income-producing retail, office and mixed-use properties in Canada, with a
future growth strategy focused primarily on the acquisition of retail
properties. Crombie currently owns a portfolio of 52 commercial properties in
six provinces, comprising approximately 7.9 million square feet of rentable
space. More information about Crombie can be found at

    This news release contains forward looking statements that reflect the
current expectations of management of Crombie about Crombie's future results,
performance, achievements, prospects and opportunities, including any future
obligation of Crombie to pay income taxes. Wherever possible, words such as
"may", "will", "estimate", "anticipate", "believe", "expect", "intention" and
similar expressions have been used to identify these forward looking
statements. These statements reflect current beliefs and are based on
information currently available to management of Crombie. Forward looking
statements necessarily involve known and unknown risks and uncertainties. A
number of factors could cause actual results, performance, achievements,
prospects or opportunities to differ materially from the results discussed or
implied in the forward looking statements, including with respect to income
taxes, any future legislative amendments or interpretations, or Crombie owning
non-qualifying assets or earning material non-qualifying revenue. These
factors should be considered carefully and a prospective purchaser should not
place undue reliance on the forward looking statements. There can be no
assurance that the expectations of management of Crombie will prove to be
    Additional information relating to Crombie can be found on Crombie's web
site at or on the SEDAR web site for Canadian regulatory
filings at

For further information:

For further information: Scott Ball, C.A., Vice President, Chief
Financial Officer and Secretary, Crombie REIT, (902) 755-8100

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