Whiterock REIT Announces 2007 Year End Results, Posts Record 32% Increase in 2007 FFO per Unit

    TORONTO, March 26 /CNW/ - Whiterock Real Estate Investment Trust
("Whiterock") today announced financial results for the year ended
December 31, 2007. The following comments and highlights should be read in
conjunction with the audited consolidated financial statements and
management's discussion and analysis for the year ended December 31, 2007.
These will be available on Whiterock's website at www.whiterockreit.ca.

    HIGHLIGHTS - December 31, 2007

    -   Yield - Distribution yield of 11.5 % annualized, based on per unit
        distributions for the year totaling $1.12, and the March 26, 2008
        unit closing price of $9.75.

    -   Record Annual FFO - Recurring FFO increased 92% to $11.2 million
        for the year ended December 31, 2007. Recurring FFO per unit (basic)
        increased 32% to $1.11 per unit in the same period.

    -   Increasing Quarterly FFO - In the three months ended December 31,
        2007, recurring FFO was $3.0 million or $0.29 per unit (basic). This
        represents a 96% FFO payout ratio.

    -   Record AFFO - Recurring AFFO for 2007 was up 92% to $9.1 million.
        2007 recurring AFFO per unit (basic) was $0.90, up 30% from
        $0.69 per unit in 2006.

    -   Significant Rental Rate Increases - Rents on 2007 rollover of
        expiring tenancies increased 11.6% with Saskatchewan achieving an
        increase of 30.9%. Achieved positive net absorption during the year
        of over 28,000 square feet. Expiring leases in 2008 and beyond remain
        below market.

    -   Same Property Growth - Property operating income for the year ended
        December 31, 2007 increased approximately 4.8% on a same property
        basis from the prior year.

    -   Investment Grade Tenants on Long-Term Leases(1) - At December 31,
        2007, 69% of revenues were from government and other investment grade
        tenants. Average lease term of the portfolio is 8.6 years.

    -   Long-Term Fixed Rate Debt(1) - Average 8.5 year term for mortgage
        debt, at a weighted average interest rate of 5.4%, all at fixed

    -   Continued Deleveraging - $4.0 million of convertible debentures were
        converted to equity in the year ended December 31, 2007. Subsequent
        to December 31, 2007, $0.3 million of debentures were converted into

    -   Geographically Balanced Portfolio - 21% of the portfolio is in
        Saskatchewan, 28% in Ontario, 36% in Quebec and 15% in Atlantic

    -   New Acquisitions - In addition to the newly constructed retail centre
        acquired in PEI in the first quarter of 2007, Whiterock acquired in
        the fourth quarter, a 395,159 square foot facility in Regina, SK
        (subsequently sold), as well as two office properties, also in
        Regina, SK, totaling approximately 41,000 square feet.

    -   Internal Property Management - Expanded internally operated property
        management to thirteen properties, including 655 Bay Street.

    -   Tax Efficient Distributions - 100% of the distributions made in 2007
        and 2006 were classed as return of capital for tax purposes.

    (1) Adjusted for the sale of 310 Henderson Drive.

    (including discontinued operations, except as noted)

                                        Three Months Ended      Year Ended
                                            December 31,       December 31,
                                        ------------------- -----------------
    (in $000's except per Unit data)         2007     2006     2007     2006
    Total revenue - continuing operations  12,944   10,339   48,854   28,992
    Property operating income
      - continuing operations               7,696    6,517   29,270   18,230

    Funds From Operations (FFO)(1)          2,985    2,406   11,203    5,824
    FFO per unit(1)
      - basic                                0.29     0.28     1.11     0.84
      - diluted                              0.29     0.28     1.10     0.83

    Adjusted Funds From
     Operations (AFFO)(1)                   2,578    1,887    9,119    4,748
    AFFO per unit(1)
      - basic                                0.25     0.22     0.90     0.69
      - diluted                              0.24     0.22     0.88     0.67
    (1) FFO, FFO per unit, AFFO and AFFO per unit exclude non-recurring

    Balance sheet highlights for Whiterock as at December 31, 2007 and
December 31, 2006 are as follows:

    (in $000's)                         December 31, 2007  December 31, 2006
    Investment in real estate                     355,549            376,927
    Mortgages payable and facilities              224,599            250,886
    Convertible debentures (face value)            46,986             51,000
    Cash                                            4,152              9,298
    Unitholders' equity                            74,862             80,252

    Selected financial ratios for Whiterock as at, and for the year ended,
December 31, 2007 and 2006 are as follows:

                                        December 31, 2007  December 31, 2006
    Weighted average mortgage rate                   5.4%               5.4%
    Weighted average debenture rate                  7.0%               7.1%
    Interest coverage ratio(1)                        1.7                1.4
    FFO payout ratio(2)                            100.9%             132.8%
    (1) Interest coverage is calculated based on continuing property
        operating income less G&A, divided by interest expense (including
        debentures and financing fee amortization) net of interest income on
        bank balances.
    (2) FFO payout ratio is calculated as distributions divided by Recurring
        FFO for the year ended December 31, 2007 and 2006. For the three
        months ended December 31, 2007, FFO payout ratio was 96.3%.

    In the year ended December 31, 2007, Whiterock significantly improved its
FFO, AFFO, FFO per unit, AFFO per unit, property operating income and
increased its interest coverage ratio while reducing its payout ratio compared
to the prior year.
    The improvement in Whiterock's financial results reflects the completion
of accretive acquisitions, contractual lease escalations and strong leasing
    "Our portfolio is characterized by a balance of long term credit tenants
and short term below market leases. Whiterock's overall average lease term is
8.6 years with 69% of revenues coming from government and investment grade
tenants. Over the next three years Whiterock has over 326,000 square feet of
space rolling over in Saskatchewan at rates currently 40% below market, with
minimal new supply on the horizon. This represents over $850,000 of annualized
potential additional AFFO. This unique combination of long term stability
balanced with near term growth and contractual rent increases gives Whiterock
the ability to deliver high quality, growing cash flows to its Unitholders
over the long term," said Whiterock CEO Jason Underwood.
    Management expects that further increases in AFFO per unit in 2008 will
result from completed and anticipated new leasing and renewals, in-place rent
increases, the completed reinvestment of balance sheet cash and continued
property management and general and administrative improvements.
    FFO and AFFO are supplemental non-GAAP financial measures used by the
real estate industry to measure and compare the operating performance of real
estate organizations. Whiterock's method of calculating FFO and AFFO may be
different from methods used by other REITs or corporations. A description of
Whiterock's calculation of FFO and AFFO is included in Whiterock's
Management's Discussion and Analysis for the year ended December 31, 2007.


    Whiterock invites you to participate in its live conference call with
senior management on Thursday March 27, 2008 at 11:00 a.m. E.D.T., to discuss
the REIT's results and achievements for the year ended December 31, 2007.
    You may participate in the live conference call toll free at
1-800-214-0745 and enter the passcode '561577' followed by the number sign
when prompted by the operator. To ensure your participation, please call five
minutes prior to the scheduled start of the call. The call will be archived on
Whiterock's website and available after the call.

    Forward Looking Statements

    This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements with respect to financial
performance, sale-leaseback opportunities, proposed acquisitions and equity or
debt offerings, new markets for growth, financial position, comparable
commercial REITs and proposed acquisitions. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved".
    Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Whiterock to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: the risks related to the market for Whiterock's
securities, the general risks associated with real property ownership and
acquisition, that future accretive acquisition opportunities will be
identified and/or completed by Whiterock, lease maturities, risk management,
liquidity, debt financing, credit risk, competition, general uninsured losses,
interest rate fluctuations, environmental matters, restrictions on redemptions
of outstanding Whiterock securities, lack of availability of growth
opportunities, diversification, reliance on anchor or single tenant
properties, potential Unitholder liability, potential conflicts of interest,
the availability of sufficient cash flow, fluctuations in cash distributions,
the market price of Whiterock's units, the failure to obtain additional
financing, dilution, reliance on key personnel, changes in legislation,
failure to obtain or maintain mutual fund trust status and delays in obtaining
governmental approvals or financing as well as those additional factors
discussed in the section entitled "Risk Factors" in Whiterock's Annual
Information Form which can be obtained at www.sedar.com. In particular, but
without limitation, there is no assurance that Whiterock will be able to
increase its AFFO as anticipated.

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    Source: Whiterock Real Estate Investment Trust

    %SEDAR: 00022234E

For further information:

For further information: www.whiterockreit.ca, Jason Underwood, (416)
907-4861; Paul Simcox, (416) 907-4862; Frank Bucys, CFO, (416) 907-4864

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