Whiterock REIT Provides Update to Internal Growth Initiatives

    TORONTO, Sept. 20 /CNW/ - Whiterock Real Estate Investment Trust
("Whiterock") (TSX:WRK.UN) today provided an update on its internal growth
initiatives. As highlighted at the 2007 Annual General Meeting of Unitholders,
Whiterock has a near term controllable AFFO target of $1.14 per Unit, which
will cover its $1.12 per Unit of distributions. Whiterock has now increased
the executed portion of this pro forma run rate AFFO from $1.00 to $1.06 as
outlined below.

    Controllable AFFO                                          Run Rate AFFO
                                                                    per Unit
    Executed Pro forma AFFO - Q2 supplemental package                  $1.00
    New Acquisitions of $19 million and G&A Savings                    $0.06
    Updated Pro forma AFFO                                             $1.06
    Additional Controllable Items - In progress                        $0.08
    Q1 2008 AFFO Target                                                $1.14

    Whiterock's executed pro forma AFFO per Unit is expected to increase from
$1.00 to approximately $1.06 with the addition of these new acquisitions, once
closed and stabilized, as well as other currently in-place G&A initiatives.
The controllable items remaining to reach $1.14 of run rate AFFO include
property management internalization, investment of remaining balance sheet
cash, and new leasing. These near term initiatives are currently in progress
and will be reported on in subsequent updates.

    Additional Portfolio and Company Highlights

        -  10.4% yield on Whiterock Units
        -  Pro forma FFO run rate expectation increased from $1.33 to
           approximately $1.40 per Unit due to in-place rents approximately
           30% below market on the new acquisitions
        -  24% of Whiterock's total portfolio will be located in Saskatchewan
           with these acquisitions, where in-place rents are at an average of
           approximately 30% below market with an average lease term of
           approximately 4 years
        -  9 year average lease term and 70% investment grade credit tenants
           on total existing portfolio
        -  Additional internal growth available from below market rents,
           contractual rent increases, and additional property management

    The proposed acquisitions, all located in Regina, Saskatchewan include:
(i) the 310 Henderson Drive industrial facility totalling 395,150 sf; and
(ii)the Central Park and Franciscan Place office buildings with a combined
41,000 sf of space. The stabilized cap rate on these accretive acquisitions
will be 8.6% upon the finalization of a lease expansion at 310 Henderson.

    The acquisitions total approximately $19 million including closing costs
and are expected to close and be stabilized in October and November, and will
be funded with a combination of existing cash on hand and new mortgage

    Whiterock's existing portfolio consists of 31 properties located in 10
markets across Canada. The average lease term is approximately 9 years, with
approximately 70% leased to government or credit rated firms. Further details
outlining Whiterock's anticipated near term internal growth opportunities and
performance of the existing portfolio are included in management's
presentation available at www.whiterockreit.ca.

    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.

    %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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