Borealis Retail REIT Announces June Distribution.

TORONTO -- Borealis Retail REIT (TSX:BRE.UN) announces today its June 2004 monthly distribution in the amount of $0.0854. Payment will be made on July 16th, 2004 to holders of record as of June 30, 2004.

The REIT previously announced its intent to increase monthly distribution by 5.4% percent to $0.09 per unit, effective August 16 for holders of record on July 30, 2004.

The REIT has a Distribution Reinvestment Plan ("DRIP") that permits unitholders to use monthly cash distributions paid on existing units to purchase additional units directly from the REIT.

In addition, unitholders who elect to participate in the DRIP will receive a further distribution, payable in units, equal in value to 3% of each cash distribution reinvested by them. The price at which units will be purchased with such cash distributions is based on a weighted average trading price of units for the 20 trading days prior to the relevant distribution date, which is normally the 15th of each month. Those unitholders wishing to enroll in the DRIP should contact the brokerage house or financial institution where their units are currently held to complete the required authorization form.

Borealis Retail REIT is a TSX listed real estate investment trust. Borealis Retail REIT owns 7 shopping centres comprising approximately 3.2 million square feet located in Canada. As of May 31, 2004 there were 24,996,516 issued and outstanding units of the REIT.