Borealis Retail REIT Announces September Distribution.

TORONTO -- Borealis Retail REIT (TSX:BRE.UN) announces today its September 2004 monthly distribution in the amount of $0.09. Payment will be made on October 15th, 2004 to holders of record as of September 30, 2004.

The REIT has a Distribution Reinvestment Plan ("DRIP") that permits unitholders to use the monthly cash distributions paid on their 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 and complete the required authorization form.

Borealis Retail REIT is a TSX listed real estate investment trust. Borealis Retail REIT owns 9 shopping centres comprising approximately 4.55 million square feet located in Canada. As of June 30, 2004, there were 30,557,701 issued and outstanding units of the REIT.

Borealis Retail REIT (TSX:BRE.UN)