Centrefund Realty Corporation - third quarter results.

TORONTO, Ontario--(BUSINESS WIRE)--Nov. 14, 1995--CENTREFUND REALTY CORP (TSE:CFE) Centrefund Realty Corporation announced today that its net earnings for the nine months ended September 30, 1995, were $3,037,000 or basic earnings per common share of 54 cents. Cash flow, defined as net income plus depreciation and deferred income taxes, amounted to $4,625,000 or basic cash flow per common share of 82 cents. On a fully diluted basis earnings amounted to 52 cents per share and cash flow amounted to 76 cents per share for the nine month period. Fully diluted earnings and cash flow per share reflect the impact of the $25 million issue of special warrants completed early in the second quarter, which resulted in the issue of 2,941,180 common shares early in the third quarter. Centrefund completed its initial public offering on March 29, 1994, and accordingly, comparable figures for the same period in the previous year do not exist. The results for the current quarter include a gain of $824,000 realized on the sale of land adjacent to the Company's Fairview Mall in St. Catharines to a large format retailer.

This level of fully diluted cash flow per share is significantly higher than 67 cents per common share forecast for the entire 1995 fiscal year in connection with the Company's initial public offering of securities.

The interest rate on the Company's participating debentures, which is determined in part based on the operating results of the previous quarter, will accrue at 10.36 percent for the fourth quarter of 1995.

During the third quarter the Company completed the acquisition of one additional shopping centre in North York containing an aggregate of 167,000 square feet of leasable area. This property is earmarked for a major renovation and remerchandizing. The Company currently has redevelopment and expansion programs underway at four of its other shopping centres which are also slated for completion during 1996. The positive impact of these initiatives on earnings and cash flow per share will only be realized when the programs are completed and the properties become fully operational.

The Company has entered into separate contracts for the acquisition of four additional retail properties, containing an aggregate of in excess of 700,000 square feet. These acquisitions are scheduled for closing in the fourth quarter, subject to completion of due diligence. The purchase price for the four individual transactions, which aggregates just over $50 million, will be financed by institutional mortgage financing and equity provided from the Company's existing credit facilities. Each of the proposed acquisitions offers value creation potential through expansion, renovation or pro-active management and leasing. The positive impact of these acquisitions on cash flow will only be realized in 1996 as the acquisitions are scheduled to close in late 1995.

During the third quarter the Company entered into long term mortgage financing contracts on three of its properties for an aggregate of approximately $33 million at an average interest rate of 8.35 percent. The proceeds of refinancing will be utilized to repay $21 million of existing debt on the subject properties with the balance to be utilized for the equity requirement of the Company's acquisition program.

The Board of Directors of Centrefund has declared a quarterly dividend of 19 cents per common share payable on November 30, 1995, to shareholders of record on November 22, 1995. In order to allow earnings to contribute to the capital requirements of the Company's growth, the Board of Directors has decided to change the dividend policy of paying 95 percent of annual cash flow to shareholders by way of dividend to setting a fixed dividend rate on an annual basis. The Board has set the fixed rate for the next 12 months at an annual rate of 76 cents per common share, payable quarterly. This level of dividends is consistent with the level paid to date during 1995.

Centrefund is engaged in the acquisition and ownership of retail shopping centres and currently owns sixteen properties containing approximately 2.5 million square feet of gross leasable area located in Canada and the United States. -0-

Summary of Financial Results:

                Three Months      Three Months     Nine Months
                   ended            ended            ended
               Sept. 30, 1995   Sept. 30, 1994  Sept. 30, 1995
               --------------   --------------  --------------
Rental income    $7,654,000       $3,507,000      $21,847,000
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Gain on sale
 of land         $  824,000       $     -         $   824,000
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Net income       $1,343,000       $  200,000      $ 3,037,000
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Cash flow        $2,213,000       $  583,000       $4,625,000
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Earnings per share:
 - Basic         $      .18       $      .06       $      .54
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 - Fully diluted $      .18       $      .06       $      .52
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Cash flow per share:
 - Basic        $       .30      $       .17       $      .82
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 - Fully diluted $      .27       $      .17       $      .76
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Average shares
 outstanding:
 - Basic          7,485,607        3,408,301        5,620,375
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 - Fully diluted  9,783,698        3,408,301        7,918,466
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CONTACT: Peter F. Cohen, C.A.

President and Chief Executive Officer

[phone]