Centrefund Realty Corporation announces 1995 results.

TORONTO--(BUSINESS WIRE)--March 1, 1996--CENTREFUND REALTY(TSE: CFE) Centrefund Realty Corporation, announced today that its net earnings for the year ended December 31, 1995 were $4,113,000 or basic net earnings per common share of 67 cents. Cash flow, defined as net income plus depreciation, amortization and deferred income taxes, amounted to $6,408,000 or basic cash flow per common share of $1.05. On a fully diluted basis, earnings amounted to 66 cents per share and cash flow amounted to 99 cents per share for the twelve 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 were exercised effective July 5, 1995 resulting in the issue of 2,941,180 common shares. The results for 1995 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 compares favourably to the 67 cents per common share forecast for the 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 on the operating results of the previous quarter, will accrue at 11.31 percent for the first quarter of 1996. Centrefund completed its initial public offering on March 29, 1994, and accordingly, comparable figures for the 1994 fiscal year do not exist.

Centrefund announced last week that it had completed the issue of 5,250,000 common shares of the company at a price of $10.50 per share for total gross proceeds of $55,125,000. Peter F. Cohen, President and C.E.O., said that proceeds will be used to continue Centrefund's acquisition, expansion and remerchandising programs.

"The Company currently has redevelopment and expansion programs underway at four of its shopping centres which are slated for completion in 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," he reported.

During the fourth quarter the Company completed the acquisition of two properties containing an aggregate of 196,000 square feet of gross leaseable area. The company currently has under contract four shopping centres containing an aggregate of approximately 740,000 square feet of gross leaseable area.

"These acquisitions are scheduled for closing in the second quarter of 1996, subject to the completion of due diligence by the Company. Each of the proposed acquisition offers value creation potential through expansion, renovation or pro-active management and leasing," Cohen said.

Centrefund is engaged in the acquisition and ownership of retail shopping centres in Canada and the United States. Since the completion of the company's initial public offering in March, 1994, Centrefund's portfolio has grown from five properties to 18 properties containing approximately 2.8 million square feet of gross leaseable area. -0-

Summary of Financial Results:

                    Three months   Three months
                        ended          ended       Year Ended
                   Dec. 31, 1995  Dec. 31, 1994   Dec. 31, 1995
                   -------------  -------------   -------------

Rental income        $8,251,000      $3,668,000     $30,098,000
                     ----------      ----------     -----------
                     ----------      ----------     -----------

Gain on sale of land $       -       $        -     $   824,000
                     ----------      ----------     -----------
                     ----------      ----------     -----------

Net income           $1,076,000      $  486,000     $ 4,113,000
                     ----------      ----------     -----------
                     ----------      ----------     -----------

Cash flow            $1,604,000      $  555,000     $ 6,408,000
                     ----------      ----------     -----------
                     ----------      ----------     -----------

Earnings per share
 - Basic             $      .14      $      .14     $       .67
                     ----------      ----------     -----------
                     ----------      ----------     -----------
 - Fully diluted     $      .14      $      .14     $       .66
                     ----------      ----------     -----------
                     ----------      ----------     -----------

Cash flow per share
 - Basic            $       .21      $      .16     $      1.05
                     ----------      ----------     -----------
                     ----------      ----------     -----------
 - Fully diluted    $       .21      $      .16     $       .99
                     ----------      ----------     -----------
                     ----------      ----------     -----------

Average shares
 outstanding
 - Basic              7,613,541       3,408,301       6,122,762
                     ----------      ----------     -----------
                     ----------      ----------     -----------
 - Fully diluted      9,911,632       3,408,301       8,420,853
                     ----------      ----------     -----------
                     ----------      ----------     -----------

CONTACT: Centrefund Realty Corporation

Peter F. Cohen, C.A., 416/515-1400