C2C Industrial Properties Inc. Announces Release of Q1 2012 Interim Financial Results

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TORONTO, May 23, 2012 /CNW/ - C2C Industrial Properties Inc. ("C2C") (TSXV: CCH) is pleased to announce the release of its consolidated financial results for the period ending March 31, 2012.

Q1 2012 Financial Results

The first quarter of 2012 financial results consist of C2C's un-audited interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the period ending March 31, 2012. These financial reports are available on SEDAR (www.sedar.com).

"C2C continues to look at opportunities to expand its ownership of industrial properties," Chris Ross, President of C2C stated.  "At present, the Company is reviewing several acquisition opportunities as the number of industrial properties being offered for sale has increased since the beginning of the year. We anticipate that the Company will be seeking to raise additional equity to fund future acquisitions in order to maintain its target debt to book value ratio."

Highlights

• As of March 31, 2012, C2C's investment property portfolio consisted of 14 industrial properties located in the Greater Toronto Area ("GTA"), London, Ontario, and Halifax, Nova Scotia. The properties comprise 1,210,393 leaseable square feet, with an average occupancy of 95.8%.
  
  
• During the quarter, on February 28, 2012, C2C acquired four properties located in the GTA consisting of 487,828 square feet.
  
  
• For the three months ended March 31, 2012, revenue was $2,491,213 and net operating income was $873,879.  As the Company has now had a full three months of earnings from the Halifax properties, there has been a significant increase from the prior year-end period August 1, 2011 to December 31, 2012, which had revenue of $1,114,745 and net operating income of 716,587.
  
  
• Adjusted funds from operations for the three months ended March 31, 2012, was $16,465 as compared to the December 31, 2011, reported AFFO loss of $92,647.
  
  
• For the period ended March 31, 2012, the weighted average effective interest rate of mortgage debt was 5.18% and the debt to gross book value was 54.5%.  This is notable change from the December 31, 2011 reported weighted average effective interest rate of debt of 7.08% and the debt to gross book value of 91.4%. C2C intends to maintain a stabilized debt to equity level of 55% - 60%.  Debt levels were temporarily high as a result of a $21,000,000 second mortgage used as bridge financing for the Halifax acquisition. The bridge financing was repaid on March 23, 2012, using funds from an equity offering, improving both the weighted average effective interest rate and the debt to gross book value.

About C2C Industrial Properties Inc.

C2C is a real estate investment corporation specializing in the acquisition, ownership and operation of industrial properties across Canada. C2C currently owns fourteen industrial assets totalling approximately 1.2 million square feet. More information about C2C (CCH: TSX-V) is available at www.sedar.com.

Forward Looking Statements
This document contains forward-looking statements relating to C2C and the industry in which it operates and its strategy, action plans and investments, which may involve estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond C2C's control.  Consequently, readers should not place any undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this press release. C2C is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors, unless otherwise required to do so by applicable law. All forward-looking statements attributable to C2C are expressly qualified by these cautionary statements.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

C2C Industrial Properties Inc.
Christopher Ross
President
[phone]
[email protected]