Perceptions of current conditions continue to strengthen, Some Canadian
investment real estate executives express concern over weak fundamentals

TORONTO, May 12 /CNW/ - The Real Property Association of Canada (REALpac) and FPL Advisory Group are pleased to announce the results from the Second Quarter 2010 REALpac / FPL Canadian Real Estate Sentiment Survey. The survey is the industry's most comprehensive measure of senior executives' confidence in the Canadian commercial real estate industry. This quarter, the survey captured the thoughts of 40 senior real estate executives, including CEOs, presidents, board members, and other executives from a broad set of industry sectors including owners & asset managers, financial services providers, and operators & related service providers. The quarterly survey measures executives' current and future outlook on three topics including (1) overall real estate conditions, (2) access to capital markets, and (3) real estate asset pricing. Survey respondents represent the retail, office, industrial, hotel, multi-family, residential, and seniors residential asset classes.

Topline Findings

Current conditions continue to strengthen. On the other hand, future expectations are dimishing, resulting in the overall index being flat. As one respondent indicated, "I'm grateful that Canada has had a stable, restrained banking system over the years that didn't make the big mistakes that the U.S. made", while another said, "We appear to be almost on par with the best times of '06 to '07." Expectations for the future, while still high, have begun to moderate as some express concern about continued weakness in fundamentals. One respondent noted that "We've had a pricing recovery, but things can't really improve until we get employment growth; that's the elephant in the room right now." An overwhelming majority see asset values on a positive trajectory, largely due to capital availability. Responses reflect strong improvement in debt capital availability, though future expectations are moderating. "There is a lot of capital available because of low interest rates; everyone has money and is looking for yield", said a survey respondent. Perspectives on equity markets continue to strengthen, with current conditions up again and future expectations moderating.

To download a copy of the survey report, go to http://www.realpac.ca/canadian-real-estate-sentiment-survey/.

About the REALpac / FPL Canadian Real Estate Sentiment Survey

As Canada's most comprehensive measure of senior executives' confidence in the Canadian commercial real estate industry, the Q1 2010 survey captured the thoughts of 62 leading real estate executives, including CEOs, Presidents, Board Members, and other leading executives from a broad set of real estate sectors including owners and asset managers, financial services providers, and building operators and related service providers. Survey respondents represent income producing real estate including office buildings, retail shopping centres, industrial buildings, hotels, multi-family residential (apartment buildings), and seniors residences. This quarterly economic survey serves as a gauge of senior real estate executives' confidence in financial and real estate markets in Canada. The REALpac/FPL Canadian Real Estate Sentiment Survey measures executives' current and future outlook in three areas including overall real estate conditions, real estate asset values, and availability of capital. Three Sentiment Indices comprise the survey including a Current Conditions, Future Conditions and Overall Conditions Index. The "REALpac/FPL Canadian Real Estate Sentiment Survey" is directly comparable to the "Real Estate Roundtable Sentiment Survey" in the U.S. (also conducted by FPL Associates, using an identical methodology).

About the Real Property Association of Canada

REALpac is Canada's premier industry association for investment real property leaders. Our mission is to collectively influence public policy, to educate government and the public, and to ensure stable and beneficial real estate capital and property markets in Canada.

REALpac Members currently own in excess of $150 Billion CAD in real estate assets located in the major centres across Canada. Members include real estate investment trusts, publicly traded and large private companies, banks, brokerages, crown corporations, investment dealers, life companies, lenders, and pension funds. For more information, please visit us at www.realpac.ca.

About FPL Advisory Group

FPL Advisory Group ("FPL") is a family of companies focused on providing highly specialized advisory services to the real estate and related operating and financial services industries. Through our complementary practice areas, we work with our clients to develop the right talent, leadership, structure, and strategies for success in today's intensely competitive marketplace.

FPL is comprised of two primary operating companies that work together to serve a common client base. Ferguson Partners provides executive, director, and professional search services. FPL Associates provides a range of specialized consulting and finance-related services in the areas of compensation, management consulting, executive onboarding, and succession planning. The firm is headquartered in Chicago and maintains offices in London, New York, San Francisco, and Tokyo. For more information, please visit www.fpladvisorygroup.com.

For further information: Michael Brooks, CEO, REALpac, [phone] x.225, or Jonas Bordo, Senior Director, FPL Advisory Group, [phone] (toll free).