REALEX PROPERTIES CORP. - RESULTS FOR YEAR ENDED SEPTEMBER 30, 2010, INCLUDES
A 5% INCREASE IN NOI, 5% INCREASE IN AFFO AND DECLARATION OF DIVIDEND

TRADING SYMBOL: RP (TSXV)

CALGARY, Dec. 1 /CNW/ - The results for Realex Properties Corp. ("Realex" or "Corporation") fiscal 2010 year ended September 30, 2010, show stable property revenues and occupancy levels. Net income from continuing operations, NOI, FFO and AFFO increased compared to fiscal 2009 and the Corporation's overall office and industrial portfolio occupancy rate increased slightly to 95.93%. Significant events that took place during the year include:

1. The Corporation completed a public common share offering with gross proceeds of $17.5 million, and used the net proceeds to retire the balance of the 2008 Southwestern Ontario transaction acquisition loan and reduce the Corporation's operating facility balance.
   
   
2. The Corporation renewed its operating facility for a two year term.
   
   
3. The Corporation's leasing group was successful in renewing and expanding two government tenants, one in the Western region for 15,000 square feet for a ten year term and one in the Southwestern Ontario region for 21,000 square feet for a five year term.
   
   
4. The Corporation completed a conversion of all non-voting shares into common shares to simplify its capital structure into a single voting class of shares and completed a share consolidation on a 10 for 1 basis.
   
   
5. Realex's Board of Directors authorized an increase to the annual dividend from $0.30 to $0.40.
   
   
6. The Corporation's overall debt now stands at 51% of assets at gross book value versus 55% at the commencement of the fiscal year.

Financial Highlights

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Income Statement Summary Da ta

	Three Months Ended September 30,						Year Ended September 30,
($000's except per share amounts)	2010		2009		% change		2010		2009		% change
Revenues	14,192		15,452		(8)%		57,874		59,587		(3)%
Net Income - continuing operations	1,699		1,216		40%		7,388		1,733		326%
Net income per share - basic/diluted	0.09		0.08		13%		0.43		0.11		291%
Net Income (loss)	(4,225)		1,138		(471)%		(9,866)		1,585		(722)%
Net income (loss) per share - basic/diluted	(0.23)		0.08		(388)%		(0.57)		0.10		(670)%
NOI	8,110		7,667		6%		31,893		30,445		5%
FFO	3,861		1,170		230%		18,203		15,088		21%
FFO per share - basic	0.21		0.07		200%		1.05		0.97		8%
FFO per share - diluted	0.20		0.07		186%		1.05		0.97		8%
AFFO	3,688		2,587		43%		14,515		13,831		5%
AFFO per share - basic	0.20		0.16		25%		0.84		0.89		(6)%
AFFO per share - diluted	0.20		0.16		25%		0.84		0.89		(6)%
Dividends	1,872		1,192		57%		6,139		4,665		32%
Weighted average shares outstanding (000's)	18,836		15,900		18%		17,366		15,561		12%

(1) Refer to the "Non-GAAP Measures" section for further details.

Balance Sheet Summary Data

($000's)	September 30, 2010		September 30, 2009
Income Properties	354,854		366,242
Assets	412,319		435,565
Debt	210,572		250,740
Shares outstanding (000's)	18,713		15,895

Review of 2010 Operations

When comparing the financial results for the year ended September 30, 2010 to the prior year, net income from continuing operations increased by $5,655,000 or 326% and net income per share increased by $0.32 or 291%. Including discontinued operations, net income decreased by $11,451,000, and net income per share decreased by $0.67. NOI increased by $1,448,000 (5%), FFO increased by $3,115,000 (21%) (FFO per share increased by $0.08 (8%)), revenue decreased by $1,713,000 (3%). FFO for the year ended September 30, 2010 increased as a result of the mortgages receivable impairment recorded in the prior year. Excluding the impairment provision and the internalization expense in the prior year, FFO decreased by $106,000 as a result of losses from discontinued operations and decreases in management fee income and interest income which were partially offset by increased NOI, reduced interest expense and reduced general and administrative expenses. FFO per share was negatively impacted due to increased number of shares outstanding during the current period.

AFFO for the year ended September 30, 2010 increased by $684,000 (5%) (AFFO per share decreased by $0.05 (6%)). The increase is the result of  increased NOI, reduced interest expense, reduced general and administrative expense and reduced internalization costs. These amounts were partially offset by decreased management and other fee income and interest income and increased expenses related to discontinued operations.  In addition to the factors previously described, AFFO per share was negatively impacted due to increased number of shares outstanding during the current period.

A discussion of Realex's business units follows.

Western Region

The Western region at the beginning of the fiscal year had lease expiries totaling 37,287 square feet in calendar years 2009 and 2010.  As of September 30, 2010, 22,046 square feet have been renewed and 10,456 square feet were vacated. Of the 4,986 and 80,952 square feet of expiries for calendar years 2010 and 2011, respectively,  at least 3,777 and 12,127 square feet is expected to renew. 

The Corporation's forward re-leasing exposure in downtown Calgary is limited, with only 2% (9,606 square feet) of Realex's downtown leased area expiring before the end of calendar 2012. Although the Western portfolio has a low vacancy rate and limited exposure to lease expiries within the next two years, the significant supply of office space expected to be completed in 2011 and 2012 in Calgary, will foster an increased likelihood that vacancy will rise and lease rates, when compared to those achieved in the past few years, will be lower. The downtown Calgary properties at September 30, 2010 have a 100% occupancy rate.

Occupancy levels in the Western region stood at 97.66% at September 30, 2010 compared to 97.96% at September 30, 2009.

Southwestern Ontario Region

The Southwestern Ontario region at the beginning of the fiscal year had lease expiries totaling 58,852 square feet in calendar years 2009 and 2010. As of September 30, 2010, 36,757 square feet have been renewed and 20,830 square feet was vacated. In addition, 44,038 square feet of vacant space was leased. Of the 12,379 and 83,115 square feet of remaining expiries for calendar years 2010 and 2011, respectively, at least 12,379  and 44,890 square feet, is expected to renew. 

Average rental rates in downtown Kitchener have increased, and Realex achieved improved net effective rates on both new deals and renewals. The significant new leasing in the downtown market was attributable to public sector activity. Rental rates in the Region of Waterloo increased a nominal amount from the current expiring rates.

Occupancy levels in the Southwestern Ontario region stood at 94.27% at September 30, 2010 compared to 93.45% at September 30, 2009.

Summary - Office and Industrial Portfolio

Realex strives to negotiate leases ahead of their expiry dates and, as current economic conditions have increased the cost sensitivities of many tenants, additional effort is being expended by our leasing teams to demonstrate the added value of retaining tenants in a Realex owned and managed property.  For the remainder of calendar year 2010 and 2011, 17,365 and 164,067 square feet, respectively, of leases are expiring and it is anticipated that at least 16,156 and 57,017 square feet, respectively, will renew.

The weighted average occupancy rate of the Corporation's office and industrial portfolio was 95.93% at September 30, 2010, compared to 95.65% at September 30, 2009.

Other Business

Self Storage

The Corporation is seeking an efficient but expeditious exit from the self storage asset class. The Corporation has classified all seven properties as held for sale with results disclosed in discontinued operations and has recognized an impairment loss of $17.1 million. The partnership has five operating self storage properties and two land sites. The current occupancy of the portfolio is 51%.

Mezzanine Loan Portfolio

Realex's mezzanine loan portfolio consists of a partial interest in seven loans with a total principal balance for Realex's share being $4.69 million. An impairment provision totalling $2.44 million or 52% of the total principal balance owed at September 30, 2010 has been provided for. The net carrying amount of $2.3 million represents less than 1% of Realex's total assets. Realex will retain loan repayment proceeds for general corporate purposes as they are received and will discontinue further investment in mezzanine lending.

Dividend

The Board of Directors has authorized the payment of a dividend for the quarter ended September 30, 2010 to common shareholders at the rate of $0.10 per share (the "Dividend"). The Dividend will be paid January 17, 2010 to shareholders of record on December 31, 2010 and is designated as an eligible dividend pursuant to subsection 89(14) of the Income Tax Act.  An eligible dividend paid to a Canadian resident individual is entitled to the enhanced dividend tax credit. 

Outlook

On a selective and disciplined basis, the Corporation will continue to explore office and industrial property opportunities in selected parts of Canada. There are however admittedly limited opportunities to buy on a "value" basis which is at the core of Realex's philosophy. There is clear evidence that prices have risen in some areas such that "opportunistic sales" cannot be ruled out. It is the Corporation's expectation that it will realize on the best opportunities the current market has to offer. The current market is experiencing a significant reduction in the number of properties and portfolios for sale, during a time when capital in the market place for acquisitions is abundant and financing rates and availability are very attractive. Management believes it is a time where opportunities to realize and unlock true shareholder value in Realex are stronger than has been the case in many years.

Full reports of the financial results are outlined in the audited Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations, which are available on SEDAR and on the Realex Properties Corp. website at www.realexproperties.ca.

Non-GAAP Measures

Net Operating Income (NOI) - is a measure used to assist management to evaluate the Corporation's profitability from its principal business activities without regard to the manner in which these activities are financed or amortized, the allocation of general, administrative and stock-based compensation costs, or the manner in which the results are taxed. Realex defines NOI as rent from income properties, excluding straight lining of rents and amortization of above- and below-market leases, less property operating costs.

Funds From Operations (FFO) - is a measure used to assist Management to evaluate the Corporation's operating performance. As FFO excludes, among other items, depreciation, leasing cost amortization, future income tax and gains and losses from certain property dispositions, it provides an operating performance measure that, when compared period over period, reflects the impact on operations of trends in occupancy levels, rentals rates, operating costs and realty taxes, acquisition activities and interest costs and provides a perspective of the financial performance that is not immediately apparent from net income determined in accordance with GAAP. FFO as presented should not be viewed as an alternative to cash from operating activities, net income, or other measures calculated in accordance with GAAP. Realex defines FFO as being net income for the period before amortization (which includes amortization of buildings, tenant improvements, in place lease values, tenant relationship values and deferred leasing costs), gains or losses on sale and impairment of property, future income tax expense and extraordinary items.

Adjusted Funds From Operations (AFFO) - is a measure used to assist Management to evaluate the Corporation's ability to generate cash, evaluate its return on projects and evaluate the performance of the enterprise as a whole. AFFO as presented should not be viewed as an alternative to cash from operating activities, net income, or other measures calculated in accordance with GAAP. Users are cautioned that this measure may not be comparable to other issuer's calculation of AFFO. Realex defines AFFO as being FFO for the period, adjusted for amortization of above- and below-market leases, straight-lining of rents, amortization of fair value mortgages payable adjustment and deferred financing costs, stock based compensation expense, internalization costs, amortization of non-recoverable maintenance capital expenditures, amortization of deferred leasing costs and impairment losses on mortgages receivable.

NOI, FFO and AFFO do not have any standardized meaning prescribed by GAAP and users are cautioned that these measures may not be comparable to similar measures presented by other issuers, and should not be construed as an alternative or replacement to GAAP measures.

Neither 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 release.

This news release contains forward looking statements subject to various significant risks and uncertainties which may cause actual results, performances and achievements of Realex to be materially different from any future results, performances or achievements, expressed or implied by such forward looking statements.  Realex cannot assure investors that actual results will be consistent with these forward looking statements and Realex assumes no obligation to update or revise them to reflect new events or circumstances. Forward looking statements relating to business development plans, business strategy and plans of the Corporation and planned acquisitions and dispositions and the timing thereof are based on Management's experience and understanding of the commercial real estate industry and market and the fiscal resources of the Corporation, including Management's assessment of the availability and viability of financing methods; expectations relating to the securing of timing of financings and refinancing are based upon the Corporation's contractual obligations and Management's assessment of the Corporation's liquidity and capital markets; estimates relating to capital expenditures and the timing thereof are based upon our business plan and Management's assessment of the Corporation's liquidity and capital markets; forward looking statements relating to the anticipated outcome or timing of pending litigation are based upon professional advice received by the Corporation in relation thereto.

For further information:

Tom Heslip			Mark Suchan
President and Chief Executive Officer			Chief Financial Officer
Realex Properties Corp.			Realex Properties Corp.
Telephone:      [phone]			Telephone:       [phone]
Facsimile:        [phone]			Facsimile:         [phone]