C2C Industrial Properties Inc. Reports Continued Strong Growth in Third Quarter 2012

C2C Industrial Properties Inc. ("C2C" or the "Company") (TSX VENTURE:CCH)
announced today continued acquisition growth for the three and nine months ended
September 30, 2012. 




THIRD QUARTER 2012 HIGHLIGHTS:                                              

--  As at November 20, 2012, C2C's portfolio consisted of 22 light
    industrial properties aggregating 2.1 million sq. ft. of gross leasable
    area. 
--  Acquired portfolio of seven income producing industrial properties
    located in Montreal, Mississauga and Edmonton on July 18, 2012, 
--  Acquired income producing industrial property containing two buildings
    in Brampton Ontario, on November 2, 2012. 
--  Completed private placement equity offering of 4.8 million common shares
    for gross proceeds of approximately $22.0 million. 
--  Rental revenue up 41% from the previous quarter due to contribution from
    acquisitions. 
--  Net operating income up 50% from the previous quarter due to
    contribution from acquisitions. 
--  Adjusted funds from operations increases to $1.2 million from $0.8
    million in Q2 2012. 
--  Accretive growth as AFFO rises to $0.07 per share from $0.06 per share
    in Q2 2012 even with a 25% increase in weighted average number of common
    shares outstanding. 
--  On October 15, 2012, paid quarterly dividend of $0.0265 per common share
    to the shareholders on record on September 28, 2012. 
--  $20.1 million bought-deal convertible unsecured subordinated debenture
    offering completed on October 24, 2012 with net proceeds of $18.8
    million to be used for portfolio growth. 



"The substantial growth in our property portfolio over the last few quarters is
now contributing to strong and sustainable increases in our operational and
financial performance. We expect to see further growth as we continue to
prudently expand our presence in targeted light industrial markets," commented
Chris Ross, President. 


"Looking ahead, our focus remains on successfully executing a three-part
strategic growth plan aimed at increasing AFFO through accretive acquisitions
and capitalizing on the highly fragmented nature of the Canadian light
industrial real estate sector. First, we expect to purchase properties with high
initial capitalization rates that can contribute immediately to our cash flows.
Second, we will examine opportunities where we believe we can add incremental
value over time through our active asset and property management programs.
Third, we will look at acquisitions where our proven property development and
re-development expertise will generate enhanced value," stated David Wright,
Chief Executive Officer.


Strong Operating and Financial Performance

Primarily as a result of recent acquisitions, rental income and Net Operating
Income ("NOI") for the three months ending September 30, 2012 were significantly
higher than the previous quarters. Rental income increased to $4.6 million in
the third quarter from $3.2 million in the second quarter of the year while NOI
increased to $2.9 million from $1.9 million in the previous quarter of the year.



Funds from Operations ("FFO") for the three months ended September 30, 2012 were
$1.3 million, up from $0.9 million in the previous quarter. Adjusted Funds from
Operations ("AFFO") for the third quarter of 2012 were $1.2 million, up from
$0.8 million in the previous quarter. The Company's accretive acquisitions have
resulted in AFFO in the third quarter of $0.07 per diluted common share, up from
$0.06 per share in the second quarter, even with a 25.3% increase in the
weighted average number of common shares outstanding compared to the prior
quarter.


The Company had a debt to gross book value ratio of 56.1% at September 30, 2012,
with its mortgage portfolio having a weighted average effective interest rate of
4.7%. The weighted average effective interest rate is reduced slightly from 4.8%
as at the prior quarter-end and significantly reduced from 7.1% as at December
31, 2011, as the company manages its mortgage portfolio to diversify its lender
base and spread out maturities between 5 year and 10 year terms.


On July 18, 2012 the Company completed the acquisition of a portfolio of seven
income producing industrial properties located in Montreal, Mississauga and
Edmonton (the "MME" acquisition). The portfolio is comprised of 792,658 square
feet of gross leasable area, and was purchased for the aggregate purchase price
of approximately $69.2 million, excluding closing costs. The Company financed
the purchase with the assumption of an existing first mortgage in the
approximate principal amount of $10.0 million (at 3.25% for a term of 2 years),
new mortgage financing in the principal of $34.8 million (at prime + 2.0% for a
term of 3 years), and mezzanine financing of $21.5 million (at 9.25% for a term
of 1.5 years). 


On July 31, 2012, the Company completed a private placement equity offering of
4.8 million common shares at a price of $4.55 per common share for gross
proceeds of approximately $22.0 million. Proceeds of the equity offering were
used to repay the mezzanine loan used for the MME acquisition.


Subsequent to quarter end, on October 24, 2012 the Company completed an offering
of $20.1 million aggregate principal amount of convertible unsecured
subordinated debentures (the "Debentures"), at a price of $1,000 per debenture.
The offering was completed on a bought deal basis. Net proceeds from the
offering are less underwriting fees and expenses of approximately $1.3 million.
The Debentures mature on November 30, 2017 and bear interest of 6.75% per annum,
payable semi-annually on May 31, and November 30 in each year. Subject to
certain terms and conditions, the Debentures are convertible at the request of
the holder at a conversion price of $5.55 per Common Share. 


On November 2, 2012 the Company announced it had completed the acquisition of
property comprised of two light industrial buildings aggregating approximately
82,000 square feet of GLA located in Brampton, Ontario. The property is well
located, close to major highways and Pearson International Airport, and is 100%
leased. The purchase price was approximately $8.5 million, excluding closing
costs. The Company financed the acquisition with a new $5.53 million five-year
mortgage bearing an interest rate of 3.75%, the issuance of $0.5 million in the
Company's common shares to the vendor at $5.00 per share, with the balance in
cash. The property is being acquired at a going-in capitalization rate of
approximately 7.5%.




FINANCIAL & OPERATING HIGHLIGHTS                                            
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                                                     For the periods ending 
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                                       September      June 30,     December 
CDN $ Thousands                         30, 2012          2012     31, 2011 
Operations Information                                                      
Number of properties                          21            14           10 
Gross leasable area (square feet)      2,003,122     1,210,464      722,565 
Portfolio occupancy                        95.20%         97.2%        94.3%
In-place rental rates (per sq.                                              
 ft.)                                $      6.48   $      6.44   $     7.18 
                                                                            
Financial Information                                                       
Revenue producing properties         $   180,100   $   106,690   $   63,030 
Total assets                         $   188,938   $   117,033   $   66,591 
Mortgage payable                     $   105,959   $    60,880   $   60,828 
Weighted average effective                                                  
 interest rate                               4.7%          4.8%         7.1%
Debt to gross book value                    56.1%         52.0%        91.4%
Shareholders' equity                 $    77,704   $    53,390   $    4,136 
Shares outstanding(1)                 17,128,180    12,292,980    1,444,001 
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                               3 months    9 months    3 months             
                                 ending      ending      ending  March 16 - 
                              September   September    June 30,    December 
$CDN Thousands                 30, 2012    31, 2012        2012    31, 2011 
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Results of Operations                                                       
Rental income               $     4,575 $    10,314 $     3,248 $     1,222 
Net operating income (2)    $     2,889 $     6,324 $     1,930 $       808 
Net income (loss)           $     3,575 $     8,710 $     4,260 $    (1,298)
Diluted income (loss) per                                                   
 share                      $      0.22 $      0.80 $      0.33 $     (1.09)
Funds from operations(3)    $     1,347 $     2,291 $       891 $      (207)
FFO per diluted share       $      0.08 $      0.21 $      0.07 $     (0.17)
Adjusted funds from                                                         
 operations                 $     1,219 $     2,059 $       822 $      (129)
AFFO per diluted share      $      0.07 $      0.19 $      0.06 $     (0.11)
Share price                 $      4.10 $      4.10 $      5.35 $      4.50 
Weighted average diluted                                                    
 common shares - FFO and                                                    
 AFFO(1)                     16,241,334  10,933,143  12,970,761   1,196,106 
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(1) On April 11, 2012, C2C did a 25 to 1 share consolidation reducing the   
    total December 31, 2012 outstanding shares to 1,444,001 from 36,100,025.
                                                                            
(2) Net operating income is property rental revenue, less property operating
    costs, property taxes and property management fees.                     
                                                                            
(3) The Company has revised it's definition of FFO to add back the          
    amortization of mortgage transaction and debt settlement costs,         
    previously treated as an add back to AFFO. The FFO values for the prior 
    periods have been restated for this change.                             



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. 


About C2C Industrial Properties Inc.

C2C is a real estate investment corporation specializing in the acquisition,
ownership and operation of light industrial properties across Canada. C2C
currently owns 22 industrial assets totalling approximately 2.1 million square
feet of gross leaseable area. More information about C2C (TSX VENTURE:CCH) is
available at www.c2cip.com . 


FOR FURTHER INFORMATION PLEASE CONTACT: 
C2C Industrial Properties Inc.
Christopher Ross
President
[phone]
[e-mail]
www.c2cip.com