Fronsac Real Estate Investment Trust Announces the Increase of its Annual Distribution and Releases Interim Financial Stateme...

Fronsac real estate investment trust (TSX VENTURE:GAZ.UN) ("Fronsac REIT") today
released its unaudited consolidated financial statements for its first quarter
ended March 31, 2013 of which the highlights are presented in the following
tables:


On the same date, the Board of Directors of Fronsac REIT adopted a distribution
policy for the year 2013: a semi-annual distribution for the first half of 2013
and a quarterly distribution from the second half of 2013 and future years.


The Board of Directors of Fronsac REIT also approved the increase of the annual
distribution to $ 0.0135 per unit, which represents an increase of 8.00% ($
0.0125 in 2012). The Board thereby declared a semi-annual distribution of $
0.00675 per unit to unitholders registered on June 14th, 2013, which will be
payable on June 30th, 2013.




Results                                      March 31, 2013   March 31, 2012
----------------------------------------------------------------------------
AFFO/FFO - basic                            $       128,946  $        76,986
AFFO/FFO - diluted                          $       133,869  $        76,986
AFFO/FFO per unit - basic                     0.40  cents/u     0.38 cents/u
AFFO/FFO per unit - diluted                   0.38  cents/u     0.38 cents/u
Weighted average number of units                                            
 outstanding                                                                
  - basic                                        32,616,083       20,514,000
  - diluted                                      35,030,530       20,514,000
Interest coverage ratio                                 3.9              3.2
Debt service ratio                                      2.5              2.3
----------------------------------------------------------------------------
                                                                            
Financial position                         March 31, 2013      Dec 31, 2012 
----------------------------------------------------------------------------
Investment properties (at fair value)     $    13,744,144   $    11,521,954 
Investments in joint ventures (at fair                                      
 value)                                   $       707,079                 - 
Total assets                              $    15,602,117   $    14,333,024 
Total liabilities                         $     5,928,454   $     4,832,944 
Leverage Ratio                                       38.0%             33.7%
Weighted Average Cost of Debt                        4.87%             4.91%
----------------------------------------------------------------------------



The Trust uses the "funds from operations" (FFO) measurement to assess the
performance of its operations. This measurement, which is a non-IFRS
measurement, provides a better evaluation of the performance of the operations
of the Trust and is largely used in the commercial real estate industry. The
reconciliation of net income to FFO is presented below. For the quarters ending
March 31, 2013 and March 31, 2012, FFO and AFFO were equal.




                                             March 31, 2013  March 31, 2012 
----------------------------------------------------------------------------
Net income and comprehensive income                                         
 attributable to unitholders                        184,709          94,514 
----------------------------------------------------------------------------
(Increase) decrease of fair value of                                        
 investment properties                              (68,158)              - 
----------------------------------------------------------------------------
(Increase) decrease of fair value of                                        
 investments in joint ventures                      (39,580)              - 
----------------------------------------------------------------------------
Unit-based compensation                               4,450         (10,394)
----------------------------------------------------------------------------
Increase of liability component of the                                      
 convertible preferred units                          2,683             421 
----------------------------------------------------------------------------
Variation of fair value of derivative                                       
 financial instrument                                10,000         (20,000)
----------------------------------------------------------------------------
Unrealized (gains) losses on interest rates                                 
 swaps                                               (1,500)         (7,300)
----------------------------------------------------------------------------
Variation of fair value of warrants                   1,440            (906)
----------------------------------------------------------------------------
Amortization intangible assets                        1,851           1,851 
----------------------------------------------------------------------------
Deferred income taxes                                33,051          18,800 
----------------------------------------------------------------------------
FFO - basic                                         128,946          76,986 
----------------------------------------------------------------------------
Interests expenses on dilutive convertible                                  
 preferred units                                      4,923               - 
----------------------------------------------------------------------------
FFO - diluted                                       133,869          76,986 
----------------------------------------------------------------------------
Weighted average number of units outstanding                                
 - basic                                         32,616,083      20,514,000 
----------------------------------------------------------------------------
Weighted average number of units outstanding                                
 - diluted                                       35,030,530      20,514,000 
----------------------------------------------------------------------------
FFO per unit - basic                                 0.0040          0.0038 
----------------------------------------------------------------------------
FFO per unit - diluted                               0.0038          0.0038 
----------------------------------------------------------------------------



The March 31, 2013 financial statements of Fronsac REIT may be viewed on SEDAR
at www.sedar.com


FOR FURTHER INFORMATION PLEASE CONTACT: 
Michel Lassonde
President
[phone]