Fronsac Real Estate Investment Trust Demonstrates a Sustained Growth by the Increase in its Results in the 3rd Quarter

Fronsac real estate investment trust ("Fronsac REIT" or "Fronsac") (TSX
VENTURE:GAZ.UN) today released its unaudited consolidated financial statements
for its third quarter ended September 30, 2013.


For the nine months ended September 30, 2013, Fronsac reported funds from
operations ("FFO") of $462,709, an increase of 95% over the same period in the
prior year ($240,378 in 2012). FFO per unit was 1.41 cents for the nine months
ended September 30, 2013 (1.38 cents per unit diluted) compared to 1.17 cents
per unit for the nine months ended September 30, 2012 (1.13 cents per unit
diluted). The acquisition of the St-Hubert property in June 2012 and the three
acquisitions completed in 2013, i.e. one in Val-David and two in Trois-Rivieres,
mainly explain the strong increase of the FFO.


Fronsac reported FFO of $228,518 for the three months ended September 30, 2013,
an increase of 175% over the same period in the prior year $83,163 in 2012). FFO
per unit was 0.70 cents for the quarter ended September 30, 2013 (0.64 cents per
unit diluted) compared to 0.41 cents per unit for the quarter ended September
30, 2012 (0.39 cents per unit diluted). The acquisitions mentionned above as
well as the issuance of 12 102 083 units in the Q4 2012 and 335 000 units in Q3
and Q2 2013 mainly explain the variation of the FFO per unit.


Fronsac recorded a net profit attributable to unitholders for the nine months
ended September 30, 2013 of $291,089 or 0.89 cents per unit compared to a net
profit of $132,681 or 0.65 cents per unit for the comparative quarter of 2012.
Profit was mainly affected by the same factors affecting FFO as well as a
non-cash loss of $193,337 (2012: nil) and a gain of $39,587 (2012: nil) related
to the increase in value of the investment properties recorded in accounts
"Investment properties" and "Investment in joint-ventures" respectively.


The highlights for the period of three and nine months ending September 30th,
2013 and 2012 and a summary of AFFO/FFO are presented in the tables below :


Financial results highlights

AFFO/FFO Reconciliation (i)



----------------------------------------------------------------------------
                             30-09-2013  30-09-2012  30-09-2013  30-09-2012 
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                               3 months    3 months    9 months    9 months 
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Net income (loss)                                                           
 attributable to unitholders   (307,741)     47,738     291,089     132,681 
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Variation of fair value of                                                  
 investment properties          589,144           -     193,337           - 
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Variation of fair value of                                                  
 investments properties                                                     
 recorded in joint ventures      27,993           -     (39,587)          - 
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Unit-based compensation         (22,200)      2,500     (22,750)      7,806 
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Adjustment to the liability                                                 
 component of the                                                           
 convertible preferred units      8,261         559       9,036       1,469 
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Variation of fair value of                                                  
 derivative financial                                                       
 instrument                     (86,025)      4,000     (51,305)     26,000 
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Unrealized (gains) losses on                                                
 interest rates swaps            (1,800)     (3,000)     (5,900)    (11,000)
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Variation of fair value of                                                  
 warrants                        (5,420)      1,175      (2,360)      8,069 
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Amortization intangible                                                     
 assets                           1,851       1,851       5,553       5,553 
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Deferred income taxes            24,455      28,700      85,596      69,800 
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AFFO/FFO - basic                228,518      83,163     462,709     240,378 
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Interests on convertible                                                    
 preferred units                 15,459       5,022      44,538      15,012 
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AFFO/FFO - diluted              243,977      88,185     507,247     255,390 
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Weighted average number of                                                  
 units outstanding - basic   32,865,485  20,514,000  32,709,801  20,514,000 
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Weighted average number of                                                  
 units outstanding - diluted 37,880,685  22,601,000  36,831,346  22,601,000 
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AFFO/FFO per unit - basic        0.0070      0.0041      0.0141      0.0117 
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AFFO/FFO per unit - diluted      0.0064      0.0039      0.0138      0.0113 
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EBITDA                          307,679     138,905     684,786     366,459 
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Interest coverage                   3.4         2.7         3.1         3.2 
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Debt coverage                       2.5         1.9         2.3         2.3 
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(i) For the three and nine months periods ending September 30, 2013 and     
September 30, 2012, FFO and AFFO were equal.                                



Financial position



----------------------------------------------------------------------------
                                                    30-09-2013   31-12-2012 
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Investment properties (at fair value)               17,950,279   11,521,954 
Investments in joint ventures (at fair value)          702,972            - 
Total assets                                        19,715,149   14,333,024 
Total debts and loans                                8,382,280    4,119,972 
Total liabilities                                   10,178,489    4,832,944 
Leverage Ratio                                            42.5%        28.7%
Weighted Average Cost of Debt                             5.11%        5.49%
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About Fronsac

Fronsac Real Estate Investment Trust is an open-ended trust that acquires and
owns high quality commercial real estate properties, rented to strong tenants
under long term, management free and net leases.


Forward-Looking Statements

This press release contains forward-looking statements and information as
defined by applicable securities laws, including statements relating to Fronsac
and expectations of the management regarding a proposed transaction and the
expected benefits thereof. There is no assurance that the proposed transaction
will be carried out and that the anticipated benefits will materialize. The
proposed transaction is subject to approval and consent of stakeholders and
there is no certainty that these will be achieved. Fronsac warns the reader that
actual events may differ materially from current expectations due to known and
unknown risks, uncertainties and other factors that could cause actual results
to differ materially from the results anticipated in such statements. Among
these include the risks related to economic conditions, the risks associated
with the local real estate market, the dependence to the financial condition of
tenants, the uncertainties related to real estate activities, the changes in
interest rates, the availability of financing in the form of debt or equity, the
effects related to the adoption of new standards, as well as other risks and
factors described from time to time in the documents filed by Fronsac with
securities regulators, including the management report. Fronsac does not update
or modify its forward-looking statements even if future events occur or for any
other reason, unless required by law or any regulatory authority.


Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as
that term is defined in the Policy of the TSX Venture Exchange) accept any
responsibility for the adequacy or accuracy of this release.


The September 30, 2013 financial statements of Fronsac REIT may be viewed on
SEDAR at www.sedar.com


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