Important Message Regarding Morguard REIT Calculation

The ACB Calculation for Morguard REIT is complex and may require some manual input. 1) If units of Morguard REIT were purchased after December 15, 2008, then you may use the ACB Tracking calculator with no manual adjustments. 2) If some or all of the Morguard REIT units were purchased before April 30, 2008, please read the following. From record dates of December 16, 2006 to December 15, 2008, Morguard REIT paid taxable capital gains of $0.7052 per unit and non-taxable capital gains of $0.21379 per unit. The 2009 return of capital amount will not reduce the ACB of the units sold to the extent that the taxable capital gains exceed the non-taxable gains over this period. This excess amounts to $0.49141 per unit over this time frame. Since the total return of capital in 2009 is $0.24432 per unit, none of the return of capital can be used to reduce the ACB for units purchased before April 30, 2008. Therefore upon completion of the ACB calculation, the ACB of units purchased before April 30, 2008 must be increased by the return of capital received in 2009. 3) If Morguard REIT units were purchased after April 30, 2008, but before December 16, 2008 (these are record dates, not transaction dates), the ACB of those units needs to be increased by $0.02558 times the number of months in 2008 that the units were held. Should you wish more clarification on this, visit the Morguard REIT website. The foregoing is the result of ACB Tracking analysts examining the Morguard REIT website, and although we believe that we have interpreted the situation correctly, we do not guarantee same.