Note on Return of Capital

The following note was posted by FAM REIT: The 2014 return of capital amount paid to a unitholder will not reduce the adjusted cost base of the unitholder's units in the REIT to the extent that the unitholder held units of the REIT in the 2013 taxation year and to the extent the taxable capital gains paid to the unitholder in 2013 by FAM REIT exceed the non-taxable portion of capital gains paid to the unitholder in 2013 by FAM REIT. A portion of the return of capital in 2014, being $0.0267 per unit, relates to undistributed non-taxable capital gains realized in 2013. The reduction in adjusted cost base for the return of capital amount for unitholders that have held their units since 2013 is $0.7233 per unit ($0.75 - $0.0267). For unitholders that did not hold units of the REIT in 2013, the reduction in adjusted cost base for the return of capital in 2014 is equal to the full return of capital amount. ACB Tracking has interpreted the $0.0267 undistributed capital gains as adding to the ACB of FAM REIT for those holding the units prior to 2013, and has therefore inserted a phantom distribution of this amount as of record date December 31, 2013 even though no distribution was made on that date. Due to the wording of this announcement, we do not guarantee that our interpretation is correct. If in doubt, please contact the company. Also note that if the position was purchased after December 31, 2013, this issue is irrelevant.