NET INCOME

Net income for the three months ended September 30, 2009, was $5.8 million ($0.42 per share) compared to $9.7 million ($0.69 per share) in 2008. The decrease in net income of $3.9 million was primarily due to a decrease in equity income from Morguard REIT in the amount of $1.9 million and a $2.3 million decrease in equity income from Morguard REIT's discontinued operations.

    <<
    NET OPERATING INCOME ("NOI")

    -------------------------------------------------------------------------
                                      Three months ended   Nine months ended
                                            September 30        September 30
    (in thousands of dollars)             2009      2008      2009      2008
    -------------------------------------------------------------------------
    Multi-unit residential - Canada    $13,443   $13,394   $36,116   $37,257
    Multi-unit residential - U.S.        4,128     4,225    13,697    11,390
    Retail - Canada                      6,262     5,824    20,106    18,253
    Retail - U.S.                        5,253     4,687    17,611    15,441
    Office/Industrial                    8,905     8,795    26,295    26,544
    -------------------------------------------------------------------------
    Net operating income               $37,991   $36,925  $113,825  $108,885
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Net operating income for the three months ended September 30, 2009, increased to $38.0 million compared to $36.9 million in 2008, representing an increase of 2.9%. The increase was primarily due to the change in the U.S. dollar foreign exchange rate which increased reported NOI by approximately $0.5 million. Net operating income also increased as a result of higher rents and occupancy levels in the Canadian retail portfolio compared to 2008.

    <<
    FUNDS FROM OPERATIONS ("FFO")

    FFO was calculated as follows:

    -------------------------------------------------------------------------
                                      Three months ended   Nine months ended
                                            September 30        September 30
    (in thousands of dollars)             2009      2008      2009      2008
    -------------------------------------------------------------------------
    Net earnings from continuing
     operations                         $5,828    $7,325   $17,380   $42,677
    Items not affecting cash:
      Amortization                      16,463    15,213    50,154    45,608
      Future income taxes                2,042     1,254     3,899    14,176
      Non-controlling interest             (25)     (430)      (25)     (690)
    Equity income from Morguard REIT
     - continuing operations            (1,717)   (4,062)   (9,120)  (26,177)
    Morguard REIT's equity accounted
     FFO - continuing                    5,601     8,064    21,765    23,746
    Gain on pension valuation allowance      -         -         -   (19,441)
    Gain on sale of property                 -         -       (72)        -
    Other                                    -         -       450         -
    -------------------------------------------------------------------------
    Funds from operations              $28,192   $27,364   $84,431   $79,899
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Per share amount - basic             $2.01     $1.96     $6.01     $5.73
    Per share amounts - diluted          $2.01     $1.94     $6.01     $5.68
    >>

For the three months ended September 30, 2009, the Company recorded FFO of $28.2 million ($2.01 per diluted share) compared to $27.4 million ($1.94 per diluted share) in 2008. Reported FFO for the three months ended September 30, 2009, has been increased by $0.02 per common share over the same period in 2008 due to the change in the foreign exchange rate (nine months ended September 30, 2008 - $0.11 per common share).

FINANCING AND LIQUIDITY

The Company has successfully refinanced all mortgages maturing during 2009. Gross proceeds from 2009 refinancings totaled $128.2 million which was used to repay existing mortgages in the amount of $58.9 million, repay bank indebtedness and for general corporate purposes. The weighted average interest rate of the maturing mortgages was 6.33% while the new mortgages have been refinanced at a weighted average interest rate of 4.86% for five-year terms. The Company has cash and existing borrowing capacity of approximately $180 million.

FOURTH QUARTER DIVIDEND

The board of directors of Morguard Corporation announced today that the fourth quarter dividend of 2009 in the amount of $0.15 per common share will be paid on December 31, 2009, to shareholders of record at the close of business on December 15, 2009.

The Company's unaudited financial statements for the three months ended September 30, 2009, along with Management's Discussion and Analysis are available on the Company's website at www.morguard.com and have been filed with SEDAR at www.sedar.com

Readers are cautioned that although the terms "Net Operating Income", and "Funds From Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles. Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.

Morguard Corporation is a real estate company, which owns a diversified portfolio of 102 properties in Canada and the United States. Morguard's portfolio has a book value of approximately $1.6 billion and comprises 6.6 million square feet of commercial space and 10,504 apartment suites. For more information, visit the Company's website at www.morguard.com.

SOURCE: Morguard Corporation

Morguard Corporation, K. (Rai) Sahi, Chief Executive Officer, (905) 281-3800; Paul
Miatello, Chief Financial Officer, (905) 281-3800

To participate in the conference call, please dial 416-644-3417 or 1-800-732-6179. Please quote conference ID No. 4173211.

For those unable to participate, a taped replay will be available after the completion of the call from 8:00 p.m. (ET) until midnight on December 3, 2009. To access the replay, dial 416-640-1917 or 1-877-289-8525 and enter the passcode number 4173211 followed by the number sign.

%SEDAR: 00008756E

SOURCE: Morguard Real Estate Investment Trust

SOURCE: Morguard Corporation

about this conference call, please contact Tina Browne at (905) 281-5940 or
tbrowne@morguard.com

The net proceeds from the offering of the Debentures (after deducting the underwriters' fees and offering expenses) will be used, in part, to reduce outstanding indebtedness incurred under the REIT's general operating facility, to fund future acquisitions and for general trust purposes.

The syndicate of underwriters was co-led by RBC Capital Markets and TD Securities Inc., with RBC Capital Markets acting as bookrunner for the offering.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the securities may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration requirements.

About Morguard REIT

Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 50 high quality retail, office and industrial properties in Canada with an approximate asset book value of $1.2 billion and approximately 7.6 million square feet of leaseable space.

Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the REIT's business and results of operations. Forward-looking statements use the words "believe," "expect," "anticipate," "may," "should," "intend," "estimate" and other similar terms, which do not relate to historical matters. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause the actual results to differ materially from those indicated. Such factors include, but are not limited to, general economic conditions, the availability of new competitive supply of commercial real estate that may become available either through construction or sublease, the REIT's ability to maintain occupancy and to lease or re-lease space on a timely basis at current or anticipated rates, tenant bankruptcies, financial difficulties and defaults, changes in interest rates, changes in operating costs, the REIT's ability to obtain adequate insurance coverage at a reasonable cost and the availability of financing. The REIT believes that the expectations reflected in forward-looking statements are based on reasonable assumptions; however, the REIT can give no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, the REIT disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Readers should be cautioned not to place undue reliance on the forward-looking statements.

SOURCE: Morguard Real Estate Investment Trust

Morguard Real Estate Investment Trust, Mr. K. (Rai) Sahi, President and Chief
Executive Officer, (905) 281-4800, (905) 281-4818 (FAX), www.morguard.com; Mr.
Timothy J. Walker, Vice President and Chief Financial Officer, (905) 281-4800, (905)
281-4818 (FAX), www.morguard.com

Morguard purchased 177,635 Common Shares for cancellation during the last twelve months at an average cost per share of $22.30. As of September 15, 2009 there were 13,961,505 Common Shares outstanding. Morguard's average daily trading volume for the prior six months is 2,680.

Morguard believes that its Common Shares have been trading in price ranges which do not adequately reflect their value in relation to the business of Morguard and its future business prospects. As a result, depending upon future price movements and other factors, Morguard believes that its outstanding Common Shares may represent an attractive investment. Furthermore, the purchases are expected to benefit all persons who continue to hold Common Shares by increasing their proportionate interest in Morguard. All Common Shares purchased by Morguard under the normal course issuer bid will be cancelled.

Morguard Corporation is a major Canadian real estate and property management company. It has extensive retail, office, industrial and residential holdings owned directly and through its investment in Morguard REIT. Morguard provides management services to institutional and other investors for commercial and residential real estate through Morguard Investments Limited and Morguard Residential.

SOURCE: Morguard Corporation

Paul Miatello, Chief Financial Officer, Tel: (905) 281-3800, Fax: (905) 281-5890,
e-mail: pmiatello@morguard.com; Beverley G. Flynn, Secretary, Tel: (905) 281-3800,
Fax: (905) 281-5890, e-mail: bflynn@morguard.com