TMX group

WINNIPEG, Nov. 14 /CNW/ - Today Westfield Real Estate Investment Trust
("Westfield") issued its financial results and achievements for the three and
nine month periods ended September 30, 2006.
"Westfield's financial results demonstrate the effectiveness of our
internal and external growth strategies," said Armin Martens, President and
Chief Executive Officer. "Our growth in same property income and accretive
acquisitions continues to translate into strong financial results for our
Unitholders. We are particularly pleased to note an increase in Distributable
Income ("DI") per unit of 39.7% and Funds From Operations ("FFO") per unit of
46.5% over the last quarter, with a corresponding healthy reduction in our
payout ratios."

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FINANCIAL HIGHLIGHTS

Westfield's third quarter revenues, Property Net Operating Income
("NOI"), DI/unit and FFO/unit increase significantly over second quarter
results

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                                    Q3-06     Q2-06   Increase (decrease)
                                  ---------------------------------------
                                    $Thousands, except per unit amounts

Revenues                          $ 15,744  $ 11,932  $  3,812     31.9%
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Property "NOI"                    $ 10,079  $  8,020  $  2,059     25.7%
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Loss for the period               $ (3,275) $ (3,110) $   (165)     5.3%
Loss per unit
 (basic and diluted)              $ (0.271) $ (0.262) $ (0.009)     3.4%
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Distributable Income ("DI")       $  4,587  $  3,170  $  1,417     44.7%
DI per unit (basic)               $  0.380  $  0.268  $  0.112     41.8%
DI per unit (fully diluted)       $  0.352  $  0.252  $  0.100     39.7%
DI payout ratio                      74.7%    104.2%             (28.3)%
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Funds from Operations ("FFO")     $  4,045  $  2,722  $  1,323     48.6%
FFO per unit (basic)              $  0.335  $  0.230  $  0.105     45.7%
FFO per unit (fully diluted)      $  0.334  $  0.228  $  0.106     46.5%
FFO payout ratio                     78.7%    115.1%             (31.6)%
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Westfield's third quarter revenues, Property NOI, DI/unit and FFO/unit
have exceeded second quarter results, primarily due to the impact of
acquisitions completed in Q3. Three properties were acquired in Q3 for
$93 million. As the current period acquisitions were not all owned for the
full quarter, management anticipates there will be further growth from these
acquisitions in future periods.

Westfield's third quarter Property NOI results exceed forecast
expectations by 37.8%

Westfield's revenues and Property NOI have surpassed forecast
expectations in its February 27, 2006 forecast by $4.5 million and
$2.8 million respectively in Q3-06 ($5.5 million and $3.5 million respectively
on a year to date basis). Property NOI has exceeded the forecast by 37.8% in
the current period and by 17.3% year to date. This growth has been
substantially driven by on-going acquisition activity, however, Westfield has
also achieved growth in same Property NOI of $39,000 in the current period, or
$112,000 year-to-date.

Westfield reduces mortgage debt-to-GBV ratio while increasing the asset
base

Year-to-date, Westfield has increased the size of its portfolio (measured
by gross book value "GBV") by 79.2%, from a GBV of $254.1 million to a GBV of
$455.4 million. Over the same period, the ratio of mortgage debt to GBV has
declined from 66.5% at December 31, 2005 to 63.5% at September 30, 2006.

ACQUISITION HIGHLIGHTS

Westfield adds 441,000 square feet of leasable space to portfolio

Westfield acquired three Alberta properties in the third quarter -
Franklin Showcase Warehouse (a 69,269 square foot two-building industrial
complex), Horizon Heights (a 73,514 square foot retail development) and
Heritage Square (a 298,081 square foot class A suburban office building). At
September 30, 2006, Westfield owned 34 income-producing properties, comprising
2.9 million square feet of gross leasable area ("GLA") in Western Canada.
Approximately 66.5% of the GLA is in Alberta; 53.1% is in Calgary.
In Q3, Westfield also removed conditions with respect to an additional
Alberta retail property, which subsequently closed on October 31, 2006.

OPERATIONAL HIGHLIGHTS

Occupancy levels increase for the third consecutive quarter

As a result of on-going leasing and renewal activity, Westfield increased
its overall portfolio occupancy to 95.8% at September 30, 2006 from 94.1% at
June 30, 2006. The proportion of GLA occupied by government or national
tenancies at September 30, 2006 is 60.5% (or 64.4% of gross revenues) and
weighted average lease term to maturity for the portfolio is 4.6 years.
Management believes this speaks well for the strength and stability of the
portfolio.

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SELECTED FINANCIAL INFORMATION

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                       Three months ended           Nine months ended
                          September 30,               September 30,
                       2006          2005          2006          2005
                  -------------------------------------------------------
                       $Thousands, except unit and per unit amounts

Revenues          $     15,744  $      1,728  $     37,033  $      3,097
Property NOI      $     10,079  $      1,373  $     23,818  $      2,401
Loss for the
 period           $     (3,275) $       (145) $     (7,894) $       (320)
Loss per unit
 (basic and
  diluted)        $     (0.271) $     (0.002) $     (0.720) $     (0.010)
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Distributable
 income ('DI')    $      4,587  $        593  $     10,319  $      1,132
DI per unit
 (basic)          $      0.380  $      0.144  $      0.942  $      0.517
DI per unit
 (diluted)        $      0.352  $      0.142  $      0.854  $      0.513
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Distributions     $      3,188  $      1,071  $      8,727  $      1,436
Distributions
 per unit         $      0.262  $      0.225  $      0.786  $      0.524
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Funds from
 operations
 ('FFO')          $      4,045  $        481  $      9,016  $      1,014
FFO per unit
 (basic)          $      0.335  $      0.117  $      0.823  $      0.463
FFO per unit
 (diluted)        $      0.334  $      0.115  $      0.800  $      0.460
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DI per unit
 (basic and
 adjusted)(1)     $      0.383  $      0.144  $      0.978  $      0.436
FFO per unit
 (basic and
 adjusted)(1)     $      0.338  $      0.117  $      0.859  $      0.382
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Weighted average
 units:
Basic               12,072,151     4,122,383    10,958,562     2,188,618
Diluted (for DI)    15,609,760     4,152,154    14,498,392     2,206,398
Diluted (for FFO)   12,131,910     4,171,452    12,759,673     2,206,398
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(1) Added back to 2006 DI and FFO is $397 of costs attributable to an
    unsuccessful bid on a portfolio of assets. Deducted from 2005 DI
    and FFO is $178 of revenue recorded on the write-off of above-market
    lease value on an early lease termination.
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SUMMARIZED BALANCE SHEET
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                                 September 30,  December 31,
$ Thousands                          2006          2005        Increase

ASSETS
  Income-producing properties   $    381,057  $    209,658  $    171,399
  Other assets, including
   intangibles                        77,033        52,225        24,808
  Deposits on income-producing
   properties                            200           425          (225)
  Cash and cash equivalents            9,075        10,960        (1,885)

                                $    467,365  $    273,268  $    194,097
LIABILITIES
  Long term debt                $    331,087  $    190,834  $    140,253
  Other liabilities                   21,411        13,074         8,337

                                $    352,498  $    203,908  $    148,590

UNITHOLDERS' EQUITY             $    114,867  $     69,360  $     45,507
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Non-GAAP Performance Measures

DI, Property NOI and FFO are non-GAAP measures commonly used by Canadian
income trusts as an indicator of financial performance. Management uses DI,
Property NOI and FFO to analyze operating performance. DI, Property NOI and
FFO may not be comparable to similar measures presented by other issuers.
Neither DI nor FFO are intended to represent operating profits for the period
or from a property nor should either be viewed as an alternative to net
income, cash flow from operating activities or other measures of financial
performance calculated in accordance with GAAP. A description of Westfield's
calculation of these measures is included in Westfield's management discussion
and analysis for the three and nine months ended September 30, 2006.

Outlook and Subsequent Events

Westfield is a growth-oriented REIT focused exclusively on commercial
properties located in primary and growing secondary markets in western Canada,
particularly in Alberta. Westfield's goal is to provide unitholders the
opportunity to invest in high-quality western Canadian office, retail and
industrial properties, as well as to provide monthly cash distributions that
are stable, tax efficient, and growing over time.
Disciplined execution of Westfield's growth strategy to date has resulted
in a diversified portfolio of real estate assets aggregating nearly
2.9 million square feet of GLA (46.6% retail, 47.8% office and 5.6%
industrial) and steady growth in revenues, Property NOI, DI and FFO.
On October 31, 2006, the REIT converted from a closed-end trust to an
open-end trust.
Consistent with Westfield's stated growth strategy, on October 31, 2006,
Westfield acquired Liberton Square, a 20,829 square foot Alberta retail
property. On that same day, Westfield entered into an purchase and sale
agreement whereby Westfield's newly formed limited partnership acquired
certain lands in Calgary, Alberta and contracted with the vendor of the lands
to build a Class A office property on the lands. The land was purchased for
$7.8 million paid in Class B Partnership units.
Westfield intends to continue to source acquisitions or development
opportunities within our stated product/market focus that meet our financial
criteria. Westfield will also focus on increasing same Property NOI through
effective property and leasing management.
Subsequent to September 30, 2006, Westfield's financial position will be
further improved by the close of a $35 million equity offering pursuant to a
short form prospectus dated October 3, 2006. The proceeds of that offering,
together with an additional $5.3 million of gross proceeds resulting from the
underwriters' exercise of the overallotment option on October 30, 2006, will
be used to finance future acquisitions, pay down debt and for working capital
purposes.

Cautionary Statements

The comments and highlights herein should be read in conjunction with the
consolidated financial statements and management's discussion and analysis for
the same period and the Statement of Consolidated Forecasted Net Income (the
"forecast") for the year ended December 31, 2006 included in Westfield's short
form prospectus dated February 27, 2006. These documents are available on the
SEDAR website at www.sedar.com or on Westfield's web site at
www.westfieldreit.ca.

This news release contains forward-looking statements. For this purpose,
any statements contained herein that are not statements of historical fact may
be deemed to be forward looking statements. Without limiting the foregoing,
the words "expects", "anticipates", "intends", "estimates", "projects", and
similar expressions and the negatives thereof are intended to identify forward
looking statements.
Westfield is subject to significant risks and uncertainties which may
cause the actual results, performance or achievements of Westfield to be
materially different from any future results, performance or achievements
expressed or implied in these forward-looking statements. Such risk factors
include, but are not limited to, risks associated with real property
ownership, availability of cash flow, general uninsured losses, future
property acquisitions, environmental matters, tax related matters, debt
financing, unitholder liability, potential conflicts of interest, potential
dilution, reliance on key personnel, changes in legislation and potential
changes in the tax treatment of trusts. Westfield cannot assure investors that
actual results will be consistent with any forward-looking statement and
Westfield assumes no obligation to update or revise such forward-looking
statements to reflect actual events or new circumstances. All forward-looking
statements contained in this press release are qualified by this cautionary
statement.
On October 31, 2006, the Minister of Finance announced a proposal to
impose tax on certain distributions from certain publicly traded income
trusts. Based on Westfield's understanding of the proposal, Westfield believes
that it will not be impacted by the proposal. However, it cannot be certain
until the legislation is finalized and passed by Parliament.

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