Q2 2009 IGW REIT UNIT PRICE PRICE DOWN SLIGHTLY

Tuesday, September 1, 2009

Greetings IGW REIT Member-Partners,

The current price for the (Class A and AA) IGW REIT Units now stand at $0.975. This is a decrease of $0.039 from the previous quarter.

The value and distribution of the fixed-income Income Priority Units (IPUnits) remain unchanged.

Increase in value
Only two properties were deemed ready for reappraisal in time for this quarterly revaluation -- Carleton Court and Dodson Plaza. Both increased in value. However cash continues to be spent on asset improvements on the other properties in the pool with the aim of seeing value increases at future revaluations, and this contributed to the latest results.

Meanwhile, we are focusing on two properties that we believe can have the greatest impact in the near-term:

Wellington Suites - Hamilton, ON
As you know from my previous State of the Units reports, we've undertaken an aggressive leasing campaign to fill the remaining vacancies. This has already shown some success in attracting higher-paying tenants and reducing turnover. Based on these results, we are redoubling our marketing efforts.

The City of Hamilton has scheduled a council meeting on October 6th on our application for condominium conversion. Barring delay, rejection, or appeals, the next stage is registration and sales of individual suites.

Once individually titled condominiums are registered with the land titles office, the first stage in value reappraisal can then be realized and positively affect the value of the IGW REIT units.

Rosewood Towers -- Hamilton, ON
Rosewood Towers apartment buildings have been approved by Hamilton council for condominium stratification. However, a neighbouring landowner has appealed the decision. Even so, we are confident that council will reaffirm its approval. With 90% of the suites renovated, our leasing and pre-sale marketing campaigns have already begun and are making significant progress.

As with Wellington Suites, once individually titled condominiums are registered, the first stage in value appreciation can be realized and positively affect the IGW REIT.

Confidence in your investment
As you will learn in detail in my next "State of the Units" report, League's renovation and leasing teams continue their work at all of IGW REIT's properties, and we expect that their efforts will continue to produce increased value for your investment over the longterm.

Using your capital to buy speculative properties and hoping the market will "go our way" has never been part of League strategy. Instead, we roll up our sleeves and do whatever it takes to help our Member-Partners produce, protect and preserve our Member Partners and their family's Intergenerational Wealth™. We don't leave that to chance, and we don't believe you do either.

Best regards

Reminders...

The State of the Units Report for the REIT is published quarterly in March, June, September and December on this web page. This includes detailed updates on ongoing activities at each property.

Distribution payments for the REIT begin on the 21st day of the month following the day you invest. You need not wait until the next revaluation to subscribe and begin receiving your distribution payment.

Tax slips are issued for Limited Partnership and REIT unitholders by March 31st each year. Please note that electronic filing is not possible for Limited Partnerships less than one year old.

New unit values for the REIT are announced on the last day of February, May, August and November. Complete portfolio reappraisals take place prior to the May and November revaluations. At the February and August revaluations, only those properties that we expect to have changed in value are selected for reappraisal. To review how the revaluations are performed, click here or review the Frequently Asked Questions section of the current Investment Overview available in the Members Area.