CAP REIT Announces Significantly Improved Year-End Results

Year of rapid growth sees revenues rise 121%

CAP REIT (ticker: CAR_u.TO, exchange: Toronto Stock Exchange) News Release - 24-Feb-1999

TORONTO, ONTARIO — February 24, 1999: Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT") today announced results for the year ended December 31, 1998. Operating revenues grew to $42.5 million producing net income of $8.6 million and distributable income of $10.1 million.

The 1998 results significantly exceeded CAP REIT's forecasted operating revenues of $40.3 million, net income of $8.5 million and distributable income of $9.8 million as published in the REIT's most recent prospectus dated March 25, 1998. Compared to the prior year's results from May 21, 1997, operating revenues grew 121%, net income rose 130%, and distributable income grew 164%.

Distributable income per unit of $0.91 in 1998, which translates to $0.96 on a fully-paid basis, was significantly higher than the forecasted $0.93 per unit, and rose 106% from the prior year. Since its initial public offering on May 21, 1997, CAP REIT's monthly cash distribution per unit has grown 34.5% and provided unitholders with a total return of 22% as of December 31, 1998.

During the year, CAP REIT's income properties grew by 51% to $294.6 million. The acquisition of apartment suites in Montreal and Toronto late in the fourth quarter capped a year of significant expansion as the number of rental suites under management grew by 59%. These recent acquisitions will add significantly to operating cash flow in 1999.

"The apartment and townhome market is characterized by stable and growing operating cash flow as vacancy rates remain low while average rents have been steadily increasing," stated Michael Stein, Executive Chairman. "Our emphasis on strong financial and operational management, combined with our focused program of accretive acquisitions will build cash distributions and unitholder value going forward."

"CAP REIT will continue to expand prudently in existing and new markets," concluded Thomas Schwartz, President and CEO. "We have achieved our short term targets in 1998, and looking ahead our goal is to grow distributions per unit by a minimum of 5% annually, and expand our portfolio by at least 2,000 suites per year."

Financial highlights (complete financial statements are attached):

Year Ended December 31,	                   1998	           1997**
	                             Actual  Forecast      Actual
Operating Revenues ($'000)	     42,540   40,290	   19,224
Net Income ($'000)	              8,631    8,552	    3,746
Distributable Income ($'000)	     10,111    9,798	    3,827
Income Properties ($'000)	    294,629	 N/A	  195,656
Rental Suites	                      5,313	 N/A	    3,336

	** Instalment receipt May 21, 1997

CAP REIT (TSE Symbol "CAR.UN") is Canada's only real estate investment trust owning a 100% freehold interest in multi-unit residential properties, including apartment buildings and townhouses.

For further information please contact:

Michael Stein, Executive Chairman at (416) 861-5788 or Thomas Schwartz, President and CEO at (416) 861-1311