DUNDEE INTERNATIONAL REIT

DUNDEE INTERNATIONAL 2011 Third Quarter Report
The following are the recognized amounts of identifiable assets acquired and liabilities assumed, measured at
their respective fair values:
Investment properties $ 1,006,516
Vendor payment for capital costs (8,557)
997,959
Working capital adjustments 268
Total identifiable assets 998,227
Cash 998,227
Fair value of consideration transferred $ 998,227
In conjunction with the acquisition, the REIT received payments from the vendor totalling $18,421, of which
$8,557 related to adjustments for capital costs of certain properties. The remaining balance of $9,864 was in
relation to financing costs of the Facility. The accounting treatment of the payment received for capital costs
reduced the fair value of the investment properties below the appraised value upon acquisition. Because there
was no material change in the appraised value, a fair value gain of $8,557 was recognized during the quarter.
The fair value gain less transaction costs resulted in a net acquisition related gain of $1,171.
The initial accounting for the assets and liabilities recognized with respect to the acquisition of the properties
has been completed provisionally and has not been finalized and is therefore subject to adjustment.
Note 7
INVESTMENT PROPERTIES
For the period from
April 21, 2011, to
September 30, 2011
Balance at beginning of period $ —
Acquisitions through business combination 997,959
Fair value adjustment 8,557
Foreign currency translation 4,000
Balance at period end $ 1,010,516
In connection with the acquisition described in Note 6, the Trust obtained valuations of investment properties
prepared by qualified valuation professionals and considered the results when arriving at its own conclusions
on values. The final investment property valuation included $45 related to straight-line rent receivable, which
has been reclassified to other non-current assets. Accordingly, the investment properties have been reduced by
this value.
On acquisition, commercial properties with an aggregate fair value of $1,010,516 at August 3, 2011, were valued
by qualified valuation professionals. Proceeds of $8,557 received at the time of closing for capital costs reduced
the acquisition price by the same amount. On September 30, 2011, management determined there was no
material change in fair value of the investment properties since the acquisition date. The carrying value of the
investment properties has therefore been increased by $8,557 to $1,010,516 to reflect the fair value appraisal.
All investment properties with a fair value of $1,010,516 are pledged as first-ranking mortgages on the term loan
credit facility.
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