DUNDEE INTERNATIONAL REIT

The following interest rate sensitivity table outlines the potential impact of a 1% change in the interest rate on
variable rate assets and liabilities for a prospective twelve-month period. A 1% change is considered a
reasonable level of fluctuation on variable rate assets and debts.
Interest rate risk
-1% +1%
Carrying amount Income Equity Income Equity
Financial assets
Cash and cash equivalents (1) $ 92,411 $ (231) $ (231) $ 231 $ 231
Financial liabilities
Term debt credit facility $ 89,838 $ 225 $ 225 $ (225) $ (225)
(1) Cash and cash equivalents include short-term investments with an original maturity of three months or less, and exclude cash subject to
restrictions that prevent its use for current purposes. These balances generally receive interest income at bank prime less 1.85%. Cash and
cash equivalents are short term in nature and the current balance may not be representative of the balance for the rest of the year.
The Trust is exposed to currency risk. The Trust’s functional and presentation currency is Canadian dollars.
The Trust’s operating subsidiaries have a functional currency of the euro, accordingly the assets and liabilities
are translated at the prevailing rate at period end, and comprehensive income is translated at the average rate
for the period. In order to manage the exposure to currency risk to unitholders and holders of Debentures, the
Trust has entered into foreign exchange forward contracts. The term of the contract is for 24 months whereby
the Trust is required to sell €2,600 per month at €1.3639 per Canadian dollar.
The Trust is exposed to credit risk from its leasing activities and from its financing activities and derivatives.
The Trust manages credit risk by requiring tenants to pay rents in advance and monitoring the credit quality
of the tenants on a regular basis. The Trust monitors tenant payment patterns and discusses potential tenant
issues with property managers on a regular basis. Credit risk with respect to financing activities and derivatives
is managed by entering into arrangements with highly reputable institutions.
The Trust does not use derivatives for speculative purposes.
DUNDEE INTERNATIONAL 2011 Third Quarter Report
Liquidity risk is the risk that the Trust will encounter difficulty in meeting obligations associated with the
maturity of financial obligations. The Trust manages maturities of its debts, and monitors the repayment dates
to ensure sufficient capital will be available to cover obligations.
Interest rate derivatives
The following table provides details on interest rate derivatives outstanding as at September 30, 2011:
Hedging item Notional Rate Maturity Carrying value
Interest rate swap $ 360,141 4.05% 2016 $ (3,042)
Interest rate cap 45,018 5.00% 2016 131
$ 405,159 $ (2,911)
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