Dividend Capital Total Realty Trust Announces Strategic Debt Transactions

Business Wire,  May 27, 2008  

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DENVER -- Dividend Capital Total Realty Trust Inc., a diversified real estate investment trust (REIT), announced today the closing of two strategic debt transactions.

On May 20, 2008, Dividend Capital Total Realty Trust acquired a senior mezzanine loan on two institutional-quality office buildings in Tysons Corner, VA, a submarket of Washington, D.C. located in Northern Virginia. The mezzanine loan, originally valued at $18.4 million, was acquired by Dividend Capital Total Realty Trust for $16.5 million, an approximate 10% discount to the original value.

"In a real estate market that has gone through dramatic credit turmoil since last summer, our strong balance sheet and stable cash position are providing us opportunities to make strategic debt investments at attractive returns. While this specific transaction is modest in size, the economics are powerful and are representative of other opportunities we're seeing in the marketplace," said Guy Arnold, president of Dividend Capital Total Realty Trust. "As the senior mezzanine loan holder in this well-located office property, our company holds a position senior to the junior mezzanine loan, a bridge loan, as well as all the equity in the property, so we view this as a low-risk, high-reward-potential investment."

Additionally, Dividend Capital Total Realty Trust completed a strategic debt transaction related to its August 2007 acquisition of a large portfolio of grocery-anchored retail centers in New England. On May 20, 2008, Dividend Capital Total Realty Trust paid down approximately $121.9 million of debt financing it had incurred in connection with the New England retail portfolio acquisition at a significant discount to par value. Specifically, the company received a discount of approximately $10.3 million from the lender, which was 91.5% of the cost of the original borrowings.

"The acquisition of this loan at a significant discount is a great transaction for us as it effectively lowers our cost basis on the underlying properties in the portfolio by a substantial amount," said John Biallas, chief financial officer for Dividend Capital Total Realty Trust. "This should have a positive impact on our net income for the second quarter, gives us significant additional financial flexibility, and positions us well as we build a solid base of unencumbered collateral to pursue a long-term financial strategy of lowering our debt costs by seeking an unsecured line of credit."

Dividend Capital Total Realty Trust, a Denver-based REIT, invests in a diversified portfolio of high-quality real estate assets.

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect(s)," "could," "should," and "continue" and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results materially different from those described in the forward-looking statements. Dividend Capital Total Realty Trust can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Dividend Capital Total Realty Trust's expectations include, but are not limited to, the uncertainty of the sources for funding Dividend Capital Total Realty Trust's future capital needs, delays in the acquisition, development and construction of real properties, changes in economic conditions generally and the real estate and securities markets specifically and the other risks detailed from time to time in Dividend Capital Total Realty Trust's SEC reports. Such forward-looking statements speak only as of the date of this press release. Dividend Capital Total Realty Trust expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

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