TORONTO, ONTARIO -- (Marketwired) -- 11/02/16 -- Partners Real Estate Investment Trust (the "REIT" or "Partners") (TSX: PAR.UN) today announced its results for the three month period ended September 30, 2016 (the "third quarter").
THIRD QUARTER 2016 HIGHLIGHTS
-- Net income of $3.3 million, an improvement of $2.9 million when compared
to the third quarter of 2015.
-- Revenues from income producing properties of $14.0 million, a decline of
$0.3 million when compared to the third quarter of 2015.
-- NOI of $8.5 million, consistent with the third quarter of 2015.
-- FFO and AFFO per unit of $0.09, compared to $0.09 and $0.08,
respectively, for the third quarter of 2015.
-- AFFO payout ratio of 74%, compared to 82% for the third quarter of 2015.
-- Occupancy of 95.1% as at September 30, 2016, an improvement when
compared to a level of 94.6% as at December 31, 2015.
-- As at September 30, 2016, the REIT had renewed a total of 355,868 square
feet of leases that were originally set to expire during 2016. This
represents advance renewals of more than 93% of the GLA originally set
to expire during 2016.
-- On September 28, 2016, the REIT announced that it had finalized an $11.9
million mortgage at its Evergreen Shopping Centre property in Sooke,
British Columbia. This mortgage was refinanced for five years at 2.85%.
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As at and for the three As at and for the six
months ended months ended
Sep 30, 2016 Sep 30, 2015 Sep 30, 2016 Sep 30, 2015
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Revenues from income
producing
properties $ 14,046,194 $ 14,334,061 $ 42,387,006 $ 42,714,770
Net income (loss) 3,337,970 383,625 9,061,905 (2,923,676)
Net income (loss)
per unit - basic 0.10 0.01 0.27 (0.11)
NOI - all property
(1) 8,506,735 8,482,133 25,168,146 25,055,819
FFO(1) 3,178,325 2,444,179 8,603,574 6,982,684
FFO per unit(1) 0.09 0.09 0.26 0.26
AFFO(1) 2,885,855 2,033,857 7,762,290 6,480,438
AFFO per unit(1) 0.09 0.08 0.23 0.24
Distributions(2) 2,126,305 1,676,161 6,358,186 5,014,547
Distributions per
unit(2) 0.06 0.06 0.19 0.19
Distribution payout
ratio - FFO/AFFO(3) 67% / 74% 69% / 82% 74% / 82% 72% / 77%
Cash
distributions(4) 1,607,227 1,323,087 4,801,949 4,000,824
Cash distributions
per unit -
FFO/AFFO(4) 0.05 0.05 0.14 0.15
Cash distribution
payout ratio(5) 51% / 56% 54% / 65% 56% / 62% 57% / 62%
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Sep 30, Dec 31, Dec 31,
As at 2016 2015 2014
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Total assets $523,862,295 $520,970,422 $542,551,040
Total debt(6) 362,199,261 364,550,117 381,967,023
Total equity 153,128,305 148,888,084 149,036,368
Weighted average
units outstanding -
basic 33,617,574 27,831,288 26,206,391
Debt-to-gross book
value including
debentures(6) 68.8% 69.5% 70.0%
Debt-to-gross book
value excluding
debentures(6) 57.9% 58.6% 54.2%
Interest coverage
ratio(7) 1.65 1.59 1.80
Debt service
coverage ratio(7) 1.09 1.07 1.22
Mortgages weighted
average effective
interest rate(8) 4.42% 4.57% 4.43%
Portfolio
occupancy(9) 95.1% 94.6% 94.3%
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(1) NOI - all property, FFO and AFFO are non-IFRS financial measures widely
used in the real estate industry. See "Part II - Performance
Measurement" for further details and advisories.
(2) Represents distributions to unitholders on an accrual basis.
Distributions are payable as at the end of the period in which they are
declared by the Board of Trustees, and are paid on or around the 15th
day of the following month. Distributions per unit exclude the 5% bonus
units, or 3% bonus units for distributions with a record date after
March 1, 2016, given to participants in the Distribution Reinvestment
and Optional Unit Purchase Plan.
(3) Distribution payout ratio is a non-IFRS financial measure widely used in
the real estate industry, calculated as total distributions as a
percentage of FFO/AFFO. Management considers the distribution payout
ratio a valuable metric to determine the sustainability of the REIT's
distribution. Non-IFRS measures do not have standardized meanings and
are therefore unlikely to be comparable to similar measures presented by
other issuers. There is no directly comparable IFRS measure.
(4) Represents distributions on a cash basis, and as such, excludes the non-
cash distributions of units issued under the Distribution Reinvestment
and Optional Unit Purchase Plan.
(5) Cash distribution payout ratio is a non-IFRS financial measure widely
used in the real estate industry, calculated as cash distributions as a
percentage of FFO/AFFO. Management considers the cash distribution
payout ratio a valuable metric to determine the sustainability of the
REIT's distribution. Non-IFRS measures do not have standardized meanings
and are therefore unlikely to be comparable to similar measures
presented by other issuers. There is no directly comparable GAAP
measure.
(6) Debt-to-gross book value is a non-IFRS financial measure widely used in
the real estate industry. See calculation under "Debt-to-Gross Book
Value" in "Part IV - Results of Operations". Management considers debt-
to-gross book value to be a valuable metric in assessing the REIT's
overall leverage. Non-IFRS measures do not have standardized meanings
and are therefore unlikely to be comparable to similar measures
presented by other issuers. There is no directly comparable IFRS
measure.
(7) Interest coverage ratio and debt service coverage ratio are non-IFRS
financial measures widely used in the real estate industry, calculated
on a rolling four-quarter basis. See definition under "Mortgages and
Other Financing" in "Part IV - Results of Operations". Management
considers the interest coverage and debt service coverage ratios to be
valuable metrics in assessing the REIT's ability to make contractual
payments on debt. Non-IFRS measures do not have standardized meanings
and are therefore unlikely to be comparable to similar measures
presented by other issuers. There are no directly comparable IFRS
measures.
(8) Represents the weighted average effective interest rate for secured debt
excluding debentures and credit facilities.
(9) Portfolio occupancy is calculated as economic occupancy, not physical
occupancy. A unit is considered occupied once it is committed to a lease
with a minimum one year term.
"Partners' results for the third quarter of 2016 reflect the REIT's focus on our existing portfolio, including the decision earlier this year to internalize the management of our properties outside of Quebec," stated Jane Domenico, the REIT's CEO. "The initial benefits of this decision are evident in today's results, which reflect improvements in both our operational costs and portfolio occupancy, including the addition of three new tenants at our Cornwall Square property in Ontario. We look forward to creating similar opportunities across our portfolio. The Canadian retail real estate landscape remains challenging. However, today's results give us confidence that the operational changes we have made to date have laid the foundation for Partners' long-term success."
Further Information
A more detailed analysis of the REIT's financial results for the third quarter is included in the REIT's Management Discussion and Analysis and Condensed Consolidated Financial Statements, which have been filed on SEDAR and can be viewed at www.sedar.com or on the REITs' website at www.partnersreit.com.
Conference Call
Partners will host a conference call at 8:30 AM Eastern on November 3, 2016, at which time the REIT's management will both review these financial results and discuss the REIT's strategic outlook.
Conference Dial-In Details
Toll Free (North America): 866-225-0198
Local: 416-340-2218
Instant Replay Details (Available until November 10, 2016)
Toll Free (North America): 800-408-3053
Passcode: 5515563
A recording of the conference call will also be available via Partners' website.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 36 retail and mixed-use community and neighbourhood shopping centres. These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.5 million square feet of leasable space.
Disclaimer
Certain statements included in this press release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect," "will" and similar expressions to the extent they relate to Partners REIT. The forward- looking statements are not historical facts but reflect Partners REIT's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including access to capital, regulatory approvals, intended acquisitions and general economic and industry conditions. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
Contacts:
Partners REIT
Investor Relations
1 (844) 474-9620 ext. 401
investor.relations@partnersreit.com
Partners REIT
Jane Domenico
Chief Executive Officer
(416) 855-3313 ext. 501
www.partnersreit.com
