Partners REIT Expands Presence into Alberta and in Quebec

 

VICTORIA, B.C. (November 15, 2011) - Partners Real Estate Investment Trust (TSXV: PAR.UN) (“Partners REIT”) announced today that it would be acquiring an existing Shoppers Drug Mart and PartSource development in the midst of Edmonton’s 137th Avenue retail corridor. This development is on the main east/west arterial which has an abundance of major retail draws including Safeway, Superstore, Home Depot, Staples, Leon’s, JYSK, The Brick, Sears Home, Best Buy, Royal Bank, ATB Financial, Scotiabank, Servus Credit Union, CIBC, The Keg, Outback Steakhouse, Old Navy, Cineplex Odeon Theatres, Tim Horton’s, Starbucks, plus another 500,000 square feet of retail with virtually no vacancy. The property currently generates Net Operating Income of approximately $300,000 on an annualized basis and management expects it will generate over $200,000 in incremental annualized Funds From Operations.

Partners REIT will pay approximately $4.09 million for the property, including the assumption of a $1.67 million mortgage, which is expected to be increased to $2.55 million, bearing interest at 4.3%, with the increase being primarily used for other acquisitions. The balance of the purchase price will be through the issuance of approximately 1.18 million limited partnership units, with a value of $2.12 million or $1.80 per unit, exchangeable on a one for one basis into Partners REIT units at the election of the vendor plus $0.3 million in cash. The closing of the transaction is expected in December 2011 and is subject to regulatory approval and the fulfillment of certain conditions precedent.

Partners REIT also announced today that it would be acquiring Plaza des Seigneurs, an existing 20,833 square foot open-air centre anchored by necessity-based tenants, including a SAQ liquor store, Banque Nationale and a recently-renewed Uniprix drug store located in Terrebonne, Quebec (about 30 minutes north of Montreal). The property currently generates Net Operating Income of approximately $300,000 on an annualized basis and management expects it will generate over $200,000 in incremental annualized Funds From Operations.

Partners REIT will pay approximately $4.05 million for the property with $2.25 million funded through a new five-year mortgage that is expected to bear interest at 3.5% and the balance payable in cash. The closing of the transaction is expected in late December 20112011 and is subject to regulatory approval and the fulfillment of certain conditions precedent.

“We have been very active growing our portfolio since we took over management of the REIT in June 2010 with the acquisition of retail centres in Quebec, Ontario, Manitoba and British Columbia and now Alberta,” commented Adam Gant, Chief Executive Officer.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 20 retail properties located in British Columbia, Ontario, Manitoba and Quebec, aggregating approximately 1.6 million square feet of leaseable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.

Non-IFRS Measures

This press release makes reference to certain financial measures other than those prescribed by International Financial Reporting Standards ("IFRS").  These non-IFRS measures are not recognized under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other entities.  These non-IFRS measures, which include NOI and FFO, are provided to the reader as additional information to complement IFRS measures and to further understand the REIT’s results of operations from management's perspective and as a supplemental measure of performance that highlights trends in the business that may not otherwise be apparent when relying solely on IFRS financial measures.  Such non-IFRS measures should not be considered in isolation or as a substitute for analysis of financial information reported under IFRS. Readers should refer to the REIT’s annual information form and MD&A, which are available on our website and on SEDAR at www.sedar.com, for additional details regarding the determination of these non-IFRS measures and reconciliation to financial information reported under IFRS.

Forward-looking Statements

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 the integration of the acquisitions with our property portfolio, the receipt of regulatory approval, our expectations regarding closing the proposed acquisitions, the expected increase in the mortgage, our expectations regarding an increase in incremental funds as a result of the acquisitions, our intention to continue to grow and diversify our portfolio, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

Patrick Miniutti, President and Chief Operating Officer (250) 595-9328