VICTORIA, BC., March 19, 2012 - Partners Real Estate Investment Trust (“Partners REIT”) announced today solid growth and strong performance for the three months and year ended December 31, 2011. Effective January 1, 2011 the REIT adopted International Financial Reporting Standards (“IFRS”). Please refer to the REIT’s Management Discussion and Analysis and the audited consolidated financial statements for the year ended December 31, 2011 for a comprehensive description of the changes arising from the transition.


  • NOI rises 56% and FFO up 39% in 2011 on contribution from acquisitions and solid same property performance;
  • Acquisition of 18 properties (approx. 0.9 million sq. ft. of GLA) in 2011 and 2012 for a total acquisition costs of $196.45 million to make contribution and significantly expand and strengthen portfolio;
  • Successful completion of a $22.7 million bought deal equity offering (including the exercise of 90% of the overallotment option) completed subsequent to year-end;
  • Equity has grown to $130.0 million from $56.0 million and the balance sheet and liquidity position have improved with the NorRock Realty Finance Corporation transaction on February 1, 2012;
  • Debt-to-Gross Book Value decreased to 62.6% following the acquisitions, equity offering and NorRock transaction in 2012;
  • Unit consolidation concluded on February 14, 2012 on a four-for-one basis;
  • Conditional approval for listing on Toronto Stock Exchange announced March 1, 2012; and
  • Occupancies up to 98.0% as at December 31, 2011 from 95.7% in the previous year.

“Partners REIT established a strong foundation in 2011.  We significantly expanded the size and scope of our property portfolio, strengthened the occupancy base, and generated solid and consistent growth in all our key performance benchmarks,” commented Adam Gant, Chief Executive Officer. “Looking ahead, we expect to build on this strong performance as the properties acquired during and subsequent to 2011 contribute to our results, our proven property management expertise generates higher occupancies and improved average rents. With the subsequent completion of the NorRock transaction and equity offering, along with the corresponding shopping centre purchases we have seen Partners REIT triple in assets since our taking over management. We look forward to further improvement in unit holder value along with continued growth with high quality assets.”

Significant Growth
During 2011, the REIT acquired 10 well-located retail properties aggregating approximately 484,000 square feet of gross leasable area (“GLA”) for a total purchase price of approximately $93.5 million. Subsequent to the year-end it completed six additional acquisitions comprising approximately 406,000 square feet of GLA for an aggregate purchase price of approximately $103.0 million, and announced a further two acquisitions totaling 131,000 square feet of GLA for a collective purchase price of $30.6 million. The acquisitions were funded by new credit facilities, the assumption of mortgages, including the expansion of such mortgages, the equity bought deal offering, and the proceeds from the NorRock transaction.

With the acquisitions either pending completion or completed during and subsequent to the year-end, the REIT’s portfolio will consist of 30 well-located retail properties in Ontario, Québec, Manitoba, British Columbia and Alberta aggregating approximately 2.2 million square feet of GLA.  

Solid Operating Performance
Weighted average occupancy at December 31, 2011 increased to 98.0% from 95.7% last year. The increase is due primarily to solid leasing activity through the REIT’s portfolio.

Net Operating Income (“NOI”) increased 78% to $4.7 million in the fourth quarter of 2011 from $2.7 million in the same prior-year period. For the year ended December 31, 2011 NOI increased 56% to $15.5 million from $9.9 million last year. The increases were due primarily to the contribution from recent acquisitions and same property NOI, which was flat in the fourth quarter of 2011 and increased by approximately 2.0% for the year ended December 31, 2011 compared to the same prior-year periods.

Funds from Operations (“FFO”) rose to $1.4 million ($0.18 per unit) in the fourth quarter of 2011 from $1.0 million ($0.15 per unit) in the fourth quarter of the prior year. For the year ended December 31, 2011 FFO increased to $5.0 million ($0.65 per unit) from $3.6 million ($0.67 per unit) last year. The increases were due primarily to the contribution from acquisitions and increased same property NOI. Per unit amounts were impacted by the 20% and 43% increase in the weighted average number of units outstanding for the three months and year ended December 31, 2011, respectively, compared to the same prior-year periods. Management believes per unit amounts will improve over time as recent acquisitions make a full contribution to FFO.

Active Leasing
Management remains committed to actively pursuing new leases and lease renewals with the objective of increasing occupancy and weighted average rental income per square foot of gross leasable area.  One of the REIT’s goals is to generate organic growth through redevelopment and lease renewal activities at its existing centres. For the year ended December 31, 2011, the portfolio had lease expiries of 64,850 square feet, and new or renewed leases of 77,058 square feet had been entered into during the year.  In addition, the weighted average rent including any material new and renewed leases completed by March 15, 2012 is $12.85 per square foot, an increase of $1.65 per square foot over the prior year.

Financial Position
As at December 31, 2011 the REIT’s ratio of debt to gross book value was 73.0% compared to 59.8% at December 31, 2010. Interest coverage and debt service coverage ratios remained a conservative 1.70 times and 1.26 times, respectively. During 2011, the REIT acquired new debt and assumed mortgages totaling $68.75 million on the properties acquired during the year. Overall, the REIT’s mortgage portfolio incurred a weighted average effective interest rate of 4.95% at December 31, 2011 with a weighted average term to maturity of approximately four years. Through the end of 2013 the REIT has approximately $21.0 million of debt maturing with a weighted average interest rate of 5.91%. Management expects to refinance this debt at lower interest rates, positively impacting the REIT’s future cash flows.

Recent Events
On February 1, 2012, the REIT completed the acquisition of substantially all of the assets of NorRock Realty Finance Corporation (“NorRock”), consisting of cash, cash equivalents, mortgages and other assets of NorRock, in exchange for the issuance of Partners REIT units, certain rights to acquire Partners REIT units, and cash. The acquisition, combined with a successful equity offering described below, significantly enhances the REIT’s liquidity position providing Management with the resources and the flexibility to continue prudently expanding and strengthening its property portfolio through acquisitions as well as through the redevelopment and remerchandising of certain properties. With the completion of this transaction, the equity offering and the closing of six of the acquisitions, Management expects its debt-to-gross-book-value ratio to improve to approximately 62.6% from 73.0% at December 31, 2011. Full details of the transaction can be found in the REIT’s Management Discussion and Analysis for the year ended December 31, 2011 and other regulatory filings.

On February 8, 2012 the REIT closed a public offering of 10,753,000 units (2,688,250 post-consolidation units) at a price of $1.86 per unit ($7.44 per post-consolidation unit), representing gross proceeds of approximately $20 million, on a bought deal basis, to a syndicate of underwriters.. On March 6, 2012 the REIT received notice that the underwriters would exercise their over-allotment option to purchase an additional 1,443,248 units (360,812 post-consolidation units) at the same offering price. The net proceeds to the REIT from the public offering, net of underwriters’ fees and including the overallotment option, is expected to be approximately $21.6 million.  The net proceeds are expected to be used to pay out a loan facility entered into in connection with certain property purchases and to pay down a portion of the REIT’s Acquisition Facility advanced in respect of a property purchase completed in 2011.

In February 2012, the REIT completed the acquisition of six properties aggregating approximately 406,000 square feet.  The aggregate purchase price was approximately $102.95 million and was funded, in part, by new credit facilities of $14 million and the assumption of existing mortgages which were expanded to $40.75 million, of which $8 million is currently not funded.

On February 10, 2012, the REIT received approval from the TSX Venture Exchange to consolidate its issued and outstanding units on the basis of one post-consolidation unit for every four pre-consolidation units.  The exercise price and number of units issuable upon the exercise of outstanding options, warrants and convertible debentures will be proportionately adjusted with the implementation of the unit consolidation.  The post-consolidation of the units began trading on the Exchange on February 14, 2012. Full details of the transaction can be found in the REIT’s Management Discussion and Analysis for the year ended December 31, 2011 and other regulatory filings.

On March 1, 2012 the REIT announced that it received conditional approval to list its securities on the Toronto Stock Exchange (TSX) at which point such securities will no longer be listed on the TSX Venture Exchange. The approval is conditional upon Partners REIT fulfilling certain conditions. Management expects that it will receive final listing approval shortly.

Investor Conference Call
A conference call to discuss the recent operating and financial results will be hosted by Adam Gant, Chief Executive Officer and Patrick Miniutti, President and Chief Operating Officer, on Monday March 19, 2012 at 1:00 pm ET (10.00 am PT). The telephone numbers for the conference call are Local / International: (416) 849-2698 and North American Toll Free: (866) 400-2270. The telephone numbers to listen to the call after it is completed (Instant Replay) are Local / International (416) 915-1035 or North American toll free (866) 245-6755. The Passcode for the Instant Replay is 304494#.   

The financial results for the year ended December 31, 2011 and prior periods for Partners Real Estate Investment Trust can be found on SEDAR and on the REIT’s website (

Financial Highlights

  1. Net operating income or “NOI” and funds from operations or “FFO” are non-IFRS financial measures widely used in the real estate industry.  See “Part III – 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 given to participants in the Distribution Reinvestment and Optional Unit Purchase Plan.
  3. 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.
  4. See calculation under “Debt-to-Gross Book Value” in “Part V – Results of Operations” in the MD&A for the year ended December 31, 2011
  5. Calculated on a rolling four quarter basis. 
  6. Represents the weighted average effective interest rate for secured debt excluding the bank credit facility, which has a floating rate of interest.
  7. Cash distributions as a percentage of funds from operations (FFO)

For the complete 2011 financial statements and Management’s Discussion and Analysis, please visit or

About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 27 retail properties located in Ontario, Quebec, Manitoba, Alberta and British Columbia aggregating approximately 2.1 million square feet of leasable 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.

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.

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 timing of the offering, success of the offering, listing of the units, use of proceeds of the Offering, 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.

For more information, contact Patrick Miniutti, President and Chief Operating Officer (250) 940-5500.