Partners Real Estate Investment Trust (TSX-V: CRH.UN) announces Q2 2008 financial results

 

Toronto: Partners Real Estate Investment Trust (“Partners REIT”) is pleased to announce its financial results for the quarter ended June 30, 2008.

Highlights: During the second quarter and the first six months of 2008, Partners REIT:

  • acquired its seventh property – Place Val Est in Sudbury, a 110,313 square foot grocery-anchored retail strip centre for an aggregate purchase price of $14,720,000, bringing total assets acquired to approximately $112,000,000 since January 1, 2007;
  • has a balance sheet that remains strong, with a debt-to-gross book value of 54.6%;
  • currently has $10,775,000 available under its acquisition facility, for remaining acquisition capacity of between $27,000,000 and $31,000,000, while a further $14,000,000 bridge facility from C.A. Bancorp Inc. remains undrawn;
  • established a Distribution Reinvestment and Optional Unit Purchase Plan, which currently has approximately 26% participation by existing unitholders, saving Partners REIT significant cash in terms of its monthly distributions; and
  • had an average occupancy rate for the portfolio of 97.8%, slightly higher than 97.5% at the end of the first quarter.

Financial highlights:

  • As of June 30, 2008, Partners REIT’s total assets increased to $112,908,227 (December 31, 2007 – $99,576,433), reflecting the Place Val Est acquisition in January 2008.
  • For the quarter ended June 30, 2008, Partners REIT recorded net operating income from its properties of $2,262,172, representing an 11% increase from the quarter ended March 31, 2008 of $2,034,971 and a 181% increase from the quarter ended June 30, 2007 of $804,802.
  • Same property net operating income for the quarter ended June 30, 2008 was 6.2% higher at $2,262,172, compared to $2,130,909 for the quarter ended March 31, 2008.
  • For the quarter ended June 30, 2008, Partners REIT had a net loss of $230,240 or $0.01 per unit basic and diluted (for the quarter ended March 31, 2008, net loss was $468,977 or $0.03 per unit basic and diluted and for the quarter ended June 30, 2007, net loss was $1,145,407 or $0.52 per unit basic and diluted).
  • For the quarter ended June 30, 2008, Partners REIT’s funds from operations (“FFO”) were $988,711 or $0.06 per unit basic and diluted, an increase of 41% from the quarter ended March 31, 2008 of $703,490 or $0.04 per unit basic and diluted and an increase of $1,611,468 from the quarter ended June 30, 2007 of $(622,757) or $(0.28) per unit basic and diluted.

2008 Q2 financial results: For the complete Q2 2008 Management’s Discussion and Analysis and Financial Statements, please visit www.sedar.com or www.partnersreit.com.

Partners REIT: Partners Real Estate Investment Trust is an open-end real estate investment trust established under the laws of the Province of Ontario. Partners REIT is focused on acquiring a portfolio of retail and mixed-use retail community and neighbourhood centres, generally in the mid-market deal size range of $10 to $40 million, comprised of stable cash flow and value-add properties from both primary and secondary markets throughout Canada. Partners REIT’s principal goal is to generate a reliable and growing yield for its investors. Partners REIT currently owns 10 retail properties located in Ontario and Quebec.

More information: Ari Silverberg, President and Chief Operating Officer or Floriana Cipollone, Chief Financial Officer Telephone: (416) 364-5705 Facsimile: (416) 861-8166.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Certain statements included in this news release constitute forward looking statements including statements identified by the words “plan”, “will”, “intend”, “should” and similar expressions or the negative thereof. 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, but not limited to, the effect of the repurchasing of Units on Partners REIT’s net book value. Readers are cautioned not to place undue reliance on forward-looking information. Partners REIT undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information except as required by law.