Partners Real Estate Investment Trust (TSX-V: CRH.UN) announces second quarter 2007 financial results

 

TORONTO: Partners Real Estate Investment Trust (the “REIT”) is pleased to announce its financial results for the second quarter of 2007.

Highlights:

  • On May 10, 2007, Partners Realty Holdings Ltd. (the “Company”) completed its conversion to a real estate investment trust. Each 10 common shares of Partners Realty Holdings Ltd. were exchanged for one unit of Partners Real Estate Investment Trust.
  • On June 21, 2007, the REIT completed the private placement of 741,000 units at $4.05 per unit for gross proceeds of $3,001,050.
  • On June 29, 2007, the REIT announced that it had agreed to acquire the Cornwall Square Shopping Centre for an aggregate purchase price before closing costs of $41.7 million. The acquisition is expected to close on August 9, 2007.
  • Concurrent with the closing of the Cornwall Square Shopping Centre, the REIT is obtaining a $32.3 million operating and acquisition facility with a Canadian chartered bank secured by the property.
  • On August 3, 2007, the REIT filed the final short form prospectus for the marketed offering of trust units, having raised $46.1 million. The offering is expected to close on August 9, 2007.
  • As of June 30, 2007, the REIT’s total assets increased to $44,635,091 (December 31, 2006 – $852,994), reflecting the property acquisitions during the first quarter.
  • For the three months ended June 30, 2007, the REIT recorded net operating income from its properties of $792,720.
  • For the quarter ended June 30, 2007, the REIT had a net loss of $1,145,407 or $0.52 per unit basic and diluted (2006 – net loss of $21,083 or $0.06 per unit basic and diluted). For the six months ended June 30, 2007, the REIT had a net loss of $1,730,240 or $1.01 per unit basic and diluted (2006 – net loss of $47,855 or $0.14 per unit basic and diluted). The current year net loss includes corporate transaction costs of $754,067 relating to the REIT conversion.

Q2 financial results: For the complete second quarter Management’s Discussion and Analysis, and Financial Statements, please visit www.SEDAR.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.

This press release contains forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, local real estate conditions, including the development of properties in close proximity to the REIT’s properties, competition, changes in government regulation, dependence on tenants, financial conditions, interest rates, the availability of equity and debt financing, environmental and tax-related matters, reliance on the Manager, potential conflicts of interest and reliance on key personnel. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the REIT has no obligation to update such statements except as required by law.