Partners Real Estate Investment Trust (TSX-V: CRH.UN) announces year end 2009 financial results

 

TORONTO, ONTARIO-- Partners Real Estate Investment Trust (“Partners REIT”) is pleased to announce its financial results for the year ended December 31, 2009.

Highlights

The global economic recession and credit crisis made 2009 a difficult year. As a result, for Partners REIT, 2009 was a year of internal focus. During the year, Partners REIT:

  • successfully began the redevelopment of its Châteauguay property through the replacement of a 15,000 square foot cinema tenant with an 18,138 square foot Pharmaprix (Shoppers Drug Mart) store for a 15 year term and undertook significant façade improvements and upgraded the landscaping and exterior amenities of the centre;
  • maintained strong portfolio occupancy at 95.1%, with approximately 92% of the portfolio leased to national and regional tenants;
  • early renewed and extended its operating and acquisition facility for a two-year term, leaving no debt maturing in 2010; and
  • maintained a strong balance sheet, with a debt-to-gross book value ratio at December 31, 2009 of 62.7%.

Financial highlights

  • Partners REIT recorded funds from operations (“FFO”) of $4,185,577 or $0.23 per unit basic and diluted for the year ended December 31, 2009, an increase of 9.5% from the year ended December 31, 2008. The increase mainly relates to the full-year impact of the 2008 acquisitions. Partners REIT’s distribution payout ratio was 70% of FFO.
  • Partners REIT recorded net operating income (“NOI”) of $10,740,078 for the year ended December 31, 2009, a 12.3% increase from the $9,564,812 recorded for the year ended December 31, 2008. The increase mainly relates to the full-year impact of the 2008 acquisitions.
  • Same-property NOI of $10,740,078 was recorded for the year ended December 31, 2009 compared to $11,254,339 recorded for the prior year. The decrease mainly relates to lease expiries, vacancies and lost rental income during the year (including temporary vacancies as a result of the redevelopment of the Châteauguay property).
  • Partners REIT had a net loss of $1,772,397 or $0.10 per unit basic and diluted for the year ended December 31, 2009 (for the year ended December 31, 2008 – net loss of $1,257,596 or $0.07 per unit basic and diluted).

Outlook

Partners REIT will continue to focus on organic growth through the continued redevelopment of its Châteauguay property, as well as leasing vacant space and improving the tenant mix at the Méga Centre property and looking for a replacement tenant for the 23,000 square foot vacancy at its Place Val Est property. As well, Partners REIT has been actively looking for alternative ways to grow its asset base, in light of the difficult market conditions and in light of Partners REIT’s major unitholder engaging in a strategic review process. This will be an ongoing key focus for Partners REIT in 2010.

2009 year end financial results

For the complete year end 2009 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 ended real estate investment trust established under the laws of the Province of Ontario. Partners REIT is focused on acquiring and managing 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 investors. Partners REIT currently owns ten retail properties located in Ontario and Quebec.

More information

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 Partners 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 Partners REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release.