BARRIE, ONTARIO -- (Marketwired) -- 11/05/15 -- Partners Real Estate Investment Trust (the "REIT," or "Partners") (TSX: PAR.UN) today announced its results for the three month period ended September 30, 2015 (the "third quarter").
THIRD QUARTER 2015 HIGHLIGHTS
-- Same property NOI was $8.5 million, a 4% increase when compared to the
third quarter of 2014
-- Revenues from income producing properties were $14.3 million, a 1%
decrease when compared to the third quarter of 2014. This decline is
attributed to the sale of the three Canadian Tire properties.
-- FFO and AFFO per unit of $0.09 and $0.08, respectively, no change to FFO
and a decrease of $0.02 per unit to AFFO, when compared to the third
quarter of 2014. During 2015 the REIT implemented a $0.90 per square
foot annual reserve for sustaining capital expenditures and this results
in a larger deduction for these costs which lowers AFFO as compared to
2014's reported amounts.
-- AFFO payout ratio of 82%, a decrease from 84% during the third quarter
of 2014.
-- Occupancy of 95.0% as at September 30, 2015, an increase when compared
to both 94.6% as at June 30, 2015 and 94.3% as at December 31, 2014.
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As at and for the three As at and for the nine
months ended months ended
Sep 30, 2015 Sep 30, 2014 Sep 30, 2015 Sep 30, 2014
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Revenues from
income producing
properties $ 14,334,061 $ 14,507,888 $ 42,714,770 $ 44,885,569
Net income (loss) 383,625 (12,464,313) (2,923,676) (24,071,909)
Net income (loss)
per unit - basic 0.01 (0.47) (0.11) (0.92)
NOI - same
property (1) 8,482,133 8,194,965 25,055,819 26,222,670
NOI - all
property(1) 8,482,133 8,755,664 25,055,819 27,919,750
FFO(1) 2,444,179 2,458,189 6,982,684 8,448,127
FFO per unit(1) 0.09 0.09 0.26 0.32
AFFO(1) 2,033,857 2,619,091 6,480,438 8,554,241
AFFO per unit(1) 0.08 0.10 0.24 0.33
Distributions(2) 1,676,161 2,198,779 5,014,547 8,755,414
Distributions per
unit(2) 0.06 0.08 0.19 0.33
Distribution
payout ratio(3) 69% / 82% 89% / 84% 72% / 77% 104% / 102%
Cash
distributions(4) 1,323,087 2,005,495 4,000,824 7,952,202
Cash
distributions
per unit(4) 0.05 0.08 0.15 0.30
Cash distribution
payout ratio(5) 54% / 65% 82% / 77% 57% / 62% 94% / 93%
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As at Sep 30, 2015 Dec 31, 2014 Sep 30, 2014
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Total assets $ 537,539,331 $ 542,551,040 $ 558,778,156
Total debt(6) 386,631,900 381,967,023 394,301,960
Total equity 142,096,188 149,036,368 153,507,424
Weighted average
units
outstanding -
basic 26,491,139 26,206,391 26,165,753
Debt-to-gross
book value
including
debentures(6) 71.5% 69.9% 66.8%
Debt-to-gross
book value
excluding
debentures(6) 55.6% 54.2% 52.3%
Interest coverage
ratio(7) 1.70 1.84 2.09
Debt service
coverage
ratio(7) 1.13 1.24 1.36
Mortgages
weighted average
effective
interest rate(8) 4.35% 4.43% 4.99%
Portfolio
occupancy 95.0% 94.3% 96.0%
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(1) NOI, NOI - same property, FFO and AFFO are non-IFRS financial measures
widely used in the real estate industry. See "Part II - Performance
Measurement" for further details and advisories. Prior year balances
have been reclassified to conform with current year presentation. NOI -
same property includes only those properties which have been owned by
the REIT for a full current and prior year period.
(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) Distribution payout ratio is a non-IFRS financial measure widely used in
the real estate industry, calculated as total distributions as a
percentage of FFO/AFFO. Management considers the distribution payout
ratio a valuable metric to determine the sustainability of the REIT's
distribution. Non-IFRS measures do not have standardized meanings and
are therefore unlikely to be comparable to similar measures presented by
other issuers. There is no directly comparable IFRS measure.
(4) 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.
(5) Cash distribution payout ratio is a non-IFRS financial measure widely
used in the real estate industry, calculated as cash distributions as a
percentage of FFO/AFFO. Management considers the cash distribution
payout ratio a valuable metric to determine the sustainability of the
REIT's distribution. Non-IFRS measures do not have standardized meanings
and are therefore unlikely to be comparable to similar measures
presented by other issuers. There is no directly comparable GAAP
measure.
(6) Debt-to-gross book value is a non-IFRS financial measure widely used in
the real estate industry. See calculation under "Debt-to-Gross Book
Value" in "Part IV - Results of Operations". Management considers debt-
to-gross book value to be a valuable metric in assessing the REIT's
overall leverage. Non-IFRS measures do not have standardized meanings
and are therefore unlikely to be comparable to similar measures
presented by other issuers. There is no directly comparable IFRS
measure.
(7) Interest coverage ratio and debt service coverage ratio are non-IFRS
financial measures widely used in the real estate industry, calculated
on a rolling four-quarter basis. See definition under "Mortgages and
Other Financing" in "Part IV - Results of Operations". Management
considers the interest coverage and debt service coverage ratios to be
valuable metrics in assessing the REIT's ability to make contractual
payments on debt. Non-IFRS measures do not have standardized meanings
and are therefore unlikely to be comparable to similar measures
presented by other issuers. There are no directly comparable IFRS
measures.
(8) Represents the weighted average effective interest rate for secured debt
excluding debentures and credit facilities.
(9) Certain comparative figures have been reclassified to conform with the
current year's presentation.
"We are satisfied with Partners' third quarter results, which demonstrate the early signs of improvement within our business," stated Jane Domenico, the REIT's CEO. "Our payout ratio and overhead costs continue to stabilize, and the increase in our same property NOI is reflective of our efforts to improve the performance of our existing property portfolio. This improvement remains at the centre of our strategy for 2015. To date, we have focused on enhancing the appeal of our existing properties, placing the best possible tenants within those properties, and delivering those tenants the best possible service. Over the balance of 2015, we will expand the scope of our improvement efforts to include a thorough analysis of our cost structure. We believe this analysis will lead to further growth of our NOI, and a commensurate increase in unitholder value."
Further Information
A more detailed analysis of the REIT's 2015 financial results (including results for the three and nine months ended September 30, 2015) is included in the REIT's Management Discussion and Analysis and Condensed Consolidated Financial Statements, which have been filed on SEDAR and can be viewed at www.sedar.com or on the REITs' website at www.partnersreit.com.
Conference Call
Partners will host a conference call at 8:30 AM Eastern on November 6, 2015, at which time the REIT's management will both review these financial results and discuss their strategic outlook.
Conference Dial-In Details
Toll Free (North America): 866-223-7781
Local: 416-340-2216
Instant Replay Details (Available until November 13, 2015)
Toll Free (North America): 800-408-3053
Passcode: 7300542
A recording of the conference call will also be available via Partners' website.
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 36 retail and mixed-use community and neighbourhood shopping centres. These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.5 million square feet of leasable space.
Disclaimer
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 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.
Contacts:
Partners Real Estate Investment Trust
Investor Relations
(705) 725-6020 ext. 401
investor.relations@partnersreit.com
Renmark Financial Communications Inc.
Barry Mire
bmire@renmarkfinancial.com
Renmark Financial Communications Inc.
Robert Thaemlitz
(514) 939-3989 or (416) 644-2020
rthaemlitz@renmarkfinancial.com
www.renmarkfinancial.com
