/EINPresswire.com/ -- 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

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