TORONTO, May 09, 2018 (GLOBE NEWSWIRE) -- Partners Real Estate Investment Trust (the “REIT,” or “Partners”) (TSX: PAR.UN) today announced its results for the three month period ended March 31, 2018 (the “first quarter”).
FIRST QUARTER 2018 HIGHLIGHTS
As at and for the three months ended | ||||||||||||||
Mar 31, 2018 | Mar 31, 2017 | |||||||||||||
Revenues from income producing properties | $ | 12,975,362 | $ | 13,871,283 | ||||||||||
Net income (loss) | (2,283,886 | ) | 2,147,990 | |||||||||||
Net income (loss) per unit - basic | (0.05 | ) | 0.06 | |||||||||||
NOI - same properties(1) | 7,724,602 | 7,464,712 | ||||||||||||
NOI - all properties(1) | 7,724,602 | 8,153,916 | ||||||||||||
FFO(1)(9) | 3,236,302 | 2,810,703 | ||||||||||||
FFO per unit(1) | 0.07 | 0.08 | ||||||||||||
AFFO(1) (9) | 2,317,612 | 2,001,444 | ||||||||||||
AFFO per unit(1) | 0.05 | 0.06 | ||||||||||||
ACFO(1) | 2,431,240 | 2,246,099 | ||||||||||||
Distributions(2) | 2,887,053 | 2,147,370 | ||||||||||||
Distributions per unit(2) | 0.06 | 0.06 | ||||||||||||
ACFO distribution payout ratio(3) | 118.7 | % | 95.6 | % | ||||||||||
Cash distributions(4) | 2,640,883 | 1,578,328 | ||||||||||||
Cash distributions per unit(4) | 0.06 | 0.05 | ||||||||||||
As at | Mar 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | |||||||||||
Total assets | $ | 465,653,438 | $ | 475,045,178 | $ | 514,700,205 | ||||||||
Total debt(5) | 280,031,069 | 283,331,535 | 354,556,805 | |||||||||||
Total equity | 178,405,701 | 183,347,418 | 151,508,380 | |||||||||||
Weighted average units outstanding - basic | 45,871,307 | 39,435,646 | 33,690,649 | |||||||||||
Weighted average units outstanding - diluted | 46,078,000 | 39,559,729 | 33,690,649 | |||||||||||
Debt-to-gross book value including debentures(5) | 59.8 | % | 59.4 | % | 68.6 | % | ||||||||
Debt-to-gross book value excluding debentures(5) | 59.8 | % | 57.8 | % | 57.5 | % | ||||||||
Interest coverage ratio(6) | 2.15 | 2.02 | 1.75 | |||||||||||
Debt service coverage ratio(6) | 1.30 | 1.25 | 1.14 | |||||||||||
Mortgages weighted average effective interest rate(7) | 4.08 | % | 4.10 | % | 4.41 | % | ||||||||
Portfolio occupancy(8) | 90.8 | % | 95.3 | % | 95.1 | % | ||||||||
(1) NOI – same properties and all properties, FFO, AFFO and ACFO are non-IFRS financial measures widely used in the real estate industry. See “Part II – Performance Measurement” for further details and advisories.
(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, or 3% bonus units for distributions with a record date after March 1, 2016, given to participants in the Distribution Reinvestment and Optional Unit Purchase Plan.
(3) ACFO distribution payout ratio is a non-IFRS financial measure that has a standardized meaning under RealPac. It is calculated as total distributions as a percentage of ACFO (a new measure standardized by RealPac – see Part II Performance Measurement). 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) 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.
(6) 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.
(7) Represents the weighted average effective interest rate for secured debt excluding debentures and credit facilities.
(8) Portfolio occupancy is calculated as economic occupancy, not physical occupancy. A unit is considered occupied once it is committed to a lease with a minimum one-year term.
“The same property NOI shows improvement of $0.3 million when compared to the first quarter of 2017 and is due to the positive leasing in Quebec and Western Canada through continued active asset management.” stated Jane Domenico, the REIT’s CEO. “The most significant real estate change this quarter is the termination of Sears’ tenancy at our Cornwall Square property in Ontario. This tenancy represented 4.4% of our total portfolio GLA. Excluding Cornwall Square, Partners’ occupancy results remain strong at 96.6%. Finally, the entire team is focused on the marketing and sale of the western Canada assets.”
Further Information
A more detailed analysis of the REIT's financial results for the first quarter are 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 Thursday, May 10, 2018, at which time Partners’ management will both review the financial results and discuss the REIT’s strategic outlook.
Conference Dial-In Details
Toll Free (North America): (800) 377-0758
Local: (416) 340-2216
Instant Replay Details (Available until May 17, 2018)
Toll Free (North America): 800-408-3053
Passcode: 5135685#
A recording of the conference call will also be available via Partners’ website.
About Partners REIT
Partners REIT is a real estate investment trust focused on the management of a portfolio of 34 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 2.3 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.
For further information please contact:
Partners REIT Investor Relations
1 (844) 474-9620 ext. 401
[email protected]
Partners REIT
Jane Domenico Chief Executive Officer
(416) 855-3313 ext. 401