Partners Announces Results for the Third Quarter of 2016

TORONTO, ONTARIO--(Marketwired - Nov 2, 2016) - Partners Real Estate Investment Trust (the "REIT" or "Partners") (TSX:PAR.UN) today announced its results for the three month period ended September 30, 2016 (the "third quarter").

THIRD QUARTER 2016 HIGHLIGHTS

Net income of $3.3 million, an improvement of $2.9 million when compared to the third quarter of 2015.
Revenues from income producing properties of $14.0 million, a decline of $0.3 million when compared to the third quarter of 2015.
NOI of $8.5 million, consistent with the third quarter of 2015.
FFO and AFFO per unit of $0.09, compared to $0.09 and $0.08, respectively, for the third quarter of 2015.
AFFO payout ratio of 74%, compared to 82% for the third quarter of 2015.
Occupancy of 95.1% as at September 30, 2016, an improvement when compared to a level of 94.6% as at December 31, 2015.
As at September 30, 2016, the REIT had renewed a total of 355,868 square feet of leases that were originally set to expire during 2016. This represents advance renewals of more than 93% of the GLA originally set to expire during 2016.
On September 28, 2016, the REIT announced that it had finalized an $11.9 million mortgage at its Evergreen Shopping Centre property in Sooke, British Columbia. This mortgage was refinanced for five years at 2.85%.

As at and for the three months ended As at and for the six months ended

Sep 30, 2016 Sep 30, 2015 Sep 30, 2016 Sep 30, 2015

Revenues from income producing properties $ 14,046,194 $ 14,334,061 $ 42,387,006 $ 42,714,770

Net income (loss) 3,337,970 383,625 9,061,905 (2,923,676 )

Net income (loss) per unit - basic 0.10 0.01 0.27 (0.11 )

NOI - all property ⁽¹⁾ 8,506,735 8,482,133 25,168,146 25,055,819

FFO⁽¹⁾ 3,178,325 2,444,179 8,603,574 6,982,684

FFO per unit⁽¹⁾ 0.09 0.09 0.26 0.26

AFFO⁽¹⁾ 2,885,855 2,033,857 7,762,290 6,480,438

AFFO per unit⁽¹⁾ 0.09 0.08 0.23 0.24

Distributions⁽²⁾ 2,126,305 1,676,161 6,358,186 5,014,547

Distributions per unit⁽²⁾ 0.06 0.06 0.19 0.19

Distribution payout ratio - FFO/AFFO⁽³⁾ 67% / 74 % 69% / 82 % 74% / 82 % 72% / 77 %

Cash distributions⁽⁴⁾ 1,607,227 1,323,087 4,801,949 4,000,824

Cash distributions per unit - FFO/AFFO⁽⁴⁾ 0.05 0.05 0.14 0.15

Cash distribution payout ratio⁽⁵⁾ 51% / 56 % 54% / 65 % 56% / 62 % 57% / 62 %

As at Sep 30, 2016 Dec 31, 2015 Dec 31, 2014

Total assets $ 523,862,295 $ 520,970,422 $ 542,551,040

Total debt⁽⁶⁾ 362,199,261 364,550,117 381,967,023

Total equity 153,128,305 148,888,084 149,036,368

Weighted average units outstanding - basic 33,617,574 27,831,288 26,206,391

Debt-to-gross book value including debentures⁽⁶⁾ 68.8 % 69.5 % 70.0 %

Debt-to-gross book value excluding debentures⁽⁶⁾ 57.9 % 58.6 % 54.2 %

Interest coverage ratio⁽⁷⁾ 1.65 1.59 1.80

Debt service coverage ratio⁽⁷⁾ 1.09 1.07 1.22

Mortgages weighted average effective interest rate⁽⁸⁾ 4.42 % 4.57 % 4.43 %

Portfolio occupancy⁽⁹⁾ 95.1 % 94.6 % 94.3 %

(1) NOI - all 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.

(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 15^th 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) 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) 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.

"Partners' results for the third quarter of 2016 reflect the REIT's focus on our existing portfolio, including the decision earlier this year to internalize the management of our properties outside of Quebec," stated Jane Domenico, the REIT's CEO. "The initial benefits of this decision are evident in today's results, which reflect improvements in both our operational costs and portfolio occupancy, including the addition of three new tenants at our Cornwall Square property in Ontario. We look forward to creating similar opportunities across our portfolio. The Canadian retail real estate landscape remains challenging. However, today's results give us confidence that the operational changes we have made to date have laid the foundation for Partners' long-term success."

Further Information

A more detailed analysis of the REIT's financial results for the third quarter 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 3, 2016, at which time the REIT's management will both review these financial results and discuss the REIT's strategic outlook.

Conference Dial-In Details

Toll Free (North America): 866-225-0198
Local: 416-340-2218

Instant Replay Details (Available until November 10, 2016)

Toll Free (North America): 800-408-3053
Passcode: 5515563

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.

Partners REIT
Investor Relations
1 (844) 474-9620 ext. 401
[email protected]
Partners REIT
Jane Domenico
Chief Executive Officer
(416) 855-3313 ext. 501
www.partnersreit.com

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	As at and for the three months ended						As at and for the six months ended
	Sep 30, 2016			Sep 30, 2015			Sep 30, 2016			Sep 30, 2015
Revenues from income producing properties	$	14,046,194		$	14,334,061		$	42,387,006		$	42,714,770
Net income (loss)		3,337,970			383,625			9,061,905			(2,923,676	)
Net income (loss) per unit - basic		0.10			0.01			0.27			(0.11	)
NOI - all property ⁽¹⁾		8,506,735			8,482,133			25,168,146			25,055,819
FFO⁽¹⁾		3,178,325			2,444,179			8,603,574			6,982,684
FFO per unit⁽¹⁾		0.09			0.09			0.26			0.26
AFFO⁽¹⁾		2,885,855			2,033,857			7,762,290			6,480,438
AFFO per unit⁽¹⁾		0.09			0.08			0.23			0.24
Distributions⁽²⁾		2,126,305			1,676,161			6,358,186			5,014,547
Distributions per unit⁽²⁾		0.06			0.06			0.19			0.19
Distribution payout ratio - FFO/AFFO⁽³⁾		67% / 74	%		69% / 82	%		74% / 82	%		72% / 77	%
Cash distributions⁽⁴⁾		1,607,227			1,323,087			4,801,949			4,000,824
Cash distributions per unit - FFO/AFFO⁽⁴⁾		0.05			0.05			0.14			0.15
Cash distribution payout ratio⁽⁵⁾		51% / 56	%		54% / 65	%		56% / 62	%		57% / 62	%

As at					Sep 30, 2016			Dec 31, 2015			Dec 31, 2014
Total assets				$	523,862,295		$	520,970,422		$	542,551,040
Total debt⁽⁶⁾					362,199,261			364,550,117			381,967,023
Total equity					153,128,305			148,888,084			149,036,368
Weighted average units outstanding - basic					33,617,574			27,831,288			26,206,391
Debt-to-gross book value including debentures⁽⁶⁾					68.8	%		69.5	%		70.0	%
Debt-to-gross book value excluding debentures⁽⁶⁾					57.9	%		58.6	%		54.2	%
Interest coverage ratio⁽⁷⁾					1.65			1.59			1.80
Debt service coverage ratio⁽⁷⁾					1.09			1.07			1.22
Mortgages weighted average effective interest rate⁽⁸⁾					4.42	%		4.57	%		4.43	%
Portfolio occupancy⁽⁹⁾					95.1	%		94.6	%		94.3	%

(1)		NOI - all 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.
(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 15^th 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)		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)		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.

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Partners Announces Results for the Third Quarter of 2016

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