BARRIE, ONTARIO--(Marketwired - Aug. 11, 2015) - Partners Real Estate Investment Trust (the "REIT," or "Partners") (TSX:PAR.UN) today announced its results for the three month period ended June 30, 2015 (the "second quarter").
SECOND QUARTER 2015 HIGHLIGHTS
- Revenues from income producing properties were $13.9 million, a 9% decrease when compared to the second quarter of 2014.
- Same property NOI of $8.1 million, an 11% decrease when compared to the second quarter of 2014.
- FFO and AFFO per unit of $0.08 and $0.07, respectively, both a decrease from $0.09 per unit in the second quarter of 2014.
- AFFO payout ratio of 85%, a significant improvement from 145% during the second quarter of 2014 and 106% for the full year 2014.
- Occupancy of 94.6% as at June 30, 2015, an increase when compared to 94.3% as at December 31, 2014.
| |
|
As at and for the three months ended |
|
|
As at and for the six months ended |
|
| |
|
Jun 30, 2015 |
|
|
Jun 30, 2014 |
|
|
Jun 30, 2015 |
|
|
Jun 30, 2014 |
|
| Revenues from income producing properties |
$ |
13,856,589 |
|
$ |
15,209,785 |
|
$ |
28,380,709 |
|
$ |
30,377,681 |
|
| Net income (loss) |
|
789,020 |
|
|
(10,295,410 |
) |
|
(3,307,301 |
) |
|
(11,607,596 |
) |
| Net loss per unit - basic |
|
0.03 |
|
|
(0.39 |
) |
|
(0.13 |
) |
|
(0.44 |
) |
| NOI - same property (1) |
|
8,080,979 |
|
|
9,051,404 |
|
|
16,573,686 |
|
|
18,027,707 |
|
| NOI (1) |
|
8,080,979 |
|
|
9,604,592 |
|
|
16,573,686 |
|
|
19,164,089 |
|
| FFO(1) |
|
2,175,256 |
|
|
2,477,042 |
|
|
4,538,505 |
|
|
5,989,938 |
|
| FFO per unit(1) |
|
0.08 |
|
|
0.09 |
|
|
0.17 |
|
|
0.23 |
|
| AFFO(1) |
|
1,967,313 |
|
|
2,276,135 |
|
|
4,446,581 |
|
|
5,925,150 |
|
| AFFO per unit(1) |
|
0.07 |
|
|
0.09 |
|
|
0.17 |
|
|
0.23 |
|
| Distributions(2) |
|
1,672,302 |
|
|
3,293,422 |
|
|
3,338,386 |
|
|
6,556,635 |
|
| Distributions per unit(2) |
|
0.06 |
|
|
0.13 |
|
|
0.13 |
|
|
0.25 |
|
| Distribution payout ratio(3) |
|
77% / 85 |
% |
|
133% / 145 |
% |
|
74% / 75 |
% |
|
109% / 111 |
% |
| Cash distributions(4) |
|
1,334,969 |
|
|
2,964,241 |
|
|
2,677,737 |
|
|
5,946,707 |
|
| Cash distributions per unit(4) |
|
0.05 |
|
|
0.11 |
|
|
0.10 |
|
|
0.23 |
|
| Cash distribution payout ratio(5) |
|
61% / 68 |
% |
|
120% / 130 |
% |
|
59% / 60 |
% |
|
99% / 100 |
% |
| |
|
| As at |
|
|
|
|
Jun 30, 2015 |
|
|
Dec 31, 2014 |
|
|
Jun 30, 2014 |
|
| Total assets |
|
|
|
$ |
538,838,285 |
|
$ |
542,551,040 |
|
$ |
593,867,764 |
|
| Total debt(6) |
|
|
|
|
383,815,148 |
|
|
381,967,023 |
|
|
411,346,863 |
|
| Total equity |
|
|
|
|
143,038,045 |
|
|
149,036,368 |
|
|
167,980,413 |
|
| Weighted average units outstanding - basic |
|
|
|
|
26,444,711 |
|
|
26,206,391 |
|
|
26,103,478 |
|
| Debt-to-gross book value including debentures(6) |
|
|
|
|
70.8 |
% |
|
69.9 |
% |
|
67.8 |
% |
| Debt-to-gross book value excluding debentures(6) |
|
|
|
|
55.0 |
% |
|
54.2 |
% |
|
53.7 |
% |
| Interest coverage ratio(7) |
|
|
|
|
1.66 |
|
|
1.84 |
|
|
1.95 |
|
| Debt service coverage ratio(7) |
|
|
|
|
1.14 |
|
|
1.24 |
|
|
1.29 |
|
| Mortgages weighted average interest rate(8) |
|
|
|
|
4.35 |
% |
|
4.43 |
% |
|
4.82 |
% |
| Portfolio occupancy |
|
|
|
|
94.6 |
% |
|
94.3 |
% |
|
96.8 |
% |
| |
|
| (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. |
Jane Domenico, the REIT's CEO stated "While our payout ratio and overhead costs have stabilized, the declines in both our revenues and same property NOI serve to underscore the importance of focusing our efforts upon the improvement of our existing property portfolio. This improvement is the core driver of our internal strategy for 2015. We will focus on the properties we currently own, by placing and retaining the best possible tenants within those properties, and providing those tenants with the best possible service."
Further Information
A more detailed analysis of the REIT's 2015 financial results (including results for the three and six months ended June 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 August 12, 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): 866-225-2055 |
| Local: 416-340-2219 |
| |
| Instant Replay Details (Available until August 19, 2015) |
| Toll Free (North America): 800-408-3053 Passcode: 4417856 |
| 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.