BARRIE, ONTARIO--(Marketwired - March 16, 2016) - Partners Real Estate Investment Trust (the "REIT," or "Partners") (TSX:PAR.UN) today announced its results for the three and twelve month periods ended December 31, 2015 (the "fourth quarter" and "full year 2015," respectively).
FOURTH QUARTER 2015 HIGHLIGHTS
- FFO and AFFO per unit of $0.09 and $0.08, respectively, increases of $0.05 and $0.03 per unit, respectively, when compared to the fourth quarter of 2014.
- AFFO payout ratio of 84%, an improvement from 130% during the fourth quarter of 2014.
- Net loss was $11.6 million compared to a net loss of $3.0 million in the fourth quarter of 2014. Excluding the impact of fourth quarter non-cash fair value losses of $14.3 million, the REIT's net income for the fourth quarter of 2015 was $2.7 million.
- Revenues from income producing properties were $14.4 million, a 4% decrease when compared to the fourth quarter of 2014.
- Same property NOI of $8.2 million, a 2% increase when compared to the fourth quarter of 2014Occupancy of 94.6% as at December 31, 2015, an increase when compared to 94.3% as at December 31, 2014.
- As at December 31, 2015, the REIT has renewed a total of 299,678 square feet of leases that were originally set to expire during 2016. This represents advance renewals of 78% of the GLA originally set to expire during 2016.
- Tenant rents receivable decreased by $1.9 million, or 59%, during the full year 2015. The decrease was as a result of increased collections of tenant receivables and resolution of previous tenant disputes.
- Subsequent to the conclusion of the fourth quarter, on January 25, 2016, Partners appointed Paul Harrs to the position of Chief Operating Officer.
- Subsequent to the conclusion of the fourth quarter, on March 16, 2016, Partners announced its intention to internalize the management of its 25 properties in Ontario, Manitoba, Alberta, and British Columbia over the course of the second quarter of 2016. This internalization is expected to benefit the REIT's annual Adjusted Funds from Operations by approximately $0.5 million. The REIT also announced its intention to consolidate the management of its 11 properties in Quebec under the oversight of a single external property manager.
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As at and for the
three months ended |
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As at and for the
year ended |
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Dec 31,
2015 |
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Dec 31,
2014 |
|
Dec 31,
2015 |
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Dec 31,
2014 |
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| Revenues from income producing properties |
$ 14,374,728 |
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$ 14,935,452 |
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$ 57,089,498 |
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$ 59,821,021 |
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| Net loss |
(11,632,441 |
) |
(3,011,691 |
) |
(14,556,117 |
) |
(27,053,600 |
) |
| Net loss per unit - basic |
(0.41 |
) |
(0.11 |
) |
(0.52 |
) |
(1.03 |
) |
| NOI - same property (1) |
8,234,229 |
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8,072,182 |
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33,290,048 |
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34,294,857 |
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| NOI - all property(1) |
8,234,229 |
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8,039,612 |
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33,290,048 |
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35,959,362 |
|
| FFO(1) |
2,830,049 |
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1,091,535 |
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9,812,733 |
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9,539,662 |
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| FFO per unit(1) |
0.09 |
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0.04 |
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0.35 |
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0.36 |
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| AFFO(1) |
2,492,019 |
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1,274,371 |
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8,972,457 |
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9,818,612 |
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| AFFO per unit(1) |
0.08 |
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0.05 |
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0.32 |
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0.37 |
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| Distributions(2) |
2,105,285 |
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1,658,029 |
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7,119,832 |
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10,413,443 |
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| Distributions per unit(2) |
0.06 |
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0.06 |
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0.25 |
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0.40 |
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| Distribution payout ratio - FFO/AFFO(3) |
74% / 84% |
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152% / 130% |
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73% / 79% |
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109% / 106% |
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| Cash distributions(4) |
1,624,306 |
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1,453,401 |
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5,625,130 |
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9,943,968 |
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| Cash distributions per unit - FFO/AFFO(4) |
0.05 |
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0.08 |
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0.20 |
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0.38 |
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| Cash distribution payout ratio(5) |
57% / 65% |
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133% / 114% |
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57% / 63% |
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104% / 101% |
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| As at |
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Dec 31,
2015 |
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Dec 31,
2014 |
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Dec 31,
2013 |
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| Total assets |
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$ 520,970,422 |
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$ 542,551,040 |
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$ 558,778,156 |
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| Total debt(6) |
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364,550,117 |
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381,967,023 |
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394,301,960 |
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| Total equity |
|
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148,888,084 |
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149,036,368 |
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153,507,424 |
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| Weighted average units outstanding - basic |
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27,831,288 |
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26,206,391 |
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26,165,753 |
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| Debt-to-gross book value including debentures(6)(9) |
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69.5% |
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70.0% |
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66.5% |
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| Debt-to-gross book value excluding debentures(6)(9) |
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58.6% |
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54.2% |
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52.3% |
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| Interest coverage ratio(7)(9) |
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1.59 |
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1.80 |
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2.08 |
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| Debt service coverage ratio(7)(9) |
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1.07 |
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1.22 |
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1.39 |
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| Mortgages weighted average effective interest rate(8) |
|
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4.57% |
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4.43% |
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4.99% |
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| Portfolio occupancy |
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94.6% |
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94.3% |
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96.0% |
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- 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. NOI - same property includes only those properties which have been owned by the REIT for a full current and prior year period.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Represents the weighted average effective interest rate for secured debt excluding debentures and credit facilities.
- Certain comparative figures have been reclassified to conform with the current year's presentation.
"We are satisfied with Partners' fourth quarter results, which demonstrate how our property portfolio is well-equipped to withstand the challenges currently facing the Canadian retail real estate environment," stated Jane Domenico, the REIT's CEO. "We remain focused on the improvement of our existing property portfolio, and the results of this focus are visible in the growth of our same property NOI. During 2016, we will seek to accelerate our internal improvement by enhancing our property management, internalizing this function at the majority of our properties. This strategy will be supervised by Paul Harrs, our recently appointed Chief Operating Officer. As a result, I am confident that this year will witness growth in both our NOI and unitholder value."
Further Information
A more detailed analysis of the REIT's 2015 financial results (including results for the three and twelve months ended December 31, 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 March 17, 2016, 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 March 24, 2016)
Toll Free (North America): 800-408-3053
Passcode: 3919300
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.