VICTORIA, BRITISH COLUMBIA--(Marketwire - Dec 20, 2012) - Partners Real Estate Investment Trust (the "REIT") (TSX:PAR.UN) announced today that it had completed the previously-announced acquisition of a new format retail centre in Timmins, Ontario, and will complete the previously announced acquisition of two well-located retail centres situated in close proximity on Nun''s Island in Montreal, Quebec, on December 21, 2012.
The Timmins West Power Centre is a 100% leased 43,774 square foot open-air retail centre shadow-anchored by Canadian Tire and Home Depot. The property includes three separate buildings individually occupied by Michaels, Mark''s Work Wearhouse, and Reitmans. The REIT paid approximately $9.95 million for the property, funded by the assumption of a first mortgage for $4.94 million with an effective interest rate of approximately 4%, with the balance in cash. The in-place annualized net operating income of approximately $800,000 provides an implied CAP rate of 8.09% and will produce annualized Funds from Operations of approximately $600,000.
The Montreal acquisitions consist of the Centre Village Shopping Centre, a 97% occupied 95,000 square foot retail property anchored by a Loblaws grocery store and a newly-expanded SAQ liquor store, as well as a Royal Bank and a new Starbucks coffee shop; and Elgar Place, an 80% occupied 10,000 square foot retail centre anchored by a Couche-Tard convenience store. The REIT paid approximately $21.9 million for the two properties, utilizing $6.9 million of the REIT''s credit facility. The two centres are estimated to generate current in-place annualized Net Operating Income of approximately $1.4 million and $1.2 million in annualized Funds from Operations.
"We are pleased to be adding these three high-quality retail properties to our growing portfolio," commented Patrick Miniutti, President. "2012 has been a very active year for the REIT as our acquisition initiatives significantly expanded and strengthened our property portfolio across the country. We look for 2013 to be another busy year as we continue to grow our asset base and cash flows for the benefit of our Unitholders."
About Partners REIT
Partners REIT is a growth-oriented real estate investment trust, which currently owns (with these acquisitions, directly or indirectly) 33 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario and Quebec, aggregating approximately 2.3 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighbourhood shopping centres located in both primary and secondary markets across Canada.
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.
Net operating income ("NOI") and funds from operations ("FFO") are non-IFRS measures often used by Canadian real estate investment trusts as measures of operating performance. NOI and FFO are presented herein because management believes these non-IFRS measures are relevant measures of the operating performance of the REIT.