VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 03/19/13 -- Partners Real Estate Investment Trust, (TSX: PAR.UN) announced today continued strong portfolio growth and solid operating performance for the three months and year ended December 31, 2012.
-- Purchase of twelve properties in 2012 for $175.1 million further expands, strengthens and diversifies portfolio-- Net income increased 284% to $27.8 million, up 54% per unit to $1.45-- FFO and AFFO up on contribution from acquisitions, strong operating performance-- Same property NOI up 4% on reduced operating costs-- FFO and AFFO per unit up 16.9% and 7.0% respectively despite the 151% increase in the weighted average number of units outstanding-- FFO and AFFO cash payout ratios improve significantly-- Completion of two bought deal equity offerings and convertible unsecured debenture issue raise $75.5 million in net proceeds to fund growth-- Leverage, debt service ratios improve despite substantial growth-- Total assets increased to $479.1 million-- Net asset value rises $113.7 million to $170.1 million
"We made real progress in expanding and strengthening our property portfolio in 2012, initiatives that generated significant and accretive growth in our key performance benchmarks," commented Adam Gant, Chief Executive Officer. "We were also very pleased that our successful property management programs resulted in very solid 4% same property NOI growth for the year."
"Looking ahead, we believe 2013 will be another strong year for Partners REIT as we continue to grow and strengthen our portfolio through strategic acquisitions, the properties purchased in 2012 make a full year's contribution to our results, and our proven asset and property management programs generate incremental increases in operating cash flows," Mr. Gant concluded.
During 2012 the REIT acquired twelve well-located retail and mixed-use properties in British Columbia, Alberta, Ontario and Quebec aggregating approximately 721,000 square feet of gross leasable area ("GLA") for a total purchase price of approximately $175.1 million. The acquisitions were funded by an advance of $7.5 million on the REIT's credit facility, the acquisition of new and the assumption of existing mortgages totaling $71.3 million bearing effective interest rates between 3.58% and 5.12%, $56.2 million in proceeds from the NorRock Transaction completed in the first quarter of 2012, and a portion of the proceeds from the REIT's two bought-deal equity offerings and convertible debenture issuance completed during the year.
With these acquisitions, the REIT's portfolio at December 31, 2012 consisted of 33 well-located retail and mixed-use properties in Ontario, Quebec, Manitoba, Alberta and British Columbia aggregating approximately 2.3 million square feet of GLA.
Strong Operating Performance
Net income increased to $17.1 million ($0.86 per unit) and $27.8 million ($01.45 per unit) for the three months and year ended December 31, 2012, respectively, compared to $3.1 million ($0.39 per unit) and $7.3 million ($0.94 per unit) for the same comparable periods last year. The increases were due to the contribution from acquisitions completed over the prior twelve months, as well as increases of $18.5 million in the fair value of prior years' acquisitions.