TORONTO, Oct. 24, 2018 (GLOBE NEWSWIRE) — Partners Real Estate Investment Trust (“Partners REIT” or the “REIT”) (TSX:PAR.UN) is pleased to announce that it has closed the sale of its 9 properties in Western Canada as announced on September 19, 2018. The net cash proceeds from this sale, and from the recent sale of Mariner Square, after payment of related mortgages and transaction expenses, is approximately $50 million. BMO Capital Markets Real Estate Inc. acted as advisor to Partners REIT on the transaction.
The Board of Trustees of the REIT has declared a special cash distribution to unitholders of approximately $40 million, being $0.87 per outstanding unit. The record date for unitholders entitled to receive this special distribution will be November 2, 2018, and the payment date will be November 9, 2018.
As previously announced on October 19, 2018, the Board has also declared the usual monthly cash distribution in the amount of $0.02083 per unit for October. The record date for unitholders entitled to receive this distribution will be October 31, 2018, and the payment date will be November 15, 2018.
In light of the sale of the Western Canada assets and the special distribution announced today, the Board expects that, commencing in November 2018, the annual cash distribution per unit paid by the REIT will be $0.18 ($0.015 monthly per unit), rather than the historical annual cash distribution of $0.25 per unit ($0.02083 monthly per unit) previously paid by the REIT. The first distribution in this amount is expected to be declared in November 2018, and paid in December 2018. The Board monitors the cash flow requirements of the REIT on an ongoing basis and determines each month the amount, if any, of the REIT’s monthly cash distribution, and there can be no assurances as to any future distributions.
As announced on September 19, 2018, the REIT has retained BMO Capital Markets Real Estate Inc. to canvass the market for a possible sale of some or all of the REIT’s 11 retail properties in Quebec. While no decision has been made as to whether or not to proceed with a sale of any properties in Quebec, which will depend upon the interest expressed by third parties, the Board believes that it is in the best interests of the REIT for the Board to have maximum flexibility in assessing the REIT’s alternatives both with respect to the Quebec properties and the REIT’s other remaining properties as well as regarding the future of the REIT. Accordingly, the REIT is today announcing that it will call and hold on December 10, 2018, a special meeting of unitholders of record as of October 30, 2018, to ask unitholders to vote on an amendment to the REIT’s Declaration of Trust (the constitution of the REIT) to provide the Board with the authority, should the Board determine to do so, to sell all or substantially all of the assets of the REIT, distribute the net proceeds to the unitholders, and wind-up, liquidate, dissolve or terminate the REIT, in each case without any requirement for further unitholder approval. While no decision has been made by the Board to proceed with any such action, the approval of this amendment will facilitate the Board making timely decisions in regard to these matters including with regards to the REIT’s Quebec assets. The three largest unitholders of the REIT, who collectively beneficially own or exercise control or direction over an aggregate of 25,979,436 units (approximately 56.4% of the REIT’s outstanding units), have agreed to vote in favour of this amendment at the special meeting. The Board expects to send to unitholders shortly the materials for this meeting.
The REIT also announces that, effective for any distribution record date after October 31, 2018, it has terminated the REIT’s dividend reinvestment plan (the “DRIP”), pursuant to which unitholders had been able to elect to receive cash distributions in the form of additional REIT units in lieu of the cash payment. Units will be issued pursuant to the DRIP on the payment date for the October distribution to unitholders of record on October 31, 2018. However, no new units will be issued pursuant the DRIP by reason of the special cash distribution to unitholders of record on November 2, 2018.
About Partners REIT
Partners REIT is a real estate investment trust that manages 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. Although Partners REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guaranteeing of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Partners REIT Investor Relations
1 (844) 474-9620 ext. 401
Chief Executive Officer
(416) 855-3313 ext. 401