Partner's REIT got a new partner
Partner's REIT has been a very successful Reit in a short period of time.For example, in 2013 Partners added $116 million in assets;but it also added $104 million in debt.As of December 31,2012 it had Affo per share of $.61 and owned 39 commercial properties.Revenues increased in Q4 2013 by 30% over Q4 2012 .Affo ( a proxy for earnings per share) dropped from $.15 per share to $.12 per share in the fourth quarter but looks like it will be about $.50 to $.55 for the year again.In addition, Partners properties are almost all leased;it has an occupancy rate of 96.5%.
The Ontario Properties Acquisition
In April 2014 Partners completed the purchase of three Ontario properties worth about $90 million-the biggest purchase yet.Three properties worth $30 million each.This increases their gross leasable area by 22% with one purchase.In order to pay for this Partners had to release new equity;they gave 1.2 million new units to the new partners and 4.8 million class B units which can be converted later to ordinary shares.The vendor is a company called Hollyrood Holdings and it will when the deal is finished own about 18% of Partners shares and become a new minority partner.Partners says this deal will add $.0142 per share upon closure and will help to increase AFFO(adjusted funds from operations) for 2014.It is their biggest transaction to date and will take time to digest but will become a cornerstone for Partners' Real Estate trust.This may lead Partner's to make some dispositions in 2014 and get rid of some more marginal properties but the Ontario properties will stay.Partner's adds that even with this big acquisition their payout ratio will not go above 100%.They are pretty sure that their dividend is safe. use blogdaleupsome for advice on stocks
The Ontario Properties Acquisition
In April 2014 Partners completed the purchase of three Ontario properties worth about $90 million-the biggest purchase yet.Three properties worth $30 million each.This increases their gross leasable area by 22% with one purchase.In order to pay for this Partners had to release new equity;they gave 1.2 million new units to the new partners and 4.8 million class B units which can be converted later to ordinary shares.The vendor is a company called Hollyrood Holdings and it will when the deal is finished own about 18% of Partners shares and become a new minority partner.Partners says this deal will add $.0142 per share upon closure and will help to increase AFFO(adjusted funds from operations) for 2014.It is their biggest transaction to date and will take time to digest but will become a cornerstone for Partners' Real Estate trust.This may lead Partner's to make some dispositions in 2014 and get rid of some more marginal properties but the Ontario properties will stay.Partner's adds that even with this big acquisition their payout ratio will not go above 100%.They are pretty sure that their dividend is safe. use blogdaleupsome for advice on stocks
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