Partner's Reit picks up steam
Partner's Reit reported it's fourth quarter and annual results recently.It's annual results were pretty stable over 2014 but the fourth quarter showed some improvement.Partner's is still recovering from the large proposed purchase of a shopping mall in Ontario that fell through(see Blogdaleupsome August 20,2015).The deal if completed would have taken 20% of Partners' shares to finalize the deal.However it was considered by management that the share price had fallen to a level that was too expensive to complete.As a result Partner's had to take substantial writeoffs in late 2014 and 2015.But the fourth quarter showed some improvement.
The fourth Quarter
Partner's showed pretty flat annual results over 2014.Both in revenues and funds from operations(F.F.O.) and adjusted funds from operations(A.F.F.O).There was little change in their annual FFO per share and AFFO per share over 2014.However the fourth quarter results were quite a bit better;for example,FFO per unit improved to .09 from $.04 in the same quarter in 2014.And AFFO per unit improved from $.05 to $.08.While the AFFO payout ratio improved from130% to 84% in 2015.All of their financial performance figures showed improvement over 2014.
At the same time revenues were only $14 million or 4% better than the same quarter in 2014.However they renewed 300,000 square feet of leases early instead of in 2016.So they got advanced renewals of 78% over the same period in 2014.This may have had a positive impact on their quarterly financial picture.In addition, they internalized their management for 2016;this should reduce overhead costs and increase operating efficiency.
The fourth Quarter
Partner's showed pretty flat annual results over 2014.Both in revenues and funds from operations(F.F.O.) and adjusted funds from operations(A.F.F.O).There was little change in their annual FFO per share and AFFO per share over 2014.However the fourth quarter results were quite a bit better;for example,FFO per unit improved to .09 from $.04 in the same quarter in 2014.And AFFO per unit improved from $.05 to $.08.While the AFFO payout ratio improved from130% to 84% in 2015.All of their financial performance figures showed improvement over 2014.
At the same time revenues were only $14 million or 4% better than the same quarter in 2014.However they renewed 300,000 square feet of leases early instead of in 2016.So they got advanced renewals of 78% over the same period in 2014.This may have had a positive impact on their quarterly financial picture.In addition, they internalized their management for 2016;this should reduce overhead costs and increase operating efficiency.
2015 was a year of recovery;assets actually dropped from 2014.But they are improving management and performance.Consequently their financial operational figures are better than in 2014.They have reduced debt somewhat also.This blog thinks that this stock will gradually improve all their performance figures in the rest of 2016. Look for Partner's reit to climb in 2016 to the $3.75 level and not quite make it to $4.00 without a significant acquisition. Partner's may soon see the light as in the picture above;steady financial pruning is effective but soon they will have to acquire a new property. use Blogdaleupsome for analysis of reits; see Blogdaleupsome for analysis of reits
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