Partners REIT closes $35.4M rights offering

News Release

PARTNERS REIT RAISES $35.4 MILLION THROUGH A FULLY SUBSCRIBED RIGHTS OFFERING AND ANNOUNCES FINAL REDEMPTION OF ITS SERIES II DEBENTURES AND PARTIAL REDEMPTION OF ITS SERIES III DEBENTURES

TORONTO, ON – July 19, 2017 – Partners Real Estate Investment Trust (the “REIT,” or “Partners”) (TSX: PAR.UN) is pleased to announce the successful conclusion of its Right Offering, originally announced on May 19, 2017. Additionally, the REIT is announcing that it has issued notice for the redemption of the remaining portion of its Series II 6.0% Convertible Unsecured Subordinated Debentures due September 30, 2017 (“Series II Debentures”) and a portion of its Series III 5.5% Convertible Unsecured Subordinated Debentures due March 31, 2018 (“Series III Debentures”).

The Rights Offering raised proceeds of approximately $35.4 million. Each Canadian unitholder was entitled to subscribe for one new unit for every three rights held upon payment of the subscription price of $3.10 per unit. The REIT will issue 11,418,466 units or 100% of the units available under the Rights Offering and will have 45,707,506 total units outstanding after such issuance.
A portion of the net proceeds from the Rights Offering sale will be used to redeem at par (i) the remaining 50% of outstanding principal amount of the Series II Debentures, and (ii) on a pro rata basis, approximately two-thirds of the Series III Debentures. Specifically, the REIT will repay an aggregate principal amount of $17.25 million, plus accrued and unpaid interest up to (but not including) the redemption date, to fully retire its Series II Debentures. In addition, the REIT will repay an aggregate principal amount of approximately $15.4 million, plus accrued and unpaid interest up to (but not including) the redemption date, to retire 67% of its Series III Debentures.

Upon completion of the anticipated redemptions, $7.6 million principal amount of the Series III Debentures will remain outstanding and, as previously disclosed, the REIT intends to pay this off prior to expiry through property refinancing and potential property sale(s).

“We are very pleased with, and appreciate, the support that all unitholders have shown us as the Rights Offering was 33% over-subscribed when taking into account the initial and additional subscriptions,” commented Jane Domenico, CEO of the REIT. “The 2017 goal of debt reduction is well on its way of becoming a reality. This improvement to the balance sheet is the final step of the work that began three years ago with the REIT. This Rights Offering and the repayment of the outstanding Debentures increases the REIT’s financial flexibility.”

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust focused on the expansion and management of a portfolio of 34 retail and mixed-use community and neighbourhood shopping centres.
These properties are located in both primary and secondary markets across British Columbia, Alberta, Manitoba, Ontario, and Quebec, and comprise a total of approximately 2.3 million square feet of leasable space.

For further information, please contact:

Partners REIT Investor Relations
1 (844) 474-9620 ext. 401
investor.relations@partnersreit.com

Partners REIT
Jane Domenico
Chief Executive Officer
(416) 855-3313 ext. 401