Partners REIT Announces Fourth Quarter and Year-End 2010 Results

Partners Real Estate Investment Trust (TSX VENTURE:PAR.UN) announced today
results for the three months and year ended December 31, 2010. Effective
November 3, 2010, the name of Charter Real Estate Investment Trust was changed
to Partners Real Estate Investment Trust. All references to "Partners Real
Estate Investment Trust", "Partners REIT", the "REIT" and similar references in
this press release refer to Charter Real Estate Investment Trust prior to the
name change.


FOURTH QUARTER HIGHLIGHTS:



--  Same property NOI up 4.2% over third quarter of 2010 
--  Occupancies improve to 95.7% 
--  Strong leasing activities continue during and subsequent to quarter 
--  Acquisition of Wellington Southdale Plaza for $21 million strengthens
    portfolio 
--  Successful $8 million equity issue completed on December 30, 2010 
--  New $25 million 8% unsecured subordinated debentures offering, closed
    March 8, 2011 
--  Six additional properties to be acquired in March 2011for $31 million to
    make solid contribution 
--  Focus on growing Unitholder value through accretive acquisitions and
    enhanced property performance continues 



Solid Operating Performance 

Occupancy levels as at December 31, 2010 were higher at 95.7% compared to 95.2%
at the end of the third quarter of 2010 and 95.1% at the end of last year. The
movement in leasing and renewals in the fourth quarter and year ended December
31, 2010 offset lease expiries during the period. Overall occupancy was also
positively impacted by the acquisition of Wellington Southdale Plaza on December
22, 2010 with occupancy of 97.2%. Management continues to focus on pursuing and
closing new leases and renewals. 


Net Operating Income ("NOI") increased to $2.7 million in the fourth quarter of
2010 from $2.5 million in the same prior-year period due primarily to a 31%
increase at the REIT's Chateauguay property. For the year ended December 31,
2010 NOI declined to $10.0 million from $10.7 million in 2009 due to decreases
at the REIT's Mega Centre, Cornwall Square and Place Val Est properties.


Funds from Operations ("FFO") in 2010 include non-recurring other transaction
costs consisting of non-capital expenses resulting from a strategic review
process that occurred in the second quarter of the year, as well as expenses
incurred on property acquisitions no longer pursued in the fourth quarter. FFO
excluding non-recurring other transaction costs were $0.9 million ($0.04 per
unit) in the fourth quarter of 2010, consistent with the fourth quarter of the
prior year. FFO excluding non-recurring other transaction costs in 2010 was $3.4
million ($0.16 per unit) compared to $4.2 million ($0.23 per unit) last year.
The decline is due primarily to a $170,000 decrease in revenue from the property
portfolio, a $528,000 increase in operating costs, and a $211,000 increase in
interest expense. The change in per unit amounts is due to the significant 40%
and 18% increase in the weighted average number of units outstanding in the
fourth quarter and year ended December 31, 2010 respectively. 


"We were pleased with our performance in the fourth quarter as we continued to
make solid progress with our leasing and renewal activities," commented Adam
Gant, Chief Executive Officer. "Looking ahead, we expect to see occupancies
continue to improve while our active acquisition program adds to our cash flows
and strengthens our portfolio." 


Strong Leasing Activity 

For the year ended December 31, 2010, the portfolio had lease expiries of 89,000
square feet, while new or renewed leases of 105,000 square feet were entered
into during the year. The average annual rental rate on the new leases is
slightly lower than the expired leases due primarily to new leases for
short-term tenants put in place until negotiations with longer-term national
tenants were completed. 


The average occupancy rate for the portfolio was 95.7% at December 31, 2010
compared with 95.1% at December 31, 2009 and 95.2% at September 30, 2010. The
improved occupancy over the previous quarter was mainly due to the acquisition
of Wellington Southdale Plaza as well as a new short-term tenant at Chateauguay.



Solid Financial Position 

As at December 31, 2010 the REIT's ratio of debt to gross book value improved to
59.8% from 62.7% at the prior year end. Interest coverage and debt service
coverage ratios remained a conservative 1.7 times and 1.4 times respectively.


In December 2010 the REIT assumed a first mortgage loan in the amount of $9.7
million on the acquisition of Wellington Southdale Plaza. The loan matures in
2016 and bears an interest at a rate of 6.0%. The amortization period of the
loan from the date of acquisition was 18.9 years. The REIT also acquired a
second mortgage on the property in the amount of $2.3 million maturing in 2016
bearing an interest rate of 4.57%. The amortization period of the loan from the
date of acquisition (December 22, 2010) was 25 years. In addition, the REIT
acquired a first mortgage loan in December 2010 in the amount of $25.5 million
secured by a mortgage on the Cornwall property. The loan matures in 2015, has a
25 year amortization period, and bears an interest rate of 4.90%. 


Overall, the REIT's mortgage portfolio incurs a weighted average interest rate
of 5.59% with a weighted average term to maturity of 4.9 years compared to a
weighted average term to maturity for existing property leases of seven years. 


Key Acquisition 

On December 22, 2010 the REIT completed the acquisition of the Wellington
Southdale Plaza located in London, Ontario, an 87,000 square foot open format,
single-storey neighbourhood retail plaza situated on 6.97 acres of land in the
heart of London's Wellington Road retail node. The centre consists of five
separate structures anchored by Empire Theatres and includes such strong
national tenants as Dollarama, Moxie's Grill, 2001 Audio Video, Harvey's, Jones
New York, Dairy Queen and Pizza Pizza. The centre has undergone extensive
renovations in 2000, 2004 and 2006, and generates annual NOI of approximately
$1.6 million. The purchase price of approximately $20.3 million was satisfied by
cash and the assumption of an existing mortgage of approximately $9.7 million,
maturing in July 2016, with an effective interest rate of 4.4%. 


Subsequent Events 

On February 25, 2011, the REIT filed a final short form prospectus to issue $25
million aggregate principal amount of 8.0% extendible convertible unsecured
subordinated debentures at a price of $1,000 per $1,000 principal amount of
debentures. The debentures mature on March 31, 2016 and bear interest at an
annual rate of 8.0% payable semi-annually, in arrears, on March 31 and September
30 in each year commencing on September 30, 2011. The offering was completed on
March 8, 2011.


The proceeds of the debentures will be used in part to purchase a portfolio five
properties in Manitoba and one in Quebec aggregating approximately 104,000
square feet of gross leaseable area. The properties are 100% occupied primarily
by Shoppers Drug Mart. The purchase price will be approximately $31.0 million to
be satisfied by the assumption of existing mortgages of approximately $17.0
million with the balance in cash. The purchase is expected to close on March 15,
2011. The properties currently generate NOI of approximately $2.3 million on an
annualized basis. 


"We are clearly executing on our commitment to grow, strengthen and further
diversify our property portfolio," Mr. Gant concluded. "We continue to seek out
and evaluate strategic acquisitions that meet our strict criteria and that will
be accretive to our FFO. We are confident our growth will continue, and that all
our value enhancing activities will generate strong returns for our Unitholders
over the long term."


Investor Conference Call 

A conference call to discuss the recent operating and financial results, as well
as acquisitions to be completed on or before March 15, 2011, will be hosted by
Adam Gant, Chief Executive Officer and Patrick Miniutti, President and Chief
Operating Officer, on Tuesday, March 15, 2011 at 4.00 pm ET. The telephone
numbers for the conference call are: Local: [phone] and North American
Toll Free: [phone].


The telephone numbers to listen to the call after it is completed (Instant
Replay) are local [phone] or North American toll free [phone]. The
Passcode for the Instant Replay is 541967#. The Instant Replay will be available
until midnight, March 22, 2011. The call will also be archived on the REIT's
website at www.partnersreit.com. 




Financial Highlights                                                        
                                                                            
---------------------------------------------------------------------------
---------------------------------------------------------------------------
($ and units in 000s, except per unit amounts)                 Year ended  
                                                                Dec. 31,   
---------------------------------------------------------------------------
                                 Q4 2010  Q3 2010  Q4 2009    2010    2009 
---------------------------------------------------------------------------
Revenues                           4,648    4,106    4,191  16,948  17,118 
Portfolio Occupancy                 95.7%    95.1%    95.1%   95.7%   95.1%
Net Operating Income (NOI)         2,672    2,512    2,544  10,043  10,740 
Funds from Operations (FFO)          752      813      801   2,328   4,186 
FFO per Unit (diluted)             $0.03    $0.03    $0.04   $0.11   $0.23 
FFO, adjusted (1)                    924      875      801   3,365   4,186 
FFO, adjusted (1) per Unit          
 (diluted)                         $0.04    $0.04    $0.04   $0.16   $0.23 
Net Income (Loss)                   (681)    (621)    (608) (3,473) (1,772)
Net Income (Loss) per Unit        
 (diluted)                        ($0.03)  ($0.03)  ($0.03) ($0.16) ($0.10)
Distributions Declared             1,100    1,030      740   3,614   2,942 
Distributions Declared per Unit     
 (diluted)                         $0.04   $0.044    $0.04   $0.16   $0.16 
Cash Distributions (2)               952      868      675   3,178   2,436 
Cash Distributions per Unit        
 (diluted) (2)                    $0.037   $0.037   $0.037   $0.14   $0.13 
Weighted avg units outstanding     
 (diluted)                        25,850   23,522   18,440  21,624  18,284 
                                                                           
Debt to Gross Book Value                                      59.8%   62.7%
Interest Coverage Ratio                                       1.70    1.88 
Debt Service Coverage Ratio                                   1.38    1.57 
Weighted Average Interest Rate (3)                            5.59%   5.87%
Weighted Average Term to Maturity                          4.9 yrs 5.3 yrs 
---------------------------------------------------------------------------
---------------------------------------------------------------------------

(1) Excludes non-recurring other transaction costs. 
(2) Represents distributions to unitholders net of the distribution
    reinvestment plan. 
(3) Represents the weighted average interest rate for secured debt excluding
    the credit facility with a floating rate of interest. 



For the complete fourth quarter 2010 financial statements and Management's
Discussion and Analysis, please visit www.sedar.com or www.partnersreit.com.


About Partners REIT 

Partners REIT is a growth-oriented real estate investment trust, which currently
owns (directly or indirectly) eleven retail properties located in Ontario and
Quebec, aggregating approximately 1.2 million square feet of leaseable space.
Partners REIT focuses on expanding and managing 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, including the timing of the offering, success of the offering,
listing of the units, use of proceeds of the Offering, access to capital,
regulatory approvals, intended acquisitions and general economic and industry
conditions. Although Partners REIT believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and, accordingly, readers are cautioned not to
place undue reliance on such statements due to the inherent uncertainty therein.