Partners REIT Announces Second Quarter 2011 Results

Partners Real Estate Investment Trust (TSX VENTURE:PAR.UN) announced today
results for the three and six months ended June 30, 2011. 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. In
addition, effective January 1, 2011 the REIT adopted International Financial
Reporting Standards ("IFRS"). Please refer to the REIT's Management Discussion
and Analysis and the consolidated interim financial statements for the three and
six months ended June 30, 2011 for a comprehensive description of the changes
arising from the transition.


2011 HIGHLIGHTS:



--  Q2 NOI up 51% from prior year 
--  Q2 same property NOI up 3.3% over prior year 
--  Acquisitions make solid contribution to second quarter and year-to-date
    results 
--  Occupancies improve to 98.3% at June 30, 2011 from 95.1% last year 
--  Strong leasing activities continue with renewals and new leasing 
--  Acquisition of Centuria Urban Village in Kelowna B.C. in May extends
    geographic diversification 
--  Acquisitions of Place Desomoreaux in Longueuil, Quebec and Evergreen
    Mall in Sooke, B.C. subsequent to quarter-end to further strengthen
    portfolio and accelerate growth 
--  Focus on growing Unitholder value through accretive acquisitions and
    enhanced property performance continues 



Solid Operating Performance 

Occupancy levels as at June 30, 2011 rose to 98.3% from 97.6% at March 31, 2011
and 95.1% at June 30, 2010 due primarily to the acquisition of Centuria Urban
Village in May 2011, which was 100% occupied, the purchase of the Wellington
Southdale property in December 2010 and the six Shoppers Drug Mart properties in
March 2011, as well as successful initiatives to enhance occupancies at other
REIT properties. 


Net Operating Income ("NOI") increased to $3.7 million in the second quarter of
2011 from $2.4 million in the same quarter last year, and rose to $6.7 million
for the six months ended June 30, 2011 from $4.8 million for the same prior-year
period. The increases are due to the contribution from the above-mentioned
acquisitions, as well as growth in same property NOI, which rose 3.3% in the
second quarter of 2011 and 1.2% for the six months ended June 30, 2011 compared
to the same periods last year. 


Funds from Operations ("FFO") increased to $1.2 million ($0.04 per unit) in the
second quarter of 2011 from $0.8 million ($0.04 per unit) in the same quarter
last year, and rose to $2.3 million ($0.07 per unit) for the six months ended
June 30, 2011 compared to $1.7 million ($0.09 per unit) for the same prior-year
period. The increases in the gross amounts were due primarily to the
contribution from acquisitions completed over the prior twelve months. The per
unit amounts were impacted by the 67% increase in the weighted average number of
units outstanding for the three and six months ended June 30, 2011 due to equity
offerings completed in July 2010 and December 2010. Management believes per unit
amounts will improve over time as recent acquisitions make a full contribution
to FFO. 


"Our focus on expanding the size, quality and diversity of our property
portfolio continues to generate solid growth in cash flows, and as our proven
leasing and property management programs generate higher occupancies and
enhanced NOI, we believe our performance will only accelerate in the quarters
ahead," commented Adam Gant, Chief Executive Officer.


Strong Leasing Activity 

Management remains committed to actively pursuing new leases and lease renewals
with the objective of increasing occupancy and weighted average rental income
per square foot of gross leasable area. One of the REIT's goals is to generate
organic growth through redevelopment and lease renewal activities at its
existing centres. As of August 8, 2011, the REIT had renewed or signed new
leases representing 69,000 square feet as compared to 59,000 square feet of
anticipated lease expiries for 2011. Management expects the portfolio's
occupancy rate to improve over the remainder of 2011 and going forward from
property acquisitions and further new or renewed leases.


Solid Financial Position 

As at June 30, 2011 the REIT's ratio of debt to gross book value was 67.6%
compared to 59.8% at December 31, 2010 and 63.8% at June 30, 2010. Interest
coverage and debt service coverage ratios remained a conservative 1.7 times and
1.4 times respectively.


During the six months ended June 30, 2011 the REIT assumed first mortgages on
the six Shoppers Drug Mart properties acquired in March aggregating $17.2
million with a weighted average interest rate of 4.9% maturing between 2015 and
2012. 


Overall, the REIT's mortgage portfolio incurs a weighted average effective
interest rate of 5.24% as at June 30, 2010, down from 5.88% at the same time
last year. The weighted average term to maturity of 5 years compared to a
weighted average term to maturity for existing property leases of approximately
seven years. 


Recent Events 

On May 16, 2011, the REIT completed the acquisition of the majority of the
retail units in Centuria Urban Village, a food and drug store anchored mixed-use
retail and high-rise residential property located in Kelowna, British Columbia,
for an aggregate purchase price of $8.9 million. The purchase was funded by cash
raised from the March 2011 debenture offering and the REIT's credit facilities
as discussed below. 


On May 16, 2011, the REIT renewed its revolving operating and acquisition
facility for an amount of $5.8 million, with upward expansion, replacing the
prior facility. The new facility bears interest at a rate equal to the Bank's
prime rate plus 2.25% (previosuly 3.50%) per annum or the Banker's Acceptance
stamping fee plus 3.25% (previously 4.50%) per annum. On May 16, 2011, $2.25
million was drawn on this facility to partially fund the purchase of Centruria
Urban Village. As at July 19, 2011, the facility was completely paid down using
a portion of the mortgage proceeds from Mortgage Fund # 3 described below.


On July 14, 2011, the REIT acquired a second mortgage with Mortgage Fund Three
in the amount of $4 million. This mortgage is secured by the SDM properties
located in Manitoba. It is an interest only loan maturing April 30, 2013 and
bears interest at a floating rate equal to the prime rate plus 4%.


On July 18, 2011, the REIT announced that it will be acquiring Place Desormeaux,
a 250,000 square foot enclosed shopping centre in Longueuil, Quebec. The
property is anchored by a Super C grocery store, Pharmaprix, Zellers, Dollarama,
the SAAQ, National Bank and Bank of Montreal. The REIT paid approximately $32.2
million for the property and will incur approximately $3.6 million in acquistion
and capital improvement costs. The aggregate outlay of funds was satisfied by
the placement of a $23.0 million mortgage bearing interest at 4.25% with a 58
month term to maturity. The balance of the purchase price was funded from the
REIT's lines of credit. The closing of this transaction is expected to be on or
before August 8, 2011.


On August 3, 2011, the REIT announced that it will be acquiring Evergreen Mall,
a combined 88,180 square foot plaza located in Sooke, British Columbia. The
property is a free-standing building, comprised of office and retail space. The
aggregate purchase price of the property is $15.9 million and will be funded by
the assumption of a $10.5 million mortgage bearing interest at 175 basis points
over the Bank of Canada prime rate maturing in five years. The remainder of the
purchase will be financed from the REIT's lines of credit. 


"With these acquisitions we have significantly strengthened the portfolio and
extended our geographic presence in strong and growing urban markets across
Canada," Mr. Gant added. "Looking ahead, we will continue to evaluate growth
opportunities that add value to our asset base and accretively grow our Funds
from Operations."


Investor Conference Call 

A conference call to discuss the recent operating and financial results will be
hosted by Adam Gant, Chief Executive Officer and Patrick Miniutti, President and
Chief Operating Officer, on Thursday August 11, 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 392805#. A recording of the call will also be
archived on the REIT's website at www.partnersreit.com. 




Financial Highlights                                                        
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----------------------------------------------------------------------------
                       As at and for the three      As at and for the six   
                             months ended                months ended       
                          June 30,      June 30,      June 30,      June 30,
                             2011          2010          2011          2010 
----------------------------------------------------------------------------
                                                                            
NOI(1)               $  3,658,055  $  2,421,024  $  6,664,552  $  4,820,759 
NOI same property(1)    2,501,168     2,421,024     4,879,058     4,820,759 
FFO(1)                  1,196,381       790,450     2,304,213     1,662,125 
FFO per unit(1)              0.04          0.04          0.07          0.09 
Net income              1,011,425    (1,024,268)    2,079,363      (399,240)
Net income per unit          0.04         (0.05)         0.07         (0.02)
Distributions(2)        1,240,553       743,173     2,479,196     1,484,300 
Distributions per                                                           
 unit(2)                     0.04          0.04          0.08          0.08 
Cash                                                                        
 distributions(3)       1,185,279       679,494     2,363,355     1,358,409 
Cash distributions                                                          
 per unit(3)                 0.04          0.04          0.08          0.07 
Total assets          202,447,135   131,883,398   202,447,135   131,883,398 
Total debt(4)         145,279,730    93,048,556   145,279,730    93,048,556 
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Debt-to-gross book                                                          
 value(5)                    67.6%         63.8%         67.6%         63.8%
Interest coverage                                                           
 ratio(6)                    1.70          1.71          1.70          1.71 
Debt service                                                                
 coverage ratio(6)           1.31          1.40          1.31          1.40 
Weighted average                                                            
 interest rate(7)            5.24%         5.88%         5.24%         5.88%
Portfolio occupancy          98.3%         95.1%         98.3%         95.1%
----------------------------------------------------------------------------

1.  Net operating income or "NOI" and funds from operations or "FFO" are
    non-IFRS financial measures widely used in the real estate industry. See
    "Part III - Performance Measurement" of the MD&A for further details and
    advisories. 
2.  Represents distributions to unitholders on an accrual basis.
    Distributions are payable as at the end of the period in which they are
    declared by the Board of Trustees, and are paid on or around the 15th
    day of the following month. Distributions per unit exclude the 5% bonus
    units given to participants in the Distribution Reinvestment and
    Optional Unit Purchase Plan. 
3.  Represents distributions on a cash basis, and as such excludes the non-
    cash distributions of units issued under the Distribution Reinvestment
    and Optional Unit Purchase Plan. 
4.  Includes secured debt, unsecured debt and bank credit facility. 
5.  See calculation under "Debt-to-Gross Book Value" in "Part V - Results of
    Operations." In the MD&A 
6.  Calculated on a rolling four quarter basis.  
7.  Represents the weighted average effective interest rate for secured debt
    excluding the bank credit facility, which has a floating rate of
    interest. 



For the complete financial statements and Management's Discussion and Analysis,
please visit www.sedar.com or the REIT's web site at www.partnersreit.com.


About Partners REIT 

Partners REIT is a growth-oriented real estate investment trust, which currently
owns (directly or indirectly) 18 retail properties located in Ontario, Quebec,
Manitoba and British Columbia aggregating approximately 1.3 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.