Partners Real Estate Investment Trust Engages National Bank as Financial Advisor and Closes $15 Million Financing Commitment

BARRIE, ONTARIO--(Marketwired - May 13, 2014) - Partners Real Estate Investment Trust (TSX:PAR.UN) ("Partners REIT" or the "REIT") today announced that it has engaged National Bank Financial to serve as an independent financial advisor to the Board of Trustees in connection with a process announced on May 6, 2014 to review strategic alternatives for maximizing unitholder value. There are many potential outcomes of the strategic review process and there can be no guarantee that a transaction will take place.

The REIT also announced that it has closed the financing commitment announced on April 30, 2014 from Firm Capital Corporation and that the REIT is in discussions with other lenders, including a Canadian chartered bank, regarding alternative funding arrangements that may be available later in 2014 at potentially more attractive interest rates.

The terms of the Firm Capital financing are as follows:

• $15 million of available financing as a second mortgage secured against certain properties of the REIT, located in Manitoba and Quebec
• Interest payable at the greater of 10% per annum, or prime rate of interest plus 6% per annum
• Repayable without penalty on short notice

The REIT intends to use the proceeds of the loan for general corporate purposes. Firm Capital is licensed by the Financial Services Commission of Ontario, completed $665 million in new mortgage financings in 2013, and is independent of the REIT, its Board and management team.

Annual General Meeting

The REIT has requested that the Toronto Stock Exchange consider a request for an extension of its annual general meeting date to July 31, 2014. The REIT will provide a further update once the TSX has had an opportunity to consider the request.

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) 42 retail properties, well-located in British Columbia, Alberta, Manitoba, Ontario, and Quebec, aggregating approximately 3.2 million square feet of leasable space. Partners REIT focuses on expanding and managing a portfolio of retail and mixed-use community and neighborhood shopping centres located in both primary and secondary markets across Canada.

Disclaimer

Certain statements included in this press release constitute forward-looking statements. 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. 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.