Market Newsdesk

TORONTO, Nov. 11, 2020 (GLOBE NEWSWIRE) — Petrolympic Ltd. (TSX.V:PCQ) (OTC:PCQRF) (the “Company”) is pleased to announce that the Company has entered into an agreement to acquire a gold property located in the south of the Sudbury mining camp, Province of Ontario (the “Property”). The Property consists of 24 map designated mining claims (cells) covering 600 Ha property in Southwest of Espanola, Ontario, District of Sudbury (NTS 41/04F) approximately 70 km Southwest of the town of Sudbury, a major gold mining center in Central Ontario.

On execution of the purchase agreement the Company paid the vendors an aggregate cash payment of $25,000.00 as part of the purchase price. The remainder of the purchase price will be satisfied through the issuance of an aggregate of 500,000 common shares of the Company. Upon the completion of the transaction the Company will have acquired 100% interest in the mineral rights of the Property. The vendors will also receive a 2.0% NSR royalty from all eventual commercial mineral production on the project.

The issuance of the common shares under the transaction shall be subject to applicable securities laws, any securities regulatory authority having jurisdiction, and the policies of the TSX Venture Exchange, and the common shares shall be subject to a four-month hold period in accordance with applicable securities laws and the policies of the TSX Venture Exchange. Completion of the acquisition remains subject to approval by the TSX Venture Exchange.

The Evangeline property is situated in McKinnon Township in the Sudbury Mining District. The claims are located approximately 20 km southwest of Espanola on the north shore of Evangeline Lake. The area is reached by a 30 km gravel road which branches south from Highway 17 West at Webwood.

The property lies within a belt of Huronian metasediments which strikes east-west for a distance of 53 kilometers. Numerous gold occurrences are found within this belt adjacent to the Charlton Lake Fault in association with diabase dykes. Several old gold and silver producing mines exist within this metasedimentary belt. These mines were active during the late 1930’s and early 1940’s. These include the McMillan Gold Mine, Majestic Mine, Bousquet Mine, Hawry Creek Mine, Upsala Mine and Bob Tough Mines which one is the closest to the property.

Tough Gold Mines Limited carried out surface exploration and diamond drilling on the property. Based on these results, a three-compartment shaft was sunk to the 150-foot level, where 118 feet of cross cutting was completed. Gold values up to 6.6 g/t Au over 1.36m were recorded for holes drilled by the company during the late 1930’s.

The Evangeline Lake property is similar to the before-mentioned gold properties in the mineralogical and structural nature of the gold mineralization. The gold bearing quartz-carbonate veins in the area are apparently associated within and at the contacts of folded quartzite and pelite units in close proximity to diabase sills and dikes. Gold occurs in its native state and intimately associated with arsenopyrite, pyrite, pyrrhotite and chalcopyrite. The gold bearing vein systems are associated with fault/shear zone environments and at pelite/quartzite contacts.

Grab samples taken from the rock dump and old pits on the Bob Tough Mine have yielded gold value from trace to 25.9 grams per ton (Report 41I04NW0046).

In June of 1984, J. K. Filo (1984) mapped the area. In his report Filo reports assay values from dump material samples near an old shaft. Gold values range between 0.0125 and 112.8 g/t of gold in this samples (Report 41I04NW0045).

In 1988 a geophysical survey was done on the property. The contoured Magnetometer/VLF-KM surveys outlined numerous EW trending conductors and magnetic anomalies.

The Property is located within a favorable geological and structural environment already hosting several gold-bearing zones. An exploration program including geological and geophysical surveys is necessary to generate targets for more detailed exploration works.

Qualified Person

The technical contents of this press release were approved by George Yordanov, professional geologist, an Independent Qualified Person as defined by National Instrument 43-101.

Cautionary notes related to news release

This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this press release, including any information regarding the proposed acquisition, constitutes “forward-looking statements.” All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: economic and global market impacts of the COVID-19 pandemic, fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.

For further information please contact:

Mendel Ekstein
President

82 Richmond St East

Toronto, ON M5C 1P1

Tel. 845-656-0184 Fax 845-231-6665

GRIMSBY, Ontario, Nov. 11, 2020 (GLOBE NEWSWIRE) — Andrew Peller Limited ADW.A/ADW.B (“APL” or the “Company”) announced solid performance for the three and six months ended September 30, 2020.

SIX MONTHS
FISCAL 202
1
HIGHLIGHTS:                                                                                

• Sales up by 1.0% in Q2 and 2.1% year to date on strong performance in majority of trade channels;
• Launch of new e-commerce portal contributes to sales growth;
• Gross margin impacted by change in sales mix due to COVID-19 pandemic;
• Selling and administration expenses decrease due to reduced spending as a result of pandemic;
• EBITA increases by 4.7% in Q2 to $22.4 million from $18.9 million last year and 4.2% year to date to $45.0 million from $35.7 million last year; and
• Net earnings rise to $23.9 million from $16.4 million last year.

“We are very pleased with our operating performance through the first six months of fiscal 2021. We have adjusted well to the changing business environment resulting from the COVID-19 pandemic, and I am proud of the contribution our people have made during these challenging times,” commented John Peller, President and Chief Executive Officer. “Looking ahead, we are focused on maintaining this momentum, however we remain cautious as to how the ongoing pandemic will impact our results over the remainder of the fiscal year.”

S
olid
Operating
Performance

Sales for the three and six months ended September 30, 2020 increased compared to the same prior year periods. Due to the COVID-19 pandemic, consumer purchasing patterns changed resulting in an increase in sales to provincial liquor stores, other retail channels and the Company’s new e-commerce platform, www.thewineshops.com. Partially offsetting the increase was the reduction in hospitality and licensee sales due to COVID-19 and lower duty-free export sales due to restricted travel. Sales for the three and six months ended September 30, 2020 were $104.4 million and $202.9 million, respectively, up from $103.4 million and $198.6 million in the same prior year periods.

Gross margin as a percentage of sales was 42.3% and 42.8% for the three and six months ended September 30, 2020, respectively, compared to 44.8% and 44.7%, in the prior year due to the impact of COVID-19. Gross margin in fiscal 2021 has declined as a result of higher imported wine costs, an increase in consumption of lower margin products, and revenue decline in high margin trade channels. The Company expects margin to improve in post COVID-19 periods.

Selling and administrative expenses were lower in the first three and six months of fiscal 2021, due to a deliberate effort to conserve cash resources by temporarily reducing advertising and promotional spending, and staffing levels due to restrictions related to the COVID-19 pandemic. As a percentage of sales, selling and administrative expenses were reduced to 20.8% and 20.6% for the first three and six months of fiscal 2021, respectively, compared to 28.0% and 26.7% in the same prior year periods.

Earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes (“EBITA”) were $45.0 million for the six months ended September 30, 2020, up from $35.7 million in the prior year. Second quarter fiscal 2021 EBITA was $22.4 million, up from $17.3 million last year. The increase in EBITA this year is due primarily to the lower selling and administrative costs.

Net earnings for the first three and six months of fiscal 2021 increased to $12.7 million ($0.30 per Class A Share) and $23.9 million ($0.56 per Class A Share), respectively, from $7.6 million ($0.18 per Class A Share) and $16.4 million ($0.38 per Class A Share), respectively, in the prior year. Adjusted earnings, defined as net earnings not including net unrealized gains and losses on derivative financial instruments, other (income) expenses, nonrecurring, non-operating (gains) and losses, and the related income tax effect were $12.4 million and $25.0 million for the three and six months ended September 30, 2020, respectively, compared to $8.7 million and $18.6 million, respectively, in the prior year.

Interest expense decreased in the first three and six months of fiscal 2021 compared to the prior year due to lower interest rates and lower debt levels.

COVID-19 Pandemic

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic.  The Company has demonstrated its ability to respond to new developments and continues to closely assess the risks and uncertainties associated with the pandemic, including industry, market and internal factors, as well as regulations enacted by governments across Canada. Businesses selling beer, wine and other alcohol products were deemed essential services, as well as those businesses that supply them. As a result, all of the Company’s production facilities, retail locations and retail estate locations remained open throughout the first six months of fiscal 2021 with new protocols related to cleanliness and physical distancing deployed.  The Company’s export and estate property hospitality sales have been affected by the pandemic. However, consumption of alcohol beverages remains stable in Canada with consumers purchasing products through alternative trade channels available during the pandemic, benefiting the Company’s sales through provincial liquor stores and its other retail channels. The Company has also enhanced its capabilities to support increased demand for direct-to-home purchases through a new on-line platform, www.thewineshops.com. In response to COVID-19, the Company has implemented enhanced protocols to address potential impacts to its operations, employees and customers and will take further measures, if required. These practices have been permanently established to enhance the ability for the Company to respond in the future.

Maintaining a
Strong
Financial Position

Overall bank debt decreased to $143.8 million at September 30, 2020 from $165.2 million at March 31, 2020 due to higher cash flows from operations in fiscal 2021 and regularly scheduled debt repayments. With the decrease in debt, the Company’s debt to equity ratio was 0.54:1 at September 30, 2020 compared to 0.67:1 at March 31, 2020. At September 30, 2020, the Company had unutilized debt capacity in the amount of $41.0 million on its operating facility and $117.2 million on its investment facility.   For the six months ended September 30, 2020, the Company generated cash from operating activities, after changes in non-cash working capital items, of $41.2 million compared to $21.2 million in the prior year.

Working capital at September 30, 2020 was $91.3 million compared to $83.7 million at March 31, 2020. Shareholders’ equity at September 30, 2020 was $264.3 million or $6.05 per common share compared to $245.5 million or $5.63 per common share at March 31, 2020. The increase in shareholders’ equity was due to the increased net earnings in the period partially offset by the payment of dividends.

Common Share Dividends

On June 10, 2020, the Company’s Board of Directors approved a common share dividend, consistent with prior year to preserve capital as a result of COVID-19. The annual dividend on Class A Shares of $0.215 per share and the dividend on Class B Shares of $0.187 will be paid quarterly to shareholders. The third quarter dividend is payable to shareholders of record on December 31, 2020 and will be paid on January 8, 2021. The Company has consistently paid common share dividends since 1979. APL currently designates all dividends paid as “eligible dividends” for purposes of the Income Tax Act (Canada) unless indicated otherwise.

Financial Highlights

(Financial Statements and the Company’s Management Discussion and Analysis for the period can be obtained on the Company’s web site at www.andrewpeller.com)

For the three and six months ended September 30 ,	Three Months		Six Months
(in $000 )	2020	2019	2020	2019
Sales	10 4,410	103,375	202,850	198,592
Gross margin	4 4,165	46,311	8 6,892	88,732
Gross margin (% of sales)	4 2.3 %	44.8%	4 2.8 %	44.7%
Selling and administrative expenses	2 1,727	28,976	41,884	53,047
EBITA	22,438	17,335	45,008	35,685
Interest	1,813	2,222	3,852	4,450
Net unrealized loss (gains) on derivative financial instruments	( 540 )	(497)	191	68
Other expenses	195	1,106	881	1,190
Adjusted net earnings	12,419	8,716	24,971	18,563
Net earnings	12,674	7,643	23,876	16,435
Earnings per share – Class A	$ 0. 30	$0.18	$ 0. 5 6	$0.38
Earnings per share – Class B	$ 0. 26	$0.15	$ 0. 4 9	$0.33
Dividend per share – Class A (annual)			$ 0.215	$0.215
Dividend per share – Class B (annual)			$ 0.187	$0.187
Cash provided by operations
(after changes in non-cash working capital items)			41,187	21,227
Shareholders’ equity per share			$ 6.05	$5.63

Investor Conference Call
An investor conference call hosted by John Peller, Chief Executive Officer, and Steve Attridge, CFO, will be held Thursday, November 12, 2020 at 9:30 a.m. ET. The telephone numbers for the conference call are Local/International: (416) 406-0743, North American Toll Free: (800) 898-3989. Please enter the access code 4858445# when requested. The telephone numbers to listen to the call after it is completed (Instant Replay) are local/international (905) 694-9451 or North American toll free (800) 408-3053. The Passcode for the Instant Replay is 1859795#. The Instant Replay will be available until midnight, December 12, 2020. The call will also be archived on the Company’s website at www.andrewpeller.com.

About Andrew Peller Limited

Andrew Peller Limited is one of Canada’s leading producers and marketers of quality wines and craft beverage alcohol products. The Company’s award-winning premium and ultra-premium VQA brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy, and Conviction. Complementing these premium brands are a number of popularly priced varietal offerings, wine based liqueurs, craft ciders, beer and craft spirits. The Company owns and operates 101 well-positioned independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. The Company also operates Andrew Peller Import Agency and The Small Winemaker’s Collection Inc., importers and marketing agents of premium wines from around the world. With a focus on serving the needs of all wine consumers, the Company produces and markets premium personal winemaking products through its wholly-owned subsidiary, Global Vintners Inc. (“GVI”), the recognized leader in personal winemaking products. More information about the Company can be found at www.andrewpeller.com.

The Company utilizes EBITA (defined as earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes) to measure its financial performance. EBITA is not a recognized measure under IFRS. Management believes that EBITA is a useful supplemental measure to net earnings, as it provides readers with an indication of earnings available for investment prior to debt service, capital expenditures, and income taxes, as well as provide an indication of recurring earnings compared to prior periods. Readers are cautioned that EBITA should not be construed as an alternative to net earnings determined in accordance with IFRS as indicators of the Company’s performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The Company also utilizes gross margin (defined as sales less cost of goods sold, excluding amortization) and adjusted earnings. The Company’s method of calculating EBITA, gross margin, and adjusted earnings may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies.

Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B).

FORWARD-LOOKING INFORMATION

Certain statements in this
news release
may contain “forward-looking statements” within the meaning of applicable securities laws including the “safe
harbour
provisions” of the Securities Act (Ontario) with respect to APL and its subsidiaries. Such statements include, but are not limited to, statements about the growth of the business in light of the Company’s acquisitions; its launch of new premium wines and craft beverage alcohol products; sales trends in foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are subject to certain risks, assumptions, and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. The words “believe”, “plan”, “intend”, “estimate”, “expect”, or “anticipate”, and similar expressions, as well as future or conditional verbs such as “will”, “should”, “would”, “could”, and similar verbs often identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. With respect to forward-looking statements contained in this
news release
, the Company has made assumptions and applied certain factors regarding, among other things: future grape, glass bottle, and wine and spirit prices; its ability to obtain grapes, imported wine, glass, and other raw materials; fluctuations in foreign currency exchange rates; its ability to market products successfully to its anticipated customers; the trade balance within the domestic Canadian and international wine markets; market trends; reliance on key personnel; protection of its intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing, advertising, and labelling of its products; the regulation of liquor distribution and retailing in Ontario; the application of federal and provincial environmental laws; and the impact of increasing competition.

These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the “Risk
s and Uncertainties
” section and elsewhere in the Company’s MD&A and other risks detailed from time to time in the publicly filed disclosure documents of Andrew Peller Limited which are available at www.sedar.com. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties
,
and assumptions which could cause actual results to differ materially from those conclusions, forecasts
,
or projections anticipated in these forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The Company’s forward-looking statements are made only as of the date of this news release, and except as required by applicable law, the
Company undertakes
no obligation to update or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise.

For more information, please contact:        
Mr. Steve Attridge, CFO and Executive Vice-President, IT
(905) 643-4131

 

Focused on Growth

• Transit City Condominium Closings Contribute to 13.1% Increase in FFO (12.3% Growth in FFO per Unit) with Continued Growth of FFO Expected in Q4
• Mixed-use Intensification Program Increasing with Construction on Transit City Condominiums, High-rise Residential Rentals at SmartVMC and Laval, Retirement Homes, Self-Storage Projects and Recently Received Approval to Permit an Additional 12.0 Million Sq. Ft. of Mixed-use Space in Cambridge
• Walmart-anchored Open-format Shopping Centres Providing Recurring Income with Committed Occupancy Rate of 97.4%
• Tenant Rent Collection Levels Continue to Improve

TORONTO, Nov. 11, 2020 (GLOBE NEWSWIRE) — SmartCentres Real Estate Investment Trust (“SmartCentres” or the “Trust”) (TSX: SRU.UN) is pleased to report its financial and operating results for the third quarter ended September 30, 2020.

“We describe SmartCentres as a real estate company enjoying substantial, secure and reliable recurring income while on a path  forward to higher and better uses. Reliable income starting with our largest tenant, Walmart; higher and better uses from our onsite intensification and development program, which is well underway, on our excellent locations. Our third quarter is the strongest signal yet of things to come with the initial closings of 766 units in the first two phases of our Transit City condominiums, with the balance of 344 units expected to close before year end.  After the repayment of our share of project level debt of $45 million, these closings have contributed approximately $30 million in FFO, or in excess of $0.17 in FFO per Unit to our Q3 results.  We anticipate that these new development opportunities will continue to generate growth in FFO and NAV into the future,” said Mitchell Goldhar, Executive Chairman of SmartCentres.

“COVID-19 has not altered our long-term strategy as we remain intently focused on our initiatives to grow the business through mixed-use development. SmartVMC is just one of the many mixed-use communities that we are in the process of developing.  We have more than 256 projects in our mixed-use development pipeline representing approximately 28 million square feet and more than 196 of these projects are expected to provide recurring income. During this pandemic period, we have accelerated our pursuit of many of our near-term planning and development initiatives such that over the next several years, we expect to grow SmartCentres’ vision in well-established communities including mid-town and downtown Toronto, Oakville, Mississauga, Vaughan, Scarborough, Pickering, Richmond Hill, Markham, Burlington, Barrie, Brampton, Oshawa, London, Cambridge, Montreal, Laval, Pointe-Claire, and Ottawa. Our intent is to replicate the achievements and success of SmartVMC in these various Canadian communities, resulting in continued earnings and NAV growth,” said Peter Forde, President and CEO of SmartCentres.

The Trust’s core business of owning and managing approximately 33.8 million square feet of predominately Walmart-anchored shopping centres was built for ‘heavy weather’. During this pandemic period, Walmart Canada’s sales levels have increased considerably and Walmart continues to demonstrate its industry-leading ability to drive high traffic levels to the Trust’s shopping centres across Canada. This has created industry-leading occupancy levels. When including committed deals, the Trust’s overall occupancy level was 97.4% in Q3, reflecting the resilience and strength of the Trust’s core portfolio.

The Trust has continued to work with each of its tenants to establish, where appropriate, mutually satisfactory arrangements that will allow for some relief of their rental obligations that are expected to permit these organizations to re-establish their operations as Canadians begin to ‘get back to normalcy’. These collaborative efforts have resulted in the following improving collection experience (up to October 23, 2020) over the last six months:

Month(1)	% of Gross Monthly Billings Collected Before Application of CECRA Related Arrangements			% of Gross Monthly Billings Collected After Application of CECRA Related Arrangements
April	75.7	%		82.2	%
May	73.6	%		80.0	%
June	78.2	%		84.7	%
July	86.7	%		93.1	%
August	89.0	%		95.6	%
September(2)	89.5	%		96.1	%

(1)	As of October 23, 2020, the Trust collected 90.8% of gross monthly billings for October.
(2)	The CECRA program ended on September 30, 2020.

The table below provides additional details on the continued improvement in collections associated with the Trust’s tenant billings, amounts received (up to October 23, 2020), expected recovery and related provisions for the three months ended September 30, 2020 and June 30, 2020.

(in thousands of dollars)	Three Months Ended September 30, 2020	As a %	Three Months Ended June 30, 2020	As a %	Total for the Six Months Ended September 30, 2020	As a %
Total tenant billings	199,587	100.0	202,072	100.0	401,659	100.0
Less: Amounts received directly from tenants to date	176,434	88.4	153,241	75.8	329,675	82.1
Balance outstanding	23,153	11.6	48,831	24.2	71,984	17.9
Less:
Recovery from governments for CECRA	7,706	3.9	7,706	3.8	15,412	3.8
Amounts forgiven by the Trust for CECRA	3,853	1.9	3,853	1.9	7,706	1.9
Sales tax on CECRA	1,488	0.7	1,488	0.7	2,976	0.7
Tenant rent deferral arrangements negotiated or near completion	2,680	1.3	20,269	10.0	22,949	5.7
Rents to be collected before expected credit loss (“ECL”) provision	7,426	3.7	15,515	7.7	22,941	5.7
Less: ECL provision for uncollectible amounts	5,564	2.8	7,920	3.9	13,484	3.4
Balance to be collected	1,862	0.9	7,595	3.8	9,457	2.4

Highlights

Mixed-Use Development and Intensification at SmartVMC

• Occupancy of both 55-storey Transit City 1 and 2 condo towers representing 1,110 residential units commenced on August 5th, with 766 units closed by the end of September and 100% of units expected to be closed by year-end. These closings contributed approximately $30.0 million in FFO ($0.17 in FFO per Unit) for the third quarter of 2020, and are expected to contribute over $49.0 million in FFO for the second half of 2020.⁽²⁾ In addition, the 1,098 unit multi-level parking facility providing parking for both these condominium buildings and the neighbouring PwC/YMCA mixed-use facility is now fully functional.
   
• Construction of the 55-storey Transit City 3 condo tower representing 631 residential units continues to be on schedule and ahead of budget. The tower is now topped-off and closings are expected to commence in spring 2021.
   
• Construction is well underway on Transit City 4 (45 storeys) and 5 (50 storeys) condo towers, representing 1,026 sold residential units, with bulk excavation complete and tower cranes erected. Concrete and formwork for the multi-level underground parking garage is in progress.
   
• Construction is well underway on a 35-storey, 454-unit purpose-built residential rental building at SmartVMC, with the tower crane erected and concrete and formwork for the multi-level underground parking garage is in progress.
   
• Construction of the new Walmart store is complete, with Walmart’s grand opening having taken place on October 22, 2020, allowing for the closing of the existing store on the SmartVMC site, and freeing up approximately 15.5 acres of valuable land for future mixed-use development close to the TTC subway station.
   
• Pre-sold 100% of the 22 townhomes, as part of the Transit City 1 & 2 project, with construction expected to commence later in 2020 and delivery of units expected in late 2021.

Other Business Development

• The completed first phase of the two-phase, purpose-built residential rental project in Laval, Quebec, which had initial move-ins by tenants commencing in March and, to date, approximately 80% of the 171-unit building has been leased. Construction of the next phase is expected in early 2021.
   
• The Trust completed construction of its first self-storage facility in Toronto (Leaside) which has been very well received by the local community with current occupancy levels ahead of expectations.
   
• Based on planning and rezoning work completed to date, the Trust expects to commence construction on two retirement home initiatives over the next six months with its joint venture partners, Revera and Selection Group in Barrie and Ottawa, respectively.
   
• Four additional self-storage facilities in Brampton, Vaughan, Oshawa, and Scarborough are currently under construction with completion expected later this year or in 2021. Additional self-storage facilities have been approved by the Board and we are in the process of obtaining municipal approvals in Aurora, Whitby, Toronto, Markham and an additional location in Brampton.
   
• With the newly issued Minister’s Zoning Order, the Trust will immediately begin work to redevelop its 73-acre Cambridge retail property with various forms of residential, retail, office, institutional, and commercial uses to create a complete vibrant urban community representing over 12.0 million square feet.
   
• During the COVID-19 “shutdown”, the Trust has been aggressively pursuing final municipal approvals for mixed-use density on many of its shopping centres during the past few months. Details are provided in the Management’s Discussion and Analysis.

Financial

• The Trust further improved its unsecured/secured debt ratio from 65%/35% to 67%/33%, as it repaid $63.2 million of secured debt and $13.4 million of unsecured debt and credit facilities this quarter, and is expected to repay the Series R unsecured floating-rate debentures with existing cash on hand when they mature on December 21, 2020.
   
• The Trust continues to add to its unencumbered pool of high-quality assets. As at September 30, 2020, its portfolio consisted of income properties valued at $5.8 billion (September 30, 2019 – $4.7 billion).
   
• Debt metrics continue to demonstrate the Trust’s commitment to its balance sheet, including Debt to Total Assets of 44.3%, Interest Coverage multiple of 3.3X, Interest Coverage net of capitalized interest multiple of 3.8X, and Adjusted Debt to Adjusted EBITDA multiple of 8.5X.⁽³⁾
   
• Net income and comprehensive income was $111.0 million as compared to net income and comprehensive income of $95.1 million in the same period in 2019, representing an increase of $15.9 million. This increase was primarily attributed to earnings from equity accounted investment on the closings of Transit City 1 and 2 units of $31.8 million, partially offset by a $9.7 million increase in expected credit losses principally resulting from the impact of COVID-19.⁽¹⁾
   
• FFO increased by $0.07 per Unit or $12.8 million to $110.1 million as compared to the same period in 2019, principally as a result of the Trust’s share of profit on the closings of Transit City 1 and 2 units, which represented an increase in FFO per Unit of approximately $0.17.⁽²⁾
   
• ACFO increased by $14.7 million or 16.6% to $103.2 million as compared to the same period in 2019 principally as a result of distributions from equity accounted investment on the closings of Transit City 1 and 2 units of $29.2 million, partially offset by a $9.7 million increase in expected credit losses principally resulting from the impact of COVID-19.⁽²⁾
   
• ACFO exceeded both distributions declared and distributions paid by $23.6 million, as compared to the same period in 2019 of $11.3 million and $29.6 million, respectively. The change is primarily due to the Trust’s share of profit on the closings of Transit City 1 and 2, partially offset by COVID-19 related expected credit loss provisions of $9.7 million and their associated impact on the Trust’s cashflows from operations. Note also that the Trust suspended its DRIP program in April 2020.⁽²⁾

Operational

• Both committed and in-place occupancy rates maintained industry-leading levels of 97.4% and 97.1%, respectively, as at September 30, 2020, which are lower than the prior comparable quarter and reflect tenant closings during COVID-19. 
   
• Rentals from investment properties and other was $186.3 million, as compared to $195.5 million in the same period in 2019, representing a decrease of $9.2 million or 4.7%. This decrease was primarily due to: i) lower CAM and realty tax recoveries as a result of lower recoverable costs incurred during the quarter, and ii) lower percentage rent, short-term rentals and other miscellaneous revenues as a result of the COVID-19 pandemic.
   
• Same Properties NOI for the three months ended September 30, 2020 decreased by $10.7 million or 8.3% as compared to the same period in 2019. This decrease was primarily due to an increase in expected credit losses recorded for the three months ended September 30, 2020 as a result of COVID-19. Excluding the higher expected credit losses of $9.7 million recorded in the three months ended September 30, 2020, Same Properties NOI would have been $127.5 million representing a decrease of $1.0 million or 0.8% as compared to the same period in 2019.⁽²⁾

(1)	Represents a GAAP measure.
(2)	Represents a non-GAAP measure.
(3)	Net of cash-on-hand of $413.1 million as at September 30, 2020 for the purposes of calculating the ratio.

Selected Consolidated Operational, Development and Financial Information

Key consolidated operational, development and financial information shown in the table below includes the Trust’s proportionate share of equity accounted investments as at September 30, 2020, December 31, 2019 and September 30, 2019.

(in thousands of dollars, except per Unit and other non-financial data)	September 30, 2020	December 31, 2019	September 30, 2019
Operational Information
Total number of properties with an ownership interest	166	165	166
Gross leasable area including both retail and office space (in thousands of sq. ft.)	34,051	34,337	34,277
Occupied area including both retail and office space (in thousands of sq. ft.)	33,076	33,678	33,617
Vacant area including both retail and office space (in thousands of sq. ft.)	975	659	659
Committed occupancy rate	97.4 %	98.2%	98.2%
In-place occupancy rate	97.1 %	98.1%	98.1%
Average lease term to maturity (in years)	4.7	4.9	5.1
Net retail rental rate (per occupied sq. ft.)	$ 15.45	$15.49	$15.44
Net retail rental rate excluding Anchors (per occupied sq. ft.)	$ 22.15	$22.13	$22.04
Mixed-use Development Information
Future development area (in thousands of sq. ft.)	27,900	27,900	N/A(5)
Total number of future projects currently in development planning stage	256	256	N/A(5)
Trust’s share of estimated costs of future projects	5,400,000	5,500,000	N/A(5)
Financial Information
Investment properties(2)(3)	9,354,927	9,466,501	9,280,212
Total assets(1)	10,365,651	9,928,467	9,704,677
Total unencumbered assets(2)	5,763,400	5,696,100	4,652,700
Debt(2)(3)	4,908,808	4,290,826	4,132,699
Debt to Aggregate Assets(2)(3)(4)	44.3 %	42.3%	41.8%
Debt to Gross Book Value(2)(3)(4)	49.8 %	49.0%	48.5%
Unsecured to Secured Debt Ratio(2)(3)(4)	67%/33%	63%/37%	55%/45%
Unencumbered assets to unsecured debt(2)(3)(4)	1.9X	2.1X	2.1X
Weighted average interest rate(2)(3)	3.37 %	3.55%	3.66%
Weighted average term of debt (in years)	4.9	5.0	4.5
Interest Coverage Ratio(2)(3)(4)	3.3X	3.5X	3.3X
Interest coverage (net of capitalized interest expense)(2)(3)(4)	3.8X	4.0X	3.9X
Adjusted Debt to Adjusted EBITDA (net of cash)(2)(3)(4)	8.5X	8.0X	7.8X
Equity (book value)(1)	5,197,315	5,367,752	5,324,196
Weighted average number of units outstanding – diluted	173,120,316	171,858,434	171,255,329

(1)	Represents a GAAP measure.
(2)	Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP measures may differ from other reporting issuers’ methods and, accordingly, may not be comparable.
(3)	Includes the Trust’s proportionate share of equity accounted investments.
(4)	As at September 30, 2020, cash-on-hand of $413.1 million was excluded for the purposes of calculating the applicable ratios (December 31, 2019 – $37.0 million).
(5)	N/A – information not available.

Quarterly Comparison to Prior Year

The following table represents key financial, per Unit, and payout ratio information for the three months ended September 30, 2020 and September 30, 2019:

(in thousands of dollars, except per Unit information)	September 30, 2020	September 30, 2019	Variance
	(A)	(B)	(A–B)
Financial Information
Rentals from investment properties and other(1)	186,344	195,531	(9,187)
Net income and comprehensive income(1)(3)	111,033	95,138	15,895
Net income and comprehensive income excluding fair value adjustments(2)(3)	105,214	91,520	13,694
Cash flows provided by operating activities(1)	79,100	80,615	(1,515)
NOI(2)	147,612	128,645	18,967
FFO(2)(3)(4)(5)	110,107	97,330	12,777
ACFO(2)(3)(4)(5)	103,200	88,537	14,663
Distributions declared	79,621	77,264	2,357
Surplus of ACFO over distributions declared(2)	23,579	11,273	12,306
Surplus of ACFO over distributions paid(2)	23,579	29,647	(6,068)
Units outstanding(6)	172,220,387	170,689,152	1,531,235
Weighted average – basic	172,112,821	170,400,281	1,712,540
Weighted average – diluted(7)	173,120,316	171,255,329	1,864,987
Per Unit Information (Basic/Diluted)
Net income and comprehensive income(1)	$0.65/$0.64	$0.56/$0.56	$0.09/$0.08
Net income and comprehensive income excluding fair value adjustments(2)(3)	$0.61/$0.61	$0.54/$0.53	$0.07/$0.08
FFO(2)(3)(4)(5)	$0.64/$0.64	$0.57/$0.57	$0.07/$0.07
Distributions declared	$ 0.463	$0.450	$0.013
Payout Ratio Information
Payout ratio to FFO(2)(3)(4)(5)	72.3  %	79.4 %	(7.1)%
Payout ratio to ACFO(2)(3)(4)(5)	77.2  %	87.3 %	(10.1)%

(1)	Represents a GAAP measure.
(2)	Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP measures may differ from other reporting issuers’ methods and, accordingly, may not be comparable.
(3)	Includes the Trust’s proportionate share of equity accounted investments.
(4)	See “Other Measures of Performance” section in the MD&A for a reconciliation of these measures to the nearest consolidated financial statement measure.
(5)	The calculation of the Trust’s FFO and ACFO and related payout ratios, including comparative amounts, are financial metrics that were determined based on the February 2019 REALpac White Paper on FFO and ACFO, respectively. Comparison with other reporting issuers may not be appropriate. The payout ratio to FFO and the payout ratio to ACFO are calculated as declared distributions divided by FFO and ACFO, respectively.
(6)	Total Units outstanding include Trust Units and LP Units, including Units classified as liabilities. LP Units classified as equity in the consolidated financial statements are presented as non-controlling interests.
(7)	The diluted weighted average includes the vested portion of the deferred units issued pursuant to the deferred unit plan.

Year-to-Date Comparison to Prior Year

The following table represents key financial, per Unit, and payout ratio information for the nine months ended September 30, 2020 and September 30, 2019:

(in thousands of dollars, except per Unit information)	September 30, 2020	September 30, 2019	Variance
	(A)	(B)	(A–B)
Financial Information
Rentals from investment properties and other(1)	583,356	598,710	(15,354)
Net income and comprehensive income(1)(3)	41,560	270,619	(229,059)
Net income and comprehensive income excluding fair value adjustments(2)(3)	258,017	261,216	(3,199)
Cash flows provided by operating activities(1)	204,611	213,964	(9,353)
NOI(2)	382,103	382,630	(527)
FFO(2)(3)(4)(5)	281,270	277,403	3,867
ACFO(2)(3)(4)(5)	269,407	262,850	6,557
Distributions declared	239,101	230,969	8,132
Surplus of ACFO over distributions declared(2)	30,306	31,881	(1,575)
Surplus of ACFO over distributions paid(2)	47,783	84,330	(36,547)
Units outstanding(6)	172,220,387	170,689,152	1,531,235
Weighted average – basic	171,890,163	169,277,340	2,612,823
Weighted average – diluted(7)	172,873,206	170,151,053	2,722,153
Per Unit Information (Basic/Diluted)
Net income and comprehensive income(1)	$0.24/$0.24	$1.60/$1.59	$-1.36/$-1.35
Net income and comprehensive income excluding fair value adjustments(2)(3)	$1.50/$1.49	$1.54/$1.54	$-0.04/$-0.05
FFO(2)(3)(4)(5)	$1.64/$1.63	$1.64/$1.63	$—/$—
Distributions declared	$ 1.388	$1.350	$0.038
Payout Ratio Information
Payout ratio to FFO(2)(3)(4)(5)	85.0  %	83.3 %	1.7 %
Payout ratio to ACFO(2)(3)(4)(5)	88.8  %	87.9 %	0.9 %

(1)	Represents a GAAP measure.
(2)	Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP measures may differ from other reporting issuers’ methods and, accordingly, may not be comparable.
(3)	Includes the Trust’s proportionate share of equity accounted investments.
(4)	See “Other Measures of Performance” section in the MD&A for a reconciliation of these measures to the nearest consolidated financial statement measure.
(5)	The calculation of the Trust’s FFO and ACFO and related payout ratios, including comparative amounts, are financial metrics that were determined based on the February 2019 REALpac White Paper on FFO and ACFO, respectively. Comparison with other reporting issuers may not be appropriate. The payout ratio to FFO and the payout ratio to ACFO are calculated as declared distributions divided by FFO and ACFO, respectively.
(6)	Total Units outstanding include Trust Units and LP Units, including Units classified as liabilities. LP Units classified as equity in the consolidated financial statements are presented as non-controlling interests.
(7)	The diluted weighted average includes the vested portion of the deferred units issued pursuant to the deferred unit plan.

Operational Highlights

For the three months ended September 30, 2020, net income and comprehensive income (as noted in the table above) increased by $15.9 million as compared to the same period in 2019. This increase was primarily attributed to the following:

• $19.0 million increase in NOI (see further details in the “Net Operating Income” subsection);
• $1.8 million increase in fair value adjustments on revaluation of investment properties;
• $1.0 million increase in interest income, which was primarily due to an increase in bank interest as a result of the increase in cash and cash equivalents;
• $0.5 million increase in fair value adjustment on financial instruments;
• $0.4 million increase in gain on sale of investment properties; and
• $0.2 million decrease in supplemental costs;

Partially offset by the following:

• $3.9 million increase in interest expense which was primarily due to the increase in average debt balance; and
• $3.1 million increase in net general and administrative expenses.

For the nine months ended September 30, 2020, net income and comprehensive income (as noted in the table above) decreased by $229.1 million as compared to the same period last year. This decrease was primarily attributed to the following:

• $266.7 million decrease in fair value adjustments on revaluation of investment properties principally due to changes in leasing and cash flow assumptions such as rental rates, lease renewal rates, leasing costs, downtime on lease expiries, vacancy allowance, among others, to reflect the impact of COVID-19;
• $5.1 million increase in general and administrative expenses (net);
• $2.2 million increase in acquisition-related costs;
• $0.5 million decrease in NOI (see further details in the “Net Operating Income” subsection); and
• $0.2 million decrease in gain on sale of investment properties;

Partially offset by the following:

• $40.9 million increase in fair value adjustment on financial instruments principally due to the fluctuation in the Trust’s Unit price as compared to the same period in 2019;
• $3.4 million increase in interest income which was principally due to the increase in average interest-bearing loan receivable balance and cash and cash equivalents; and
• $1.3 million net decrease in interest expense which was primarily due to $7.9 million of higher yield maintenance costs incurred as compared to the same period in 2019.

FFO Highlights

For the three months ended September 30, 2020, FFO increased by $12.8 million or 13.1% to $110.1 million. This increase was primarily attributed to:

• $19.0 million increase in NOI (see further details in the “Net Operating Income” subsection);
• $1.5 million increase in add back for indirect interest incurred in respect of equity accounted development projects which was primarily due to the development property acquisitions completed subsequent to Q3 2019;
• $1.0 million increase in interest income, which was primarily due to an increase in bank interest as a result of the increase in cash and cash equivalents as compared to the same period in 2019; and
• $0.2 million increase in FFO add back for both salaries and related costs attributed to leasing activities, and distributions on Units classified as liabilities;

Partially offset by:

• $3.9 million net increase in interest expense;
• $3.1 million net increase in net general and administrative expense;
• $1.2 million net decrease in changes in fair value of financial instruments and other adjustments; and
• $0.7 million decrease in adjustment of indirect interest incurred in respect of equity accounted development projects which was principally due to the Transit City condominium closings in 2020.

For the nine months ended September 30, 2020, FFO increased by $3.9 million or 1.4% to $281.3 million. This increase was primarily attributed to:

• $4.6 million increase in add back for indirect interest incurred in respect of equity accounted development projects which was primarily due to the development property acquisitions completed subsequent to Q3 2019;
• $3.4 million increase in interest income, which was principally due to the increase in average interest-bearing loan receivable balance and cash and cash equivalents as compared to the same period in 2019;
• $1.3 million net decrease in interest expense; and
• $0.4 million increase in FFO add back for salaries and related costs attributed to leasing activities;

Partially offset by:

• $5.1 million increase in net general and administrative expense; and
• $0.7 million decrease in add back for indirect interest incurred in respect of equity accounted development projects which was principally due to the Transit City condominium closings in 2020.

ACFO Highlights

For the three months ended September 30, 2020, ACFO increased by $14.7 million or 16.6% to $103.2 million compared to the same period in 2019, which was primarily due to the items previously identified.

The Payout Ratio relating to ACFO for the three months ended September 30, 2020 decreased to 77.2% as compared to the same period in 2019, which was largely the result of distributions from condominium closings of $29.2 million and the other items previously identified.

For the nine months ended September 30, 2020, ACFO increased by $6.6 million or 2.5% to $269.4 million compared to the same period in 2019, which was primarily due to the items previously identified.

The Payout Ratio relating to ACFO for the nine months ended September 30, 2020 increased by 0.9% to 88.8% as compared to the same period in 2019, which was primarily due to the items previously identified.

Development and Intensification Summary

Included in the Trust’s large development pipeline are 256 identified mixed-use development initiatives, which are summarized in the following table:

	Underway	Active	Future
Description	(Construction underway or expected to commence within next 2 years)	(Construction expected to commence within next 3–5 years)	(Construction expected to commence after 5 years)	Total
Trust’s share of number of projects
Residential Rental	7	23	58	88
Seniors’ Housing	4	13	28	45
Self-storage	10	16	22	48
Office Buildings	—	1	9	10
Hotels	—	—	5	5
Subtotal – Recurring income initiatives	21	53	122	196
Condominium developments	9	12	25	46
Townhome developments	2	5	7	14
Subtotal – Development income initiatives	11	17	32	60
Total	32	70	154	256
Trust’s share of project area (in thousands of sq. ft.)
Recurring income initiatives	3,500	5,000	12,500	21,000
Development income initiatives	2,200	1,600	3,100	6,900
Total Trust’s share of project area (in thousands of sq. ft.)	5,700	6,600	15,600	27,900
Trust’s share of such estimated costs (in millions of dollars)	2,300	3,100	– (1)	5,400

^{(1) The Trust has not yet fully determined the costs attributable to future projects and as such they are not included in this table.}

As noted in the table above, the Trust is currently working on initiatives for the development of many properties, including the following mixed-use development initiatives for which final municipal approvals have or are being actively pursued:

1. the development of up to 5.3 million square feet of predominately residential space, in various forms, at Highway 400 & Highway 7, in Vaughan, Ontario, with a rezoning application submitted in December 2019 and a site plan application for the first four buildings totalling 1,742 units submitted in October 2020;
2. the development of up to 5.0 million square feet of predominately residential space, in various forms over the long term, in Pickering, Ontario, with the site plan application for a two-tower mixed-use phase, approximating 650,000 square feet, submitted in April 2020;
3. the development of up to 5.5 million square feet of predominately residential space, in various forms, at Oakville North in Oakville, Ontario, with the rezoning application for a three-tower 1,200-unit residential phase expected to be submitted in late fall 2020;
4. the development of up to 3.0 million square feet of predominately residential space, in various forms, at Westside Mall in Toronto, Ontario, with an application for the first mixed-use tower expected to be submitted in the late fall 2020;
5. the development of up to 1.7 million square feet of residential space in various forms at the Vaughan NW shopping centre in Vaughan, Ontario. Residential development includes townhomes, to be developed in partnership with Fieldgate; a seniors’ apartment building and separate retirement residence to be developed in partnership with Revera, along with condominiums and residential rental buildings. Applications for these six towers have been submitted. In addition, a 100,000 square-foot self-storage facility is under construction and scheduled to open early in 2021;
6. the development of up to 1.5 million square feet of residential space, in various forms, in Pointe-Claire, Quebec, with the first phase, a two-tower rental project, being actively pursued;
7. the development of up to 318,000 square feet of residential space at Oakville South in Oakville, Ontario, including 158 units in a retirement residence project with Revera and townhomes;
8. the intensification of the Toronto StudioCentre (“StudioCentre”) in Toronto, Ontario (zoning allows for up to 1.2 million square feet);
9. the development of four high-rise purpose-built residential rental buildings comprising approximately 1,800 units with Greenwin, in Barrie, Ontario, for which a zoning application was submitted in December 2019 and a phase one site plan submitted in August 2020;
10. the development of a high-rise purpose-built residential rental tower, on Balliol Street in midtown Toronto, Ontario, with applications submitted in September 2020;
11. the development of up to 200,000 square feet of residential space in 137 townhomes at London Fox Hollow in London, Ontario, with site plan approval applications expected to be submitted in the late fall 2020;
12. the development of up to 1,600 residential units, in various forms, in Mascouche, Quebec, with the first phase consisting of two 10-storey rental towers approved by municipal council in August, with a construction start in early 2021;
13. the development of the first phase, 42-unit rental building, which is part of a multi-phase masterplan in Alliston, Ontario, with a rezoning application submitted in February and a site plan application submitted in May 2020;
14. the development of four additional self-storage facilities with the Trust’s partner, SmartStop, in Aurora, Brampton, Markham, and Whitby with zoning and/or site plan applications submitted in the last several months;
15. the development of residential density at the Trust’s shopping centre at 1900 Eglinton in Scarborough with rezoning and site plan applications for the first two residential towers are expected to be submitted in late 2020;
16. the development of residential density at the Trust’s shopping centre in Kirkland, Quebec, with zoning approvals expected in the late fall 2020;
17. the development of residential density at the Trust’s shopping centre at Bayview and Major Mackenzie in Richmond Hill, with the rezoning application for the first tower expected to be submitted in early 2021;
18. the development of more than four million square feet (4,600 units) of residential density on the land at SmartVMC previously occupied by a Walmart store, with the rezoning and site plan applications to be submitted for phase one of 550,000 square feet later in 2020; and
19. the development of 1.2 million square feet of mixed-use density – office, retail, and residential – on the SmartVMC lands immediately south of the Transit City 4 & 5 towers, with the rezoning and site plan applications submitted in September 2020.

Non-GAAP Measures

The non-GAAP measures used in this Press Release, including but not limited FFO, Transactional FFO, ACFO, NOI, Same Property NOI, average yield rates, and payout ratio do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-GAAP measures are more fully defined and discussed in ‘Management’s Discussion and Analysis’ (“MD&A”) of the Trust for the nine months ended September 30, 2020, available on SEDAR at www.sedar.com.

Full reports of the financial results of the Trust for the three and nine months ended September 30, 2020 are outlined in the unaudited interim condensed consolidated financial statements and the related MD&A of the Trust for the three and nine months ended September 30, 2020, which are available on SEDAR at www.sedar.com. In addition, supplemental information is available on the Trust’s website at www.smartcentres.com.

Conference Call

SmartCentres will hold a conference call on Thursday, November 12, 2020 at 2:00 p.m. (ET). Participating on the call will be members of SmartCentres’ senior management.

Investors are invited to access the call by dialing 1-855-353-9183 and then keying in the participant access code 93397#. You will be required to identify yourself and the organization on whose behalf you are participating.

A recording of this call will be made available Thursday, November 12, 2020 beginning at 8:30 p.m. (ET) through to 8:30 p.m. (ET) on Thursday, November 19, 2020. To access the recording, please call 1-855-201-2300, enter the Conference Reference Number 1252433# and then key in the participant access code 93397#.

About SmartCentres

SmartCentres Real Estate Investment Trust is one of Canada’s largest fully integrated REITs, with a best-in-class portfolio featuring 166 strategically located properties in communities across the country. SmartCentres has approximately $10.4 billion in assets and owns 33.8 million square feet of income producing value-oriented retail space with 97.4% occupancy, on 3,500 acres of owned land across Canada.

SmartCentres continues to focus on enhancing the lives of Canadians by planning and developing complete, connected, mixed-use communities on its existing retail properties. A publicly announced $11.9 billion intensification program ($5.4 billion at SmartCentres’ share) represents the REIT’s current major development focus on which construction is expected to commence within the next five years. This intensification program consists of rental apartments, condos, seniors’ residences and hotels, to be developed under the SmartLiving banner, and retail, office, and storage facilities, to be developed under the SmartCentres banner.

SmartCentres’ intensification program is expected to produce an additional 59.3 million square feet (27.9 million square feet at SmartCentres’ share) of space, 27.1 million square feet (12.3 million square feet at SmartCentres’ share) of which has or will commence construction within next five years. From shopping centres to city centres, SmartCentres is uniquely positioned to reshape the Canadian urban and urban-suburban landscape.

Included in this intensification program is the Trust’s share of SmartVMC which, when completed, is expected to include approximately 11.0 million square feet of mixed-use space in Vaughan, Ontario. Construction of the first five sold-out phases of Transit City Condominiums that represent 2,789 residential units continues to progress. Final closings of the first two phases of Transit City Condominiums began ahead of budget and ahead of schedule in August 2020 and as at September 30, 2020, 766 units (representing approximately 70% of all 1,110 units in the first and second phases) had closed with the balance of units expected to close before year end. In addition, the presold 631 units in the third phase along with 22 townhomes, all of which are sold out and currently under construction, are expected to close in 2021. The fourth and fifth sold-out phases representing 1,026 units are currently under construction and are expected to close in 2023. For more information, visit www.smartcentres.com.

Certain statements in this Press Release are “forward-looking statements” that reflect management’s expectations regarding the Trust’s future growth, results of operations, performance and business prospects and opportunities as further outlined under the headings “Business Overview and Strategic Direction”, “Other Measures of Performance” and “Outlook” in Management’s Discussion & Analysis of the Trust for the three and nine months ended September 30, 2020. More specifically, certain statements contained in this Press Release, including statements related to the Trust’s maintenance of productive capacity, estimated future development plans and costs, view of term mortgage renewals including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional financing and potential financing sources, and vacancy and leasing assumptions, and statements that contain words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may” and similar expressions and statements relating to matters that are not historical facts, constitute “forward-looking statements”. These forward-looking statements are presented for the purpose of assisting the Trust’s Unitholders and financial analysts in understanding the Trust’s operating environment, and may not be appropriate for other purposes. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. However, such forward-looking statements involve significant risks and uncertainties, including those discussed under the heading “Risks and Uncertainties” and elsewhere in Management’s Discussion & Analysis of the Trust for the three and nine months ended September 30, 2020 and under the heading “Risk Factors” in its Annual Information Form for the year ended December 31, 2019. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this Press Release are based on what management believes to be reasonable assumptions, the Trust cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Press Release and the Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation.

However, such forward-looking statements involve significant risks and uncertainties.

For more information, please contact:

Mitchell Goldhar	Peter Forde	Peter Sweeney
Executive Chairman	President & CEO	Chief Financial Officer
SmartCentres	SmartCentres	SmartCentres
(905) 326-6400 ext. 7674	(905) 326-6400 ext. 7615	(905) 326-6400 ext. 7865
[email protected]	[email protected]	[email protected]

The Toronto Stock Exchange neither approves nor disapproves of the contents of this Press Release.

TORONTO, Nov. 11, 2020 (GLOBE NEWSWIRE) — MERCER PARK BRAND ACQUISITION CORP. (“Mercer” or the “Company”) is reporting its financial results for the three and nine months ended September 30, 2020. The Company’s unaudited interim financial statements along with its management discussion and analysis has been filed on the System for Electronic Document Analysis and Retrieval and may be viewed by shareholders and interested parties under the Company’s profile at www.sedar.com.

About
Mercer Park Brand Acquisition
Corp.

Mercer Park Brand is a special purpose acquisition corporation incorporated under the laws of the Province of British Columbia for the purpose of effecting a Qualifying Transaction.

Forward-Looking Statements

This press release may contain forward looking information within the meaning of applicable securities legislation, which reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. The Company does not undertake any obligation to update such forward looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT: Cody
Slach
& Sean Mansouri Gateway Investor Relations (949) 574-3860 or [email protected]

VANCOUVER, British Columbia, Nov. 11, 2020 (GLOBE NEWSWIRE) — New Pacific Metals Corp. (“New Pacific” or the “Company”) reports its unaudited condensed consolidated interim financial results for the three months ended September 30, 2020. This news release should be read in conjunction with the Company’s MD&A and the financial statements and notes thereto for the corresponding period which have been posted under the Company’s profile on SEDAR at www.sedar.com and are also available on the Company’s website at www.newpacificmetals.com. All figures are expressed in Canadian dollars unless otherwise stated.

QUARTERLY
HIGHLIGHTS

• Working capital of $68.88 million to advance the Silver Sand Project and regional exploration initiatives including the Silverstrike Project;
• Continued to expand the Snake Hole Zone on the Silver Sand Project – intersecting 30.9 m @ 159 g/t Ag including 12.2 m @ 354 g/t Ag (see news release dated August 6, 2020 for details);
• Commenced field work on the Silverstrike Project – results indicating good to excellent potential for both high-grade and near-surface bulk tonnage silver-rich polymetallic mineralization at Silverstrike North (see news release dated September 29, 2020 for details);
• Silver Sand Preliminary Economic Assessment, Environmental and Social studies commenced during the quarter;
• Continued focus on Sustainability – expanded the Bolivian CSR team with key hires;
• Received 99.77% shareholders’ support to continue creating shareholder value by spinning out the Tagish Lake Gold project into Whitehorse Gold Corp.; and  
• Graduated from the TSX Venture Exchange to the Toronto Stock Exchange and added to the VanEck Vectors Junior Gold Miners ETF (“GDXJ”).

FINANCIAL RESULTS

Working Capital
: As at September 30, 2020, the Company had working capital of $68.88 million.

Net
loss
attributable to equity holders of the Company for the three months ended September 30, 2020 was $1.51 million or $0.01 per share (three months ended September 30, 2019 – net income of $1.29 million or $0.01 per share).  

The Company’s financial results were mainly impacted by: (i) income from investments of $0.84 million compared to income of $2.12 million in the prior year quarter; (ii) operating expenses of $2.03 million compared to $1.01 in the prior year quarter; and (iii) foreign exchange loss of $0.32 million compared to gain of $0.18 million in the prior year quarter.

Income
from investments for the three months ended September 30, 2020 was $0.84 million (three months ended September 30, 2019 – $2.12 million) and comprised of a $0.76 million gain on the Company’s equity investments, a $0.04 million loss from fair value change offset by interest earned on bonds, $0.07 million in dividends received from the preferred share portfolio, and $0.05 million in interest earned from GICs and other cash accounts. As at the date of this news release, the Company’s material investments are preferred shares issued by the largest five Canadian banks with weighted average dividends yield of 5.68% and Canadian GICs earning weighted average interest of 1.02%.

Operating expenses for the three months ended September 30, 2020 were $2.03 million (three months ended September 30, 2019 – $1.01 million).  

Foreign exchange
loss for the three months ended September 30, 2020 was $0.32 million (three months ended September 30, 2019 – gain of $0.18 million).  

The Company holds a large portion of cash and cash equivalents and bonds in US dollars while the Company’s functional currency is the Canadian dollar. The fluctuation in exchange rates between the US dollar and the Canadian dollar will impact the financial results of the Company. During the three months ended September 30, 2020, the US dollar depreciated by 2.1% against the Canadian dollar (from 1.3628 to 1.3339) while in the prior year quarter the US dollar appreciated by 1.2% against the Canadian dollar (from 1.3087 to 1.3243).

SILVER SAND PROJECT

The Company has carried out extensive exploration and resource definition drill programs on its Silver Sand Project since acquiring the project in 2017. From 2017 to 2019, the Company completed a total of 97,619 m of drilling in 386 holes – one of the largest green fields discovery drill programs in South America during this period.

On April 14, 2020, the Company released the inaugural National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) Mineral Resource estimate for the Silver Sand Project. Using a 45 g/t silver cut-off-grade the estimate reported Measured & Indicated resource tonnes of 35.39 Mt at 137 g/t Ag for 155.86 Moz and Inferred resource tonnes of 9.84 Mt at 112 g/t Ag for 35.55 Moz. See news release dated April 14, 2020 and an amended and restated the technical report entitled “Silver Sand Deposit Mineral Resource Report (Amended)” with an effective date of January 16, 2020 filed under the Company’s profile on SEDAR for details.

The Company commenced its 2020 drill campaign during the first quarter of 2020. A total of 1,589.75 m of drilling was completed before field-based operations in Bolivia were suspended due to the COVID-19 pandemic. Advanced studies have commenced on the project, and following a competitive tendering process, the Company selected CSA Global Consultants Canada Ltd. (an ERM Group company), Knight Piésold Consultores S.A., and Wood plc (an Amec Foster Wheeler company) to lead the Preliminary Economic Assessment, Environmental baseline study, and Social baseline studies, respectively. The initial desktop portion of the studies are currently in progress.

For the three months ended September 30, 2020, total expenditures of $0.91 million (three months ended September 30, 2019 – $4.84 million) were capitalized under the Silver Sand Project.

SILVERSTRIKE PROJECT

In December 2019, the Company acquired a 98% interest in the Silverstrike Project from an arm’s length private Bolivian corporation (the “Vendor”) by making a one-time cash payment of US$1.35 million. Under the agreement the Company’s Bolivian subsidiary is required to cover 100% of the future expenditures including exploration, development and mining production activities at the Silverstrike Project.  The agreement has a term of 30 years and renewable for another 15 years. It is subject to an approval by Bolivia’s Jurisdictional Mining Administrative Authority (AutoridadJurisdiccionalAdministrativa Minera or “AJAM”) .

The Silverstrike Project consists of approximately 13 km² and is located approximately 140 km southwest of La Paz, Bolivia.  The Silverstrike Project shares many similarities with the Silver Sand Project pre-discovery drilling namely: sandstone hosted structurally controlled silver-polymetallic mineralization centered on a historic mining district – the Berenguela District, presence of felsic Tertiary intrusives with corresponding multiple silver rich occurrences associated with extensive sercitic alteration and underexplored with limited modern exploration. During the three months ended September 30, 2020, the Company’s exploration team commenced reconnaissance and detailed mapping and sampling programs on the northern portion of the project. The results to date indicate good to excellent exploration potential for hosting narrow high-grade and near-surface broad-zones of silver mineralization. See news release dated September 29, 2020 for details.

For the three months ended September 30, 2020, total expenditures of $0.55 million (three months ended September 30, 2019 – $nil) were capitalized under the Silverstrike Project.

Technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of NI 43-101.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project, in the Potosí Department of Bolivia, and the Tagish Lake Gold Project in Yukon, Canada.

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
[email protected]
www.newpacificmetals.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.
Such statements include, but are not limited to:
statements regarding anticipated exploration, drilling, development, construction, and other activities or achievements of the Company; timing of receipt of permits and regulatory approvals, including TSXV approval of the spin-out and the listing of the Whitehorse Gold common shares on the TSXV; and estimates of the Company’s revenues and capital expenditures.
.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization,
general economic conditions,
foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management
,
uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada,
and
other factors described
under the heading “Risk Factors” in the Company’s Annual Information Form
for
the year ended June 30, 2020 and its other public filings
.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.

The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this
news release
that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts;
the stabilization of the political climate in Bolivia
;
the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

Although the forward-looking statements contained in this
news release
are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this
news release
are qualified by these cautionary statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements are made as of the date of this
news release
.

CAUTIONARY NOTE TO US INVESTORS

The disclosure
in this news release
was prepared in accordance with Canadian National Instrument 43-101 (“NI 43-101”)
and the
Canadian Institute of Mining, Metallurgy and Petroleum Standards
(the “CIM Definition Standards”)
incorporated by reference
therein
, which differs significantly from the current requirements of the U.S. Securities and
Exchange Commission (the “SEC”) set out in Industry Guide 7. Accordingly, such disclosure may
not be comparable to similar information made public by companies that report in accordance with
Industry Guide 7.
In particular, this news release may refer to “mineral resources”, “measured
mineral resources”, “indicated mineral resources” or “inferred mineral resources”. While these
categories of mineralization are recognized and required by Canadian securities laws, they are not
recognized by Industry Guide 7 and are not normally permitted to be disclosed in SEC filings by
U.S. companies that are subject to Industry Guide 7. U.S. investors are cautioned not to assume
that any part of a “mineral resource”, “measured mineral resource”, “indicated mineral resource”,
or “inferred mineral resource” will ever be converted into a “reserve.” In addition, “reserves”
reported by the Company under Canadian standards may not qualify
as reserves under Industry
Guide 7. Under Industry Guide 7, mineralization may not be classified as a “reserve” unless the
mineralization can be economically and legally extracted or produced at the time the “reserve”
determination is made. Accordingly, information contained or referenced in this news release
containing descriptions of mineral deposits may not be comparable to similar information made
public by U.S. companies subject to
the United States federal securities laws and the rules and regulations thereunder
.
“Inferred mineral resources” are that part of a mineral resource for which quantity and grade or quality are estimated
on the basis of
limited geological evidence and sampling. Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. However, it is reasonably expected that
the majority of
inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.
Readers
are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally
mineable. 
Further
, while NI 43-101
permits companies to disclose economic projections contained in preliminary economic
assessments and pre-feasibility studies, which are not based on “reserves”, U.S. companies have
not generally been permitted under Industry Guide 7 to disclose economic projections for a mineral
property in their SEC filings prior to the establishment of “reserves”. Disclosure of “contained
ounces” in a resource is permitted disclosure under Canadian reporting standards; however,
Industry Guide 7 normally only permits issuers to report mineralization that does not constitute
“reserves” by Industry Guide 7 standards as in-place tonnage and grade without reference to unit
measures. Historical results or feasibility models presented herein are not guarantees or
expectations of future performance.

The SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the U.S. Securities Act (the “
SEC
Modernization Rules”) effective February 25, 2019, with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to corresponding definitions under the CIM Definition
Standards .
During the period leading up to the compliance date of the SEC Modernization Rules, information regarding minimal resources or reserves contained or referenced in this
news release
may not be comparable to similar information made public by companies that report according to U.S. standards. While the
SEC
Modernization Rules are expected to be “substantially similar” to the CIM Definitions standards, readers are cautioned that there are differences between the
SEC
Modernization Rules and the CIM Definitions Standards.