NorthWest Healthcare Properties Real Estate Investment Trust releases second quarter results

08-11-2011

TORONTO, Aug. 11, 2011 (Canada NewsWire via COMTEX) --

NorthWest Healthcare Properties Real Estate Investment Trust (the "REIT") (TSX: NWH.UN), Canada's largest non-government owner and operator of medical office buildings and healthcare real estate, today announced its results for the second quarter, 2011.

Highlights of the Quarter:

    --  AFFO per unit for the quarter of $0.19 was improved from the
        previous quarter's $0.18 as the REIT fully deployed the
        proceeds from prior equity offerings.
    --  Occupancy remained unchanged from the previous quarter at
        91.9%, but is improved from 91.5% at December 31, 2010.  The
        REIT expects improving occupancy in the third and fourth
        quarters.
    --  On April 1, 2011 the REIT acquired the Malvern Medical Arts
        Building for $16.75 million.  The Malvern Medical Arts Building
        is a Class "A" office complex located at 1333 Neilson Road, in
        the former city of Scarborough portion of Toronto,
        approximately 3.7 kilometres from the Rouge Valley Centenary
        Hospital. The property is a 41,000 square foot medical office
        building and is currently 99% occupied.  The investment is the
        REIT's twelfth asset in the Greater Toronto Area.  The property
        was acquired free and clear of debt.
    --  On May 31, 2011 the REIT acquired Tawa Centre, a 94,500 square
        foot medical office complex immediately adjacent to one of
        Edmonton's primary hospitals, for $25.9 million. Tawa Centre is
        89% leased to a quality roster of tenants, of which the
        majority are healthcare related.  This investment is the REIT's
        fifth Edmonton area property.  As part of the Tawa Centre
        acquisition the REIT assumed an $11.3 million mortgage at 5.75%
        that matures in December 2014, but which is currently being
        restructured to extend the term, to increase the loan amount,
        and reduce the interest rate as noted below.
    --  During the quarter, the REIT renewed the mortgage on Glenmore
        Professional Centre at $35 million, for two years, with a fixed
        interest rate of 3.40%.
    --  During the quarter the REIT closed a $65 million 10 year, fixed
        rate mortgage financing at 5.11% on the Dundas-Edward Centre.
        From the loan proceeds, $15 million was used to repay in full
        the Interim Bridge Facility, $31.5 million was used to repay
        the Revolving Credit Facility, the balance used for
        acquisitions and general trust purposes.
    --  The REIT paid distributions of $0.06667 per unit on April 15,
        2011, May 16, 2011 and June 15, 2011 consistent with its
        annualized target of $0.80 cents per unit.
    --  Subsequent to the quarter, on July 22, 2011, the REIT completed
        the acquisition of Polyclinique Val-Belair, a 49,000 square
        foot mixed-use medical office and retail complex in Quebec City
        for $11 million.  Polyclinique Val-Belair is 97% leased on a
        long term basis and benefits from a quality roster of tenants
        that includes a large government affiliated medical clinic and
        other healthcare related users. The property was acquired free
        and clear of debt. The investment is the REIT's fourth
        acquisition in Quebec City.
    --  Subsequent to the quarter the REIT entered into a commitment to
        place a $35 million 9 year mortgage on Hys Centre.   The
        mortgage is expected to fund in the third quarter and will
        carry a fixed rate of 4.55%.
    --  Subsequent to the quarter the REIT entered into a commitment to
        amend the Tawa mortgage to increase the loan amount to $16
        million, extend the term to 2018 and reduce the interest rate.
        The loan increase will fund and the interest rate will be fixed
        in the third quarter.
    --  The REIT's liquidity continues to be strong, with debt to gross
        book value at 48.8% at quarter end (projected to increase to
        only 50.3% upon completion of the above noted pending
        financings) and approximately $85 million of liquidity in the
        form of cash, the credit facility and financing potential from
        unencumbered assets.


Selected Financial Information:



(unaudited)                       Three Months Ended Three Months Ended

($000's, except unit and per unit      June 30, 2011      June 30, 2010
amounts)



Revenue                                      $28,884            $19,370

Net Operating Income                         $16,175            $10,896

Funds from Operations ("FFO")                 $9,962             $6,170

Adjusted Funds from Operations                $8,172             $5,140
("AFFO")

Debt to Gross Book Value                       48.8%                54%



Per unit data

FFO                                            $0.23              $0.23

AFFO                                           $0.19              $0.20

Distributions                                  $0.20            $0.215*

AFFO Payout ratio                               105%               110%






* includes seven day period March 25 - March 31, 2010

Peter Riggin, CEO, said "We are excited about our growth prospects, as the second quarter saw per unit increases in FFO and AFFO, continued accretive acquisitions, and reduced debt to gross book value. Further, we expect improving occupancy and further accretive acquisitions during the remainder of the year. Despite current economic turbulence in much of the world, we remain confident that our highly diversified tenant base dominated by necessity-based healthcare providers will perform in line with expectations."

Some financial measures used in this press release, such as FFO and AFFO, are used by the real estate industry to measure and compare the operating performance of real estate companies, but they do not have any standardized meaning prescribed by IFRS. As such, they are unlikely to be comparable to similar measures presented by other real estate companies. These non-IFRS measures are more fully defined and discussed in the REIT's management discussion and analysis (the "MD&A") for the second quarter of 2011, which is available on the SEDAR website at www.sedar.com. Also on SEDAR are the interim financial statements of the REIT.

This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe", or "continue" or the negative thereof or similar variations. The REIT's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in REIT's Annual Information Form and Prospectus and the risks and uncertainties set out in the MD&A which are available on www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and, except as expressly required by applicable law, the REIT assumes no obligation to update such statements.

The REIT invites you to participate in its conference call with senior management to discuss our second quarter 2011 results on Friday, August 12, 2011 at 10:00 a.m. (Eastern).

The conference call can be accessed by dialing 416-642-5212 or 1-866-321-6651.

Audio replay is available until August 19, 2011 by dialing 647-436-0148 or 1-888-203-1112. The conference ID is 4383632.

The webcast of the conference call can be accessed from the "Investor Relations" page of the REIT's web site at www.nwhp.ca, and will be archived for 30 days.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/11/c3353.html

SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust

Ernie Spraggs, CFO (416) 366-2000 ext. 262, orwww.nwhp.ca