Northwest Healthcare Properties Real Estate Investment Trust releases third quarter results

11-07-2012

TORONTO, Nov. 7, 2012, 2012 (Canada NewsWire via COMTEX) --NorthWest Healthcare Properties Real Estate Investment Trust (the "REIT") (TSX: NWH.UN), the largest non-government owner and operator of Canadian healthcare real estate, today announced its results for the third quarter, 2012.

Highlights of the Quarter:

    --  AFFO per unit was consistent with the previous quarter at
        $0.21.
    --  Occupancy increased to 91.3% from 91.1% the previous quarter.
    --  On September 27, 2012 the REIT acquired 84% of the office
        condominium units and 100% of the underground parking units at
        807 Broadview Avenue, a 54,720 square foot medical office
        condominium property in Toronto.  The property was purchased
        for $16.44 million with the REIT assuming, then increasing and
        extending, the vendor's existing first mortgage to an aggregate
        principal amount of $10.5 million, with an interest rate of
        4.26% and a 2022 maturity.  The portion acquired by the REIT is
        100% leased on a long term basis to the Albany Medical Clinic,
        a large full service Family Health Group that represents one of
        Canada's oldest and largest healthcare clinics.
    --  On September 25, 2012, GT Canada Medical Properties REIT ("GT
        REIT") announced that it had obtained, by way of written
        consent, disinterested unitholder approval for the previously
        announced sale of its existing 12 medical office building
        portfolio (described below) to the REIT in two separate
        transactions. As previously announced, the REIT will acquire
        from GT REIT, by way of share and unit transactions, firstly a
        medical office property municipally known as 249 Ontario
        Street, Port Hope, Ontario for a purchase price of
        approximately $2.9 million, plus the assumption of mortgage
        debt of approximately $5.0 million, and secondly, an eleven
        property medical office building portfolio located in Ontario
        for a purchase price together with reimbursement of certain
        transaction costs of $37.4 million, plus assumption of mortgage
        debt of approximately $42.0 million, in each case subject to
        usual adjustments and regulatory approvals.  The transactions
        relating to the GT portfolio are expected to close in November,
        2012 and to be immediately accretive.
    --  On September 10, 2012 the REIT acquired approximately 40%
        (13,671 square feet) of the office condominium units and 81% of
        the parking units in Smyth Medical Centre, a 34,788 square foot
        medical office condominium property in Ottawa. The units were
        acquired for an aggregate purchase price of $3.53 million, free
        and clear of mortgage financing.  Located just east of
        downtown, Smyth Medical Centre (1929 Russell Road) is a premier
        building in the Ottawa medical office market due to its
        favourable location, diversified healthcare tenant mix and
        appealing design.  The investment was the REIT's first
        acquisition in the Ottawa area.
    --  On September 5, 2012 the REIT refinanced Sunridge Professional
        Centre in Calgary with a new ten year $33 million mortgage at a
        fixed interest rate of 3.94% (achieved with an interest rate
        swap contract).  In order to refinance the property the REIT
        entered into a defeasance agreement with respect to the then
        existing $11.2 million mortgage on the property.  Net proceeds
        to the REIT, after costs, including those to defease the
        existing mortgage, were approximately $21.0 million.
    --  The REIT paid distributions of $0.06667 per unit on July 13,
        2012, August 15, 2012 and September 14, 2012 consistent with
        its annualized target of $0.80 cents per unit.


Selected Financial Information:



(unaudited)                       Three Months Ended Three Months Ended

($000's, except unit and per unit September 30, 2012 September 30, 2011
amounts)

Revenue                                      $32,672            $30,664

Net Operating Income                         $18,154            $16,637

Funds from Operations ("FFO")                $11,092            $10,009

Adjusted Funds from Operations                $9,500             $8,360
("AFFO")

Debt to Gross Book Value                       51.6%              49.8%



Per unit data

FFO                                            $0.25              $0.23

AFFO                                           $0.21              $0.20

Distributions                                  $0.20              $0.20

AFFO Payout ratio                                94%               102%






Subsequent Events:

    --  On October 11, 2012 the REIT acquired an additional office
        condominium unit within the Smyth Medical Centre in Ottawa.
        Following the transaction, the REIT's ownership stake within
        the building increased to approximately 42% of the condominium
        units and 82% of the parking units.  Negotiations and due
        diligence respecting the acquisition of additional condominium
        units in the building continue.
    --  The REIT declared distributions of $0.06667 per Unit to
        Unitholders of record as at October 31, 2012.


Peter Riggin, CEO, said "This quarter was a continuation of our progress in reducing our payout ratio and furthering the quality and stability of our portfolio as a result of active asset management and accretive acquisitions."

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 third quarter of 2012, 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 third quarter 2012 results on Thursday, November 8, 2012 at 11:00 a.m. (Eastern).

The conference call can be accessed by dialing 416-640-3404 or 1-866-322-1159. The conference ID is 6464627.

Audio replay is available until November 15, 2012 by dialing 647-436-0148 or 1-888-203-1112. The conference ID is 6464627

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.

SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2012/07/c6018.html

SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust

Ernie Spraggs, CFO (416) 601-3221, orwww.nwhp.ca