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NorthWest Healthcare Properties Real Estate Investment Trust releases fourth quarter and year-end results
TORONTO, Mar 6, 2013, 2013 (Canada NewsWire via COMTEX) --NorthWest Healthcare Properties Real Estate Investment Trust (the "REIT") (TSX: NWH.UN), Canada's largest non-government owner and manager of medical office buildings and healthcare real estate, today announced its results for the three month period and year ended December 31, 2012.
Highlights of the Quarter:
-- AFFO per Unit was $0.21 for the quarter.
-- Occupancy was 91.2% at the end of the quarter.
-- On December 20, 2012 the REIT acquired 245 Curé-Majeau, a
recently expanded and renovated government healthcare
administration building located in Joliette, Quebec, northeast
of Montreal. The property was purchased for $10 million free
and clear of mortgages, and is expected to be immediately
accretive. The REIT secured new 10-year mortgage financing for
$7.5 million on the property at a fixed interest rate of
4.07%. Comprised of 53,771 square feet, 245 Curé-Majeau is
leased exclusively on a long term basis (until 2023) to the
Agence de la Santé et des Services Sociaux de Lanaudière
(CSSS), a regional health authority responsible for deployment
of management and the allocation of financial resources to area
healthcare facilities, including several local hospitals. The
investment was the REIT's sixteenth asset in the Province of
-- On November 16, 2012 the REIT acquired an eleven property
medical office building portfolio in Ontario (the "GT
Portfolio") from a subsidiary of NorthWest International
Healthcare Properties REIT, formerly GT Canada Medical
Properties REIT and hereinafter "GT REIT", controlled by
NorthWest Value Partners Inc. ("NWVP"), by way of share and
unit transactions, with an effective date of October 1, 2012.
The purchase price, as adjusted on closing, together with
reimbursement of certain transaction costs, was $36.3 million,
plus the assumption of mortgage debt of approximately $43.3
million. The purchase price, as adjusted, and transaction
costs were satisfied by a cash payment of $6.3 million and a
note in the amount of $30 million bearing interest at 8% (the
"GT Note") and is expected to be immediately accretive.
-- On November 16, 2012 the REIT issued 1,746,142 Units to
NorthWest Operating Trust ("NW Trust"), which is controlled by
NWVP, in a private placement at a subscription price of
$12.3125 per Unit for net proceeds of approximately $21.4
-- On November 14, 2012 the REIT acquired a medical office
building municipally known as 249 Ontario Street, Port Hope
from GT REIT, by way of share and unit transactions, with an
effective date of October 1, 2012. The purchase price was $2.9
million, plus the assumption of mortgage debt of approximately
$5.0 million, subject to usual adjustments, and is expected to
be immediately accretive.
-- During the quarter NWVP repaid in full the $41.3 million 7%
loan from the REIT by a cash payment of $11.3 million plus
accrued interest and with the $30 million balance set-off
against the GT Note.
-- The REIT paid distributions of $0.06667 per Unit on October 15,
2012, November 15, 2012 and December 14, 2012 consistent with
its annualized target of $0.80 cents per Unit.
Peter Riggin, CEO, commented that "The fourth quarter was a positive conclusion to a productive 2012 that saw the REIT enhance our market leading position in the ownership of healthcare real estate through accretive acquisitions of approximately $170 million, while also maintaining a reasonable 51.6% debt to gross book value ratio and reducing our weighted average mortgage interest rate to 4.93% as we took advantage of favourable borrowing conditions. While operationally we would have preferred to see more improvement in our portfolio occupancy, we are encouraged by momentum achieved in the fourth quarter and we remain disciplined about increasing the healthcare quotient of our tenant base, whenever possible."
Selected Financial Information:
(unaudited) Three Months Ended Three Months Ended
($000's, except unit and per December 31, 2012 December 31, 2011
Revenue 36,704 31,502
Net Operating Income 20,075 17,013
Funds from Operations ("FFO") 11,651 10,055
Adjusted Funds from Operations 9,664 8,504
Debt to Gross Book Value 51.6% 50.2%
Per unit data (Annualized,
FFO $0.26 $0.23
AFFO $0.21 $0.20
Distributions $0.20 $0.20
AFFO Payout ratio 94% 101%
((1) ) AFFO amounts are calculated utilizing leasing and capital
reserves of 4.5% of revenue.
-- On January 31, 2013 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 44% of the condominium
units and 83% of the parking units. The unit was acquired free
and clear of mortgage financing and is expected to be
immediately accretive. Negotiations and due diligence
respecting the acquisition of additional condominium units in
the building continue.
-- On February 28, 2013, the REIT repaid in full upon maturity the
$1.0 million of mortgage debt secured against the Welland
Professional Arts Building located in Welland, Ontario.
-- The REIT declared distributions of $0.06667 per Unit to
Unitholders of record as at January 31, 2013 and February 28,
-- On March 1, 2013 the REIT sold the small and non-strategic 1955
King Street East, Hamilton property, which it had acquired as
part of the GT Portfolio, for $1.26 million, subject to
adjustments, and repaid the mortgage debt thereon.
The non-GAAP measures used in this press release, such as FFO and AFFO, are key financial measures 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 Canadian generally accepted accounting principles ("GAAP"). As such, they are unlikely to be comparable to similar measures presented by other real estate companies. These non-GAAP measures are more fully defined and discussed in the REIT's management discussion and analysis (the "MD&A") for the fourth quarter of 2012, which is available on the SEDAR website at www.sedar.com. Also on SEDAR are the audited 2012 year-end 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 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 fourth quarter 2012 results on Thursday, March 7, 2013 at 9:00 a.m. (Eastern).
The conference call can be accessed by dialing (416) 640-5926 or 1-800-820-0231. The conference ID is 2084332.
Audio replay is available until March 13, 2013 by dialing 647-436-0148 or 1-888-203-1112. The passcode is 2084332.
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.
About NorthWest Healthcare Properties Real Estate Investment Trust NorthWest Healthcare Properties Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT holds a portfolio of 76 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4.6 million square feet of gross leasable area located in British Columbia, Alberta, Ontario, Québec, Nova Scotia and New Brunswick.
SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust
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SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust
Ernie Spraggs, CFO, (416) 601-3221, orwww.nwhp.ca