NorthWest Healthcare Properties Real Estate Investment Trust Releases Third Quarter Results

11-05-2013

TORONTO, Nov. 5, 2013 (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 third quarter ended September 30, 2013.

Peter Riggin, CEO, commented that "the improvements in many of our key metrics during the quarter are evidence that our focus on operations and maximizing the performance of our portfolio are starting to take effect."

Highlights of the Quarter:

--  AFFO per unit for the quarter was $0.22, up from $0.21 the previous quarter and comparable prior year quarter. The increase was driven by same property income improvements, the accretive impact of the Portage Portfolio (Q2) and Hargrave Portfolio (Q3) acquisitions, as well as certain non-recurring items.

--  Same property net operating income for the quarter increased by 0.8% from the comparable prior year quarter. 

--  FFO per unit for the quarter was $0.26, up from $0.25 the previous quarter and comparable prior year quarter.

--  Occupancy continued upwards to 92.0%, up from the previous quarter at 91.6%.

--  Effective July 31, 2013, the REIT acquired a Winnipeg office portfolio comprising 70,247 square feet primarily located at 490-494, 496 & 500 Hargrave Street ("Hargrave Portfolio"). The Hargrave Portfolio was purchased for $21 million with the REIT assuming and up-financing the vendor's existing first mortgage for a principal amount of approximately $15.75 million, a blended interest rate of 4.75% and a 2023 maturity. The acquisition was immediately accretive.  Located within the downtown Exchange District, the Hargrave Portfolio is comprised of one recently developed and two recently upgraded office buildings, and is a leading example of contemporary design in the City of Winnipeg. The portfolio is fully-occupied, with the majority of the premises (84%) leased to the WRHA on a longer term basis, with the majority of the space leased to 2031. Primary use at the Hargrave Portfolio relates to the WRHA's  home-care nursing program, while secondary uses relate to   community health services, including a travel and tropical medicine clinic. Additional tenancies include a provincially funded post-secondary institution and a non-profit educational NGO. The investment is the REIT's second asset in the Province of Manitoba.

--  During the quarter the REIT raised net proceeds of $38.2 million through the issuance of $40.25 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures due September 30, 2020.

--  The REIT paid distributions of $0.06667 per unit on July 15,2013, August 15, 2013 and September 13, 2013 consistent with its annualized target of $0.80 cents per unit.
 
Selected Financial Information:

(unaudited)                       Three Months Ended Three Months Ended

($000's, except per unit amounts) September 30, 2013 September 30, 2012

Revenue     $37,683 $32,672
Net Operating Income    $20,729 $18,154
Funds from Operations ("FFO")   $11,967 $11,092
Adjusted Funds from Operations ("AFFO") $10,148 $9,500
Debt to Gross Book Value  53% 52%



Per Unit Data    
FFO $0.26 $0.25
AFFO $0.22 $0.21
Distributions $0.20 $0.20
AFFO Payout ratio 92% 94%


Subsequent Events:

--  Subsequent to the quarter, the REIT refinanced its Glenmore Professional Centre in Calgary for a principal amount of $50 million, at a fixed interest rate of 3.57% and for a 5-year term. The mortgage resulted in approximately $11 million of net proceeds to the REIT.

--  Subsequent to the quarter the REIT issued a repayment notice to repay a $13 million variable rate mortgage secured by one of the REIT's investment properties.

--  The REIT declared distributions of $0.06667 per unit to  Unitholders of record as at October 31, 2013.
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 2013, 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 "Risks and Uncertainties" in the REIT's Annual Information Form 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 2013 results on Wednesday, November 6, 2013 at 9:00 AM (Eastern). The conference call can be accessed by dialing 416-642-5212 or 1-866-321-6651. The conference ID is 2298082.

Audio replay is available until noon on November 13, 2013 by dialing 1-866-338-9451 or 647-436-0148. The passcode is 2298082.

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 78 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4.7 million square feet of gross leasable area located in British Columbia, Alberta, Manitoba, 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