NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST ANNOUNCES Q3 2023 RESULTS

News provided by

NorthWest Healthcare Properties Real Estate Investment Trust

Nov 08, 2023, 04:00 ET

  • Positive revenue growth and same property NOI growth in Q3 2023 and YTD 2023
  • Secured a new C$140 million term loan to extend maturities
  • In process for extending of the maturity date of series G Convertible debt
  • Northwest recognized as a leader in 2023 GRESB ESG Real Estate Assessment

TORONTO, Nov. 8, 2023 /CNW/ - Northwest Healthcare Properties Real Estate Investment Trust (the "REIT" or "Northwest") (TSX: NWH.UN), an owner, asset manager and developer of healthcare real estate, today announced results for the period ending September 30, 2023 ("Q3 2023"). The REIT also provided updates on recent capital management initiatives, and shared results of the 2023 GRESB ESG Real Estate Assessment.

Craig Mitchell, Northwest's CEO comments: "While a Strategic Review is underway, management and the Board have taken key actions in the near term to strengthen the balance sheet and the business."

"The REIT will eliminate all 2023 debt maturities, and over 60% of its 2024 debt maturities. We are also seeking approval from our debentureholders to amend and extend the Series G debentures. We are working to divest our remaining investment units in Australian Unity Healthcare Fund ("AUHPT"). To date we have completed investment and non-core asset sales that have generated gross proceeds of $235.1 million, with additional non-core assets being under contract. We remain committed to building on our position as a healthcare real estate leader, focused on creating value for our many stakeholders." 

Strengthening the Balance Sheet

Since August 2023, Northwest has pursued a strategy to strengthen the balance sheet by reducing its monthly distributions and extending its maturity profile to create stability through 2024. To date the REIT has been successful in refinancing and extending corporate debt obligations. With the completion of the convertible debt maturity date extension anticipated for later this month, the REIT will have eliminated corporate debt facilities maturing before November of 2024. As previously communicated to the market, the REIT is also undertaking non-core assets sales to de-lever the balance sheet.

Actions taken:
  • Secured a new term loan of C$140 million, with an April 2025 maturity.
  • Launched the process of amending and extending its C$125 million ("Series G") convertible debentures due on December 31, 2023, to March 31, 2025. See announcement of October 16, 2023 for details.
  • Refinanced its largest debt facility maturing in 2024, which comprises the A$269 million (C$235 million) JV portfolio debt facilities, extending the maturity date from June 2024 to December 2025.
  • To-date completed sales or have under contract $181 million gross non-core property asset.
  • To-date completed $110 million in sales of its investment in AUHPT.
Q3 2023 Financial and Operational Highlights:

For the three and nine months ended September 30, 2023, revenue increased by 5.1% and 15.3%, respectively. Net income (loss) for the three and nine months ended September 30, 2023, decreased by $116.4 million and $553.0 million, respectively, primarily as result of fair value losses on investment properties from changes in valuation parameters.

Operationally, the REIT's high-quality and defensive healthcare real estate portfolio delivered strong results including 3.7% same property net operating income ("SPNOI") growth (see Exhibit 3) on a year over year basis.

The REIT's portfolio occupancy of 96% is supported by a weighted average lease expiry of 13.2 years and 82.9% of leases are subject to inflation indexation. With a portfolio comprising more than 2,000 tenants, the REIT's cash flow is highly diversified across its 229 properties.

Adjusted Funds From Operations (AFFO) (1) per unit decreased from $0.15 in Q3 2022 to $0.13 in Q3 2023 as result of increased interest expense.

Q3 2023 Highlights:
  • Q3 2023 revenue of $122.2 million up 5.1% year-over-year;
  • Q3 2023 net loss attributable to unitholders of $81.3 million as result of fair value loss on investment properties.
  • Q3 2023 SPNOI increased by 3.7% on a year-over-year basis, driven primarily by annual rent indexation (see Exhibit 3);
  • Strong portfolio occupancy of 96% consistent with last quarter;
  • Q3 2023 AFFO of $0.13 per unit, down from $0.15 per unit on a year-over-year basis (see Exhibit 2);
  • Weighted average lease expiry of 13.2 years is underpinned by healthcare infrastructure;
  • Total assets under management ("AUM") decreased by 5.3% on a year–over-year basis to $10.0 billion due to combination of non-core asset sales and property valuations.
  • Net asset value ("NAV") per unit decreased by 4.7% to $11.96 in Q3 2023 (see Exhibit 4) compared to June 30, 2023. The decrease is predominantly due to cap rate expansion to 5.75%.
  • Total capital deployed in fee bearing vehicles is $5.7 billion, a decrease of 1.7% year-over-year as result of fluctuation in foreign exchange rates and;
  • Consolidated Debt to Gross Book Value Including Convertible Debentures of 51.6%, an increased of 80 bps on a quarter-over-quarter basis.
Monthly Distribution

On September 22, 2023, the REIT announced a reduction in the REIT's monthly distribution to unitholders from $0.06667 per unit to $0.03 per unit. The distribution reduction is expected to provide the REIT with financial flexibility to continue advancing its short and long-term objectives while exploring strategic alternatives, with maximizing unitholder value being the principal objective.

The REIT announced a distribution of $0.03 per REIT unit to unitholders of record on September 29, 2023, and paid on October 16, 2023.

(1) These are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Further, the REIT's definitions of AFFO and FFO differ from those used by other similar real estate investment trusts, as well from the definitions recommended by REALpac. See "Non-IFRS Financial Measures" the REIT's Q3 2023 MD&A. 
2023 ESG Global Ranking 

In 2023, the REIT and Vital Healthcare Property Trust ("Vital") (which is managed by Northwest) participated in the GRESB Real Estate Assessment for the third year running. GRESB, the global Environmental, Social and Governance (ESG) benchmark for assessing real estate and infrastructure investments, collectively representing USD 8.8 trillion in gross asset value ("GAV").

Northwest and Vital were GRESB Sector Leaders in the following categories:

  • Global Listed Sector Leader, Healthcare Standing Investments
    • (Vital and Northwest came in 1st and 2nd place respectively)
  • Global Listed Sector Leader, Healthcare Development
    • (Vital and Northwest came in 1st and 2nd place respectively)
  • Global Sector Leader, Healthcare Development
    • (Vital and Northwest came in 1st and 3rd place respectively)

These results for the REIT and Vital demonstrate Northwest's commitment to ESG best practices. Not only is this the "right and responsible" thing to do, but this in time will also represent a key component of Northwest's value and its associated cost of capital.

Q3 2023 Conference Call

A conference call will be held on November 8, 2023, at 10:00 AM (ET). Participating on the call will be members of the REIT's senior management team.

Investors are invited to instantly join the conference call by phone by using the following URL to register and be connected into the conference call automatically: https://emportal.ink/3FlUUZa.

  • Investors may also access the call by dialing 416-764-8609 or 1 (888) 390-0605. The conference ID is 16291139#.

  • An audio replay of this call will be made available from November 8, 2023, through November 15, 2023, by dialing 416-764-8677 or 1 (888) 390-0541.

  • The conference replay entry code is 291139#.
Non-IFRS Financial Measures

Some financial measures used in this press release, such as SPNOI, Constant Currency SPNOI, FFO, FFO per Unit, AFFO, AFFO per Unit, NAV, NAV per Unit, portfolio occupancy and weighted average lease expiry, 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.

These non-IFRS financial measures and non–IFRS ratios should not be construed as alternatives to financial measures calculated in accordance with IFRS. The REIT's method of calculating these measures and ratios may differ from the methods of other real estate investment trusts or other issuers, and accordingly may not be comparable. Further, the REIT's definitions of FFO and AFFO differ from the definitions recommended by REALpac. These non- IFRS measures are more fully defined and discussed in the exhibits to this news release and in the REIT's Management's Discussion and Analysis ("MD&A") for the three months ended September 30, 2023, in the "Performance Measurement" and "Results from Operations" sections. The MD&A is available on the SEDAR+ website at www.sedarplus.ca.

Forward-Looking Statements

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", "normalized", "contracted", or "continue" or the negative thereof or similar variations. Examples of such statements in this press release may include statements concerning the REIT's position as a leading healthcare real estate asset manager globally, balance sheet optimization and strengthening plans, the REIT's non-core asset sale program and potential acquisitions, dispositions and other transactions, including plans to amend and extend the Series G debentures and sell the REIT's remaining investment units in AUHPT. The REIT's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on numerous assumptions which may prove incorrect, and which could cause actual results or events to differ materially from the forward-looking statements. Such assumptions include, but are not limited to (i) assumptions relating to completion of anticipated acquisitions, dispositions, financings, refinancings, deleveraging and other transactions (some of which remain subject to completing documentation) on terms disclosed; (ii) the REIT's properties continuing to perform as they have recently, (iii) the REIT successfully integrating past and future acquisitions, including the realization of synergies in connection therewith; (iv) various general economic and market factors, including exchange rates remaining constant, local real estate conditions remaining strong, interest rates remaining at current levels, the impacts of COVID-19 on the REIT's business ameliorating or remaining stable; and (vii) the availability of equity and debt financing to the REIT. Such forward-looking 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.

Appendix

Please find the follow financial tables including a reconciliation of Non-GAAP Financial Measures to our IFRS measures.

  1. Table: Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
  2. Exhibit 1: Funds from Operations
  3. Exhibit 2: Adjusted Funds from Operations
  4. Exhibit 3: Constant Currency Same Property NOI
  5. Exhibit 4: Net Asset Value ('NAV') per Unit
  6. Exhibit 5: Property Management Fees

NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST

Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)

(in thousands of Canadian dollars)





Unaudited




For the three months ended September
30,

For the nine months ended
September 30,

2023

2022

2023

2022





Net Property Operating Income



Revenue from investment properties

$                    122,182

$                    116,293

$              384,010

$              333,119

Property operating costs

27,085

26,746

95,471

77,622

95,097

89,547

288,539

255,497





Other Income



Interest and other

7,882

3,827

15,963

9,841

Development revenue

—

—

—

3,746

Management fees

3,660

(3,231)

11,139

15,459

Share of profit (loss) of equity accounted investments

1,966

3,050

(19,917)

22,565

13,508

3,646

7,185

51,611





Expenses and other



Mortgage and loan interest expense

58,715

40,864

167,550

98,775

General and administrative expenses

16,664

12,421

45,235

35,560

Transaction costs

11,255

3,740

34,688

15,858

Development costs

—

—

—

3,430

Foreign exchange (gain) loss

2,521

3,822

(7,487)

(777)

89,155

60,847

239,986

152,846





Income before finance costs, fair value
adjustments, and net gain (loss) on financial
instruments

19,450

32,346

55,738

154,262

Finance costs



Amortization of financing costs

(2,686)

(2,857)

(8,649)

(7,824)

Amortization of mark-to-market adjustment

—

300

—

719

Class B exchangeable unit distributions

(342)

(342)

(1,026)

(1,026)

Fair value adjustment of Class B exchangeable units

2,052

2,497

7,558

5,455

Accretion of financial liabilities

(814)

(2,003)

(6,602)

(12,049)

Fair value adjustment of convertible debentures

12,613

5,167

26,792

14,892

Convertible debenture issuance costs

(91)

(7,048)

(4,601)

(7,048)

Net gain (loss) on financial instruments

(6,585)

10,468

14,204

59,901

Fair value adjustment of investment properties

(122,204)

(14,743)

(414,189)

118,424

Fair value adjustment of deferred unit plan liability

2,692

3,239

12,275

6,855





Income before taxes from continuing operations

(95,915)

27,024

(318,500)

332,561





Current tax expense

11,049

2,813

22,515

17,240

Deferred tax expense (recovery)

(11,694)

3,129

(49,179)

54,175

Income tax expense (recovery)

(645)

5,942

(26,664)

71,415





Total net income

$                    (95,270)

$                     21,082

$             (291,836)

$              261,146





Net income attributable to:



Unitholders

$                    (81,276)

$                       6,611

$             (210,855)

$              164,490

Non-controlling interests

(13,994)

14,471

(80,981)

96,656

$                    (95,270)

$                     21,082

$             (291,836)

$              261,146
Exhibit 1 – Funds From Operations Reconciliation 

FFO is a supplemental non-IFRS industry wide financial measure of a REIT's operating performance. The REIT calculates FFO based on certain adjustments to net income (computed in accordance with IFRS) as detailed below. FFO is more fully defined and discussed in the REIT's MD&A (see "Performance Measurement" and "Funds From Operations").

FUNDS FROM OPERATIONS RECONCILIATION












Expressed in thousands of Canadian dollars,
except per unit amounts

Three months ended September 30,

Nine months ended September 30,

2023

2022

Variance

2023

2022

Variance












Net income (loss) attributable to
unitholders

$       (81,276)

$           6,611

$       (87,887)

$      (210,855)

$       164,490

$     (375,345)

Add / (Deduct):










(i) Fair market value losses (gains)

122,458

(6,628)

129,086

379,579

(205,527)

585,106

Less: Non-controlling interests' share
of fair market value losses (gains)

(23,153)

8,814

(31,967)

(105,715)

95,515

(201,230)

(ii) Finance cost - Exchangeable Unit
distributions

342

342

—

1,026

1,026

—

(iii) Revaluation of financial liabilities

814

2,003

(1,189)

6,602

12,049

(5,447)

(iv) Unrealized foreign exchange loss
(gain)

2,689

3,653

(964)

(6,457)

1,268

(7,725)

Less: Non-controlling interests' share of
unrealized foreign exchange loss (gain)

283

(8)

291

97

(180)

277

(v) Deferred taxes

(11,694)

3,129

(14,823)

(49,179)

54,175

(103,354)

Less: Non-controlling interests' share
of deferred taxes

5,786

(2,009)

7,795

7,645

(18,881)

26,526

(vi) Transaction costs

16,497

3,740

12,757

40,143

16,061

24,082

Less: Non-controlling interests' share
of transaction costs

(4,506)

719

(5,225)

(5,207)

981

(6,188)

(vii) Convertible Debenture issuance costs

91

7,048

(6,957)

4,601

7,048

(2,447)

(vii) Net adjustments for equity
accounted investments

105

1,054

(949)

28,043

(7,447)

35,490

(viii) Internal leasing costs

510

538

(28)

1,470

1,988

(518)

* Property taxes accounted for under
IFRIC 21

174

—

174

846

—

846

(xi) Net adjustment for lease amortization

(91)

97

(188)

(257)

(45)

(212)

(xii) Other FFO adjustments

4,530

8,073

(3,543)

12,235

8,073

4,162

Funds From Operations ("FFO") (1)

$        33,559

$         37,176

$         (3,617)

$        104,617

$       130,594

$       (25,977)

FFO per Unit - Basic

$            0.14

$             0.15

$          (0.01)

$             0.43

$            0.55

$          (0.12)

FFO per Unit - fully diluted (3)

$            0.14

$             0.15

$          (0.01)

$             0.43

$            0.55

$          (0.12)

Adjusted weighted average units
outstanding (2)










Basic

244,782,614

241,119,245

3,663,369

243,903,682

235,769,760

8,133,922

Diluted (3)

246,594,988

244,488,605

2,106,383

245,770,444

238,645,590

7,124,854












Notes

(1)

Other FFO adjustments include items that, in management's view, are not reflective of recurring earnings from core operations. For the nine months ended September 30, 2023, other FFO adjustments included (a) $7.8 million financing costs incurred with respect to an investment in unlisted securities, (b) $1.8 million of corporate G&A expenses related to the strategic philanthropic initiatives, including $1.1 million payable in 10 years and (c) $2.7 million of corporate financing costs related to short-term financing arrangement to fund property acquisition activity that are not reflective of long-term financing costs.

 

(2)

FFO is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. See Performance Measurements section in the REIT's MD&A.

 

(3)

Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic and diluted per unit measure that includes the Class B LP Units in basic and diluted units outstanding/weighted average units outstanding. There were 1,710,000 Class B LP Units outstanding as at September 30, 2023, and 1,710,000 outstanding as at September 30, 2022.

(4)

Diluted units include vested but unissued deferred trust units and the conversion of the REIT's Convertible Debentures that would have a dilutive effect upon conversion at the holders' contractual conversion price. Convertible Debentures are dilutive if the interest (net of tax and other changes in income or expense) per unit obtainable on conversion is less than the basic per unit measure.
Exhibit 2 – Adjusted Funds From Operations Reconciliation 

AFFO is a supplemental non-IFRS financial measure of a REIT's operating performance and is intended to reflect a stabilized business environment. The REIT calculates AFFO as FFO, plus/minus certain adjustments as detailed below. AFFO is more fully defined and discussed in the REIT's MD&A (see "Performance Measurement" and "Adjusted Funds From Operations").

ADJUSTED FUNDS FROM OPERATIONS












Expressed in thousands of Canadian dollars,
except per unit amounts

Three months ended September 30,

Nine months ended September 30,

2023

2022

Variance

2023

2022

Variance












FFO (1)

$        33,559

$        37,176

$       (3,617)

$       104,617

$       130,594

$     (25,977)












Add / (Deduct):










(i) Amortization of marked to market
adjustment

—

(300)

300

—

(719)

719

(ii) Amortization of transactional deferred
financing charges

1,465

1,868

(403)

5,258

4,842

416

(iii) Straight-line revenue

(1,131)

(401)

(730)

(687)

(165)

(522)

 Less: non-controlling interests' share of
straight-line revenue

432

(483)

915

(1,487)

(1,423)

(64)

(iv) Leasing costs and non-recoverable
maintenance capital expenditures

(3,365)

(2,923)

(442)

(10,354)

(8,997)

(1,357)

 Less: non-controlling interests' share of
actual capex and leasing costs

74

29

45

379

313

66

(v) DUP Compensation Expense

1,883

2,023

(140)

7,380

7,228

152

(vi) Net adjustments for equity accounted
investments

(38)

(29)

(9)

(184)

(449)

265

Adjusted Funds From Operations ("AFFO") (1)

$        32,879

$        36,960

$       (4,081)

$       104,922

$       131,224

$     (26,302)












AFFO per Unit - Basic

$            0.13

$            0.15

$        (0.02)

$            0.43

$            0.56

$        (0.13)

AFFO per Unit - fully diluted (3)

$            0.13

$            0.15

$        (0.02)

$            0.43

$            0.55

$        (0.12)

Distributions per Unit - Basic

$            0.16

$            0.20

$        (0.04)

$            0.60

$            0.60

$             —












Adjusted weighted average units
outstanding: (2)










Basic

244,782,614

241,119,245

3,663,369

243,903,682

235,769,760

8,133,922

Diluted (3)

246,594,988

244,488,605

2,106,383

245,770,444

238,645,590

7,124,854












Notes

(1)

 FFO and AFFO are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. See Performance Measurement section in the REIT's MD&A.

 

 

(2)

Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic and diluted per unit measure that includes the Class B LP Units in basic and diluted units outstanding/weighted average units outstanding. There were 1,710,000 Class B LP Units outstanding as at September 30, 2023, and 1,710,000 outstanding as at September 30, 2022.

(3)

Distributions per unit is a non-IFRS ratio calculated as sum of the distributions on the REIT's units and finance costs on Class B LP Units. Management does not consider finance costs on Class B LP units to be a financing cost of the REIT but rather component of the REIT's total distributions. Distributions is not defined by IFRS and does not have a standard meaning and may not be comparable with similar measures presented by other issuers.
Exhibit 3 – Constant Currency Same Property NOI 

Constant Currency Same Property NOI, sometimes also presented as "Same Property NOI" or "SPNOI", is a non-IFRS financial measure, defined as NOI for investment properties that were owned for a full reporting period in both the current and comparative year, subject to certain adjustments including: (i) straight-line rental revenue recognition; (ii) amortization of operating leases; (iii) lease termination fees; and (iv) non-recurring transactions that are not expected to recur (v) excluding properties held for redevelopment and (vi) excluding impact of foreign currency translation by converting the foreign currency denominated SPNOI from comparative period at current period average exchange rates. Management considers. SPNOI is more fully defined and discussed in the REIT's MD&A (see "Performance Measurement").

SAME PROPERTY NOI






















In thousands of CAD

Three months ended September 30,

Nine months ended September 30,

2023

2022

Var %

2023

2022

Var %












Same property NOI (1)










Americas

$      39,445

$      39,143

0.8 %

$       87,900

$       88,026

(0.1) %

Europe

20,917

19,787

5.7 %

61,111

58,460

4.5 %

Australasia

31,787

29,941

6.2 %

77,632

72,932

6.4 %

Same property NOI (1)

$       92,149

$       88,871

3.7 %

$      226,643

$      219,418

3.3 %

Impact of foreign currency
translation on Same Property NOI

—

(3,773)


—

(5,534)

Straight-line rental revenue
recognition

828

632


1,147

(576)

Amortization of operating leases

(39)

(46)


(124)

(150)

Lease termination fees

191

21


233

21

Other transactions

311

233


1,288

(143)

Developments

703

131


13,093

11,831

Acquisitions

31

(31)


38,607

22,332

Dispositions

411

3,007


6,056

6,968

Intercompany/Elimination

512

502


1,596

1,330

NOI

$       95,097

$       89,547

6.2 %

$      288,539

$      255,497

12.9 %












Notes

(1) Same property NOI is a non-IFRS measure, defined and discussed in the REIT's MD&A.

(2) NOI is an additional IFRS measure presented on the consolidated statement of income (loss) and comprehensive income (loss).

NOI is defined and discussed in the REIT's MD&A.
Exhibit 4 – Net Asset Value ('NAV') per Unit

"NAV per Unit" or sometimes presented as "NAV/unit" is an extension of NAV and defined as NAV divided by the number of units outstanding at the end of the period. NAV and NAV/unit are more fully defined and discussed in the REIT's MD&A (see "Performance Measurement" and "Part IX – Net Asset Value").

Expressed in thousands of Canadian dollars, except per unit amounts


Q3 2023

Q4 2022







Total Assets

$        7,834,202

$      8,514,000

less: Total liabilities

(4,606,488)

(4,772,025)

less: Non-controlling interests

(1,118,641)

(1,285,128)

Unitholders' equity

2,109,073

2,456,847







Add/(deduct):





Goodwill

(37,510)

(39,612)

Deferred unit plan liability

14,987

23,837

Deferred tax liability

388,796

443,935

less NCI

(96,980)

291,816

(109,584)

334,351








Financial instruments - net

(49,588)

(38,124)

less NCI

13,814

(35,774)

13,624

(24,500)








Exchangeable Units

8,687

16,245

Global Manager valuation adjustment

576,318

576,318

Other

—

—

Net Asset Value ("NAV")

$        2,927,597

$      3,343,486







Adjusted Units Outstanding (000s)- period end  (1)

244,884

242,358

NAV per Unit

$                11.96

$              13.80

Notes

(1) Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic per unit measure that includes the Class B LP Units in basic units outstanding/weighted average units outstanding.
Exhibit 5 – Proportionate Management Fees

"Proportionate Management Fees" is a non-IFRS financial measure defined as the REIT's total management fees earned from third parties adjusted to be reflected on a proportionately consolidated basis at the REIT's ownership percentage (see "Performance Measurement" "PART III – RESULTS FROM OPERATIONS – NET INCOME").

GLOBAL MANAGER FEES

Expressed in thousands of Canadian dollars

Three months ended September 30,

Nine months ended September 30,

2022

2021

Variance

2022

2021

Variance












Base fee

$          7,811

$        7,787

$             24

$       24,363

$      24,074

$             289

Incentive and performance fee

1,358

4,067

(2,709)

5,505

8,460

(2,955)

Trustee fees

283

277

6

883

821

62

Project and Acquisition fees

2,036

715

1,321

5,593

8,659

(3,066)

Other fees

—

(6,821)

6,821

—

3,272

(3,272)

Total Management Fees

$         11,488

$         6,025

$         5,463

$         36,344

$       45,286

$           (8,942)

less: inter-company elimination (1)

(7,828)

(9,256)

1,428

(25,205)

(29,827)

4,622

Consolidated Management Fees (2)

$           3,660

$         (3,231)

$         6,891

$         11,139

$       15,459

$           (4,320)

add: fees charged to non-controlling interests

5,470

6,529

(1,059)

17,702

21,289

(3,587)

Proportionate Management Fees (3)

$          9,130

$        3,298

$         5,832

$         28,841

$       36,748

$           (7,907)












Notes

(1)

Management fees charged to Vital Trust and to the JVs are eliminated on consolidation as an inter-company transaction.

(2)

Represents the reported consolidated management fees.

(3)

See Performance Measurements in the REIT's MD&A.
A bout Northwest Healthcare Properties Real Estate Investment Trust

Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (Northwest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at September 30, 2023, of interests in a diversified portfolio of 229 income-producing properties and 18.2 million square feet of gross leasable area located throughout major markets in Canada, the United States, Brazil, Europe, Australia, and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 300 professionals in ten offices in eight countries to serve as a long-term real estate partner to leading healthcare operators. For more information please visit: www.nwhreit.com.

SOURCE NorthWest Healthcare Properties Real Estate Investment Trust

Craig Mitchell, CEO, [email protected]; Karen Martin, Interim CFO, [email protected]; Andrew Greig, Investor Relations, [email protected], [email protected], (416) 366-2000 Ext. 2202

Organization Profile

NorthWest Healthcare Properties Real Estate Investment Trust