Northwest Healthcare Properties Real Estate Investment Trust releases third quarter results
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NorthWest Healthcare Properties Real Estate Investment TrustNov 07, 2012, 16:59 ET
TORONTO, Nov. 7, 2012 /CNW/ - 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 amounts) | September 30, 2012 | September 30, 2011 |
Revenue | $32,672 | $30,664 |
Net Operating Income | $18,154 | $16,637 |
Funds from Operations ("FFO") | $11,092 | $10,009 |
Adjusted Funds from Operations ("AFFO") | $9,500 | $8,360 |
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
Ernie Spraggs, CFO
(416) 601-3221, or www.nwhp.ca
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