TORONTO, April 25, 2012 /PRNewswire/ - GT Canada Medical Properties Real Estate Investment Trust (the "REIT") is pleased to announce its financial results for the three month period and year ended December 31, 2011.
- Net income for the three months ended December, 2011 increased to $60,314 or $0.004 per unit from a loss of ($379,794) or ($0.122) per unit for the three months ended December 31, 2010. For the year ended December 31, 2011, net income increased to $9,339,759 or $0.602 per unit from a loss of ($1,151,033) or ($0.557) per unit for the year ended December 30, 2010.
- The improvement in net income reflected the addition of 5 properties in December 2010 and the effect of fair value gains on investment properties resulting from declining cap rates and fair value gains attributable to the warrant liability.
Funds From Operations
The REIT's Funds From Operations ("FFO") represents the recurring cash flow generated through the ownership of income producing properties. The primary difference between net income and FFO is the fair value gain on investment properties and other fair value gains .
- For the three months ended December 30, 2011 FFO increased to a loss of ($17,232) or ($0.001) per unit from a loss of ($271,727) or ($0.088) per unit for the same period in 2010. For the year ended December 31, 2011, FFO increased to $621,767 or $0.040 per unit from a loss of ($1,042,966) or ($0.505) per unit for the same period in 2010.
- The improvement in FFO is primarily a result of the five properties acquired in December 2010.
Recent Highlights - Subsequent to the year end
On January 6, 2012, the REIT acquired a portfolio of three medical office buildings located in Lindsay, Hamilton and St. Thomas, Ontario (the "Portfolio"). The Portfolio was acquired for approximately $10.6 million. Approximately $7.8 million of the purchase price was comprised of a combination of assumed mortgage debt on the Portfolio and coterminous vendor take back financing with a combined average interest rate of 4.09%. The balance of the purchase price was funded with existing resources.
On March 12, 2012, the REIT announced an offering of rights to acquire up to 3,880,212 units of the REIT to unitholders of record on March 30, 2012 at a price of $1.15 per unit (the "Rights Offering"). The rights expired on April 24, 2012 and investors susbscribed for 3,880,212 units for proceeds of $4,462,244, before costs.
Acquisition of additional property
On April 6, 2012, the REIT entered into an agreement to acquire a 25,000 s.f. medical office building in Port Hope, Ontario for approximately $7.5 million, subject to customary closing adjustments. The building's tenants are medical practitioners with a pharmacy, lab and x-ray facilities and it is 100% occupied. The cap rate on the transaction is 8.03%. The purchase is expected to close on May 1, 2012, subject to customary closing conditions.
Offer to Acquire from NorthWest Value Partners Inc.
On April 16, 2012, the REIT announced that it had entered into a definitive agreement with NorthWest Value Partners Inc. ("NorthWest") pursuant to which NorthWest will offer to acquire all of the REIT's outstanding units for $2.05 per unit (the "Offer"). The Offer price is subject to adjustment for dilution that may result from the issuance of additional units pursuant to the Rights Offering noted above. The Offer is subject to a number of conditions, including acceptance of the Offer by the holders of at least 66 2/3% of the outstanding units.
2011 Year End Financial Results
For the REIT's complete year ended December 31, 2011 Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A"), please visit www.sedar.com.
GT Canada Medical Properties REIT
As Canada's only publicly traded issuer focused exclusively on medical office buildings, GT Canada Medical 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's objectives are to: (i) provide its unitholders with stable and growing cash distributions from investments focused on medical office buildings, on a tax efficient basis; (ii) enhance the value of the REIT's assets and maximize long-term unit value; and (iii) expand the asset base of the REIT.
Some financial measures used in this press release, such as FFO, 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 MD&A for the second quarter of 2011, which is available on the SEDAR website at www.sedar.com.
This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements may include, among other things, statements related to acquisitions; development and capital expenditure activities; future maintenance and leasing expenditures; financing; the availability of financing sources; and income taxes. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements. 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 the REIT's MD&A, which is 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.
SOURCE GT Canada Medical Properties Real Estate Investment Trust