TORONTO, Nov. 30, 2012 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (the "REIT") (TSXV: MOB.UN) today announced its financial results for the third quarter ended September 30, 2012.
During the quarter, all of the REIT's income producing properties were classified as discontinued operations as a result of the pending sale of its existing portfolio of properties, in their entirety (the "Existing Portfolio"), to NorthWest Healthcare Properties REIT (TSX: NWH.UN) ("NWHP REIT") in two separate transactions. On November 16, 2012, with an effective date of October 1, 2012, the REIT completed the sale of the Existing Portfolio to NWHP REIT. The REIT also completed the acquisition of a $170M portfolio of international healthcare real estate in Australia/New Zealand, Brazil and Germany (the "International Portfolio") on November 16, 2012, with an effective date of October 1, 2012. The REIT's third quarter results reflect its Existing Portfolio for the period and do not include any results from the recently acquired International Portfolio.
Including discontinued operations and excluding strategic transaction costs, the REIT reported funds from operations ("FFO") per unit and adjusted funds from operations ("AFFO") per unit of $0.032 and $0.025, respectively, representing an FFO payout ratio of 51% and an AFFO payout ratio of 63%. The REIT also achieved an overall portfolio occupancy rate of 94%.
The following highlights should be read in conjunction with the consolidated financial statements and management's discussion and analysis for the third quarter ended September 30, 2012. These will be filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") and available on the SEDAR website at www.sedar.com.
FINANCIAL HIGHLIGHTS - September 30, 2012
- FFO and AFFO - FFO per unit was $0.032 for the third quarter of 2012 (or $0.128 annualized), representing an FFO payout ratio of 51%. AFFO per unit was $0.025 for the third quarter of 2012 (or $0.101 annualized), representing an AFFO payout ratio of 63%.
- Occupancy - Occupancy remained stable at 94% as at September 30, 2012.
- Gross Leasable Area - Gross leasable area for the portfolio totalled 279,200 square feet as at September 30, 2012.
- Leverage - Total secured debt to gross book value leverage ratio was 54.4% as at September 30, 2012.
STRATEGIC TRANSACTION HIGHLIGHTS
During the third quarter, the REIT continued to explore international healthcare real estate acquisition opportunities and reconfigure its Existing Portfolio.
On November 16, 2012, the REIT announced that it had closed the previously announced sale of its Existing Portfolio to NWHP REIT in two separate transactions. Concurrently, the REIT completed its previously announced acquisition the International Portfolio from NorthWest Value Partners Inc.
In connection with the transaction closings and based on the accretive nature of the transactions, the REIT announced that it will increase its annual distributions from $0.064 per unit to $0.16 per unit.
UPDATE ON BUSINESS OF THE REIT
With the REIT's reconfiguration to a focused international healthcare real estate platform now complete, the REIT is currently evaluating a number of acquisition opportunities in its core markets and hopes to execute on several of these acquisitions over the next 12 months.
About NorthWest International Healthcare Properties REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. Including its investment in Vital Healthcare Property Trust (NZX: VHP), the REIT holds interests in a portfolio of 31 income-producing properties, with a focus on internationally-located medical office buildings and healthcare real estate, comprising approximately 1.5 million square feet of gross leasable area located in Australia, Brazil and Germany.
Some financial measures used in this press release, such as FFO, AFFO, and NOI, 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 International Financial Reporting Standards ("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 management's discussion and analysis ("MD&A") for the third quarter of 2012, which is available on the SEDAR website at www.sedar.com.
This press release may contain 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 preliminary prospectus dated November 23, 2012, 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 NorthWest International Healthcare Properties Real Estate Investment Trust