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Press release from CNW Group

NorthWest Healthcare Properties Real Estate Investment Trust Releases Third Quarter Results

Thursday, November 10, 2011

NorthWest Healthcare Properties Real Estate Investment Trust Releases Third Quarter Results16:05 EST Thursday, November 10, 2011TORONTO, Nov. 10, 2011 /CNW/ - 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, 2011.Highlights of the Quarter:AFFO per unit for the quarter of $0.20 was improved from the previous quarter's $0.19.Occupancy of 91.8% remained essentially unchanged from the previous quarter's at 91.9%.  Solid new leasing was done during the quarter, including a large family practice clinic at buildings in each of Montreal and Toronto, but this positive absorption was offset by the loss of three larger, non-medical tenants, including one whose space is required for the ancillary services associated with the new Toronto-area family health team clinic.On July 22, 2011, the REIT completed the acquisition of Polyclinique Val-Belair, a newly constructed 49,000 square foot mixed-use medical office and retail complex in Quebec City for $11 million.  Polyclinique Val-Belair is 97% leased on a long term basis and benefits from a quality roster of tenants that includes a large government affiliated medical clinic and other healthcare related users. The property was acquired free and clear of debt. The investment is the REIT's fourth property in Quebec City.On September 15, 2011, the REIT completed the acquisition of Canamera Medical Centre, an 82,500 square foot medical office complex in Cambridge, Ontario for $14.8 million. The project is 100% leased to a diverse range of healthcare tenancies, including large, multi-practitioner clinics, a diagnostic imaging clinic and a laboratory. The existing mortgage of approximately $5.4 million, an interest rate of 6.14% and a 2018 maturity was assumed. Subsequent to the quarter, an agreement was reached with the lender to transfer this mortgage to the REIT's Alexander Medical Building in Peterborough on the same terms and conditions, thereby making Canamera free and clear of debt.During the quarter the REIT closed a $35 million 9 year, fixed rate mortgage financing at 4.55% on Hys Centre.During the quarter, the REIT amended and extended the mortgage at the recently acquired Tawa Centre to increase the loan amount to $16 million and extend the term to 2018 at a blended interest rate of 4.12%.The REIT paid distributions of $0.06667 per unit on July 15, 2011, August 15, 2011 and September 15, 2011 consistent with its annualized target of $0.80 cents per unit.The REIT's liquidity continues to be strong, with debt to gross book value at 49.8% at quarter end and approximately $76 million of liquidity in the form of cash, the credit facility and financing potential from unencumbered assets.Selected Financial Information:   (unaudited)Three Months EndedThree Months Ended($000's, except unit and per unit amounts)September 30, 2011September 30, 2010   Revenue      $30,664           $20,706Net Operating Income      $16,637           $11,233Funds from Operations ("FFO")      $10,009           $6,490Adjusted Funds from Operations ("AFFO")           $8,360      $5,464Debt to Gross Book Value           49.8%           57%   Per unit data            FFO           $0.23           $0.24AFFO      $0.20           $0.21Distributions      $0.20           $0.20AFFO Payout ratio      102%        97%Peter Riggin, CEO, said "We are pleased with the third quarter as it continued our progress in the key areas of FFO / AFFO per unit growth, the accretive acquisition of market dominant properties, and the strengthening of our portfolio through leasing to core medical tenancies on a longer term basis, specifically a large family practice clinic in each of Montreal and Toronto, ensuring solid performance of these properties for many years."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 second quarter of 2011, 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 2011 results on Friday, November 11, 2011 at 12:00 p.m. (Eastern).The conference call can be accessed by dialing 416-642-5212 or 1-866-321-6651. The conference ID is 9304242.Audio replay is available until November 18, 2011 by dialing 647-436-0148 or 1-888-203-1112.  The conference ID is 9304242.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.  For further information: Ernie Spraggs, CFO (416) 366-2000 ext. 262, or www.nwhp.ca