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Press release from CNW Group

NorthWest Healthcare Properties Real Estate Investment Trust releases first quarter results

Tuesday, May 07, 2013

NorthWest Healthcare Properties Real Estate Investment Trust releases first quarter results

16:57 EDT Tuesday, May 07, 2013

TORONTO, May 7, 2013 /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 first quarter ended March 31, 2013.

Highlights of the Quarter:

  • AFFO per unit for the quarter was $0.21, consistent with the previous quarter, and a $0.01 improvement over the comparable prior year quarter.
  • FFO per unit for the quarter was $0.25, a $0.01 improvement over the comparable prior year quarter.
  • Occupancy was 91.3%, a slight improvement from the previous quarter.
  • The REIT paid distributions of $0.06667 per unit on January 15, 2013, February 15, 2013 and March 15, 2013 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)           March 31, 2013           March 31, 2012
                         
Revenue                 $37,120                 $32,515
Net Operating Income                 $19,845                 $17,248
Funds from Operations ("FFO")                 $11,353                 $10,111
Adjusted Funds from Operations ("AFFO")                 $9,537                      $8,411
Debt to Gross Book Value                 51%                      51%
                               
Per unit data                                         
FFO                 $0.25                      $0.24
AFFO                 $0.21                 $0.20
Distributions                 $0.20                 $0.20
AFFO Payout ratio                 97%                 102%
                                          
                         

Subsequent Events:

  • Subsequent to the quarter the REIT refinanced or entered into conditional agreements to refinance approximately $100 million of mortgage debt, at a weighted average interest rate of approximately 3.65% (reflecting in certain instances a "blended and extended" rate on early refinancings) and a weighted average term to maturity of approximately 5 years. Such refinancings will result in net proceeds to the REIT of approximately $16 million.
  • On May 6, 2013 the REIT announced the acquisition of 741, 755, and 765 Portage Avenue, a three building office portfolio located in downtown Winnipeg ("Portage Portfolio"). The portfolio was purchased for $13.2 million, with the REIT assuming the vendor's existing first mortgage, as well as securing a new vendor take-back second mortgage, for an aggregate principal amount of approximately $9.6 million, a weighted average interest rate of approximately 4.56% and an average term to maturity of 14 years. The acquisition is expected to be immediately accretive. Totaling 43,750 square feet, the Portage Portfolio is fully-leased to three tenants, of which the Winnipeg Regional Health Authority ("WRHA") is the most significant, occupying all of the recently developed, purpose-built government healthcare building at 755 Portage Avenue (80% of the total portfolio rentable area), under a long-term lease (2029). The WRHA is funded by the provincial government and is charged with the organization and provision of healthcare services for Winnipeg and surrounding municipalities, operating and funding over 200 healthcare facilities and programs, with an annual budget of over $2 billion. The portfolio is home to a WRHA Community Health Office, which provides healthcare related services focusing on childhood development, mental health, public health and child and family services. The investment will be the REIT's first asset in the Province of Manitoba.
  • The REIT declared distributions of $0.06667 per unit to unitholders of record as at April 30, 2013.

Peter Riggin, CEO, commented that "We are pleased to report improved year over year financial results for the past quarter, and believe that a solid start to the year in terms of leasing, combined with our pending entry into the Winnipeg market and on-going refinancing activities to extend mortgage maturities, lower borrowing costs and increase liquidity, will provide further benefits in the latter part of 2013 and beyond."

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 first quarter of 2013, 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 "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.

The REIT invites you to participate in its conference call with senior management to discuss our first quarter 2013 results on Wednesday, May 8, 2013 at 9:00 a.m. (Eastern). The conference call can be accessed by dialing (416) 640-5926 or 1-800-820-0231. The conference ID is 6902174.

Audio replay is available until 11:00 am on May 14, 2013 by dialing 647-436-0148 or 1-888-203-1112. The passcode is 6902174.

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.

About NorthWest Healthcare Properties Real Estate Investment Trust
NorthWest Healthcare 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 holds a portfolio of 76 income-producing properties, with a focus on medical office buildings and healthcare real estate, comprising approximately 4.6 million square feet of gross leasable area located in British Columbia, Alberta, Ontario, Québec, Nova Scotia and New Brunswick.

SOURCE: NorthWest Healthcare Properties Real Estate Investment Trust

For further information:

Ernie Spraggs, CFO, (416) 601-3221 or www.nwhp.ca

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