TSX-V: MOB.UN
TORONTO, April 23, 2014 /CNW/ - NorthWest International
Healthcare Properties REIT ("NWI" or the "REIT") announced today
that it has released its results for the three and twelve months
period ended December 31, 2013.
Q4-2013 marked another quarter of significant
growth for the REIT with the closing of the sale leaseback
transaction of three hospitals in Brazil, increasing its asset base by over
$200 million, representing a 35%
increase from the prior quarter. This acquisition, representing the
REIT's third acquisition in Brazil
in just over one year delivers on the REIT's commitment to continue
to diversify its portfolio of international healthcare real estate,
deliver stable operating performance and accretive growth
opportunities. Reflecting on 2013 results, Paul Dalla Lana, Chairman & Chief Executive
Officer of the REIT commented:
"We are excited to conclude another year of significant growth
in our portfolio and its underlying profitability. During the
year, the REIT added key properties in each of its core markets
that are accretive in terms of both quality and return.
We begin 2014 even better positioned to deliver on our key business
objective of providing investors with stable, growing cash flow
distributions through long-term healthcare real estate
investments."
Key highlights from the REIT's financial and
operating results for the three and twelve months ended
December 31, 2013 include:
- NOI of $4,855,484 in Q4'13,
representing a 334% increase over the same period last year and a
13% increase quarter over quarter;
- NOI for the fiscal year 2013 of $18,026,247;
- AFFO / unit of $0.18 for fiscal
year 2013 and AFFO / unit of $0.04
for Q4'13, in line with the prior quarter;
- Annual AFFO to distribution payout ratio of approximately 90%,
in line with the REIT's quarterly trends ;
- Leading portfolio occupancy at 96.0% (Canada = 91.3%; International = 99.2%), up 70
bps from prior quarter;
- Weighted average lease term of 12.4 years (Canada = 4.8 years; International = 17.7
years), an increase of 3.1 years from the prior quarter;
- Closed the previously announced $205
million sale leaseback of a portfolio of leading Brazilian
Hospitals from Rede D'Or Sao Luiz S.A.;
- Closed a $24 million credit
facility; and
- Completed an equity offering generating $19.7 million of gross proceeds after inclusion
of the over-allotment option.
Subsequent to the quarter, the REIT announced a
distribution increase of 37% effective January 2014, and in February 2014, the REIT announced the acquisition
of 16 medical office buildings of nearly $100 million (the "German MOB Portfolio"),
which is expected to close some time in the second quarter of 2014.
Upon completion of the German MOB Portfolio, the REIT will have
completed more than $600 million of
acquisitions since its repositioning to focus on international
healthcare real estate in October
2012.
FINANCIAL HIGHLIGHTS
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As at
Dec. 31, 2013 |
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As at
Dec. 31, 2012 |
Operational Information (1) |
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Number of Properties - 100% of
associates |
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113 |
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31 |
Gross Leasable Area (sf) - 100%
of associates |
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7,664,605 |
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1,873,571 |
Occupancy % - 100% of
associates |
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94.4% |
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99.5% |
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Summary of Financial Information |
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Gross Book Value
(2) |
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$ |
756,258,230 |
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$ |
349,554,285 |
Debt - Declaration of Trust
(3) |
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$ |
437,642,389 |
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$ |
148,144,630 |
Debt to Gross Book Value -
Declaration of Trust |
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57.9% |
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42.4% |
Debt - Including convertible
debentures (3) |
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$ |
473,065,389 |
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$ |
148,144,630 |
Debt to Gross Book Value -
Including convertible debentures |
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62.6% |
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42.4% |
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Percentage of Mortgages and
Loans Payable at Fixed Rates |
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59.1% |
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77.1% |
Weighted-Average
Interest Rate on Fixed Rate Mortgages and Loans Payable |
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6.11% |
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5.50% |
Adjusted Units Outstanding -
period end (4) |
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Basic |
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146,046,705 |
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98,541,704 |
Diluted
(7) |
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146,347,916 |
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98,541,704 |
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For the three
months ended
Dec. 31, 2013 |
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For the twelve
months ended
Dec. 31, 2013 |
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Operating Results |
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Net Income / (Loss) |
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$ |
(26,809,534) |
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$ |
21,077,009 |
NOI from Continuing Operations
(5) |
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$ |
4,855,484 |
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$ |
18,026,247 |
Funds From Operations ("FFO")
(5)(6) |
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$ |
(815,635) |
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$ |
10,779,626 |
Adjusted Funds From Operations
("AFFO") (5) |
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$ |
5,639,399 |
|
$ |
21,224,235 |
Distributions
(7) |
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$ |
5,590,562 |
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$ |
19,501,964 |
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Per Unit Amounts (4) |
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FFO per unit - Basic
(6) |
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$ |
(0.01) |
|
$ |
0.09 |
FFO per unit - Adjusted fully
diluted (8) |
|
$ |
(0.01) |
|
$ |
0.09 |
AFFO per unit - Basic |
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$ |
0.04 |
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$ |
0.18 |
AFFO per unit - Adjusted fully
diluted (8) |
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$ |
0.04 |
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$ |
0.18 |
Distributions per
unit |
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$ |
0.04 |
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$ |
0.16 |
AFFO Payout Ratio |
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98% |
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90% |
AFFO Payout Ratio - Adjusted
fully diluted (8) |
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98% |
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90% |
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Adjusted Weighted Average Units Outstanding
(4) |
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Basic |
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138,120,778 |
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119,519,921 |
Diluted (8) |
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138,228,362 |
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|
119,616,222 |
Full financial statements and MD&A will be
available on SEDAR (www.sedar.com) as well as the Investors section
of the REIT's website (www.nwireit.com).
Notes
(1) |
Operational information includes 100% of Vital Trust and NWHP
REIT. The REIT has an exposure to an approximate 24% interest in
Vital Trust and approximate 26% interest in NWHP REIT. |
(2) |
Gross Book Value is defined as total assets. |
(3) |
Indebtedness as defined in the Declaration of Trust includes
the principal balance of mortgages, securities lending agreement,
margin facilities, term loan, line of credit, and deferred
consideration. The REIT's total debt also includes convertible
debentures (at fair value). |
(4) |
Under IFRS the REIT's Class B LP exchangeable units are treated
as a financial liability rather than equity. As permitted under
IFRS the REIT has chosen to present an adjusted basic and diluted
per unit measure that includes the Class B LP exchangeable units in
basic and diluted units outstanding/weighted average units
outstanding. There were 91,068,320 Class B LP exchangeable units
outstanding as at December 31, 2013 and 55,944,444 Class B LP
exchangeable units outstanding at December 31, 2012. |
(5) |
NOI, FFO and AFFO are not measures recognized under IFRS and do
not have standardized meanings prescribed by IFRS. NOI, FFO and
AFFO as computed by the REIT may differ from similar computations
as reported by other real estate investment trusts and,
accordingly, may not be comparable to NOI, FFO and AFFO as reported
by other such issuers. These terms are defined in this MD&A and
reconciled to IFRS-based amounts reported in the consolidated
financial statements of the REIT. |
(6) |
FFO and FFO per unit for both the three months and year ended
December 31, 2013 includes the incentive fee expense of $4,103,617.
For the three months ended December 31, 2013, excluding the
incentive fee, FFO and FFO per unit (basic) would be $3,287,982 and
$0.02 respectively. For the year ended December 31, 2013, excluding
the incentive fee, FFO and FFO per unit (basic) would be
$14,883,243 and $0.12 respectively. |
(7) |
Represents distributions to Unitholders and Class B LP
exchangeable unitholders on an accrual basis. Distributions are
payable as at the end of the period in which they are declared by
the Board of Trustees, and are paid on or around the 15th day of
the following month. |
(8) |
Diluted units include the conversion of the REIT's convertible
debentures and warrants if the conversion price or exercise price
is greater than the closing price of the Trust Unit as at the end
of the reporting period. Otherwise the convertible debentures and
warrants are considered anti-dilutive. |
About NorthWest International Healthcare
Properties Real Estate Investment Trust
The REIT 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 international healthcare
properties, 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.
Reader Advisory
This news release contains "forward-looking
statements" within the meaning of applicable securities laws. These
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ
materially from current expectations, including the ability of the
REIT to pay the distribution on the date specified. The statements
in this news release are made as of the date of this release.
Although the REIT believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. A
discussion of the risk factors applicable to the REIT is contained
under the heading "Risk Factors" in the REIT's annual information
form dated April 23, 2014 and audited
consolidated financial statements and management's discussion and
analysis for the year ended December 31,
2013, copies of which each may be obtained on the SEDAR
website at www.sedar.com.
Neither the TSX Venture Exchange Inc. nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) has approved or disapproved the
contents of this press release.
SOURCE NorthWest International Healthcare Properties REIT