TSX-V: MOB.UN
TORONTO, May 27, 2014 /CNW/ - NorthWest International
Healthcare Properties REIT ("NWI" or the "REIT") announced today
that it has released its results for the three month period ended
March 31, 2014.
In the first quarter of 2014 the REIT realized
the benefits of its significant acquisition in Brazil that closed in the fourth quarter of
2013, posting a 53% growth in Net Operating Income ("NOI")
and an approximate 15% growth in Adjusted Funds From Operations
("AFFO") per Unit over the same quarter of last year.
Key highlights from the REIT's financial and
operating results for the three month period ended March 31, 2014 include:
- NOI of $9,230,811 in Q1'14,
representing a 53% increase over the same quarter last year;
- AFFO / unit of $0.054 for Q1'14,
or $0.22 per Unit on an annualized
basis, representing a 15% increase over the same quarter last
year;
- AFFO to distribution payout ratio of 101%;
- Leading portfolio occupancy at 96.3% (Canada = 91.8%; International = 99.4%), a
sequential 30 bps increase from Q4'13;
- Weighted average lease term of 12.5 years (Canada = 4.7 years; International = 17.9
years), slightly ahead of Q4'13 at 12.4 years; and
- Announced the pending acquisition of 16 medical office
buildings in Germany of nearly
$100 million comprising approximately
500,000 square feet.
"The first quarter of 2014 represents the
culmination of the REIT's significant acquisitions and investments
in 2013 as we delivered meaningful AFFO growth to our unitholders
in the quarter," said Paul Dalla
Lana, Chief Executive Officer of the REIT.
Subsequent to the quarter, in May 2014, the REIT completed a successful
$23 million bought-deal equity
offering and announced two transformative plans for 2014. The REIT
announced that it had entered into an agreement with NorthWest
Value Partners Inc. ("NWVP") with respect to the internalization of
its external management arrangements. This internalization will
also result in the REIT acquiring from NWVP all of the rights and
obligations relating to the management of Vital Healthcare Property
Trust of which the REIT currently indirectly holds an approximate
24% interest. The REIT and NWVP are working towards the completion
of the internalization by December 31st,
2014. Further, the REIT announced plans to initiate the
process of graduating to the Toronto Stock Exchange (the "TSX").
Subject to TSX approval, the REIT intends to graduate on or before
July 1, 2014.
FINANCIAL HIGHLIGHTS
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As at
Mar. 31, 2014 |
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As at
Dec. 31, 2013 |
| Operational
Information (1) |
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Number of Properties -
100% of associates |
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110 |
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113 |
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Gross Leasable Area
(sf) - 100% of associates |
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7,556,727 |
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7,664,605 |
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Occupancy % - 100% of
associates |
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94.7% |
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94.4% |
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| Summary of
Financial Information |
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Gross Book Value
(2) |
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$ |
793,358,386 |
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$ |
756,258,230 |
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Debt - Declaration of
Trust (3) |
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$ |
463,946,840 |
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$ |
437,642,389 |
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Debt to Gross Book
Value - Declaration of Trust |
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58.5% |
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57.9% |
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Debt - Including
convertible debentures (3) |
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$ |
502,916,810 |
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$ |
473,065,389 |
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Debt to Gross Book
Value - Including convertible debentures |
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63.4% |
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62.6% |
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Percentage of
Mortgages and Loans Payable at Fixed Rates |
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61.9% |
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59.1% |
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Weighted-Average
Interest Rate on Fixed Rate Mortgages and Loans Payable |
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6.16% |
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6.11% |
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Adjusted Units
Outstanding - period end (4) |
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Basic |
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147,327,109 |
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146,046,705 |
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Diluted (7) |
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149,543,830 |
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146,347,916 |
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For the three
months ended
Mar. 31, 2014 |
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For the three
months ended
Dec. 31, 2013 |
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| Operating
Results |
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Net Income /
(Loss) |
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$ |
(27,019,676) |
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$ |
(26,809,534) |
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NOI
(5) |
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$ |
9,230,811 |
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$ |
4,855,484 |
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Funds From Operations
("FFO") (5) |
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$ |
3,583,153 |
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$ |
(815,635) |
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Adjusted Funds From
Operations ("AFFO") (5) |
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$ |
7,983,166 |
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$ |
5,639,399 |
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Distributions
(6) |
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$ |
8,094,715 |
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$ |
5,590,562 |
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| Per Unit Amounts
(4) |
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FFO per unit -
Basic |
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$ |
0.02 |
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$ |
(0.01) |
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FFO per unit -
Adjusted fully diluted (7) |
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$ |
0.02 |
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$ |
(0.01) |
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AFFO per unit -
Basic |
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$ |
0.05 |
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$ |
0.04 |
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AFFO per unit -
Adjusted fully diluted (7) |
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$ |
0.05 |
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$ |
0.04 |
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Distributions per
unit |
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$ |
0.06 |
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$ |
0.04 |
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AFFO Payout
Ratio |
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101% |
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98% |
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AFFO Payout Ratio -
Adjusted fully diluted (7) |
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101% |
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98% |
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| Adjusted Weighted
Average Units Outstanding (4) |
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Basic |
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147,043,933 |
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138,120,778 |
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Diluted
(7) |
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147,249,723 |
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138,228,362 |
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 |
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(1) |
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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. |
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(2) |
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Gross Book Value is defined as total assets. |
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(3) |
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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). |
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(4) |
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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 March 31, 2014 and 91,068,320 Class B LP
exchangeable units outstanding at December 31, 2013. |
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(5) |
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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. |
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(6) |
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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. |
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(7) |
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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, audited
consolidated financial statements and management's discussion and
analysis for the year ended December 31,
2013, and the REIT's short form prospectus dated
May 13, 2014, 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