TSX-V: MOB.UN
TORONTO, Aug. 14, 2014 /CNW/ - NorthWest
International Healthcare Properties REIT ("NWI" or the "REIT")
announced today that it has released its results for the three and
six month period ended June 30,
2014.
The REIT's second quarter of 2014 delivered solid financial
results posting a 4.6% increase in Net Operating Income
("NOI") versus the first quarter of 2014, and more than
doubling NOI relative to the same quarter last year. Further,
Adjusted Funds From Operations ("AFFO") grew approximately
7.1% relative to the first quarter of 2014 and approximately 77.4%
relative to the same quarter of last year, largely due to the
strength of our growing NOI and strong year-end results from our
strategic investment in Vital Healthcare Property Trust ("Vital
Trust").
Also in the second quarter, the REIT continued to execute on its
business plan to build a diversified, growing global portfolio of
healthcare properties. In June 2014,
the REIT completed the acquisition of 13 medical office buildings
in Germany, as previously
announced in the first quarter this year.
Key highlights from the REIT's financial and operating results
for the three and six month period ended June 30, 2014 include:
- Growth in assets to $821.5
million, up $65.2 million from
the beginning of 2014 and $304.4
million from one year ago;
- NOI of $9,659,644 in Q2'14,
representing a 112.5% increase over the same quarter last year (YTD
NOI of $18,890,455);
- AFFO/unit of $0.06 for Q2'14, or
$0.22 per unit on an annualized basis
consistent with the first quarter of 2014 (AFFO/unit of
$0.11 per unit for the six months
ended June 30, 2014);
- AFFO to distribution payout ratio of 99.0% (AFFO payout ratio
of 100% for the six months ended June 30,
2014);
- Same property NOI growth of 6.1% driven by indexation of
approximately 99% of the company's international property
revenues;
- Leading portfolio occupancy at 96.1% (Canada = 92.1%; International = 98.5%),
consistent with the first quarter of 2014;
- Weighted average lease term expiry of 11.6 years (Canada = 4.7 years; International = 15.6
years), slightly below the first quarter of 2014 as a result of the
addition of the German medical office building acquisition with
traditionally shorter-term leases;
- In May 2014, the REIT closed a
successful $23 million bought deal
equity offering which saw an expanded syndicate and new
institutional support; and
- In June 2014, the REIT completed
the acquisition 13 medical office buildings in Germany located in the cities of Berlin, Ingolstadt and Leipzig. This approximate $54 million portfolio comprises approximately
350,000 square feet of gross leasable area and has a weighted
average occupancy rate of 95% and weighted average lease expiry of
approximately 4.4 years.
Also in the second quarter of 2014, in April the REIT announced
plans to establish a long-term fully-integrated internal management
structure. 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 Trust of which the REIT currently indirectly holds an
approximate 24% interest. Additionally, the REIT announced plans to
seek a listing on the Toronto Stock Exchange (the "TSX") and
concurrently expand the size of its board of directors. The REIT
continues to work towards the completion of these items by
December 31st, 2014.
"The second quarter of 2014 demonstrated the REIT's commitment
to deliver stable distributions to our unitholders while
establishing a long-term platform for growth", said Paul Dalla Lana, Chief Executive Officer of the
REIT. "The German medical office building portfolio acquisition
adds significant scale to the REIT's German operations and will
solidify the REIT as a leading healthcare landlord in that country,
complementing its existing leadership positions in Australia, New
Zealand, Brazil and
Canada. Further we remain
committed to executing the internalization of management by the end
of the year."
FINANCIAL HIGHLIGHTS
|
|
As at
Jun. 30, 2014
|
|
As at
Dec. 31, 2013
|
Operational
Information (1)
|
|
|
|
|
Number of Properties
- 100% of associates
|
|
|
122
|
|
|
113
|
Gross Leasable Area
(sf) - 100% of associates
|
|
|
7,844,564
|
|
|
7,664,605
|
Occupancy % - 100% of
associates
|
|
|
94.9%
|
|
|
94.4%
|
|
|
|
|
|
|
|
Summary of
Financial Information
|
|
|
|
|
|
|
Gross Book Value
(2)
|
|
$
|
821,503,979
|
|
$
|
756,258,230
|
Debt - Declaration of
Trust (3)
|
|
$
|
492,630,516
|
|
$
|
437,642,389
|
Debt to Gross Book
Value - Declaration of Trust
|
|
|
60.0%
|
|
|
57.9%
|
Debt - Including
convertible debentures (3)
|
|
$
|
529,884,026
|
|
$
|
473,065,389
|
Debt to Gross Book
Value - Including convertible debentures
|
|
|
64.5%
|
|
|
62.6%
|
|
|
|
|
|
|
|
Percentage of
Mortgages and Loans Payable at Fixed Rates
|
|
|
64.9%
|
|
|
59.1%
|
Weighted-Average
Interest Rate on Fixed Rate Mortgages and Loans Payable
|
|
|
5.77%
|
|
|
6.11%
|
Adjusted Units
Outstanding - period end (4)
|
|
|
|
|
|
|
|
Basic
|
|
|
160,928,997
|
|
|
146,046,705
|
|
Diluted
(7)
|
|
|
161,276,423
|
|
|
146,347,916
|
|
|
|
|
|
|
|
For the three
months ended
Jun. 30, 2014
|
|
For the six
months ended
Jun. 30, 2014
|
|
|
|
|
|
Operating
Results
|
|
|
|
|
Net Income /
(Loss)
|
|
$
|
(8,899,911)
|
|
$
|
(35,919,591)
|
NOI
(5)
|
|
$
|
9,659,644
|
|
$
|
18,890,455
|
Funds From Operations
("FFO") (5)
|
|
$
|
4,069,349
|
|
$
|
7,652,498
|
Adjusted Funds From
Operations ("AFFO") (5)
|
|
$
|
8,552,032
|
|
$
|
16,535,194
|
Distributions
(6)
|
|
$
|
8,635,814
|
|
$
|
16,730,529
|
|
|
|
|
|
|
|
Per Unit Amounts
(4)
|
|
|
|
|
|
|
FFO per unit -
Basic
|
|
$
|
0.03
|
|
$
|
0.05
|
FFO per unit -
Adjusted fully diluted (7)
|
|
$
|
0.03
|
|
$
|
0.05
|
AFFO per unit -
Basic
|
|
$
|
0.06
|
|
$
|
0.11
|
AFFO per unit -
Adjusted fully diluted (7)
|
|
$
|
0.06
|
|
$
|
0.11
|
Distributions per
unit
|
|
$
|
0.06
|
|
$
|
0.11
|
AFFO Payout
Ratio
|
|
|
99%
|
|
|
100%
|
AFFO Payout Ratio -
Adjusted fully diluted (7)
|
|
|
99%
|
|
|
100%
|
|
|
|
|
|
|
Adjusted Weighted
Average Units Outstanding (4)
|
|
|
|
|
|
Basic
|
|
|
154,012,230
|
|
|
150,547,331
|
Diluted
(7)
|
|
|
154,218,763
|
|
|
150,742,380
|
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
- Operational information includes 100% of Vital Trust and
Northwest Healthcare Properties REIT ("NWHP REIT"). The REIT
has an exposure to an approximate 24% interest in Vital Trust and
approximate 26% interest in NWHP REIT.
- Gross Book Value is defined as total assets.
- 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).
- Under IFRS the REIT's Class B LP and Class D GP exchangeable
units are treated as a financial liability rather than equity. The
REIT has chosen to present an adjusted basic and diluted per unit
measure that includes the Class B LP and Class D GP exchangeable
units in basic and diluted units outstanding/weighted average units
outstanding. There were 91,068,320 Class B LP and 1,110,580 Class D
GP exchangeable units outstanding as at June
30, 2014 and 91,068,320 Class B LP exchangeable units
outstanding at December 31,
2013.
- 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.
- Represents distributions to Unitholders and Class B LP and
Class D GP 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.
- Diluted units include the conversion of the REIT's convertible
debentures and warrants if the closing price of the Trust Unit is
greater than the conversion price or exercise price as at the end
of the reporting period. Otherwise the convertible debentures and
warrants are considered anti-dilutive.
The REIT invites you to participate in a conference call with
senior management to discuss second quarter 2014 results on
Friday, August 15, 2014 at
10:00 am (ET). Investors are invited
to access the call by dialing 647-427-7450 or toll-free
1-888-231-8191, conference ID# 71593372. Audio replay of this call
will be made available Friday, August 15,
2014 beginning at 1:00 pm (ET)
through to Friday, August 29, 2014.
To access the recording, please call 416-849-0833 or 1-855-859-2056
and use the reservation number 71593372.
In conjunction with the release of the REIT's second quarter
2014 financial results, the REIT has posted a current investor
update presentation to its website where additional information on
the REIT's investments and operating performance may be found.
Please visit the REIT's website at
www.nwireit.com/Investors/Presentations.
Vital Healthcare Property Trust Releases Results for Fiscal
Year-End June 30, 2014
The REIT is also pleased to announce financial results from
NSX-listed Vital Trust for the year ended June 30, 2014, released on August 14, 2014. The REIT has an exposure to an
approximate 24% interest in Vital Trust. Vital Trust is also
managed by an affiliate of the REIT's external manager – NorthWest
International Asset Management Inc.
For the year ended June 30, 2014,
Vital Trust increased its net distributable income by 23.1% to
NZ$34.7 million which was underpinned by a portfolio occupancy of
99.3% that realized 94 rent reviews with an average increase of
2.6%. Further, Vital completed four development projects in the
year totaling A$20 million now
yielding approximately 10% per annum. Vital Trust posted a
market-leading weighted average lease term expiry of 15.1 years as
at year-end, up substantially from 11.8 years the year prior. In
line with Vital Trust's solid year on year operational results, for
fiscal year 2015, Vital Trust announced an increase of 1.3% in its
cash distribution guidance to NZ$0.08 per unit. Also this week,
Vital Trust announced the acquisition of a 31-bed stand-alone
private psychiatric hospital, The Marian Centre, in Perth, Western
Australia for A$13.5 million
and an initial yield of approximately 8.5%. The Marian Centre is
operated by Healthe Care, Australia's third largest for-profit private
hospital operator. Details on Vital Trust's fiscal year-end results
ending June 30, 2014 are available on
the SEDAR website at www.sedar.com under the REIT's profile, as
well as on Vital Trust's website at
www.vitalhealthcareproperty.co.nz.
NorthWest Healthcare Properties REIT Releases Second Quarter
2014 Results
The REIT further announces financial results for TSX-listed
NorthWest Healthcare Properties REIT ("NWHP REIT") for the three
and six months ended June 30, 2014,
released on August 12th, 2014. The
REIT has an exposure to an approximate 26% interest in NWHP
REIT.
NWHP REIT's second quarter operating results were generally in
line with expectations, with FFO and AFFO per unit for the quarter
at $0.25 and $0.21, respectively, consistent with the three
months ended March 31, 2014 and
consistent with the same quarter prior year. The payout ratio for
the second quarter was 93% of AFFO. For the three months ended
June 30, 2014, NWHP reported
$20.1 million of net operating
income, which represents a 2% increase over the prior year. The
increase was primarily attributable to an increase in same property
NOI of 1% and the impact of completed accretive acquisitions during
the period, offset partially by dispositions of two properties
during the six months ended June 30,
2014. NWHP REIT's portfolio occupancy increased from 91.3%
to 92.1% from December 31, 2013 to
June 30, 2014. Details on NWHP REIT's
second quarter 2014 results are available on the SEDAR website at
www.sedar.com as well as on NWHP REIT's website at www.nwhp.ca.
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. For more information on the REIT, visit
www.nwireit.com.
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 or grow distributions, and the risk that the
management internalization, will not be completed on the terms
proposed, or at all. 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