Mr. Paul Lana reports
NORTHWEST INTERNATIONAL HEALTHCARE PROPERTIES REIT RELEASES FOURTH QUARTER 2013 RESULTS
Northwest International Healthcare
Properties REIT has
released its results for the three- and 12-month period ended
Dec. 31, 2013.
Fourth quarter 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-per-cent 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 health care real estate and deliver stable operating
performance and accretive growth opportunities.
Reflecting on 2013
results, Paul Dalla Lana, chairman and 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 health care real estate investments."
Key highlights from the REIT's financial and operating results for the
three and 12 months ended Dec. 31, 2013, include:
- Net operating income of $4,855,484 in fourth quarter 2013, representing a 334-per-cent increase over the same
period last year and a 13-per-cent increase quarter over quarter;
- Net operating income for the fiscal year 2013 of $18,026,247;
- Adjusted funds from operations per unit of 18 cents for fiscal year 2013 and adjusted funds from operations per unit of four cents for
fourth quarter 2013, in line with the prior quarter;
- Annual adjusted funds from operations to distribution payout ratio of approximately 90 per cent, in line
with the REIT's quarterly trends;
- Leading portfolio occupancy at 96.0 per cent (Canada: 91.3 per cent and international: 99.2 per cent), up 70 basis points from prior quarter;
- Weighted-average lease term of 12.4 years (Canada: 4.8 years and
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;
- Completed an equity offering generating $19.7-million of gross proceeds
after inclusion of the overallotment option.
Subsequent to the quarter, the REIT announced a distribution increase of
37 per cent, effective January, 2014, and in February, 2014, the REIT announced
the acquisition of 16 medical office buildings of nearly $100-million, 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 health care real estate in
October, 2012.
FINANCIAL HIGHLIGHTS
As at Dec. 31, As at Dec. 31,
2013 2012
Operational information
Number of properties -- 100% of associates 113 31
Gross leasable area (sf) -- 100% of associates 7,664,605 1,873,571
Occupancy % -- 100% of associates 94.4% 99.5%
For the three months For the 12 months
ended Dec. 31, 2013 ended Dec. 31, 2013
Operating results
Net income/(loss) $(26,809,534) $21,077,009
NOI from continuing operations 4,855,484 18,026,247
Funds from operations (FFO) (815,635) 10,779,626
Adjusted funds from operations (AFFO) 5,639,399 21,224,235
Distributions 5,590,562 19,501,964
Per unit amounts
FFO per unit -- basic (0.01) 0.09
FFO per unit -- adjusted fully diluted (0.01) 0.09
AFFO per unit -- basic 0.04 0.18
AFFO per unit -- adjusted fully diluted 0.04 0.18
Distributions per unit 0.04 0.16
AFFO payout ratio 98% 90%
AFFO payout ratio -- adjusted fully diluted 98% 90%
Full financial statements and management's discussion and analysis will be available on SEDAR, as well as the investors section of the REIT's website.
We seek Safe Harbor.
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