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:
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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;
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NOI for the fiscal year 2013 of $18,026,247;
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AFFO / unit of $0.18 for fiscal year 2013 and AFFO / unit of $0.04 for
Q4'13, in line with the prior quarter;
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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;
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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.;
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Closed a $24 million credit facility; and
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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 $600 million of acquisitions since its
repositioning to focus on international healthcare real estate in
October 2012.
FINANCIAL HIGHLIGHTS
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| As at
Dec. 31, 2013 |
| As at
Dec. 31, 2012 |
| Operational Information (1) |
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Number of Properties - 100% of associates
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113
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31
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Gross Leasable Area (sf) - 100% of associates
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7,664,605
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1,873,571
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Occupancy % - 100% of associates
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94.4%
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99.5%
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| Summary of Financial Information |
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Gross Book Value (2) |
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$
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756,258,230
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$
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349,554,285
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Debt - Declaration of Trust (3) |
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$
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437,642,389
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$
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148,144,630
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Debt to Gross Book Value - Declaration of Trust
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57.9%
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42.4%
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Debt - Including convertible debentures (3) |
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$
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473,065,389
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$
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148,144,630
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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%
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Weighted-Average Interest Rate on Fixed Rate Mortgages and Loans
Payable
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6.11%
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5.50%
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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
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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 |
| 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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$
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(26,809,534)
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$
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21,077,009
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NOI from Continuing Operations (5) |
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$
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4,855,484
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$
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18,026,247
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Funds From Operations ("FFO") (5)(6) |
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$
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(815,635)
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$
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10,779,626
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Adjusted Funds From Operations ("AFFO") (5) |
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$
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5,639,399
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$
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21,224,235
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Distributions (7) |
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$
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5,590,562
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$
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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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$
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(0.01)
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$
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0.09
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FFO per unit - Adjusted fully diluted (8) |
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$
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(0.01)
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$
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0.09
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AFFO per unit - Basic
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$
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0.04
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$
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0.18
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AFFO per unit - Adjusted fully diluted (8) |
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$
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0.04
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$
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0.18
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Distributions per unit
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$
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0.04
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$
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0.16
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AFFO Payout Ratio
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98%
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90%
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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
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Diluted (8) |
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138,228,362
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119,616,222
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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
December 31, 2013 and 55,944,444 Class B LP exchangeable units
outstanding at December 31, 2012.
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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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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.
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(7)
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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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(8)
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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.
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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
<p> Paul Dalla Lana, CEO, (416) 366-8300 x1001 </p> <p> Teresa Neto, CFO, (416) 366-8300 x1002 </p>