TSX-V: MOB.UN
TORONTO, Nov. 27, 2014 /CNW/ - NorthWest
International Healthcare Properties REIT ("NWI" or the "REIT")
announced today that it has released its results for the three and
nine month period ended September 30,
2014.
The REIT's third quarter of 2014 delivered solid financial
results posting an 8.4% increase in Net Operating Income
("NOI") versus the second quarter of 2014, nearly one and a
half times the NOI relative to the same quarter last year. Further,
Adjusted Funds From Operations ("AFFO") grew approximately
1% relative to the second quarter of 2014 and approximately 42%
relative to the same quarter of last year, largely due to the
strength of our growing NOI.
Key highlights from the REIT's financial and operating results
for the three and nine month period ended September 30, 2014 include:
- Growth in total assets to $863.8
million, up $107.5 million
from the beginning of 2014;
- Closed the $16.1 million
acquisition of the Hohenschoenhausen medical office building in the
city of Berlin;
- Recognition of a $16.0 million
valuation gain in our Brazilian portfolio of 5 hospital assets,
largely driven by incremental NOI as a result of increased rents
associated with the portfolio's indexed leases;
- NOI of $10.5 million in Q3'14,
representing a 144.5% increase over the same quarter last year (YTD
NOI of $29.4 million);
- AFFO per unit (basic) of $0.05
for Q3'14, or $0.21 per Unit on an
annualized basis, largely consistent with the previous two quarters
of 2014 (AFFO per unit of $0.16 for
the nine months ended September 30,
2014);
- AFFO payout ratio of 104% (AFFO payout ratio of 101% for the
nine months ended September 30,
2014);
- Same property NOI growth of 9.7% driven by indexation of
approximately 99% of the REIT's international property
revenues;
- Leading portfolio occupancy at 96.0% on a proportionate share
basis (Canada = 91.8%;
International = 98.3%), consistent with the second quarter of
2014;
- Weighted average lease term to maturity of 11.4 years on a
proportionate share basis (Canada
= 4.6 years; International = 15.3 years), consistent with the
second quarter; and
- In September 2014, the REIT
closed a successful $38.75 million
bought deal unsecured convertible debt offering.
Subsequent Events
In the third quarter of 2014 and subsequently, the REIT
successfully refinanced all 2014 loan maturities. The REIT extended
three corporate loans with 2014 maturities, both in Canada and New
Zealand, each extending for a further one year period. In
addition, subsequent to the third quarter of 2014, the REIT entered
contracts to renew its existing Brazilian term loans for a one year
period and entered into new long-term financing arrangements that
will provide stable, 12-year financing over the majority of its
Brazilian portfolio and that will significantly extend the REIT's
overall debt maturity profile.
On October 17, 2014, the REIT
announced the appointment of Mr. Vincent
Cozzi as Co-President and Chief Investment Officer of the
REIT. Prior to joining the REIT, Mr. Cozzi was a Senior Vice
President of Ventas, Inc., a U.S. healthcare REIT, and Executive
Vice President and Chief Investment Officer of its Lillibridge
Healthcare Services subsidiary. Mr. Cozzi will lead the REIT's
international investment initiatives as well as oversee its
strategic investments in Canada
and Australia/New Zealand.
On November 25, 2014, the REIT
closed an equity offering of 13,954,000 Trust Units. The Trust
Units were issued at a price of $2.15
per Trust Unit, for gross proceeds of $30,001,100.
"In the third quarter of 2014 and in the months subsequent, the
REIT delivered on its commitments to successfully refinance its
2014 debt maturities and to close the final property of its
significant German medical office portfolio acquisition this year,"
said Paul Dalla Lana, Chief
Executive Officer of the REIT. "The REIT can now look forward to
the final months of the year and continue to focus on a number of
initiatives including; the completion of the long-term refinancing
of its Brazil term loans and its
management internalization initiative; as well as continuing to
source new accretive acquisition and development opportunities for
2015."
FINANCIAL
HIGHLIGHTS
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As at
Sep. 30, 2014
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As at
Dec. 31, 2013
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Operational
Information (1)
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Number of Properties
- 100% of associates
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122
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113
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Gross Leasable Area
(sf) - 100% of associates
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7,891,572
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7,664,605
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Occupancy % - 100% of
associates
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94.7%
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94.4%
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Summary of
Financial Information
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Gross Book Value
(2)
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$
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863,768,660
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$
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756,258,230
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Debt - Declaration of
Trust (3)
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$
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483,808,250
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$
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437,642,389
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Debt to Gross Book
Value - Declaration of Trust
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56.0%
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57.9%
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Debt - Including
convertible debentures (3)
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$
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557,153,810
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$
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473,065,389
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Debt to Gross Book
Value - Including convertible debentures
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64.5%
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62.6%
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Percentage of
Mortgages and Loans Payable at Fixed Rates
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65.6%
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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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5.59%
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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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164,478,610
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146,046,705
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Diluted
(7)
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164,868,636
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146,347,916
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For the three
months ended
Sep. 30, 2014
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For the nine
months ended
Sep. 30, 2014
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Operating
Results
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Net Income /
(Loss)
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$
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(11,922,697)
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$
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(47,842,286)
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NOI
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$
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10,470,000
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$
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29,360,454
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Funds From Operations
("FFO") (5)
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$
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3,878,945
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$
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11,696,515
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Adjusted Funds From
Operations ("AFFO") (5)
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$
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8,620,918
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$
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25,321,184
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Distributions
(6)
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$
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8,981,352
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$
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25,711,881
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Per Unit Amounts
(4)
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FFO per unit -
Basic
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$
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0.02
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$
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0.08
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FFO per unit -
fully diluted (7)
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$
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0.02
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$
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0.08
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AFFO per unit -
Basic
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$
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0.05
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$
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0.16
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AFFO per unit - fully
diluted (7)
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$
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0.05
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$
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0.16
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Distributions per
unit
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$
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0.06
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$
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0.17
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AFFO Payout
Ratio
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104%
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101%
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AFFO Payout Ratio -
fully diluted (7)
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104%
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101%
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Adjusted Weighted
Average Units Outstanding (4)
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Basic
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162,384,317
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154,536,353
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Diluted
(7)
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162,612,832
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154,742,238
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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 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.
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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 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 September 30, 2014 and
91,068,320 Class B LP exchangeable units outstanding at December
31, 2013.
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(5)
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FFO and AFFO are not
measures recognized under IFRS and do not have standardized
meanings prescribed by IFRS. 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
FFO and AFFO as reported by other such issuers. These terms are
defined in the REIT's third quarter 2014 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 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.
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(7)
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Diluted units include
the conversion of the REIT's convertible debentures 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 are considered anti-dilutive.
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In conjunction with the release of the REIT's third quarter 2014
financial results, the REIT will be posting 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.
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.
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 November 18,
2014, copies of which each may be obtained on the SEDAR
website at www.sedar.com.
SOURCE NorthWest International Healthcare Properties REIT