TORONTO, May 12, 2022
/CNW/ - NorthWest Healthcare Properties Real Estate Investment
Trust (the "REIT") (TSX: NWH.UN) today announced its results for
the three months ended March 31,
2022.
NorthWest's high quality and defensive $10 billion, 229 property portfolio1
performed well in the first quarter of 2022 and the REIT delivered
strong financial and operational results, highlighted by 1.5% and
15.4% year-over-year AFFO and NAV per unit growth, respectively and
strong occupancy of 97%. These results are underpinned by the
REIT's foundational pillars including:
Portfolio quality: The REIT's
high-quality and defensive portfolio delivered strong operational
results including 2.2% constant currency same property NOI growth,
supported by high 97% occupancy and more than 80% of revenue
contractually indexed to inflation. The REIT's recent US
acquisition enhanced these characteristics while also improving
geographic diversification and the credit quality of its
tenants thereby enhancing its overall cash flow profile.
Additionally, the REIT's active development program delivered three
new fully-leased projects in Q1 with a combined value of
$103 million at an accretive yield of
approximately 6%. With a further $306
million under construction the REIT will continue to enhance
its portfolio quality, deliver internal growth and advance its
sustainability objectives.
Capital formation: In furtherance of
its capital formation objectives, the REIT completed a series of
important initiatives including supporting Vital's recent
$174 million equity offering with a
$48 million lead order to maintain
it's pro-rata ownership. This investment will support the next leg
of Vital's acquisition and development program which is a key
driver of the REIT's management fee stream. Following on the
success of its initial Australian Institutional joint venture with
GIC, Singapore's sovereign wealth
fund, the REIT completed a $2.2
billion upsize to support the next phase of its growth in
Australia. The REIT also advanced
its UK and US institutional joint venture initiatives both of which
are well progressed and anticipated to complete in Q2 and Q3 2022
respectively.
Funds Management: With in-place capital
commitments and deployed fee bearing capital totaling $11.2 billion and $5.6 billion, respectively, forecast to increase
to $14.5 billion and $7.4 billion upon completion of the UK and US JV
initiatives, the REIT's funds management platform continues to
scale at pace. At a target ownership level of between 20% - 30%
across its capital platforms the REIT anticipates generating market
leading growth in both AFFO and NAV on a per unit
basis as a result of leveraging its capital light model to fund
growth.
Growth: The REIT's $753 million US acquisition completed in April
created new avenues for growth in the largest healthcare real
estate market in the world. Additionally, over the last 12 months,
NorthWest has created a $2 billion
plus pipeline of development opportunities that align with it
global healthcare precinct strategy. With significant internally
generated capital available from its planned UK and US joint
ventures it remains focused on deploying capital within fee bearing
vehicles to enhance unitholder returns.
1
|
Proforma the US
acquisition which closed on April 14, 2022
|
Commenting on NorthWest's strong results and progress on key
strategic initiatives Paul Dalla
Lana, Chairman and CEO said:
"The REIT's key priorities in 2022 included
entering the United States,
executing its UK JV initiative, and executing on its US JV
initiative. We are excited with the start to 2022 and to have
already entered the US with our inaugural $753 million portfolio acquisition that closed in
April. The REIT is now focused on executing on the JV initiatives
and continuing its transition to an asset light, best in class,
global healthcare real estate investment manager."
Mr. Dalla Lana went on to
say:
"Despite the evolving macro-economic environment
and rising inflation and interest rates the REIT is well positioned
with more than 80% of global revenue subject to annual indexation.
Moreover, the REIT's balance sheet is conservatively constructed
and post completion of the US acquisition and both the UK and US
joint ventures the REIT will have achieved its target leverage
metrics and extended its average debt term to maturity while
lowering its overall cost of capital and exposure to interest rate
fluctuations."
Summary of YTD 2022 Investment Activity
2022 is off to a strong start with the REIT completing YTD
acquisitions of $878 million
inclusive of (i) the previously announced US acquisition for
$753 million; (ii) a rehabilitation
clinic in Germany for
approximately $60 million (€39.9
million), (iii) normal course MOBs for approximately $10.9 million; and (iv) two MOBs plus strategic
land by Vital Healthcare Property Trust ("Vital") for $52.7 million.
The REIT continues to have an active investment pipeline
totaling approximately $155 million
that is comprised of approximately $95
million of assets under contract within institutional joint
ventures; $20 million of assets under
contract by Vital Trust; and the balance under contract by the
REIT
On May 2, 2022, Vital completed an institutional
entitlement offering raising $173.7
million (NZ$200 million) of equity to fund approximately
$200 million (NZ$225 million) of new
acquisitions and developments. In support of Vital's capital raise
and investment activity, the REIT subscribed for its pro rata share
of capital, representing an investment of $47.8 million (NZ$55 million).
Balance Sheet Initiatives
On March 31, 2022 the REIT completed a $172.5
million equity offering of 12.5 million units (including full
exercise of the overallotment option) at $13.80 per unit (the "March Offering"). NorthWest
Value Partners has committed to acquire $15
million of units on the same terms as the March
Offering (the "Private Placement") which is expected to close later
in May.
At Q1-2022, total proportionate debt outstanding was
$3.0 billion equating to an 48.8% LTV
ratio. As a result of its on-going transition to a capital light,
asset management model, the REIT has optimized its existing debt
structure to accommodate new JV partners and maintain balance sheet
flexibility to explore additional sources of funding as it
continues to de-lever and achieve investment grade metrics.
Adjusting for the US acquisition and proforma completion of both
the UK JV and the US JV, the REIT's capital structure is expected
to rapidly evolve as it repays short-term acquisition facilities
and terms out property level debt. Proforma the US Acquisition and
regional JV formation, proportionate LTV is expected to be 45%, the
weighted average interest rate is expected to decrease to 2.9%
(down 40 bps) while its WATM increases to 3.5 years (up 1.2
years).
2022 First Quarter Financial and Operational
Highlights:
For the three months and year ended March
31, 2022, the REIT delivered strong financial and
operational performance with an increasingly conservative balance
sheet across an expanded 202 property, 16.9
million square foot defensive
acute healthcare real estate portfolio underpinned by long-term
inflation indexed leases. Key highlights are as follows:
- Q1 2022 revenue increased by 10.9% year over year to
$102.7M;
- Q1 2022 AFFO of $0.21 per unit is
comparable year over year (see Exhibit 2);
- AFFO payout ratio of 95% based on the REIT's $0.80 per unit annual distribution;
- Year to date Same Property NOI growth of 2.2%, driven primarily
by annual rent indexation (see Exhibit 4);
- Strong portfolio occupancy of 97.0% is in line with the
previous quarter;
- Weighted average lease expiry of 14.6 years is underpinned by
the international portfolio's Hospital and Health Care Facility
Assets' weighted average lease expiry of 17.0 years;
- Total assets under management ("AUM") increased 23.7% year over
year to $9.5 billion;
- Total capital deployed in fee bearing vehicles is $5.6 billion up 19.1% year over year. Undeployed
capital in existing fee bearing vehicles totals $4.8 billion;
- Net asset value ("NAV") per unit increased by 15.4% year over
year to $14.73 (see Exhibit 4);
- Debt to Gross Book Value - Including Convertible Debentures of
42.5% has decreased 180 bp, year over year
Selected Financial Information:
(unaudited)
($000's, except unit
and per unit amounts)
|
Three months
ended
March 31, 2022
|
Three months
ended
March 31, 2021
|
Number of
properties
|
202
|
186
|
Gross leasable area
(sf)
|
16,919,499
|
15,535,503
|
Occupancy
|
97%
|
97%
|
Weighted Average Lease
Expiry (Years)
|
14.6
|
14.3
|
Net Operating
Income
|
$77,067
|
$70,564
|
Net Income (Loss)
attributable to unitholders
|
$88,254
|
$52,957
|
Funds from Operations
("FFO")
|
$47,328
|
$38,330
|
Adjusted Funds from
Operations ("AFFO")
|
$47,450
|
$38,024
|
Debt to Gross Book
Value - Declaration of Trust
|
40.7%
|
39.2%
|
Debt to Gross Book
Value - Including Convertible Debentures
|
42.5%
|
44.3%
|
Q1 2022 Conference Call:
The REIT invites you to participate in its conference call with
senior management to discuss our first quarter 2022 results on
Friday, May 13, 2022 at 10:00 AM (Eastern).
The conference call can be accessed by dialing 416-764-8609 or 1
(888) 390-0605. The conference ID is 68858023#.
Audio replay will be available from May
13, 2022 through May 20, 2022
by dialing 416-764- 8677 or 1 (888) 390-0541. The reservation
number is 858023#.
In conjunction with the release of the REIT's first quarter 2022
financial results, the REIT will post 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.nwhreit.com/Investors/Presentations
Vital Healthcare Property Trust
On May 12, 2022 Vital Trust also
announced its financial results for the three and nine months ended
March 31, 2022. Details on Vital
Trust's financial results are available on Vital Trust's website at
www.vitalhealthcareproperty.co.nz
About NorthWest Healthcare Properties Real Estate Investment
Trust
NorthWest is a global real estate investor, asset manager and
developer focused on properties and partnerships at the
intersection of healthcare, knowledge and research. Founded in
2004, NorthWest (TSX: NWH.UN) owns and operates a $10 billion portfolio of 229 high quality
healthcare properties across Canada, the United
States, Brazil, the UK,
Germany, the Netherlands, Australia, and New
Zealand. With 300 professionals operating in 7 countries,
NorthWest brings a global view, local execution capabilities, and a
long-term ownership strategy which allows it to serve as a real
estate partner of choice to leading healthcare operators around the
world.
Non-IFRS Financial Measures
Some financial measures used in this press release, such as
SPNOI, Constant Currency SPNOI, FFO, FFO per Unit, AFFO, AFFO per
Unit, AFFO Payout Ratio, NAV, NAV per Unit, portfolio occupancy and
weighted average lease expiry, are used by the real estate industry
to measure and compare the operating performance of real estate
companies, but they do not have any standardized meaning prescribed
by IFRS. As such, they are unlikely to be comparable to similar
measures presented by other real estate companies. These non- IFRS
measures are more fully defined and discussed in the exhibits to
this news release and in the REIT's Management's Discussion and
Analysis ("MD&A") for the three months ended March 31, 2022, in the "Performance Measurement"
and "Results from Operations" sections. The MD&A is available
on the SEDAR website at www.sedar.com.
Forward-Looking Statements
This press release may contain forward-looking statements with
respect to the REIT, its operations, strategy, financial
performance and condition. These statements generally can be
identified by use of forward-looking words such as "may", "will",
"expect", "estimate", "anticipate", "intends", "believe",
"normalized", "contracted", or "continue" or the negative thereof
or similar variations. Examples of such statements in this press
release may include statements concerning the REIT's position as a
leading healthcare real estate asset manager globally, geographic
expansion, ESG initiatives, expanding AUM, balance sheet
optimization arrangements, the proposed U.K. joint venture and
potential acquisitions, dispositions and other transactions,
including a potential UK joint venture and a potential transaction
involving Australian Unity. The REIT's actual results and
performance discussed herein could differ materially from those
expressed or implied by such statements. The forward-looking
statements contained in this press release are based on numerous
assumptions which may prove incorrect and which could cause actual
results or events to differ materially from the forward-looking
statements. Such assumptions include, but are not limited to (i)
assumptions relating to completion of anticipated acquisitions,
dispositions, development, joint venture, deleveraging and other
transactions (some of which remain subject to completing
documentation) on terms disclosed; (ii) the REIT's properties
continuing to perform as they have recently, (iii) the REIT
successfully integrating past and future acquisitions, including
the realization of synergies in connection therewith; (iv) various
general economic and market factors, including exchange rates
remaining constant, local real estate conditions remaining strong,
interest rates remaining at current levels, the impacts of COVID-19
on the REIT's business ameliorating or remaining stable; and (vii)
the availability of equity and debt financing to the REIT. Such
forward-looking statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations,
including that the transactions contemplated herein are completed.
Important factors that could cause actual results to differ
materially from expectations include, among other things, general
economic and market factors, competition, changes in government
regulations and the factors described under "Risks and
Uncertainties" in the REIT's Annual Information Form and the risks
and uncertainties set out in the MD&A which are available on
www.sedar.com. These cautionary statements qualify all
forward-looking statements attributable to the REIT and persons
acting on its behalf. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release, and,
except as expressly required by applicable law, the REIT assumes no
obligation to update such statements.
NORTHWEST HEALTHCARE
PROPERTIES REAL ESTATE INVESTMENT TRUST
|
Condensed
Consolidated Interim Statements of Income (Loss) and Comprehensive
Income (Loss)
|
(in thousands of
Canadian dollars)
|
|
|
Unaudited
|
|
|
|
For the three months
ended March 31,
|
For the three months
ended March 31,
|
2022
|
2021
|
|
|
|
Net Property
Operating Income
|
|
|
Revenue from investment properties
|
$
102,677
|
$
92,599
|
Property operating costs
|
25,610
|
22,035
|
|
77,067
|
70,564
|
|
|
|
Other
Income
|
|
|
Interest and other
|
1,566
|
354
|
Development revenue
|
2,564
|
1,853
|
Management fees
|
6,047
|
3,556
|
Share of profit (loss) of equity accounted
investments
|
7,160
|
6,145
|
|
17,337
|
11,908
|
|
|
|
Expenses and
other
|
|
|
Mortgage and loan interest expense
|
23,387
|
23,111
|
General and administrative expenses
|
10,309
|
10,157
|
Transaction costs
|
5,599
|
1,793
|
Development costs
|
2,348
|
1,305
|
Foreign exchange (gain) loss
|
(594)
|
(12,460)
|
|
41,049
|
23,906
|
|
|
|
Income before
finance costs, fair value adjustments, and net gain (loss) on
financial instruments
|
53,355
|
58,566
|
Finance
costs
|
|
|
Amortization of financing costs
|
(2,221)
|
(4,057)
|
Amortization of mark-to-market adjustment
|
90
|
97
|
Class B exchangeable unit distributions
|
(342)
|
(342)
|
Fair value adjustment of Class B exchangeable
units
|
34
|
(564)
|
Accretion of financial liabilities
|
(8,573)
|
(4,082)
|
Fair value adjustment of convertible debentures
|
2,850
|
2,650
|
Net gain (loss) on
financial instruments
|
28,970
|
15,489
|
Fair value adjustment
of investment properties
|
82,341
|
22,320
|
Fair value adjustment
of deferred unit plan liability
|
211
|
(599)
|
|
|
|
Income before taxes
from continuing operations
|
156,715
|
89,478
|
|
|
|
Current tax
expense
|
7,193
|
2,801
|
Deferred tax expense
(recovery)
|
26,187
|
13,088
|
Income tax expense
(recovery)
|
33,380
|
15,889
|
|
|
|
Total net
income
|
$
123,335
|
$
73,589
|
|
|
|
Net income
attributable to:
|
|
|
Unitholders
|
$
88,254
|
$
52,957
|
Non-controlling
interests
|
35,081
|
20,632
|
|
$
123,335
|
$
73,589
|
Financial Exhibits
Exhibit 1 – Funds From Operations Reconciliation
FFO is a supplemental non-IFRS industry wide financial measure
of a REIT's operating performance. The REIT calculates FFO based on
certain adjustments to net income (computed in accordance with
IFRS) as detailed below. FFO is more fully defined and discussed in
the REIT's MD&A (see "Performance Measurement" and
"Funds From Operations").
FUNDS FROM
OPERATIONS
|
|
|
|
|
|
|
Expressed in thousands
of Canadian dollars, except per unit amounts
|
Three months ended
March 31,
|
2022
|
|
2021
|
|
Variance
|
|
|
|
|
|
|
Net income (loss)
attributable to unitholders
|
$
88,254
|
|
$
52,957
|
|
$
35,297
|
Add /
(Deduct):
|
|
|
|
|
|
(i)
Fair market value losses (gains)
|
(114,406)
|
|
(39,296)
|
|
(75,110)
|
Less: Non-controlling interests' share of fair market value
losses (gains)
|
37,559
|
|
19,662
|
|
17,897
|
(ii) Finance cost - Exchangeable Unit
distributions
|
342
|
|
342
|
|
—
|
(iii) Revaluation of financial liabilities
|
8,573
|
|
4,082
|
|
4,491
|
(iv) Unrealized foreign exchange loss (gain)
|
1,817
|
|
(15,276)
|
|
17,093
|
Less: Non-controlling interests' share of unrealized foreign
exchange loss (gain)
|
(171)
|
|
1,404
|
|
(1,575)
|
(v)
Deferred taxes
|
26,187
|
|
13,088
|
|
13,099
|
Less: Non-controlling interests' share of deferred
taxes
|
(7,901)
|
|
(5,487)
|
|
(2,414)
|
(vi) Transaction costs
|
5,697
|
|
4,245
|
|
1,452
|
Less: Non-controlling interests' share of transaction
costs
|
303
|
|
(167)
|
|
470
|
(vii) Net adjustments for equity accounted
investments
|
240
|
|
1,244
|
|
(1,004)
|
(viii) Internal leasing costs
|
906
|
|
845
|
|
61
|
(ix) Net
adjustment for discontinued operations
|
—
|
|
—
|
|
—
|
* Net
adjustment for lease amortization
|
(72)
|
|
(84)
|
|
12
|
(xi) Other
FFO adjustments
|
—
|
|
771
|
|
(771)
|
Funds From
Operations ("FFO") (1)
|
$
47,328
|
|
$
38,330
|
|
$
8,998
|
FFO per Unit –
Basic
|
$
0.21
|
|
$
0.21
|
|
$
—
|
FFO per Unit - fully
diluted (3)
|
$
0.21
|
|
$
0.20
|
|
$
0.01
|
Adjusted weighted
average units outstanding (2)
|
|
|
|
|
|
Basic
|
226,324,317
|
|
184,349,757
|
|
41,974,560
|
Diluted
(3)
|
237,987,041
|
|
208,067,475
|
|
29,919,566
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
(1) FFO is not a
measure recognized under IFRS and does not have standardized
meanings prescribed by IFRS. See Performance Measurements
section in the REIT's MD&A.
|
(2) Under IFRS the
REIT's Class B LP 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 Units in
basic and diluted units outstanding/weighted average units
outstanding. There were 1,710,000 Class B LP Units
outstanding as at March 31, 2022 and 1,710,000 outstanding as at
March 31, 2021.
|
(3) Diluted units
includes vested but unissued deferred trust units and the
conversion of the REIT's Convertible Debentures that would have a
dilutive effect upon conversion at the holders' contractual
conversion price. Convertible Debentures are dilutive if the
interest (net of tax and other changes in income or expense) per
unit obtainable on conversion is less than the basic per unit
measure.
|
Exhibit 2 – Adjusted Funds From Operations
Reconciliation
AFFO is a supplemental non-IFRS financial measure of a REIT's
operating performance and is intended to reflect a stabilized
business environment. The REIT calculates AFFO as FFO, plus/minus
certain adjustments as detailed below. AFFO is more fully defined
and discussed in the REIT's MD&A (see "Performance
Measurement" and "Adjusted Funds From Operations").
ADJUSTED FUNDS FROM
OPERATIONS
|
|
|
|
|
|
|
Expressed in thousands
of Canadian dollars, except per unit amounts
|
Three months ended
March 31,
|
2022
|
|
2021
|
|
Variance
|
|
|
|
|
|
|
FFO
(1)
|
$
47,328
|
|
$
38,330
|
|
$
8,998
|
|
|
|
|
|
|
Add /
(Deduct):
|
|
|
|
|
|
(i)
Amortization of marked to market adjustment
|
(90)
|
|
(97)
|
|
7
|
(ii) Amortization of transactional deferred financing
charges
|
1,332
|
|
759
|
|
573
|
(iii) Straight-line revenue
|
533
|
|
437
|
|
96
|
Less:
non-controlling interests' share of straight-line
revenue
|
(427)
|
|
(408)
|
|
(19)
|
(iv) Leasing costs and non-recoverable maintenance capital
expenditures
|
(2,737)
|
|
(2,615)
|
|
(122)
|
Less:
non-controlling interests' share of actual capex and leasing
costs
|
106
|
|
130
|
|
(24)
|
(v)
DUP Compensation Expense
|
1,648
|
|
1,658
|
|
(10)
|
(vi) Debt repayment costs
|
—
|
|
30
|
|
(30)
|
(vii) Net adjustments for equity accounted
investments
|
(243)
|
|
(200)
|
|
(43)
|
Adjusted Funds From
Operations ("AFFO") (1)
|
$
47,450
|
|
$
38,024
|
|
$
9,426
|
|
|
|
|
|
|
AFFO per Unit -
Basic
|
$
0.21
|
|
$
0.21
|
|
$
—
|
AFFO per Unit - fully
diluted (3)
|
$
0.21
|
|
$
0.20
|
|
$
0.01
|
Distributions per Unit
- Basic
|
$
0.20
|
|
$
0.20
|
|
$
—
|
|
|
|
|
|
|
Adjusted weighted
average units outstanding: (2)
|
|
|
|
|
|
Basic
|
226,324,317
|
|
184,349,757
|
|
41,974,560
|
Diluted
(3)
|
237,987,041
|
|
208,067,475
|
|
29,919,566
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
(1) FFO and AFFO are
not measures recognized under IFRS and do not have standardized
meanings prescribed by IFRS. See Performance Measurement
section in the REIT's MD&A.
|
(2) Under IFRS the
REIT's Class B LP 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 Units in
basic and diluted units outstanding/weighted average units
outstanding. There were 1,710,000 Class B LP Units
outstanding as at March 31, 2022 and 1,710,000 outstanding as at
March 31, 2021.
|
(3) Distributions per
units is a non-IFRS ratio calculated as sum of the distributions on
the REIT's units and finance costs on Class B LP Units. Management
does not consider finance costs on Class B LP units to be an
financing cost of the REIT but rather component of the REIT's total
distributions. Distributions is not defined by IFRS and does not
have a standard meaning and may not be comparable with similar
measures presented by other issuers.
|
Exhibit 3 – Constant Currency Same Property NOI
Constant Currency Same Property NOI, sometimes also presented
as"Same Property NOI" or "SPNOI", is a non-IFRS financial measure,
defined as NOI for investment properties that were owned for a full
reporting period in both the current and comparative year, subject
to certain adjustments including: (i) straight-line rental revenue
recognition; (ii) amortization of operating leases; (iii) lease
termination fees; and (iv) non-recurring transactions that are not
expected to recur (v) excluding properties held for redevelopment
and (vi) excluding impact of foreign currency translation by
converting the foreign currency denominated SPNOI from comparative
period at current period average exchange rates. Management
considers. SPNOI is more fully defined and discussed in the REIT's
MD&A (see "Performance Measurement").
SAME PROPERTY
NOI
|
|
|
|
|
|
|
|
|
|
|
|
Expressed in thousands
of Canadian dollars
|
Three months ended
March 31,
|
|
2022
|
|
2021
|
|
Var %
|
|
|
|
|
|
|
Same property
NOI (1)
|
|
|
|
|
|
Canada
|
$ 15,796
|
|
$ 15,933
|
|
(0.9) %
|
Brazil
|
11,770
|
|
10,709
|
|
9.9 %
|
Europe
|
14,712
|
|
15,018
|
|
(2.0) %
|
Vital Trust - New Zealand
|
21,945
|
|
21,216
|
|
3.4 %
|
Australia
|
2,118
|
|
2,026
|
|
4.5 %
|
Same property
NOI (1)
|
$
66,341
|
|
$
64,902
|
|
2.2 %
|
Impact of foreign currency translation on Same Property NOI
|
—
|
|
1,646
|
|
|
Straight-line rental revenue recognition
|
(105)
|
|
87
|
|
|
Amortization of operating leases
|
359
|
|
610
|
|
|
Lease termination fees
|
—
|
|
31
|
|
|
Other transactions
|
(641)
|
|
(589)
|
|
|
Developments
|
3,274
|
|
2,803
|
|
|
Acquisitions
|
7,431
|
|
356
|
|
|
Dispositions
|
(3)
|
|
310
|
|
|
Intercompany/Elimination
|
411
|
|
408
|
|
|
NOI
|
$
77,067
|
|
$
70,564
|
|
9.2 %
|
|
|
|
|
|
|
Notes:
|
|
(1)
|
Same property NOI is a
non-IFRS measure, defined and discussed in the REIT's
MD&A.
|
(2)
|
NOI is an additional
IFRS measure presented on the consolidated statement of income
(loss) and comprehensive income (loss). NOI is defined and
discussed in the REIT's MD&A.
|
Exhibit 4 – Net Asset Value ('NAV') per Unit
"NAV per Unit" or sometimes presented as "NAV/unit" is an
extension of NAV and defined as NAV divided by the number of units
outstanding at the end of the period. NAV and NAV/unit is more
fully defined and discussed in the REIT's MD&A (see
"Performance Measurement" and "Part IX – Net Asset
Value").
Expressed in thousands
of Canadian dollars, except per unit amounts
|
|
|
Q1
2022
|
|
|
Q4
2021
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
7,591,115
|
|
|
$
7,064,401
|
less: Total
liabilities
|
|
(3,799,727)
|
|
|
(3,540,827)
|
less: Non-controlling
interests
|
|
(1,170,612)
|
|
|
(1,131,443)
|
Unitholders'
equity
|
|
2,620,776
|
|
|
2,392,131
|
|
|
|
|
|
|
|
Add/(deduct):
|
|
|
|
|
|
|
Goodwill
|
|
(40,012)
|
|
|
(41,671)
|
|
Deferred unit plan
liability
|
|
25,821
|
|
|
26,223
|
|
Deferred tax
liability
|
420,777
|
|
|
374,845
|
|
|
less NCI
|
(100,360)
|
320,417
|
|
(91,052)
|
283,793
|
|
|
|
|
|
|
|
|
Financial instruments -
net
|
(6,466)
|
|
|
22,602
|
|
|
less NCI
|
601
|
(5,865)
|
|
(15,363)
|
7,239
|
|
|
|
|
|
|
|
|
Exchangeable
Units
|
|
23,547
|
|
|
23,581
|
|
Global Manager
valuation adjustment
|
|
576,318
|
|
|
576,318
|
|
Other
|
|
—
|
|
|
—
|
Net Asset Value
("NAV")
|
|
$
3,521,002
|
|
|
$
3,267,614
|
|
|
|
|
|
|
|
Adjusted Units
Outstanding (000s)- period end (1)
|
|
239,001
|
|
|
225,837
|
NAV per
Unit
|
|
$
14.73
|
|
|
$
14.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
(1)
|
Under IFRS the REIT's
Class B LP Units are treated as a financial liability rather than
equity. The REIT has
chosen to present an adjusted basic per unit measure that includes
the Class B LP Units in basic units
outstanding/weighted average units outstanding.
|
Exhibit 5 – Proportionate Management Fees
"Proportionate Management Fees" is a non-IFRS financial measure
defined as the REIT's total management fees earned from third
parties adjusted to be reflected on a proportionately consolidated
basis at the REIT's ownership percentage (see "Performance
Measurement" "PART III – RESULTS FROM OPERATIONS – NET
INCOME").
GLOBAL MANAGER
FEES
|
|
Expressed in thousands
of Canadian dollars
|
Three months ended
March 31,
|
|
2022
|
|
2021
|
|
Variance
|
|
|
|
|
|
|
Base fee
|
$
7,893
|
|
$
6,715
|
|
$
1,178
|
Incentive and
performance fee
|
4,799
|
|
6,917
|
|
(2,118)
|
Trustee fees
|
269
|
|
226
|
|
43
|
Project and Acquisition
fees
|
3,293
|
|
1,920
|
|
1,373
|
Other fees
|
3,118
|
|
—
|
|
3,118
|
Total Management
Fees
|
$
19,372
|
|
$
15,778
|
|
$
3,594
|
less: inter-company elimination (1)
|
(13,325)
|
|
(12,222)
|
|
(1,103)
|
Consolidated
Management Fees (2)
|
$
6,047
|
|
$
3,556
|
|
$
2,491
|
add: fees charged to non-controlling interests
|
8,852
|
|
8,246
|
|
606
|
Proportionate
Management Fees (3)
|
$
14,899
|
|
$
11,802
|
|
$
3,097
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
(1) Management fees
charged to Vital Trust and to the JVs are eliminated on
consolidation as an inter-company transaction.
|
(2) Represents the
reported consolidated management fees.
|
(3) See Performance
Measurements in the REIT's MD&A.
|
SOURCE NorthWest Healthcare Properties Real Estate Investment
Trust