TORONTO, Aug. 11,
2023 /CNW/ - Northwest Healthcare Properties Real
Estate Investment Trust ("Northwest" or "REIT") (TSX: NWH.UN),
today announced results for the period ending June 30, 2023 ("Q2 2023"). The REIT also provided
updates and declared August 2023
distributions.
Q2 2023 Financial and Operational Highlights:
For the three and six months ended June
30, 2023, revenue increased by 13% and 16.6%, respectively.
Adjusted Funds From Operations (AFFO)1 per unit
decreased from $0.20 in Q2 2022 to
$0.13 in Q2 2023 as result of lower
management fees and an increase in interest expense related to
floating rate debt. Adjusting for the non-recurring component of
management fees, AFFO would increase to $0.15 per unit for the quarter.
Operationally, the REIT's high quality and defensive portfolio
delivered strong results including 5.1% same property NOI ("SPNOI")
growth (see Exhibit 3) on a year over year basis. The REIT's
portfolio occupancy of 96% is underpinned by a weighted average
lease expiry of 13.5 years and 83% of leases are subject to rent
indexation. With a portfolio comprising more than 2,000 tenants the
REIT's cash flow is highly diversified across its 231
properties.
Overall Highlights:
- Q2 2023 revenue of $126.5M up
12.5% YOY;
- Q2 2023 AFFO of $0.13 per unit
(see Exhibit 2).
Real Estate
- Q2 2023 Same Property NOI increased by 5.1% on a year over year
basis, driven primarily by annual rent indexation (see Exhibit
3);
- Strong portfolio occupancy of 96% consistent with last
quarter;
- Weighted average lease expiry of 13.5 years is underpinned by
healthcare infrastructure.
Asset Management
- Total assets under management ("AUM") was up 1% on a year over
year basis to $10.3 billion;
- Net asset value ("NAV") per unit decreased by 4.6% to
$12.55 (see Exhibit 4)
compared to March 31, 2023. The
decrease is predominantly due to cap rate expansion of 14 bps to
5.6%
_____________________________
|
1
|
These are not measures
recognized under IFRS and do not have standardized meanings
prescribed by IFRS. Further, the REIT's definitions of AFFO and FFO
differ from those used by other similar real estate investment
trusts, as well from the definitions recommended by REALpac. See
"Non-IFRS Financial Measures", Exhibit 1 and Exhibit 2.
|
Investments
- Total capital deployed in fee bearing vehicles is $5.8 billion up 3.6% year over year;
- Consolidated Debt to Gross Book Value Including Convertible
Debentures of 50.8% has increased by 80 bps on a quarter over
quarter basis.
Commenting on the quarter, Craig
Mitchell, Northwest's Interim CEO, said the following:
"These operational results demonstrate
Northwest's stability and resilience in a challenging environment
with rising interest rates and inflation. Our strong fundamentals
as a global asset manager with specialized expertise in healthcare
real estate underscore this position."
Other Updates
- Settlement Agreement with Australian Unity Funds Management
(AUFM): As announced on July 10,
2023, the REIT has entered into a settlement agreement to
end litigation against Australian Unity Funds Management ("AUFM").
As part of the settlement, AUFM and other Australian Unity entities
have agreed to work in good faith to assist the REIT and its
affiliates to divest their units in AUHPT by the end of 2023. To
date, the REIT has sold A$67.2
million.
- UK Portfolio: The UK portfolio continues to perform well
with year over year source currency SPNOI up 4.6% and occupancy was
steady at 100%. Moreover, operator performance at the REIT's
hospitals continues to be strong. Northwest believes in the
attractiveness of the UK healthcare real estate market and its
diversified portfolio of hospitals. The REIT will continue to
actively consider strategic opportunities in respect of the UK real
estate market and its existing UK properties portfolio.
- Capital Recycling: The healthcare real estate market
continues to adapt to changes in global interest rates while
bid-ask spreads are beginning to converge and transaction volumes
are normalizing. The REIT remains highly disciplined with respect
to capital deployment – acquisition volume was nil in the quarter.
The REIT's ~$340 million non-core
asset sale program continues to advance. To date, the REIT
completed sales totalling $74.2
million. An additional ~$93
million of assets are under conditional letters of intent
for sale.
- Balance Sheet Initiatives: As at June 30, 2023, the REIT reported Debt to Gross
Book Value (including Convertible Debentures) of 50.8% and 58.0% on
a consolidated and proportionate basis, respectively. Strengthening
the balance sheet is a high priority for the REIT.
-
- On April 27, 2023, the REIT
issued $86.3 million of convertible
debentures with a 7.75% coupon that matures on April 30 2028. Net proceeds of the transaction
were used to repay short-term variable rate debt with a weighted
average interest rate of 9.3%.
- Post quarter-end, the REIT enhanced liquidity by
$175 million by completing the
following:
-
- Finalization of a $50 million,
non-revolving, credit facility from its Canadian banking
syndicate.
- Extension of the maturity date of its $125 million revolving unsecured credit facility
by one year to November 2024.
As of August 11, 2023, the REIT
has refinanced 91% of its 2023 debt maturities, increased its
exposure to fixed rate debt (including in-place hedges) to 66% and
has a weighted average interest rate of 5.1%.
Declaration of August 2023
Distribution
The Trustees of the REIT declared a distribution of $0.06667 per unit for the month of August 2023, representing $0.80 per unit on an annualized basis. The
distribution will be payable on or about September 15, 2023, to unitholders of record as
at August 31, 2023.
Q2 2023 Conference Call
A conference call will be held on August 11, 2023,
at 10:00 a.m. (EST). Participating on the call will be members
of the REIT's senior management team.
An audio replay will be available from August 11, 2023, through August 18, 2023, and can be accessed by dialling
416-764-8677 or 1 (888) 390-0541. The reservation number is
641739#.
Vital Healthcare Property Trust
On August 10, 2023 Vital Trust
also announced its financial results for the fiscal year ended
June 30, 2023. 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 Healthcare Properties Real Estate Investment Trust
(TSX: NWH.UN) (Northwest) is an unincorporated, open-ended real
estate investment trust established under the laws of the Province
of Ontario. As at June 30, 2023, the REIT provides investors with
access to a portfolio of high-quality international healthcare real
estate infrastructure comprised of interests in a diversified
portfolio of 231 income-producing properties and 18.5 million
square feet of gross leasable area located throughout major markets
in the Americas, Europe and
Australasia. The REIT's portfolio of medical office buildings,
clinics, and hospitals is characterized by long-term indexed leases
and stable occupancies. With a fully integrated and aligned senior
management team, the REIT leverages over 300 professionals in 11
offices in eight countries to serve as a long-term real estate
partner to leading healthcare operators.
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, 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.
These non-IFRS financial measures and non–IFRS ratios should not
be construed as alternatives to financial measures calculated in
accordance with IFRS. The REIT's method of calculating these
measures and ratios may differ from the methods of other real
estate investment trusts or other issuers, and accordingly may not
be comparable. Further, the REIT's definitions of FFO and AFFO
differ from the definitions recommended by REALpac. 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 3 months ended March 31, 2023, 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, , balance
sheet optimization and strengthening plans, the REIT's non-core
asset sale program and potential acquisitions, dispositions and
other transactions, including strategic opportunities in respect of
the UK real estate market and its existing UK properties
portfolio.. 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.
(in thousands of
Canadian dollars)
|
Unaudited
|
|
|
For the three months
ended June 30,
|
|
For the six months
ended June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net Property
Operating Income
|
|
|
|
|
|
|
|
|
Revenue from
investment properties
|
$
|
126,504
|
$
|
112,363
|
$
|
261,828
|
$
|
216,826
|
Property operating
costs
|
|
28,483
|
|
23,480
|
|
68,386
|
|
50,876
|
|
|
98,021
|
|
88,883
|
|
193,442
|
|
165,950
|
|
|
|
|
|
|
|
|
|
Other
Income
|
|
|
|
|
|
|
|
|
Interest and
other
|
|
3,965
|
|
3,504
|
|
8,081
|
|
6,014
|
Development
revenue
|
|
—
|
|
1,182
|
|
—
|
|
3,746
|
Management
fees
|
|
(3,246)
|
|
11,595
|
|
7,479
|
|
18,690
|
Share of profit (loss)
of equity accounted investments
|
|
(25,871)
|
|
14,347
|
|
(21,883)
|
|
19,515
|
|
|
(25,152)
|
|
30,628
|
|
(6,323)
|
|
47,965
|
|
|
|
|
|
|
|
|
|
Expenses and
other
|
|
|
|
|
|
|
|
|
Mortgage and loan
interest expense
|
|
57,187
|
|
34,524
|
|
108,835
|
|
57,911
|
General and
administrative expenses
|
|
15,535
|
|
12,830
|
|
28,571
|
|
23,139
|
Transaction
costs
|
|
18,413
|
|
6,519
|
|
23,433
|
|
12,118
|
Development
costs
|
|
—
|
|
1,082
|
|
—
|
|
3,430
|
Foreign exchange
(gain) loss
|
|
(2,792)
|
|
(4,005)
|
|
(10,008)
|
|
(4,599)
|
|
|
88,343
|
|
50,950
|
|
150,831
|
|
91,999
|
|
|
|
|
|
|
|
|
|
Income before
finance costs, fair value
adjustments, and net gain (loss) on financial
instruments
|
|
(15,474)
|
|
68,561
|
|
36,288
|
|
121,916
|
Finance
costs
|
|
|
|
|
|
|
|
|
Amortization of
financing costs
|
|
(2,993)
|
|
(2,746)
|
|
(5,963)
|
|
(4,967)
|
Amortization of
mark-to-market adjustment
|
|
—
|
|
329
|
|
—
|
|
419
|
Class B exchangeable
unit distributions
|
|
(342)
|
|
(342)
|
|
(684)
|
|
(684)
|
Fair value adjustment
of Class B exchangeable units
|
|
3,745
|
|
2,924
|
|
5,506
|
|
2,958
|
Accretion of financial
liabilities
|
|
(745)
|
|
(1,473)
|
|
(5,788)
|
|
(10,046)
|
Fair value adjustment
of convertible debentures
|
|
10,981
|
|
6,875
|
|
14,179
|
|
9,725
|
Convertible debenture
issuance costs
|
|
(4,489)
|
|
—
|
|
(4,510)
|
|
—
|
Net gain (loss) on
financial instruments
|
|
37,981
|
|
20,463
|
|
20,789
|
|
49,433
|
Fair value adjustment
of investment properties
|
|
(140,424)
|
|
50,826
|
|
(291,985)
|
|
133,167
|
Fair value adjustment
of deferred unit plan liability
|
|
6,280
|
|
3,405
|
|
9,583
|
|
3,616
|
|
|
|
|
|
|
|
|
|
Income before taxes
from continuing operations
|
|
(105,480)
|
|
148,822
|
|
(222,585)
|
|
305,537
|
|
|
|
|
|
|
|
|
|
Current tax
expense
|
|
4,470
|
|
7,234
|
|
11,466
|
|
14,427
|
Deferred tax expense
(recovery)
|
|
(2,539)
|
|
24,859
|
|
(37,485)
|
|
51,046
|
Income tax expense
(recovery)
|
|
1,931
|
|
32,093
|
|
(26,019)
|
|
65,473
|
Net income from
continuing operations
|
$
|
(107,411)
|
$
|
116,729
|
$
|
(196,566)
|
$
|
240,064
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
discontinued operations
|
|
—
|
|
—
|
|
—
|
|
—
|
Total net
income
|
$
|
(107,411)
|
$
|
116,729
|
$
|
(196,566)
|
$
|
240,064
|
|
|
|
|
|
|
|
|
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
Unitholders
|
$
|
(32,093)
|
$
|
69,625
|
$
|
(129,579)
|
$
|
157,879
|
Non-controlling
interests
|
|
(75,318)
|
|
47,104
|
|
(66,987)
|
|
82,185
|
|
$
|
(107,411)
|
$
|
116,729
|
$
|
(196,566)
|
$
|
240,064
|
Financial Exhibits
Exhibit 1 – Funds From Operations Reconciliation
The REIT calculates FFO based on certain adjustments to net
income (computed in accordance with IFRS) as detailed below. The
REIT makes adjustments for cost incur with respect to exploring new
growth opportunities, establishing joint arrangements, building
relationships with healthcare operators and institutional
investors, which in management view are not reflective of earnings
from core operations or impact the REIT's ability in the long-run
to make distributions to Unitholders given their discretionary and
strategic nature. In addition, beginning in the quarter ended
December 31, 2022, FFO is being
adjusted for net losses incurred with respect to an investment in
unlisted securities and certain G&A expenses that, in each
case, management views as not reflective of recurring earnings from
core operations (collectively, the "Other FFO Adjustments").
REALpac has established a standardized definition of FFO in a White
Paper dated January 2022 ("REALpac
Guidance"). The REIT's FFO definition differs from the REALpac
Guidance in that, when calculating FFO, the REIT (a) excludes the
revaluation of financial liabilities, convertible debenture
issuance costs and all transaction costs, and (b) makes the Other
FFO Adjustments. The REIT's method of calculating FFO also differs
from other issuers' methods and may not be comparable to similar
measures used by other issuers.
FUNDS FROM
OPERATIONS
|
Expressed in thousands
of Canadian dollars,
except per unit amounts
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
2023
|
|
2022
|
|
Variance
|
|
2023
|
|
2022
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
unitholders
|
$
|
(32,093)
|
|
$
|
69,625
|
|
$
|
(101,718)
|
|
$
|
(129,579)
|
|
$
|
157,879
|
|
$
|
(287,458)
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Fair market value
losses (gains)
|
|
94,623
|
|
|
(84,493)
|
|
|
179,116
|
|
|
257,121
|
|
|
(198,899)
|
|
|
456,020
|
Less: Non-controlling
interests' share
of fair market value losses (gains)
|
|
(83,861)
|
|
|
49,142
|
|
|
(133,003)
|
|
|
(82,562)
|
|
|
86,701
|
|
|
(169,263)
|
(ii) Finance cost -
Exchangeable Unit
distributions
|
|
342
|
|
|
342
|
|
|
—
|
|
|
684
|
|
|
684
|
|
|
—
|
(iii) Revaluation of
financial liabilities
|
|
745
|
|
|
1,473
|
|
|
(728)
|
|
|
5,788
|
|
|
10,046
|
|
|
(4,258)
|
(iv) Unrealized
foreign exchange loss
(gain)
|
|
(2,390)
|
|
|
(4,202)
|
|
|
1,812
|
|
|
(9,146)
|
|
|
(2,385)
|
|
|
(6,761)
|
Less: Non-controlling
interests' share
of unrealized foreign exchange loss
(gain)
|
|
(342)
|
|
|
(1)
|
|
|
(341)
|
|
|
(186)
|
|
|
(172)
|
|
|
(14)
|
(v) Deferred
taxes
|
|
(2,539)
|
|
|
24,859
|
|
|
(27,398)
|
|
|
(37,485)
|
|
|
51,046
|
|
|
(88,531)
|
Less: Non-controlling
interests' share
of deferred taxes
|
|
1,482
|
|
|
(8,971)
|
|
|
10,453
|
|
|
1,859
|
|
|
(16,872)
|
|
|
18,731
|
(vi) Transaction
costs
|
|
18,626
|
|
|
6,624
|
|
|
12,002
|
|
|
23,646
|
|
|
12,321
|
|
|
11,325
|
Less: Non-controlling
interests' share
of transaction costs
|
|
(701)
|
|
|
(41)
|
|
|
(660)
|
|
|
(701)
|
|
|
262
|
|
|
(963)
|
(vii) Convertible
Debenture issuance
costs
|
|
4,489
|
|
|
—
|
|
|
4,489
|
|
|
4,510
|
|
|
—
|
|
|
4,510
|
(vii) Net adjustments
for equity
accounted investments
|
|
28,752
|
|
|
(8,741)
|
|
|
37,493
|
|
|
27,938
|
|
|
(8,501)
|
|
|
36,439
|
(viii) Internal
leasing costs
|
|
466
|
|
|
544
|
|
|
(78)
|
|
|
960
|
|
|
1,450
|
|
|
(490)
|
* Property taxes
accounted for under
IFRIC 21
|
|
271
|
|
|
—
|
|
|
271
|
|
|
672
|
|
|
—
|
|
|
672
|
(xi) Net adjustment
for lease amortization
|
|
(84)
|
|
|
(70)
|
|
|
(14)
|
|
|
(166)
|
|
|
(142)
|
|
|
(24)
|
(xii) Other FFO
adjustments
|
|
3,735
|
|
|
—
|
|
|
3,735
|
|
|
7,706
|
|
|
—
|
|
|
7,706
|
Funds From
Operations ("FFO") (1)
|
$
|
31,521
|
|
$
|
46,090
|
|
$
|
(14,569)
|
|
$
|
71,059
|
|
$
|
93,418
|
|
$
|
(22,359)
|
FFO per Unit -
Basic
|
$
|
0.13
|
|
$
|
0.19
|
|
$
|
(0.06)
|
|
$
|
0.29
|
|
$
|
0.40
|
|
$
|
(0.11)
|
FFO per Unit - fully
diluted (3)
|
$
|
0.13
|
|
$
|
0.19
|
|
$
|
(0.06)
|
|
$
|
0.29
|
|
$
|
0.40
|
|
$
|
(0.11)
|
Adjusted weighted
average units
outstanding (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
244,036,797
|
|
|
239,660,302
|
|
|
4,376,495
|
|
|
243,456,931
|
|
|
233,029,149
|
|
|
10,427,782
|
Diluted
(3)
|
|
246,383,724
|
|
|
251,977,578
|
|
|
(5,593,854)
|
|
|
245,831,985
|
|
|
245,020,957
|
|
|
811,028
|
Notes
|
(1)
|
Other FFO adjustments
include items that, in management's view, are not reflective of
recurring earnings from core operations. For the six months ended
June
30, 2023, other FFO adjustments included (a) $5.3 million financing
costs incurred with respect to an investment in unlisted
securities, (b) $0.5 million of
corporate G&A expenses related to the establishment of a
philanthropic platform and (c) $1.9 million of corporate financing
costs related to short-term financing
arrangement to fund property acquisition activity that are not
reflective of long-term financing costs.
|
(2)
|
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.
|
(3)
|
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 June 30, 2023 and 1,710,000
outstanding as at June 30, 2022.
|
(4)
|
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 makes certain adjustments as
detailed below in calculating its FFO and AFFO, which in management
view are not reflective of earnings from core operations or impact
the REIT's ability in the long-run to make distributions to
Unitholders given their discretionary and strategic nature. The
REIT's AFFO definition differs from the REALpac Guidance in that,
when calculating AFFO, the REIT does not make an adjustment to AFFO
for amortization financing charges. The REIT's method of
calculating AFFO also differs from other issuers' methods and may
not be comparable to similar measures used by other issuers.
ADJUSTED FUNDS FROM
OPERATIONS
|
Expressed in thousands
of Canadian
dollars, except per unit amounts
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
2023
|
|
2022
|
|
Variance
|
|
2023
|
|
2022
|
|
Variance
|
FFO
(1)
|
$
|
31,521
|
|
$
|
46,090
|
|
$
|
(14,569)
|
|
$
|
71,059
|
|
$
|
93,418
|
|
$
|
(22,359)
|
Add /
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Amortization of
marked to market
adjustment
|
|
—
|
|
|
(329)
|
|
|
329
|
|
|
—
|
|
|
(419)
|
|
|
419
|
(ii) Amortization of
transactional
deferred financing charges
|
|
1,712
|
|
|
1,642
|
|
|
70
|
|
|
3,793
|
|
|
2,974
|
|
|
819
|
(iii) Straight-line
revenue
|
|
(271)
|
|
|
(297)
|
|
|
26
|
|
|
444
|
|
|
236
|
|
|
208
|
Less:
non-controlling interests' share
of straight-line revenue
|
|
(582)
|
|
|
(513)
|
|
|
(69)
|
|
|
(1,919)
|
|
|
(940)
|
|
|
(979)
|
(iv) Leasing costs and
non-recoverable
maintenance capital expenditures
|
|
(3,675)
|
|
|
(3,337)
|
|
|
(338)
|
|
|
(6,989)
|
|
|
(6,074)
|
|
|
(915)
|
Less:
non-controlling interests' share
of actual capex and leasing costs
|
|
188
|
|
|
178
|
|
|
10
|
|
|
305
|
|
|
284
|
|
|
21
|
(v) DUP Compensation
Expense
|
|
3,151
|
|
|
3,557
|
|
|
(406)
|
|
|
5,497
|
|
|
5,205
|
|
|
292
|
(vi) Net adjustments
for equity
accounted investments
|
|
(131)
|
|
|
(177)
|
|
|
46
|
|
|
(146)
|
|
|
(420)
|
|
|
274
|
Adjusted Funds From
Operations
("AFFO") (1)
|
$
|
31,913
|
|
$
|
46,814
|
|
$
|
(14,901)
|
|
$
|
72,044
|
|
$
|
94,264
|
|
$
|
(22,220)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per Unit -
Basic
|
$
|
0.13
|
|
$
|
0.20
|
|
$
|
(0.07)
|
|
$
|
0.30
|
|
$
|
0.40
|
|
$
|
(0.10)
|
AFFO per Unit - fully
diluted (3)
|
$
|
0.13
|
|
$
|
0.19
|
|
$
|
(0.06)
|
|
$
|
0.29
|
|
$
|
0.40
|
|
$
|
(0.11)
|
Distributions per Unit
- Basic
|
$
|
0.20
|
|
$
|
0.20
|
|
$
|
—
|
|
$
|
0.40
|
|
$
|
0.40
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average units
outstanding: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
244,036,797
|
|
|
239,660,302
|
|
|
4,376,495
|
|
|
243,456,931
|
|
|
233,029,149
|
|
|
10,427,782
|
Diluted
(3)
|
|
246,383,724
|
|
|
242,614,282
|
|
|
3,769,442
|
|
|
245,831,985
|
|
|
235,657,661
|
|
|
10,174,324
|
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 June 30, 2023 and 1,710,000 outstanding
as at June 30, 2022.
|
(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
|
In thousands of
CAD
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2023
|
|
2022
|
|
Var %
|
|
2023
|
|
2022
|
|
Var %
|
Same property
NOI (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
30,028
|
|
$
|
29,233
|
|
2.7 %
|
|
$
|
58,690
|
|
$
|
57,401
|
|
2.2 %
|
Europe
|
|
20,909
|
|
|
19,634
|
|
6.5 %
|
|
|
40,573
|
|
|
38,693
|
|
4.9 %
|
Australasia
|
|
30,935
|
|
|
29,064
|
|
6.4 %
|
|
|
53,294
|
|
|
50,043
|
|
6.5 %
|
Same property
NOI (1)
|
$
|
81,872
|
|
$
|
77,931
|
|
5.1 %
|
|
$
|
152,557
|
|
$
|
146,137
|
|
4.4 %
|
Impact of foreign
currency
translation on Same Property NOI
|
|
—
|
|
|
(1,615)
|
|
|
|
|
—
|
|
|
(2,108)
|
|
|
Straight-line rental
revenue
recognition
|
|
498
|
|
|
354
|
|
|
|
|
839
|
|
|
748
|
|
|
Amortization of
operating leases
|
|
(42)
|
|
|
(49)
|
|
|
|
|
(85)
|
|
|
(104)
|
|
|
Lease termination
fees
|
|
10
|
|
|
—
|
|
|
|
|
41
|
|
|
—
|
|
|
Other
transactions
|
|
348
|
|
|
103
|
|
|
|
|
893
|
|
|
135
|
|
|
Developments
|
|
579
|
|
|
515
|
|
|
|
|
8,810
|
|
|
7,735
|
|
|
Acquisitions
|
|
13,334
|
|
|
10,507
|
|
|
|
|
26,995
|
|
|
11,865
|
|
|
Dispositions
|
|
929
|
|
|
721
|
|
|
|
|
2,310
|
|
|
713
|
|
|
Intercompany/Elimination
|
|
493
|
|
|
417
|
|
|
|
|
1,082
|
|
|
829
|
|
|
NOI
|
$
|
98,021
|
|
$
|
88,883
|
|
10.3 %
|
|
$
|
193,442
|
|
$
|
165,950
|
|
16.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Q2
2023
|
|
|
Q4
2022
|
Total
Assets
|
|
$
|
8,061,118
|
|
|
$
|
8,514,000
|
less: Total
liabilities
|
|
|
(4,679,980)
|
|
|
|
(4,772,025)
|
less: Non-controlling
interests
|
|
|
(1,141,005)
|
|
|
|
(1,285,128)
|
Unitholders'
equity
|
|
|
2,240,133
|
|
|
|
2,456,847
|
|
|
|
|
|
|
|
|
|
Add/(deduct):
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
(37,271)
|
|
|
|
(39,612)
|
|
Deferred unit plan liability
|
|
|
17,116
|
|
|
|
23,837
|
|
Deferred tax liability
|
406,429
|
|
|
|
443,935
|
|
|
|
less NCI
|
(103,337)
|
|
303,092
|
|
(109,584)
|
|
334,351
|
|
|
|
|
|
|
|
|
|
|
Financial instruments - net
|
(55,064)
|
|
|
|
(38,124)
|
|
|
|
less NCI
|
15,457
|
|
(39,607)
|
|
13,624
|
|
(24,500)
|
|
|
|
|
|
|
|
|
|
|
Exchangeable Units
|
|
|
10,739
|
|
|
|
16,245
|
|
Global Manager valuation adjustment
|
|
|
576,318
|
|
|
|
576,318
|
|
Other
|
|
|
—
|
|
|
|
—
|
Net Asset Value
("NAV")
|
|
$
|
3,070,520
|
|
|
$
|
3,343,486
|
|
|
|
|
|
|
|
|
|
Adjusted Units
Outstanding (000s)- period end (1)
|
|
|
244,685
|
|
|
|
242,358
|
NAV per
Unit
|
|
$
|
12.55
|
|
|
$
|
13.80
|
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
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
Variance
|
|
|
2022
|
|
|
2021
|
|
|
Variance
|
Base fee
|
|
$
|
8,168
|
|
$
|
8,394
|
|
$
|
(226)
|
|
$
|
16,552
|
|
$
|
16,287
|
|
$
|
265
|
Incentive and
performance fee
|
|
|
(89)
|
|
|
(406)
|
|
|
317
|
|
|
4,147
|
|
|
4,393
|
|
|
(246)
|
Trustee fees
|
|
|
293
|
|
|
275
|
|
|
18
|
|
|
600
|
|
|
544
|
|
|
56
|
Project and Acquisition
fees
|
|
|
(1,818)
|
|
|
4,651
|
|
|
(6,469)
|
|
|
3,557
|
|
|
7,944
|
|
|
(4,387)
|
Other fees
|
|
|
(3,470)
|
|
|
6,977
|
|
|
(10,447)
|
|
|
—
|
|
|
10,093
|
|
|
(10,093)
|
Total Management
Fees
|
|
$
|
3,084
|
|
$
|
19,891
|
|
$
|
(16,807)
|
|
$
|
24,856
|
|
$
|
39,261
|
|
$
|
(14,405)
|
less: inter-company
elimination
|
|
|
(6,330)
|
|
|
(8,296)
|
|
|
1,966
|
|
|
(17,377)
|
|
|
(20,571)
|
|
|
3,194
|
Consolidated
Management Fees
|
|
$
|
(3,246)
|
|
$
|
11,595
|
|
$
|
(14,841)
|
|
$
|
7,479
|
|
$
|
18,690
|
|
$
|
(11,211)
|
add: fees charged to
non-controlling
interests
|
|
|
4,427
|
|
|
5,908
|
|
|
(1,481)
|
|
|
12,232
|
|
|
14,760
|
|
|
(2,528)
|
Proportionate
Management Fees
|
|
$
|
1,181
|
|
$
|
17,503
|
|
$
|
(16,322)
|
|
$
|
19,711
|
|
$
|
33,450
|
|
$
|
(13,739)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE NorthWest Healthcare Properties Real Estate Investment
Trust