TSX-V: MOB.UN
TORONTO, March 11, 2015 /CNW/ - NorthWest International
Healthcare Properties REIT ("NWI" or the "REIT") announced today
that it has released its results for the three and twelve month
period ended December 31, 2014.
The REIT's fourth quarter of 2014 delivered again solid
financial results posting a 107% increase in Net Operating Income
("NOI") versus the same quarter last year. Further, Adjusted
Funds From Operations ("AFFO") grew approximately 39%
relative to the same quarter of last year, largely due to the
strength of the REIT's growth in NOI.
Key highlights from the REIT's financial and operating results
for the three and twelve month period ended December 31, 2014 include:
- Growth in total assets to $846
million, up $90 million from
the beginning of 2014;
- Recognition of a $16.0 million
valuation gain in our German portfolio of 19 medical office
building assets in Q4'14, driven by incremental NOI and contracting
cap rates in the German market;
- NOI of $10.0 million in Q4'14,
representing a 107% increase over the same quarter last year;
NOI of $39.4 million for fiscal
year 2014, an increase of 119% versus fiscal year 2013;
- AFFO per unit (basic) of $0.05
for Q4'14, and $0.21 per unit for
fiscal year 2014, a 17% increase in AFFO per unit relative to
fiscal year 2013;
- AFFO payout ratio of 105% for fiscal year 2014;
- Same property NOI growth of 2.9% for fiscal year 2014 driven by
the indexation of the REIT's international property revenues in
excess of foreign currency impacts;
- Leading portfolio occupancy at 96.0% on a proportionate share
basis (Canada = 91.9%;
International = 98.3%), consistent with the third quarter of 2014;
(96.0% as at December 31, 2013;
Canada 91.3%; and International
99.2%);
- Weighted average lease term to maturity of 11.4 years on a
proportionate share basis (Canada
= 4.5 years; International = 15.1 years), consistent with the third
quarter of 2014; (12.4 years as at December
31, 2013; Canada 4.8 years;
and International 17.74 years);
- In November 2014, the REIT closed
an equity offering of 13,954,000 Trust Units for gross proceeds of
$30 million; and
- In December 2014 and early
January 2015, the REIT repaid
$16.0 million (R$36.5 million) and successfully refinanced
$172.4 million (R$395 million) of Brazil term loans.
Subsequent Events
On January 28, 2015 the REIT
successfully closed the transaction with NorthWest Value Partners
("NWVP") to internalize the external management of the REIT (the
"Internalization Transaction") effective January 1, 2015. As a result of the
Internalization Transaction, the REIT internalized the asset
management, property management and development functions of the
REIT previously carried on by affiliates of NWVP, and also acquired
from NWVP all of the rights and obligations relating to the
management of Vital Trust (the "Vital Manager"). As a result, the
existing team of the asset manager, as well as the Vital manager,
and underlying platforms, joined the REIT, consisting of
approximately 39 professionals across 5 major regions globally.
On March 10, 2015, the REIT
entered into an agreement with NorthWest Healthcare Properties REIT
to combine and create a leading global diversified healthcare real
estate investment trust. A joint press release describing the
transaction is available on SEDAR (www.sedar.com) or the REIT's
website (www.nwireit.com).
CEO's Comments:
"2014 marked another year of solid performance for the REIT with
continued execution on its plans to consolidate healthcare
infrastructure in select international markets while maximizing
value for its unitholders", said Paul Dalla
Lana, Chief Executive Officer of the REIT. "With the REIT's
successful internalization of management in January and today's
announcement of its transformative transaction to merge with
NorthWest Healthcare Properties REIT, it will be even better
positioned to deliver on its strategic objectives in 2015 and
beyond as it benefits by increased scale and liquidity, improved
alignment and organizational synergies."
FINANCIAL HIGHLIGHTS
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As at
Dec. 31, 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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7,841,695
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7,664,605
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Occupancy % - 100% of
associates
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94.8%
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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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846,271,088
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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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436,431,589
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$
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437,642,388
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Debt to Gross Book
Value - Declaration of Trust
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51.6%
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57.9%
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Debt - Including
convertible debentures (3)
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$
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508,351,099
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$
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473,065,388
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Debt to Gross Book
Value - Including convertible debentures
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60.1%
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62.6%
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Percentage of
Mortgages and Loans Payable at Fixed Rates
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64.9%
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59.1%
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Weighted-Average
Interest Rate on Fixed Rate Mortgages and Loans
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5.82%
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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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178,983,681
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146,046,705
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Diluted
(7)
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179,355,950
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146,347,916
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For the three
months ended
Dec. 31, 2014
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For the twelve
months ended
Dec. 31, 2014
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Operating
Results
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Net Income /
(Loss)
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$
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21,164,556
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$
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(26,677,731)
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NOI
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$
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10,043,592
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$
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39,404,046
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Funds From Operations
("FFO") (5)
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$
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3,217,163
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$
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14,913,677
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Adjusted Funds From
Operations ("AFFO") (5)
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$
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7,847,230
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$
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33,168,413
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Distributions
(6)
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$
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9,577,589
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$
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35,289,470
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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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0.09
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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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0.09
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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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0.21
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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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0.21
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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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0.22
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AFFO Payout
Ratio
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119%
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105%
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AFFO Payout Ratio -
fully diluted (7)
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120%
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105%
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Adjusted Weighted
Average Units Outstanding (4)
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Basic
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170,427,954
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158,541,907
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Diluted
(7)
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170,677,808
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158,783,786
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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 Healthcare Property Trust
("Vital Trust") and Northwest Healthcare Properties REIT
("NWHP REIT"). The REIT has an exposure to an approximate
24% interest in Vital Trust and approximate 25% 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 December 31, 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 fourth 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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Rescheduled Q4'14 Earnings Conference Call
The REIT invites you to participate in a conference call with
senior management to discuss fourth quarter 2014 results on
Thursday, March 12, 2015 at
3:00 pm (EDT). The conference call
was previously scheduled for today, Wednesday, March 11, 2015 at 3:00 p.m. Investors are invited to access the
call by dialing 647-427-7450 or toll-free 1-888-231-8191,
conference ID# 975 927 16. Audio replay of this call will be made
available Wednesday, March 12, 2015
beginning at 6:00 pm (EDT) through to
Wednesday, March 25, 2015 at
11:59 pm (EDT). To access the
recording, please call 1-855-859-2056 or 416-849-0833 and use the
reservation number 975 927 16.
In conjunction with the release of the REIT's fourth quarter
2014 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.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
proposed transaction with NorthWest Healthcare Properties REIT 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 March 10, 2015 and audited
consolidated financial statements and management's discussion and
analysis for the year ended December 31,
2014, copies of which each may be obtained on the SEDAR
website at www.sedar.com.
SOURCE NorthWest International Healthcare Properties REIT