Canada NewsWire
TORONTO, Aug. 8, 2018
TORONTO, Aug. 8, 2018 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (the "REIT") (TSX: NWH.UN), Canada's leading global diversified healthcare real estate investment trust, today announced its results for the three and six months ended June 30, 2018.
Commenting on recent developments at the REIT, Paul Dalla Lana, CEO, said:
"The second quarter of 2018 marked another active period for the REIT highlighted by the completion of three important strategic initiatives. Firstly, the REIT expanded its European footprint with the acquisition of two high quality medical office buildings in the Netherlands, an attractive market with defensive healthcare characteristics and a significant consolidation opportunity. Combined with its entry into the German post-acute care rehabilitation market in Q1 2018 through a partnership with Median Kliniken, the REIT is well positioned to leverage its operating experience in the region and further scale its European platform. Meanwhile in Australia, Q2 2018 marked another very significant milestone, with the REIT, together with Vital Trust, acquiring a 10% strategic interest in Healthscope Ltd., Australia's second largest private hospital operator with an objective to jointly acquire its underlying high quality real estate portfolio. Additionally, subsequent to quarter-end, the REIT entered into a A$2.0 billion (debt and equity) joint venture with a large sovereign wealth fund to acquire and develop core Australian healthcare real estate. With significant growth opportunities in both Australia and Europe, the REIT will continue to leverage its differentiated healthcare real estate platform and anticipates attracting additional fee bearing institutional capital to support a target A$2.0 billion growth pipeline. Taken together, these initiatives provide the REIT with significant runway and resources to continue to scale its business in both the near and long-term."
Q2-2018 Financial and Operational Highlights:
In addition to a very busy transactional quarter, the REIT continued to deliver stable financial and operational performance across an expanded 152 property (including subsequent events), 10.6 million square foot diversified healthcare real estate portfolio underpinned by long-term inflation indexed leases. Although the relative strength of the Canadian dollar in all of our international regions negatively impacted second quarter results, strong source currency SP NOI and higher ANZ management fees have resulted in a stable operating result, which is expected to translate into future growth given natural portfolio hedges including inflation indexation.
For the three months ended June 30, 2018, the REIT delivered strong financial and operating results, illustrated by the following:
During both the second quarter and subsequent to quarter-end, the REIT has continued executing on its committed, low-risk development pipeline, completing accretive debt refinancing and pursuing select accretive acquisitions, including the addition of healthcare assets in Brazil, Germany and the Netherlands.
Key initiatives include:
For the balance of 2018 and building upon strong YTD results and portfolio improvements, the REIT will continue to drive internal growth through completion of its 11 active value-add development projects as well as execute on strategic growth initiatives in each of its regions. In support of the REIT's strategy, healthcare industry trends remain constructive globally with increasing levels of institutional investment validating the sector's defensive characteristics and growth opportunities.
Selected Financial Information:
(unaudited) ($000's, except unit and per unit amounts) |
Three months |
Three months |
Number of properties |
152 |
148 |
Gross leasable area (sf) |
10,607,298 |
10,072,474 |
Occupancy (1) |
96.4% |
96.3% |
Weighted Average Lease Expiry (Years) |
12.3 |
12.7 |
Net Operating Income |
$65,254 |
$66,177 |
Net Income (Loss) attributable to unitholders |
$21,303 |
$958 |
Funds from Operations ("FFO") |
$24,601 |
$23,187 |
Adjusted Funds from Operations ("AFFO") |
$24,392 |
$25,070 |
Debt to Gross Book Value - Declaration of Trust |
50.2% |
46.9% |
Debt to Gross Book Value - Including Convertible Debentures |
56.1% |
53.1% |
The REIT invites you to participate in its conference call with senior management to discuss our second quarter 2018 results on Thursday, August 9, 2018 at 10:00 AM (Eastern).
Investors are invited to access the call by dialing 416-764-8609 or toll-free 1 (888) 390-0605, conference ID# 75382771. A recording of this call will be made available Thursday, August 9th, 2018 beginning at 12:45 pm (ET) through to Thursday, August 16, 2018. To access the recording, please call 1 (888) 390-0541 or (416) 764-8677 and use the reservation number 75382771.
The conference call can be accessed by dialing (416) 764-8609 or toll-free 1 (888) 390-0605. The conference ID is 75382771.
Audio replay will be available until August 16, 2018 by dialing (416) 764-8677 or 1 (888) 390-0541. The passcode is 75382771.
In conjunction with the release of the REIT's second quarter 2018 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 August 8, 2018, Vital Trust also announced its 2018 full year results for the twelve months ended June 30, 2018. 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, 2018 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 152 income-producing properties and 10.6 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia and New Zealand. 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 180 professionals across nine offices in five countries to serve as a long term real estate partner to leading healthcare operators.
Non-IFRS Measures
Some financial measures used in this press release, such as Operating Income, adjusted same-property NOI, FFO, AFFO, Normalized AFFO, Net Asset Value 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 REIT's Management's Discussion and Analysis ("MD&A") for the second quarter ending June 30, 2018, which is available on the SEDAR website at www.sedar.com. Also on SEDAR are the condensed consolidated unaudited interim financial statements of the REIT for the three months ended June 30, 2018.
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", "stabilized" or "continue" or the negative thereof or similar variations. The REIT's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. Such 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.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
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