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NorthWest Healthcare Properties Real Estate Investment Trust Releases Strong Third Quarter 2018 Results and Continued Execution on Strategic Priorities


Responding to recent developments at REIT, Paul Dalla Lana CEO, said:

"The third quarter of 2018 was another active period for the REIT which was highlighted by the acquisition of Hospital Morumbi in [19659005] Brazil and the successful closure of the Seed Portfolio in the REITs $ 2.0 billion (debt & equity) institutional joint venture (the "JV ") .During this particularly active moment in Australasia Healthcare real estate, closing the JV is an important milestone, as it adds a new source of capital so that REIT can use its market-leading platform to implement the expanded pipeline of growth opportunities at In the short term markets, it remains significant opportunities to benefit from its differentiated health care real estate platform, especially in Europe and increasingly and Brazil as the REIT looks to use the relative strength of the Canadian dollar to apply capital. To fully exploit the opportunity, REIT expects to attract additional fees with institutional capital to support its growth pipeline. Altogether, these initiatives provide REIT with a substantial runway and resources to continue to expand its activities both in the near and the long term. "

Q3-2018 Financial and operational highlights:

In addition to a very busy transaction In the third quarter, REIT continued to deliver stable, financial and operational performance in an extensive building (including subsequent events), a portfolio of diversified healthcare real estate from 10.8 million square feet, supported by long-term inflation-linked rental contracts, all our international regions had a negative impact on the third quarter results, strong SPN of the source currency and higher management costs for ANZ resulted in a stable operating result, expected to lead to future growth given natural portfolio hedging including inflation indexation.

three months ended September 30, 2018 REIT delivered strong financial and operational results on results, illustrated by the following:

  • Total revenue increased by 3.7% in Q3 20 18 to $ 87.0 million of $ 83.9 million in Q3 2017 mainly due to net acquisition in Germany Netherlands [19659003] Canada and Vital Trust;
  • The total operating result 1 increased by 11.8% to $ 70.9 million in the third quarter of 2017;
  • The reported net loss of $ 28.5 million was caused by a one-off adjustment to amortization of $ 50.1 million goodwill related to the sale of the seed portfolio;
  • Reported and normalized AFFO per unit for the third quarter of 2018 of $ 0.20 and $ 0.22 respectively;
  • Source-currency-adjusted SPNOI growth of 4.0% in Q3 2018 compared to Q3 2017;
  • Recognition of a fair value of $ 43.5 million in REIT's total real estate investment portfolio, mainly driven by profits in Canada and Germany [19659003] ;
  • Leverage of 49.4% (55.7% including convertible bonds) at the end of Q3 2018. REIT continues to focus on a leverage ratio of 40% and expects leverage to fall to that target in the medium term ;
  • Net asset value per unit of $ 11.09 a decrease of 7.6% compared to the second quarter of 2018, mainly due to currency depreciation. Adjustment for currency appreciation after quarter end, 30 September 2018 NAV per unit would increase to $ 11.45 ;
  • Strong portfolio holding of 96.3% increases by 40 basis points from the fourth quarter of 2017 and the international portfolio has a stable occupancy rate of more than 99%;
  • Weighted average rental period of 12.5 years increased by 0.4 years from Q4 2017, supported by the international portfolio with a weighted average rental period of 16.6 years; and
  • The percentage of lease agreements subject to annual indexation 2 is 72.5% and serves as a strong basis for achieving organic growth and a natural hedge in a rising interest-climate environment.

During both the third quarter and the next quarter, REIT continued to execute the limited risk committed pipeline, with the refinancing of the refinancing operations completed and selective acquisitions, including the addition of hospital Morumbi in Brazil [19659003] .

Major initiatives include:

  • Completed $ 308 million of transactional activity:
  • C $ 88 million acquisition of hospital Morumbi in Brazil [19659003] from Rede D & # 39; Or, of Brazil leading private hospital operator. As part of the transaction, REIT agreed to acquire the hospital administration building at REIT's existing HMB premises, the continuous development of a new ambulatory care building on site for a combined $ 30M together with a renewed lease of 25 years for the entire project after completion. The acquisition of the hospital building is subject to normal course conditions and is expected to be completed in the first half of 2019;
  • C $ 12 million acquisition of Australian developing country;
  • $ 208 million sale of a 70% stake in three high-quality revenues that produce Australian healthcare assets and development real estate to REIT's institutional JV partner.

For the balance of 2018 and building on strong YTD results and portfolio improvements, REIT will continue to drive internal growth through the completion of the 9 active development projects with added value, and implement strategic growth initiatives in each of its regions & # 39; s. In support of the REIT strategy, the trends in healthcare worldwide remain constructive with increasing institutional investments confirming the defensive characteristics and growth potential of the sector.

Selected financial information:

(unverified)

($ 000 & # 39; s, except unit and per unit amounts)

Three months
ended September
30, 2018

] Three months
ended June 30,
2018

Number of properties

153

152

Gross lettable area (sf)

10,841,260

10,607,298

] Occupancy (1)

96.3%

96.4%

Weighted average lease term (years)

12.5

12.3

Net exploitation income

$ 65,213

$ 65,254

Net income (loss) attributable to shareholders

$ (29,290)

$ 21,303

Funds from Operations ("FFO") [19659050] $ 24,504

$ 24,601

Adjusted funds from transactions ("AFFO")

$ 24,294

$ 24,392

Debt to gross book value – Confidentiality declaration [19659057] 49.4%

50.2%

Debt to gross book value – including convertible bonds

55.8% [19659061] 56.1%

REIT invites you to participate in her telephone conference with senior management to discuss our results for the third quarter of 2018 on Monday, November 12, 2018 at 9:00 am (Eastern).

Investors are invited to access the call by calling 416-764-8609 or free 1 (888) 390-0605, conference ID # 79678048. A recording of this call will be made available Monday, November 12, 2018 from 12:45 hours (ET) to Monday, November 19, 2018 . To access the recording, call 1 (888) 390-0541 or (416) 764-8677 and use the reservation number 75382771.

The conference call can be accessed by calling (416) 764-8609 or free 1 (888 ) 390-0605. The conference ID is 75382771.

Audio replay will be available until November 16, 2018 by calling (416) 764-8677 or 1 (888) 390-0541. The access code is 678048 #.

In combination with the publication of the REIT financial results for the third quarter of 2018, REIT will present an actual update presentation for investors on its website, where additional information about REIT's investments and business performance can be found. . Visit the REIT website at www.nwhreit.com/Investors/Presentations

Vital Healthcare Property Trust
On 9 November 2018 Vital Trust also announced 2018 for the first time quarterly results for the three months ended September 30, 2018 . More information on the financial results of Vital Trust is available on the Vital Trust website at www.vitalhealthcareproperty.co.nz

About NorthWest Healthcare Properties Investment fund

NorthWest Healthcare Properties Investment fund (TSX: NWH .UN) ( NorthWest ) is a real estate investment company with no legal personality incorporated under the laws of the province Ontario . On September 30, 2018 REIT offers investors access to a portfolio of high-quality international healthcare real estate infrastructure comprising interests in a diversified portfolio of 153 revenue-generating buildings and 10.8 million square feet of gross lettable assets. area located in major markets in Canada Brazil Europe Australia and New Zealand . The REIT portfolio of medical office buildings, clinics and hospitals is characterized by long-term indexed leases and stable occupations. With a fully integrated and coordinated senior management team, REIT employs more than 180 professionals from nine offices in five countries to serve as a long-term real estate partner for leading healthcare operators.

Non-IFRS measures

Certain financial measures are used in this press release, such as operating income, adjusted NOI, FFO, AFFO, normalized AFFO, net asset value per unit, portfolio holding and weighted average rental turnover, are used by the real estate sector to the business activities measure and compare the performance of real estate companies, but they have no standardized meaning prescribed by IFRS. As such, it is unlikely that they are comparable to similar measures presented by other real estate companies. These non-IFRS standards are more fully defined and discussed in the REIT & # 39; s Discussion and Analysis ("MD & A") for the third quarter that ended on September 30, 2018 available on the SEDAR website on www.sedar.com . Also on SEDAR the condensed consolidated unaudited interim financial statements of the REIT ended for the three months September 30, 2018 .

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the REIT, its activities, strategy, financial performance and circumstances. These statements can generally be identified by forward-looking words such as "can," "will," "expect," "estimate," "anticipate," "plan," "believe," "normalize," " contracted "," stabilized "or" continuous "or the negative thereof or comparable variations. The actual results and performance of the REIT discussed herein may differ materially from the results and results expressed or implied by such statements. Such statements are fully qualified by the inherent risks and uncertainties surrounding future expectations, including the completion of the transactions contemplated herein. Important factors that could cause actual results to differ materially from expectations include general economic and market factors, competition, changes in government regulations and the factors described under "Risks & uncertainties" in the annual REIT information risks & # 39; s & risks & # 39; s. uncertainties set out in the MD & A that are available on www.sedar.com . These cautionary statements qualify all forward-looking statements that can be attributed to the REIT and persons acting on behalf of the REIT. 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, REIT does not accept any obligation to update such statements.

SOURCE Northwest Healthcare Properties Real Estate Investment Trust

For more information: contact Paul Dalla Lana, CEO of (416) 366-8300 x 1001.

Related links

http: // www .nwhp.ca / Home / main.aspx [19659112] Organization profile




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