Regal Lifestyle Communities Inc. announces closing of $61.8 million acquisition of a portfolio of four retirement homes located in Southern Ontario
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TORONTO, Oct. 9, 2013 /CNW/ - Regal Lifestyle Communities Inc. ("Regal" or the "Company") (TSX: RLC) announced today that it has closed the previously announced acquisition of 546 suites in four retirement communities in Southern Ontario (the "Portfolio") from Community Lifecare Inc.
"We are pleased to have completed this acquisition of four quality retirement homes from Community Lifecare Inc." said Mr. Simon Nyilassy, Regal's President and CEO. He added, "the homes are well established in strong markets in Port Perry, Ottawa, London and Chatham, Ontario and contain over 500, mostly independent living suites that will add significant critical mass to our existing, over 1400 suite, portfolio. The acquisition will be immediately accretive to Regal's AFFO per share and will lower the Company's payout ratio".
About Regal Lifestyle Communities Inc.
Regal Lifestyle Communities Inc. is a corporation incorporated under the laws of the Province of Ontario which currently owns a portfolio of 14 income-producing retirement communities offering a continuum of care, from independent serviced living to a full range of assisted living programs. The 14 "current generation" retirement communities comprise over 1,900 suites, primarily located in the Province of Ontario and including a property located in each of the Provinces of Saskatchewan and Newfoundland and Labrador.
Forward Looking Information
Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties, including statements with respect to the Company and its operations, strategy, financial performance and financial condition, as well as with respect to the acquisition of the Portfolio and the effects of the acquisition of the Portfolio on the financial performance of the Company including that the acquisition of the Portfolio is anticipated to be accretive to the Company's AFFO and lower the Company's payout ratio. Forward-looking statements use the words "believe", "expect", "anticipate", "may", "should", "intend", "estimate" and other similar terms, which do not relate to historical matters. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause the actual results to differ materially from those indicated. Such factors include, but are not limited to, general economic conditions and the failure of the Company to realize expected benefits from the acquisition of the Portfolio. Also see the risk factors identified in the public filings of the Company available on www.sedar.com. The Company believes that the expectations reflected in its forward-looking statements are based on reasonable assumptions; however, the Company can give no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Readers should be cautioned not to place undue reliance on the forward-looking statements.
"AFFO" and net operating income ("NOI") are not measures recognized under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and do not have any standardized meaning prescribed by IFRS. AFFO and NOI are supplemental measures of a company's performance and management believes that AFFO and NOI are useful in the assessment of the Company's operating performance for valuation purposes, and is also a relevant measure of the ability of the Company to earn and declare dividends to shareholders. AFFO and NOI, as computed by the Company, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to AFFO and NOI reported by such organizations. AFFO and NOI should not be construed as alternatives to comprehensive income or cash flow from operating activities determined in accordance with IFRS as indicators of Regal's performance. For additional information regarding these non-IFRS measures, including the definitions thereof, refer to the Company's most recent management's discussion and analysis of results of operations and financial condition, a copy of which is available at www.sedar.com.
For more information, visit the Company's issuer profile at www.sedar.com
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Regal Lifestyle Communities Inc.