Regal Lifestyle Communities Inc. announces closing of $44 million acquisition of two retirement homes
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TORONTO, March 31, 2014 /CNW/ - Regal Lifestyle Communities Inc. ("Regal" or the "Company") (TSX: RLC) announced today that it has completed the previously disclosed acquisitions in Maple Ridge, British Columbia and Milton, Ontario. These two recently built retirement homes comprise 197 suites in aggregate and are 95% and 79% occupied, respectively. The $44 million invested to acquire the homes, excluding closing costs, will be immediately accretive to Regal's cash flow (AFFO) per share. Regal will pay a further $13.5 million in aggregate to the vendors within the next two years, as additional income and leasing is achieved. Regal expects further accretion from these incremental investments.
Mr. Simon Nyilassy, Regal's President and CEO said, "We are excited to expand the Regal brand into British Columbia as well as growing our presence in the Greater Toronto Area, through the acquisition of these two high quality homes." He added, "These homes will be a great compliment to our existing portfolio of 14 homes which, with average occupancy remaining above 94%, continue to be a popular choice with seniors in each of our existing communities."
Maple Ridge is comprised of 89 rental (22 studios, 61 one bedroom and 6 two bedrooms) and 4 condo suites and Milton is comprised mainly of one bedroom suites. The addition of the two homes will increase Regal's portfolio to 16 homes and will increase the number of suites by approximately 10%.
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 income-producing retirement communities offering a continuum of care, from independent serviced living to a full range of assisted living programs. The 16 retirement communities comprise over 2,100 suites, primarily located in the Province of Ontario and including a property located in each of the Provinces of British Columbia, 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 acquisitions and the effects of the acquisitions on the financial performance of the Company including that the acquisitions are anticipated to be accretive. 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 acquisitions. 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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