TORONTO, Nov. 24, 2011 /CNW/ - GT Canada Medical Properties Real Estate
Investment Trust (the "REIT") is pleased to announce its financial
results for the three and nine months ended September 30, 2011.
On September 21, 2011, the REIT completed its acquisition of the Huronia
Medical Centre, a 23,000 s.f. medical office building in Midland,
Ontario for approximately $5.2 million, subject to customary closing
adjustments. The building's tenants are medical practitioners with a
pharmacy, lab and x-ray facilities and it is 100% occupied. The cap
rate on the transaction is 8.27%.
On September 26, 2011, the REIT announced that it had entered into an
agreement to purchase a 21,000 square foot medical office building in
Orillia, Ontario for approximately $6,950,000 from Thornley Holdings
Limited, a related party. The transaction is subject to Unitholder
approval which will be sought at a special meeting to be held on
November 29, 2011.
Funds From Operations
The REIT's Funds From Operations ("FFO") represents the recurring cash
flow generated through the ownership of income producing properties.
The primary difference between net income and FFO is the fair value
gain on investment properties and other fair value gains .
For the three months ended September 30, 2011 FFO increased to $250,315
or $0.02 per unit from a loss of ($209,968) or ($0.11) per unit for the
same period in 2010. For the nine months ended September 30, 2011, FFO
increased to $638,999 or $0.04 per unit from a loss of ($771,364) or
($0.57) per unit for the same period in 2010.
The improvement in FFO is primarily a result of the five properties
acquired in December 2010.
Net income for the three months ended September 30, 2011 increased to
$2,529,368 or $0.17 per unit from a loss of ($209,968) or ($0.11) per
unit for the three months ended September 30, 2010. For the nine
months ended September 30, 2011, net income increased to $9,279,445 or
$0.60 per unit from a loss of ($771,364) or ($0.57) per unit for the
nine months ended September 30, 2010.
The improvement in net income reflected the addition of 5 properties in
December 2010 and the effect of fair value gains on investment
properties resulting from declining cap rates and fair value gains
attributable to the warrant liability.
The REIT continues to seek growth through acquisitions, with a
discipline of continuing to build a portfolio comprised exclusively of
medical office buildings that are physician intensive with high
occupancy rates. The REIT will see growth in net operating income from
the Midland property, acquired on September 21, 2011, in the fourth
quarter. Net operating income will also be positively effected upon the
closing, anticipated in the fourth quarter, of the previously announced
acquisition of the Orillia property.
2011 Third Quarter Financial Results
For the REIT's complete third quarter 2011 Condensed Consolidated
Financial Statements and Management's Discussion and Analysis ("MD&A"),
please visit www.sedar.com
GT Canada Medical Properties REIT
As Canada's only publicly traded issuer focused exclusively on medical
office buildings, GT Canada Medical Properties Real Estate Investment
Trust 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 medical office
buildings, 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.
Some financial measures used in this press release, such as FFO, 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 MD&A for the second quarter of 2011, which is
available on the SEDAR website at www.sedar.com.
This press release contains forward-looking statements. Forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "estimates", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements may include, among other things,
statements related to acquisitions; development and capital expenditure
activities; future maintenance and leasing expenditures; financing; the
availability of financing sources; and income taxes. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the REIT to be materially different from any future results,
performance or achievements. 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 "Risk Factors"
in the REIT's MD&A, which is 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
SOURCE GT Canada Medical Properties Real Estate Investment Trust
For further information:
Andrew I. Shapack, Chief Executive Officer (416) 572-2170