GT Canada Medical Properties REIT (TSX-V: MOB.UN) Announces Third Quarter 2011 Financial Results

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.

Highlights

Completed Acquisiton

  • 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%.

Acquisition Announced

  • 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.

Financial Results

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

  • 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.

Outlook

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 statements.


SOURCE GT Canada Medical Properties Real Estate Investment Trust

For further information:

Andrew I. Shapack, Chief Executive Officer (416) 572-2170

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GT Canada Medical Properties Real Estate Investment Trust

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