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TORONTO, June 6, 2014 /CNW/ - Regal Lifestyle Communities Inc. ("Regal" or the "Company") (TSX: RLC) announced today that it has closed the previously announced acquisition of 1,449 suites in seven retirement communities in the Province of Quebec (the "Portfolio") from ELAD Genesis Limited Partnership.
"We are pleased to have completed this acquisition of seven quality retirement homes from ELAD Genesis Limited Partnership," said Mr. Simon Nyilassy, Regal's President and CEO. He added, "The homes are well established and focused in the Montreal area. They contain over 1,400, mostly independent living suites that will provide Regal with a significant presence in a new and important market. The acquisition will be immediately accretive to Regal's AFFO per share and will lower the Company's payout ratio."
The purchase price was satisfied from net proceeds of approximately $25.9 million from the previously announced public offering of common shares of the Company ("Common Shares"), approximately $104.8 million from the assumption of mortgages secured against the Portfolio, cash on hand and the issuance to the vendor, on a private placement basis, of 3,510,126 Common Shares at a price of $7.36 per Common Share.
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 23 income-producing retirement communities offering a continuum of care, from independent serviced living to a full range of assisted living programs. The 23 retirement communities comprise over 3,600 suites, primarily located in the Province of Ontario and including communities located in each of the Provinces of British Columbia, Saskatchewan, Quebec 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.
SOURCE: Regal Lifestyle Communities Inc.
Renseignements: Simon Nyilassy, President and Chief Executive Officer, Regal Lifestyle Communities Inc., (416) 777-9677; Harold Atterton, Chief Financial Officer, Regal Lifestyle Communities Inc., (416) 777-9677