HealthLease Properties Real Estate Investment Trust Provides Q&A Update 2013 Second Quarter

TORONTO, Aug. 9, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") provides below answers to questions received since our last Q&A Update on August 1, 2013.

Question 1: For future acquisitions and new developments to be acquired by HLP - are there plans to apply annual rent increases based on the Consumer Price Index rather than fixed-rate rent escalators?

Answer: Yes.  Mainstreet, our external manager, has already started adjusting leases on new developments accordingly.  For acquisitions that do not have rent increases tied to CPI we will adjust our purchase price accordingly.

Question 2: If you were to obtain a 10-year mortgage in Indiana or North Carolina, what would the interest rate be?

Answer: Mortgages with a 10-year term are currently not available; five-year mortgages are and are priced in the 4.25% range.

Question 3: Has there been any change in cap rates given the higher bond rate?

Answer: Not at this time, but we are watching cap rates closely.

Question 4: Approximately how much is left to be paid in development lease payments to the REIT?

Answer: About $37,000 is left to be paid

Question 5: Please explain the drop in Fair Market Value.

Answer: Each quarter there is straight line rent that increases the assets in our portfolio.  We have to adjust for this increase by decreasing Fair Market Value to the original balance.  Cap rates in our industry are relatively stable, but we do full evaluations on at least one-third of our portfolio each year.  This full evaluation includes third party appraisals.

Question 6: Does $2.7 million for the run rate of straight line rent seem reasonable?

Answer: Our guidance for straight line rent for the next twelve months is approximately $3.4 million.

Question 7: Do you expect to take any of your debt to agency debt in the U.S.?

Answer: Yes, we are in the process of taking about $50 million of our existing debt to agency.

Question 8: What are the terms of agency debt in the U.S. generally?

Answer: The present agency debt terms for 30-year fixed interest rates are in the low 4% range.

Question 9: What is the cost of the Mainstreet mezzanine-financed facilities?

Answer: The facilities at Castleton and South Bend, Indiana are each approximately $14.5 mm.

Question 10: What do you expect in terms of acquisition activity?

Answer: We see ample opportunity in the market to continue on the same pace in the next twelve months as we saw in the prior year.

Question 11: What is the interest rate in the Continuum financing?

Answer: 7.24%

Supplemental Financial Information

This news release is not in any way a substitute for reading HealthLease's financial statements, including notes to the financial statements, and Management's Discussion and Analysis, dated August 8, 2013.  The REIT's 2013 Fiscal Second Quarter Financial Statements, and MD&A, have been filed on SEDAR. The Second Quarter Financial Statements and MD&A can also be viewed in the Investor Information section of the HealthLease's website at www.hlpreit.com.

About HealthLease Properties Real Estate Investment Trust

HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a portfolio of seniors housing and care facilities located in the United States and Canada.  The facilities are leased to experienced tenant operators who have significant operational experience in the U.S. and Canada. The leases are structured as long-term and triple-net, features that provide stability and dependability to the REIT's cash flow and distributions.  The REIT's best-in-class portfolio of properties meets the needs of modern seniors by emphasizing features such as hotel-like design, private rooms and baths, and hospitality-inspired amenities.  For more information, visit www.hlpreit.com.

Forward-Looking Information
This news release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties, including those set forth in the REIT's Annual Information Form dated March 6, 2013 under the section "Risk Factors," a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.

SOURCE: HealthLease Properties Real Estate Investment Trust

Scott White
Executive Vice President - Finance
HealthLease Properties REIT
[phone]

Renée Lam
Investor Relations
TMX Equicom
[phone] ext. 258