TORONTO, Sept. 4, 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 9, 2013.
Question 1: What is the status of the tenant dispute announced earlier this year?
Answer: We are still in discussions with the tenant. In the meantime, we have drawn down the rent due from the significant cash lease guarantee that was in escrow. We hope to have a resolution soon.
Question 2: What percentage of your beds receive some kind of government funding?
Answer: A significant portion of our facilities receive government funding (U.S. and Canada) as well as private pay dollars (includes insurance and managed care). We estimate about 65% of our tenants' revenue is government funding and 35% is private pay.
Question 3: Can you please provide further information on coverage ratios and occupancy rates of the operators?
Answer: Our coverage ratios continue to be strong. Within our stabilized properties it is greater than 1.6 to 1.0. In addition, approximately 70% of our properties are stabilized with the other 30% in lease-up by our operators. Once again, HLP is 100% leased but our tenants have the lease-up risk. The 30% that is in lease-up continues to progress well with several of them nearing stabilization.
Question 4: Please provide further information on the acquisition environment, cap rates, debt availability.
Answer: We continue to see a lot of opportunities both in the U.S. and Canada. In the U.S. cap rates are ranging from 7-9% with average cap rates in the low 8's. In Canada we are seeing cap rates ranging 6-8% with most assets falling in the high 6's or low 7's. The debt market is robust for HLP and lenders are readily available for acquisition financing.
Question 5: What are the physical addresses of the facilities in the SP II Senior Care Portfolio and Continuum Senior Care Portfolio?
Sunrise Village Camrose
6821 - 50 Avenue, Camrose, Alberta
Sunrise Village Drayton Valley
3902 - 47 Street, Drayton Valley, Alberta
Sunrise Village Olds Encore
3300 57 Avenue, Olds, Alberta
Sunrise Village High River
7th Street NW, High River, Alberta
Sunrise Village Olds
5600 Sunrise Crescent, Olds Alberta
Sunrise Village Ponoka
4004 - 40th Street Close, Ponoka, Alberta
Sunrise Village Wetaskiwin
5430 - 37 A Avenue, Wetaskiwin, Alberta
Sunrise Village Lethbridge
1730 10 Avenue South, Lethbridge, Alberta
Stratford Healthcare Center
508 Rison Street, Danville, VA 24541
Falls Run Nursing and Rehab Center
140 Brimley Dr, Fredericksburg, VA 22406
Tyler's Retreat at Ironbridge
12001 Iron Bridge Rd, Ironbridge, VA 23831
Chatham Health and Rehab Center
100 Rorer St, Chatham, VA 24531
Oaks of Brecksville
8757 Brecksville Rd, Brecksville, OH 44141
141 Moyock Landing Drive, Moyock, NC 27958
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.
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
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