TORONTO, Jan. 25, 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 December 28, 2012.
Question 1: I have enjoyed the performance in 2012, but what type of growth can I expect in 2013?
Answer: Investors can expect management to continue to strive towards maximizing per unit value. As announced in October 2012, there are four projects that the REIT will have the option to purchase from Mainstreet Property Group, the external developer, with a total value of approximately $65 million (8.25% cap rate). The first opportunity is in 2nd quarter 2013 and the other opportunities will be in 4th quarter 2013. In addition, management continues to analyze 3rd party acquisitions and believe there are substantial opportunities both in Canada and the United States.
Question 2: You are currently 60% Canada and 40% United States. What allocation do you think you will be in 3-5 years?
Answer: In the short-term it will be closer to a 50/50 allocation. However, it is hard to tell long-term what the allocation will be. From a size standpoint, the total opportunity in the U.S. is greater. In Canada, while the current operators at our facilities operate under the triple net lease structure, this structure has not really been widely offered to Canadian operators. We are currently working on educating the Canadian operators on the benefits of working with HealthLease under this structure.
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. The REIT's Fiscal Third Quarter Interim Financial Statements have been filed on SEDAR and 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 final prospectus dated June 8, 2012 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
For further information:
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106
(416) 815-0700 ext. 242