NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST ANNOUNCES Q3 2023 RESULTS
News provided by
NorthWest Healthcare Properties Real Estate Investment TrustNov 08, 2023, 04:00 ET
- Positive revenue growth and same property NOI growth in Q3 2023 and YTD 2023
- Secured a new C$140 million term loan to extend maturities
- In process for extending of the maturity date of series G Convertible debt
- Northwest recognized as a leader in 2023 GRESB ESG Real Estate Assessment
TORONTO, Nov. 8, 2023 /CNW/ - Northwest Healthcare Properties Real Estate Investment Trust (the "REIT" or "Northwest") (TSX: NWH.UN), an owner, asset manager and developer of healthcare real estate, today announced results for the period ending September 30, 2023 ("Q3 2023"). The REIT also provided updates on recent capital management initiatives, and shared results of the 2023 GRESB ESG Real Estate Assessment.
Craig Mitchell, Northwest's CEO comments: "While a Strategic Review is underway, management and the Board have taken key actions in the near term to strengthen the balance sheet and the business."
"The REIT will eliminate all 2023 debt maturities, and over 60% of its 2024 debt maturities. We are also seeking approval from our debentureholders to amend and extend the Series G debentures. We are working to divest our remaining investment units in Australian Unity Healthcare Fund ("AUHPT"). To date we have completed investment and non-core asset sales that have generated gross proceeds of $235.1 million, with additional non-core assets being under contract. We remain committed to building on our position as a healthcare real estate leader, focused on creating value for our many stakeholders."
Since August 2023, Northwest has pursued a strategy to strengthen the balance sheet by reducing its monthly distributions and extending its maturity profile to create stability through 2024. To date the REIT has been successful in refinancing and extending corporate debt obligations. With the completion of the convertible debt maturity date extension anticipated for later this month, the REIT will have eliminated corporate debt facilities maturing before November of 2024. As previously communicated to the market, the REIT is also undertaking non-core assets sales to de-lever the balance sheet.
- Secured a new term loan of C$140 million, with an April 2025 maturity.
- Launched the process of amending and extending its C$125 million ("Series G") convertible debentures due on December 31, 2023, to March 31, 2025. See announcement of October 16, 2023 for details.
- Refinanced its largest debt facility maturing in 2024, which comprises the A$269 million (C$235 million) JV portfolio debt facilities, extending the maturity date from June 2024 to December 2025.
- To-date completed sales or have under contract $181 million gross non-core property asset.
- To-date completed $110 million in sales of its investment in AUHPT.
For the three and nine months ended September 30, 2023, revenue increased by 5.1% and 15.3%, respectively. Net income (loss) for the three and nine months ended September 30, 2023, decreased by $116.4 million and $553.0 million, respectively, primarily as result of fair value losses on investment properties from changes in valuation parameters.
Operationally, the REIT's high-quality and defensive healthcare real estate portfolio delivered strong results including 3.7% same property net operating income ("SPNOI") growth (see Exhibit 3) on a year over year basis.
The REIT's portfolio occupancy of 96% is supported by a weighted average lease expiry of 13.2 years and 82.9% of leases are subject to inflation indexation. With a portfolio comprising more than 2,000 tenants, the REIT's cash flow is highly diversified across its 229 properties.
Adjusted Funds From Operations (AFFO) (1) per unit decreased from $0.15 in Q3 2022 to $0.13 in Q3 2023 as result of increased interest expense.
- Q3 2023 revenue of $122.2 million up 5.1% year-over-year;
- Q3 2023 net loss attributable to unitholders of $81.3 million as result of fair value loss on investment properties.
- Q3 2023 SPNOI increased by 3.7% on a year-over-year basis, driven primarily by annual rent indexation (see Exhibit 3);
- Strong portfolio occupancy of 96% consistent with last quarter;
- Q3 2023 AFFO of $0.13 per unit, down from $0.15 per unit on a year-over-year basis (see Exhibit 2);
- Weighted average lease expiry of 13.2 years is underpinned by healthcare infrastructure;
- Total assets under management ("AUM") decreased by 5.3% on a year–over-year basis to $10.0 billion due to combination of non-core asset sales and property valuations.
- Net asset value ("NAV") per unit decreased by 4.7% to $11.96 in Q3 2023 (see Exhibit 4) compared to June 30, 2023. The decrease is predominantly due to cap rate expansion to 5.75%.
- Total capital deployed in fee bearing vehicles is $5.7 billion, a decrease of 1.7% year-over-year as result of fluctuation in foreign exchange rates and;
- Consolidated Debt to Gross Book Value Including Convertible Debentures of 51.6%, an increased of 80 bps on a quarter-over-quarter basis.
On September 22, 2023, the REIT announced a reduction in the REIT's monthly distribution to unitholders from $0.06667 per unit to $0.03 per unit. The distribution reduction is expected to provide the REIT with financial flexibility to continue advancing its short and long-term objectives while exploring strategic alternatives, with maximizing unitholder value being the principal objective.
The REIT announced a distribution of $0.03 per REIT unit to unitholders of record on September 29, 2023, and paid on October 16, 2023.
(1) These are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Further, the REIT's definitions of AFFO and FFO differ from those used by other similar real estate investment trusts, as well from the definitions recommended by REALpac. See "Non-IFRS Financial Measures" the REIT's Q3 2023 MD&A. |
In 2023, the REIT and Vital Healthcare Property Trust ("Vital") (which is managed by Northwest) participated in the GRESB Real Estate Assessment for the third year running. GRESB, the global Environmental, Social and Governance (ESG) benchmark for assessing real estate and infrastructure investments, collectively representing USD 8.8 trillion in gross asset value ("GAV").
Northwest and Vital were GRESB Sector Leaders in the following categories:
- Global Listed Sector Leader, Healthcare Standing Investments
- (Vital and Northwest came in 1st and 2nd place respectively)
- Global Listed Sector Leader, Healthcare Development
- (Vital and Northwest came in 1st and 2nd place respectively)
- Global Sector Leader, Healthcare Development
- (Vital and Northwest came in 1st and 3rd place respectively)
These results for the REIT and Vital demonstrate Northwest's commitment to ESG best practices. Not only is this the "right and responsible" thing to do, but this in time will also represent a key component of Northwest's value and its associated cost of capital.
A conference call will be held on November 8, 2023, at 10:00 AM (ET). Participating on the call will be members of the REIT's senior management team.
Investors are invited to instantly join the conference call by phone by using the following URL to register and be connected into the conference call automatically: https://emportal.ink/3FlUUZa.
- Investors may also access the call by dialing 416-764-8609 or 1 (888) 390-0605. The conference ID is 16291139#.
- An audio replay of this call will be made available from November 8, 2023, through November 15, 2023, by dialing 416-764-8677 or 1 (888) 390-0541.
- The conference replay entry code is 291139#.
Some financial measures used in this press release, such as SPNOI, Constant Currency SPNOI, FFO, FFO per Unit, AFFO, AFFO per Unit, NAV, NAV per Unit, portfolio occupancy and weighted average lease expiry, 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.
These non-IFRS financial measures and non–IFRS ratios should not be construed as alternatives to financial measures calculated in accordance with IFRS. The REIT's method of calculating these measures and ratios may differ from the methods of other real estate investment trusts or other issuers, and accordingly may not be comparable. Further, the REIT's definitions of FFO and AFFO differ from the definitions recommended by REALpac. These non- IFRS measures are more fully defined and discussed in the exhibits to this news release and in the REIT's Management's Discussion and Analysis ("MD&A") for the three months ended September 30, 2023, in the "Performance Measurement" and "Results from Operations" sections. The MD&A is available on the SEDAR+ website at www.sedarplus.ca.
This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe", "normalized", "contracted", or "continue" or the negative thereof or similar variations. Examples of such statements in this press release may include statements concerning the REIT's position as a leading healthcare real estate asset manager globally, balance sheet optimization and strengthening plans, the REIT's non-core asset sale program and potential acquisitions, dispositions and other transactions, including plans to amend and extend the Series G debentures and sell the REIT's remaining investment units in AUHPT. The REIT's actual results and performance discussed herein could differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on numerous assumptions which may prove incorrect, and which could cause actual results or events to differ materially from the forward-looking statements. Such assumptions include, but are not limited to (i) assumptions relating to completion of anticipated acquisitions, dispositions, financings, refinancings, deleveraging and other transactions (some of which remain subject to completing documentation) on terms disclosed; (ii) the REIT's properties continuing to perform as they have recently, (iii) the REIT successfully integrating past and future acquisitions, including the realization of synergies in connection therewith; (iv) various general economic and market factors, including exchange rates remaining constant, local real estate conditions remaining strong, interest rates remaining at current levels, the impacts of COVID-19 on the REIT's business ameliorating or remaining stable; and (vii) the availability of equity and debt financing to the REIT. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. 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 "Risks and Uncertainties" in the REIT's Annual Information Form and the risks and uncertainties set out in the MD&A which are 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.
Please find the follow financial tables including a reconciliation of Non-GAAP Financial Measures to our IFRS measures.
- Table: Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
- Exhibit 1: Funds from Operations
- Exhibit 2: Adjusted Funds from Operations
- Exhibit 3: Constant Currency Same Property NOI
- Exhibit 4: Net Asset Value ('NAV') per Unit
- Exhibit 5: Property Management Fees
NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST | ||||
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) | ||||
(in thousands of Canadian dollars) | ||||
Unaudited | ||||
For the three months ended September | For the nine months ended | |||
2023 | 2022 | 2023 | 2022 | |
Net Property Operating Income | ||||
Revenue from investment properties | $ 122,182 | $ 116,293 | $ 384,010 | $ 333,119 |
Property operating costs | 27,085 | 26,746 | 95,471 | 77,622 |
95,097 | 89,547 | 288,539 | 255,497 | |
Other Income | ||||
Interest and other | 7,882 | 3,827 | 15,963 | 9,841 |
Development revenue | — | — | — | 3,746 |
Management fees | 3,660 | (3,231) | 11,139 | 15,459 |
Share of profit (loss) of equity accounted investments | 1,966 | 3,050 | (19,917) | 22,565 |
13,508 | 3,646 | 7,185 | 51,611 | |
Expenses and other | ||||
Mortgage and loan interest expense | 58,715 | 40,864 | 167,550 | 98,775 |
General and administrative expenses | 16,664 | 12,421 | 45,235 | 35,560 |
Transaction costs | 11,255 | 3,740 | 34,688 | 15,858 |
Development costs | — | — | — | 3,430 |
Foreign exchange (gain) loss | 2,521 | 3,822 | (7,487) | (777) |
89,155 | 60,847 | 239,986 | 152,846 | |
Income before finance costs, fair value | 19,450 | 32,346 | 55,738 | 154,262 |
Finance costs | ||||
Amortization of financing costs | (2,686) | (2,857) | (8,649) | (7,824) |
Amortization of mark-to-market adjustment | — | 300 | — | 719 |
Class B exchangeable unit distributions | (342) | (342) | (1,026) | (1,026) |
Fair value adjustment of Class B exchangeable units | 2,052 | 2,497 | 7,558 | 5,455 |
Accretion of financial liabilities | (814) | (2,003) | (6,602) | (12,049) |
Fair value adjustment of convertible debentures | 12,613 | 5,167 | 26,792 | 14,892 |
Convertible debenture issuance costs | (91) | (7,048) | (4,601) | (7,048) |
Net gain (loss) on financial instruments | (6,585) | 10,468 | 14,204 | 59,901 |
Fair value adjustment of investment properties | (122,204) | (14,743) | (414,189) | 118,424 |
Fair value adjustment of deferred unit plan liability | 2,692 | 3,239 | 12,275 | 6,855 |
Income before taxes from continuing operations | (95,915) | 27,024 | (318,500) | 332,561 |
Current tax expense | 11,049 | 2,813 | 22,515 | 17,240 |
Deferred tax expense (recovery) | (11,694) | 3,129 | (49,179) | 54,175 |
Income tax expense (recovery) | (645) | 5,942 | (26,664) | 71,415 |
Total net income | $ (95,270) | $ 21,082 | $ (291,836) | $ 261,146 |
Net income attributable to: | ||||
Unitholders | $ (81,276) | $ 6,611 | $ (210,855) | $ 164,490 |
Non-controlling interests | (13,994) | 14,471 | (80,981) | 96,656 |
$ (95,270) | $ 21,082 | $ (291,836) | $ 261,146 | |
FFO is a supplemental non-IFRS industry wide financial measure of a REIT's operating performance. The REIT calculates FFO based on certain adjustments to net income (computed in accordance with IFRS) as detailed below. FFO is more fully defined and discussed in the REIT's MD&A (see "Performance Measurement" and "Funds From Operations").
FUNDS FROM OPERATIONS RECONCILIATION | |||||||||||
Expressed in thousands of Canadian dollars, | Three months ended September 30, | Nine months ended September 30, | |||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | ||||||
Net income (loss) attributable to | $ (81,276) | $ 6,611 | $ (87,887) | $ (210,855) | $ 164,490 | $ (375,345) | |||||
Add / (Deduct): | |||||||||||
(i) Fair market value losses (gains) | 122,458 | (6,628) | 129,086 | 379,579 | (205,527) | 585,106 | |||||
Less: Non-controlling interests' share | (23,153) | 8,814 | (31,967) | (105,715) | 95,515 | (201,230) | |||||
(ii) Finance cost - Exchangeable Unit | 342 | 342 | — | 1,026 | 1,026 | — | |||||
(iii) Revaluation of financial liabilities | 814 | 2,003 | (1,189) | 6,602 | 12,049 | (5,447) | |||||
(iv) Unrealized foreign exchange loss | 2,689 | 3,653 | (964) | (6,457) | 1,268 | (7,725) | |||||
Less: Non-controlling interests' share of | 283 | (8) | 291 | 97 | (180) | 277 | |||||
(v) Deferred taxes | (11,694) | 3,129 | (14,823) | (49,179) | 54,175 | (103,354) | |||||
Less: Non-controlling interests' share | 5,786 | (2,009) | 7,795 | 7,645 | (18,881) | 26,526 | |||||
(vi) Transaction costs | 16,497 | 3,740 | 12,757 | 40,143 | 16,061 | 24,082 | |||||
Less: Non-controlling interests' share | (4,506) | 719 | (5,225) | (5,207) | 981 | (6,188) | |||||
(vii) Convertible Debenture issuance costs | 91 | 7,048 | (6,957) | 4,601 | 7,048 | (2,447) | |||||
(vii) Net adjustments for equity | 105 | 1,054 | (949) | 28,043 | (7,447) | 35,490 | |||||
(viii) Internal leasing costs | 510 | 538 | (28) | 1,470 | 1,988 | (518) | |||||
* Property taxes accounted for under | 174 | — | 174 | 846 | — | 846 | |||||
(xi) Net adjustment for lease amortization | (91) | 97 | (188) | (257) | (45) | (212) | |||||
(xii) Other FFO adjustments | 4,530 | 8,073 | (3,543) | 12,235 | 8,073 | 4,162 | |||||
Funds From Operations ("FFO") (1) | $ 33,559 | $ 37,176 | $ (3,617) | $ 104,617 | $ 130,594 | $ (25,977) | |||||
FFO per Unit - Basic | $ 0.14 | $ 0.15 | $ (0.01) | $ 0.43 | $ 0.55 | $ (0.12) | |||||
FFO per Unit - fully diluted (3) | $ 0.14 | $ 0.15 | $ (0.01) | $ 0.43 | $ 0.55 | $ (0.12) | |||||
Adjusted weighted average units | |||||||||||
Basic | 244,782,614 | 241,119,245 | 3,663,369 | 243,903,682 | 235,769,760 | 8,133,922 | |||||
Diluted (3) | 246,594,988 | 244,488,605 | 2,106,383 | 245,770,444 | 238,645,590 | 7,124,854 | |||||
Notes | ||||||||||||
(1) | Other FFO adjustments include items that, in management's view, are not reflective of recurring earnings from core operations. For the nine months ended September 30, 2023, other FFO adjustments included (a) $7.8 million financing costs incurred with respect to an investment in unlisted securities, (b) $1.8 million of corporate G&A expenses related to the strategic philanthropic initiatives, including $1.1 million payable in 10 years and (c) $2.7 million of corporate financing costs related to short-term financing arrangement to fund property acquisition activity that are not reflective of long-term financing costs. | |||||||||||
(2) | FFO is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. See Performance Measurements section in the REIT's MD&A. | |||||||||||
(3) | Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic and diluted per unit measure that includes the Class B LP Units in basic and diluted units outstanding/weighted average units outstanding. There were 1,710,000 Class B LP Units outstanding as at September 30, 2023, and 1,710,000 outstanding as at September 30, 2022. | |||||||||||
(4) | Diluted units include vested but unissued deferred trust units and the conversion of the REIT's Convertible Debentures that would have a dilutive effect upon conversion at the holders' contractual conversion price. Convertible Debentures are dilutive if the interest (net of tax and other changes in income or expense) per unit obtainable on conversion is less than the basic per unit measure. | |||||||||||
AFFO is a supplemental non-IFRS financial measure of a REIT's operating performance and is intended to reflect a stabilized business environment. The REIT calculates AFFO as FFO, plus/minus certain adjustments as detailed below. AFFO is more fully defined and discussed in the REIT's MD&A (see "Performance Measurement" and "Adjusted Funds From Operations").
ADJUSTED FUNDS FROM OPERATIONS | |||||||||||
Expressed in thousands of Canadian dollars, | Three months ended September 30, | Nine months ended September 30, | |||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | ||||||
FFO (1) | $ 33,559 | $ 37,176 | $ (3,617) | $ 104,617 | $ 130,594 | $ (25,977) | |||||
Add / (Deduct): | |||||||||||
(i) Amortization of marked to market | — | (300) | 300 | — | (719) | 719 | |||||
(ii) Amortization of transactional deferred | 1,465 | 1,868 | (403) | 5,258 | 4,842 | 416 | |||||
(iii) Straight-line revenue | (1,131) | (401) | (730) | (687) | (165) | (522) | |||||
Less: non-controlling interests' share of | 432 | (483) | 915 | (1,487) | (1,423) | (64) | |||||
(iv) Leasing costs and non-recoverable | (3,365) | (2,923) | (442) | (10,354) | (8,997) | (1,357) | |||||
Less: non-controlling interests' share of | 74 | 29 | 45 | 379 | 313 | 66 | |||||
(v) DUP Compensation Expense | 1,883 | 2,023 | (140) | 7,380 | 7,228 | 152 | |||||
(vi) Net adjustments for equity accounted | (38) | (29) | (9) | (184) | (449) | 265 | |||||
Adjusted Funds From Operations ("AFFO") (1) | $ 32,879 | $ 36,960 | $ (4,081) | $ 104,922 | $ 131,224 | $ (26,302) | |||||
AFFO per Unit - Basic | $ 0.13 | $ 0.15 | $ (0.02) | $ 0.43 | $ 0.56 | $ (0.13) | |||||
AFFO per Unit - fully diluted (3) | $ 0.13 | $ 0.15 | $ (0.02) | $ 0.43 | $ 0.55 | $ (0.12) | |||||
Distributions per Unit - Basic | $ 0.16 | $ 0.20 | $ (0.04) | $ 0.60 | $ 0.60 | $ — | |||||
Adjusted weighted average units | |||||||||||
Basic | 244,782,614 | 241,119,245 | 3,663,369 | 243,903,682 | 235,769,760 | 8,133,922 | |||||
Diluted (3) | 246,594,988 | 244,488,605 | 2,106,383 | 245,770,444 | 238,645,590 | 7,124,854 | |||||
Notes | ||||||||||||
(1) | FFO and AFFO are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. See Performance Measurement section in the REIT's MD&A. | |||||||||||
(2) | Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic and diluted per unit measure that includes the Class B LP Units in basic and diluted units outstanding/weighted average units outstanding. There were 1,710,000 Class B LP Units outstanding as at September 30, 2023, and 1,710,000 outstanding as at September 30, 2022. | |||||||||||
(3) | Distributions per unit is a non-IFRS ratio calculated as sum of the distributions on the REIT's units and finance costs on Class B LP Units. Management does not consider finance costs on Class B LP units to be a financing cost of the REIT but rather component of the REIT's total distributions. Distributions is not defined by IFRS and does not have a standard meaning and may not be comparable with similar measures presented by other issuers. | |||||||||||
Constant Currency Same Property NOI, sometimes also presented as "Same Property NOI" or "SPNOI", is a non-IFRS financial measure, defined as NOI for investment properties that were owned for a full reporting period in both the current and comparative year, subject to certain adjustments including: (i) straight-line rental revenue recognition; (ii) amortization of operating leases; (iii) lease termination fees; and (iv) non-recurring transactions that are not expected to recur (v) excluding properties held for redevelopment and (vi) excluding impact of foreign currency translation by converting the foreign currency denominated SPNOI from comparative period at current period average exchange rates. Management considers. SPNOI is more fully defined and discussed in the REIT's MD&A (see "Performance Measurement").
SAME PROPERTY NOI | |||||||||||
In thousands of CAD | Three months ended September 30, | Nine months ended September 30, | |||||||||
2023 | 2022 | Var % | 2023 | 2022 | Var % | ||||||
Same property NOI (1) | |||||||||||
Americas | $ 39,445 | $ 39,143 | 0.8 % | $ 87,900 | $ 88,026 | (0.1) % | |||||
Europe | 20,917 | 19,787 | 5.7 % | 61,111 | 58,460 | 4.5 % | |||||
Australasia | 31,787 | 29,941 | 6.2 % | 77,632 | 72,932 | 6.4 % | |||||
Same property NOI (1) | $ 92,149 | $ 88,871 | 3.7 % | $ 226,643 | $ 219,418 | 3.3 % | |||||
Impact of foreign currency | — | (3,773) | — | (5,534) | |||||||
Straight-line rental revenue | 828 | 632 | 1,147 | (576) | |||||||
Amortization of operating leases | (39) | (46) | (124) | (150) | |||||||
Lease termination fees | 191 | 21 | 233 | 21 | |||||||
Other transactions | 311 | 233 | 1,288 | (143) | |||||||
Developments | 703 | 131 | 13,093 | 11,831 | |||||||
Acquisitions | 31 | (31) | 38,607 | 22,332 | |||||||
Dispositions | 411 | 3,007 | 6,056 | 6,968 | |||||||
Intercompany/Elimination | 512 | 502 | 1,596 | 1,330 | |||||||
NOI | $ 95,097 | $ 89,547 | 6.2 % | $ 288,539 | $ 255,497 | 12.9 % | |||||
Notes |
(1) Same property NOI is a non-IFRS measure, defined and discussed in the REIT's MD&A. |
(2) NOI is an additional IFRS measure presented on the consolidated statement of income (loss) and comprehensive income (loss). |
NOI is defined and discussed in the REIT's MD&A. |
"NAV per Unit" or sometimes presented as "NAV/unit" is an extension of NAV and defined as NAV divided by the number of units outstanding at the end of the period. NAV and NAV/unit are more fully defined and discussed in the REIT's MD&A (see "Performance Measurement" and "Part IX – Net Asset Value").
Expressed in thousands of Canadian dollars, except per unit amounts | ||||||
Q3 2023 | Q4 2022 | |||||
Total Assets | $ 7,834,202 | $ 8,514,000 | ||||
less: Total liabilities | (4,606,488) | (4,772,025) | ||||
less: Non-controlling interests | (1,118,641) | (1,285,128) | ||||
Unitholders' equity | 2,109,073 | 2,456,847 | ||||
Add/(deduct): | ||||||
Goodwill | (37,510) | (39,612) | ||||
Deferred unit plan liability | 14,987 | 23,837 | ||||
Deferred tax liability | 388,796 | 443,935 | ||||
less NCI | (96,980) | 291,816 | (109,584) | 334,351 | ||
Financial instruments - net | (49,588) | (38,124) | ||||
less NCI | 13,814 | (35,774) | 13,624 | (24,500) | ||
Exchangeable Units | 8,687 | 16,245 | ||||
Global Manager valuation adjustment | 576,318 | 576,318 | ||||
Other | — | — | ||||
Net Asset Value ("NAV") | $ 2,927,597 | $ 3,343,486 | ||||
Adjusted Units Outstanding (000s)- period end (1) | 244,884 | 242,358 | ||||
NAV per Unit | $ 11.96 | $ 13.80 | ||||
Notes |
(1) Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic per unit measure that includes the Class B LP Units in basic units outstanding/weighted average units outstanding. |
"Proportionate Management Fees" is a non-IFRS financial measure defined as the REIT's total management fees earned from third parties adjusted to be reflected on a proportionately consolidated basis at the REIT's ownership percentage (see "Performance Measurement" "PART III – RESULTS FROM OPERATIONS – NET INCOME").
GLOBAL MANAGER FEES | |||||||||||
Expressed in thousands of Canadian dollars | Three months ended September 30, | Nine months ended September 30, | |||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | ||||||
Base fee | $ 7,811 | $ 7,787 | $ 24 | $ 24,363 | $ 24,074 | $ 289 | |||||
Incentive and performance fee | 1,358 | 4,067 | (2,709) | 5,505 | 8,460 | (2,955) | |||||
Trustee fees | 283 | 277 | 6 | 883 | 821 | 62 | |||||
Project and Acquisition fees | 2,036 | 715 | 1,321 | 5,593 | 8,659 | (3,066) | |||||
Other fees | — | (6,821) | 6,821 | — | 3,272 | (3,272) | |||||
Total Management Fees | $ 11,488 | $ 6,025 | $ 5,463 | $ 36,344 | $ 45,286 | $ (8,942) | |||||
less: inter-company elimination (1) | (7,828) | (9,256) | 1,428 | (25,205) | (29,827) | 4,622 | |||||
Consolidated Management Fees (2) | $ 3,660 | $ (3,231) | $ 6,891 | $ 11,139 | $ 15,459 | $ (4,320) | |||||
add: fees charged to non-controlling interests | 5,470 | 6,529 | (1,059) | 17,702 | 21,289 | (3,587) | |||||
Proportionate Management Fees (3) | $ 9,130 | $ 3,298 | $ 5,832 | $ 28,841 | $ 36,748 | $ (7,907) | |||||
Notes | |
(1) | Management fees charged to Vital Trust and to the JVs are eliminated on consolidation as an inter-company transaction. |
(2) | Represents the reported consolidated management fees. |
(3) | See Performance Measurements in the REIT's MD&A. |
Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (Northwest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at September 30, 2023, of interests in a diversified portfolio of 229 income-producing properties and 18.2 million square feet of gross leasable area located throughout major markets in Canada, the United States, Brazil, Europe, Australia, and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 300 professionals in ten offices in eight countries to serve as a long-term real estate partner to leading healthcare operators. For more information please visit: www.nwhreit.com.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
Craig Mitchell, CEO, [email protected]; Karen Martin, Interim CFO, [email protected]; Andrew Greig, Investor Relations, [email protected], [email protected], (416) 366-2000 Ext. 2202
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