TORONTO, Feb. 18, 2014 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") is pleased to announce financial results from NSX-listed affiliate Vital Healthcare Property Trust ("Vital Trust") for the six months ended December 31, 2013. The REIT has an exposure to an approximate 24% interest in Vital Trust. Vital Trust is also managed by an affiliate of the REIT's external manager - NWI Asset Management Inc.
For the six months ended December 31, 2013, Vital Trust delivered strong financial results as well as successfully executed on its operational plan. Vital Trust increased rental income by 3.8% to NZ$ 29.9 million in the first half of fiscal year 2014, and operating profit increased 3.6% to NZ$25.7 million during the same period. The positive operating results are underpinned by a portfolio occupancy of 99.4%, which remained consistent with the same period of the prior year, and a notable increase in the weighted average lease term of 14.9 years from 12.1 years the prior year, due to the releasing of a key New Zealand hospital asset. Vital Trust continues to deliver on its extensive development program, completing three development projects for A$19.4 million that provide initial yields over 10% per annum and commencing new development projects totaling approximately A$30 million that are also expected to yield approximately 10%. Vital Trust's balance sheet remains very strong with a debt to asset ratio of 33.9% and an interest cover ratio of 3.1 times at December 31, 2013. Vital Trust confirmed its distribution guidance for the fiscal year ending June 30, 2014 of NZ$0.079 per unit per annum. Vital Trust also announced a second quarter cash distribution of NZ$0.01975 cents per unit which is payable on March 18, 2014. Details on Vital Trust's December 2013 half year results are available on Vital Trust's website at www.vitalhealthcareproperty.co.nz and on the REIT's website at www.nwireit.com.
Vital Trust's financial results for the six months ended December 31, 2013 reinforces the unique combination of stability and growth which is inherent in the REIT's portfolio of international healthcare real estate. Including its investment in Vital Trust, the REIT's portfolio consists of interests in 114 income-producing properties comprising 7.7 million square feet of gross leasable area located in Australia / New Zealand, Canada, Brazil and Germany. The REIT's portfolio has a weighted average occupancy of 96.3%, and an average lease term of 12.4 years.
About NorthWest International Healthcare Properties Real Estate Investment Trust
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT's objectives are to: (i) provide its unitholders with stable and growing cash distributions from investments focused on international healthcare properties, on a tax efficient basis; (ii) enhance the value of the REIT's assets and maximize long-term unit value; and (iii) expand the asset base of the REIT.
Forward Looking Information
Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws. When used in this new release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions may be used to identify forward looking statements. Those statements reflect the REIT's current views with respect to future events or conditions, including the future financial performance of Vital Trust. By their nature, forward looking statements reflect management's current views, beliefs and assumptions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, risks disclosed in the short-form prospectus of the REIT dated December 12, 2013, the REIT's annual information form dated March 11, 2013 and the audited consoliated financial statements and management's discussion and analysis for the year ended December 31, 2012, copies of which may be obtained on the SEDAR website at www.sedar.com. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The REIT does not intend to nor assume any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
The information concerning Vital Trust contained in this press relesae has been taken from, or is based upon, publicly available documents and records on file with regulatory bodies. Although the REIT has no knowledge that would indicate that any of such information is untrue or incomplete, the REIT was not involved in the preparation of any such publicly available documents and neither the REIT, nor any of its officers or trustees, assumes any responsibility for the accuracy or completeness of such information or the failure by Vital Trust to disclose events which may have occurred or may affect the completeness or accuracy of such information but which are unknown to the REIT.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: NorthWest International Healthcare Properties Real Estate Investment Trust
For further information:
Paul Dalla Lana
CEO, NorthWest International Healthcare Properties REIT
(416) 366-8300 ext. 1001