TORONTO, June 29, 2015 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) ("NorthWest", the "REIT") is pleased to announce a preliminary unaudited portfolio valuation increase of C$69.7M (NZ$83.0M) at its affiliate Vital Healthcare Property Trust (NZX:VHP) ("Vital Trust") for Vital Trust's fiscal year ending June 30, 2015. Northwest owns an approximate 24% interest in Vital Trust. Vital Trust is also managed by a subsidiary of NorthWest (the "Vital Manager").
Commenting on Vital Trust's announcement, Chairman & CEO of NorthWest, Paul Dalla Lana said:
"The 12.2% increase in the valuation of Vital Trust's portfolio reflects both strong cap rate compression for high quality healthcare properties, as well as the value created through active asset management by our Vital team. We continue to see strong underlying healthcare fundamentals in each of the REIT's five major international markets, and believe that the portfolio's high occupancy, long term leases, contractual rent growth and our successful execution of accretive expansion projects position the REIT to deliver stable, growing cash flows and value accretion to our investors."
Vital Trust owns 24 hospitals and clinics, primarily in the major markets of Australia and New Zealand, valued at C$584.2M (NZ$695.5M) and representing an approximate 8.0% weighted average capitalisation rate. The C$69.7M (NZ$83.0M) valuation increase for the year ended June 30, 2015 reflects an approximate 100 basis point decrease in the portfolio's weighted average capitalisation rate over the prior 12 months.
The annual property valuations supporting the valuation increase have been undertaken by eight independent valuers and are preliminary in nature. They remain subject to Vital Trust's June 30, 2015 year end audit and will be confirmed in Vital Trust's financial results for the 12 months ended June 30, 2015. As a result of the above preliminary revaluation gains, an annual incentive fee of approximately C$3.1M (NZ$3.7M) (2014: NZ$542,000) will be payable to NorthWest through the Vital Manager.
Additional information on Vital Trust, including details on its preliminary unaudited portfolio valuation increase are available on its website at www.vitalhealthcareproperty.co.nz.
Timing of Second Quarter 2015 Financial Results
NorthWest will issue its financial results for the three months ending June 30, 2015 on Wednesday, August 12, 2015. The REIT's results for the three months ending June 30, 2015 will reflect the previously announced combination transaction with NorthWest International Healthcare Properties REIT which was completed effective May 15, 2015.
A conference call will be held on Thursday, August 13, 2015 at 10:00 am (ET). Participating on the call will be members of the REIT's senior management team.
Investors are invited to access the call by dialing 647-427-7450 or toll-free 1-888-231-8191, conference ID# 762 873 44. A recording of this call will be made available August 13, 2015 beginning at 12:45 pm (ET) through to August 20, 2015 at 11:59 pm (ET). To access the recording, please call 1-855-859-2056 or 416-849-0833 and use the reservation number 762 873 44.
About NorthWest Healthcare Properties Real Estate Investment Trust
NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) 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 of interests in a diversified portfolio of 123 income-producing properties and 7.8 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Germany, 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 180 professionals across 9 offices in 5 countries to serve as a long term real estate partner to leading healthcare operators.
Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws, including statements regarding the future confirmation of the preliminary unaudited portfolio valuation, capitalisation rates, strong underlying healthcare fundamentals, occupancy, long term leases, contractual rent growth, successful execution of accretive expansion projects, and the delivery of stable, growing cash flows and value accretion. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
The REIT has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, financial performance, business strategy and financial needs. Although the forward-looking statements contained in this news release are based upon assumptions that management of the REIT believe are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the REIT's control, including, among other things, the risks identified in the REIT's materials filed under its profile at www.sedar.com from time to time, including the REIT's annual information form dated March 10, 2015 and joint management information circular dated April 7, 2015.
The forward-looking statements made in this news release relate only to events or information as of the date hereof. Except as required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
"Capitalisation rate" is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Capitalisation rate is presented in this press release because management of the REIT believes that this measure is relevant in interpreting the value of the Vital Trust portfolio. Capitalisation rate, as computed by Vital Trust, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to capitalization rate reported by such organizations.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust