TORONTO, Feb. 25, 2016 /CNW/ - NorthWest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the "REIT") is pleased to announce financial results from NSX-listed Vital Healthcare Property Trust ("Vital Trust") for the interim six month period ended December 31, 2015, released on February 24, 2016 in New Zealand. The REIT owns an approximate 24% interest in Vital Trust. Vital Trust is also managed by a wholly owned subsidiary of the REIT.
Vital Trust
Vital Trust continues to be regarded as one of the top performing healthcare property trusts in the region, with strong and improving financial results, a loan to value ratio of 34.1%, a weighted average lease term of 17.0 years, continued high occupancy at 99.5% and an average increase in renewal rents of 3.3%.
Highlights from Vital Trust's financial reporting for the six months ended December 31, 2015 include the following:
- Gross rental revenue increased by 8.9% (to NZ$33.5M (C$30.6M)) versus the same period last year;
- Net distributable income increased by 16.3% versus the same period last year;
- Interim property revaluation gain of 5.9% (NZ$45.2M (C$41.3M), weighted average cap rate firming 35 basis points to 7.64%; and,
- Cash distributions raised by 5% to NZ$0.085/unit (C$0.078/unit) per annum commencing in Vital Trust's next quarterly distribution payable in June 2016.
Additionally, Vital Trust continues to see compelling opportunities to grow accretively and improve its portfolio with more than NZ$150M (C$137M) of new acquisitions and committed hospital expansion projects announced during the period, including its first investment in the Australian residential aged care sector.
The aged care portfolio acquisition represents a unique opportunity to leverage Vital Trust's existing hospital and clinic property platform and partner with an experienced, highly regarded operator with a strong focus and reputation for resident care. Representing a significant strategic step for Vital Trust, the acquisition will provide a base for attractive long term growth via consolidation, acquisition and development opportunities in the residential aged care sector. The four properties located in New South Wales and Western Australia comprise 275 operational places and are expected to be acquired under 20 year, triple net leases with annual CPI reviews and periodic market reviews for NZ$44.6M (C$40.7M), representing an initial yield of 8.0%.
Details on Vital Trust's interim half-year results ending December 31, 2015 are available on Vital Trust's website at www.vitalhealthcareproperty.co.nz.
Timing of REIT's Fourth Quarter 2015 Results
The REIT will issue its financial results for the three months and year ending December 31, 2015 on Thursday, March 10, 2016.
A conference call will be held on Friday, March 11, 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# 41470620. A recording of this call will be made available Friday, March 11, 2015 beginning at 1:00 pm (ET) through to Friday, March 18, 2015. To access the recording, please call 1 (855) 859-2056 or (416) 849-0833 and use the reservation number 41470620.
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 122 income-producing properties and 8.0M 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.
This press release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
