GT Canada Medical Properties REIT (TSX-V: MOB.UN) Announces First Quarter 2012 Financial Results
TORONTO, May 28, 2012
TORONTO, May 28, 2012 /CNW/ - GT Canada Medical Properties Real Estate
Investment Trust (the "REIT") is pleased to announce its financial
results for the three month period ended March 31, 2012.
Net income for the three months ended March 31, 2012 decreased to
$1,537,830 or $0.099 per unit from $4,759,477 or $0.307 per unit for
the three months ended March 31, 2011. Net income includes fair value
gains for the three months ended 31 March 2012 of $1,686,574 and
$4,479,538 for the corresponding period in 2011.
Net operating income increased to $1,291,973 for the three months ended
March 31, 2012 from $863,615 for the three months ended March 31,
2011. The improvement in net operating income reflects the addition of
5 properties from September 2011 through January 2012
Funds From Operations
The REIT's Funds From Operations ("FFO") represents the recurring cash
flow generated through the ownership of income producing properties.
The primary difference between net income and FFO is the fair value
gain on investment properties and other fair value gains.
For the three months ended March 31, 2012 FFO was negative ($138,606) or
($0.009) per unit compared to FFO of $290,104 or $0.019 per unit for
the same period in 2011.
The improvement in net operating income as a result of the five
properties acquired from September 2011 through January 2012 was offset
by the Strategic Transaction costs incurred in the period of $373,000
associated with the Offer to acquire the REIT's units described in the
Subsequent Events below.
On January 6, 2012, the REIT acquired a portfolio of three medical
office buildings located in Lindsay, Hamilton and St. Thomas, Ontario
(the "Portfolio). The Portfolio was acquired for approximately $10.6
million subject to customary closing adjustments. Approximately $7.8
million of the purchase price was comprised of a combination of assumed
mortgage debt on the Portfolio and coterminous vendor take back
financing with a combined average interest rate of 4.09%. The balance
of the purchase price was funded with existing resources.
Offer to Acquire from NorthWest Value Partners Inc.
On April 16, 2012, the REIT announced that it had entered into a
definitive agreement with NorthWest Value Partners Inc. ("NorthWest")
pursuant to which NorthWest will acquire all of the REIT's outstanding
units for $2.05 per unit (the "Offer"). The Offer price is subject to
adjustment for dilution that may result from the issuance of additional
units pursuant to the Rights Offering noted below. The Offer is subject
to a number of conditions, including acceptance of the Offer by the
holders of at least 66 2/3% of the outstanding units on a fully diluted
basis (the "Minimun Tender Condition"). As a result of the issuance of
the Rights Offering, NorthWest confirmed that it will adjust the price
at which it is offering to acquire all of the REIT's outstanding units
from $2.05 per unit to $1.87 per unit.
On April 24, 2012, the REIT completed its' previously announced
offering of rights (the "Rights Offering") to acquire up to 3,880,212
units of the REIT to unitholders of record on March 30, 2012 at a price
of $1.15 per unit. Pursuant to the Rights Offering, the REIT issued a
total of 3,880,212 units of the REIT for net proceeds of $4,322,244.
Acquisition of additional property
On May 1, 2012, the REIT completed the acquisition of a 25,000 square
foot medical office building in Port Hope, Ontario for approximately
$7.5 million, subject to customary closing adjustments. The building's
tenants are medical practitioners with a pharmacy, lab and x-ray
facilities and it is 100% occupied.
NorthWest Extends Offer Period
On May 25, 2012, NorthWest announced (i) that approximately 86% of the
issued and outstanding units and approximately 65% of the fully diluted
units of the REIT had been tendered to the Offer; (ii) its intention to
extend the Offer for 10 days to June 4, 2012; and (iii) it intends to
waive the Minimum Tender Condition on or before June 4, 2012 if
required, in order to take-up units tendered to the Offer.
2012 First Quarter Financial Results
For the REIT's complete year first quarter 2012 Condensed Consolidated
Interim Financial Statements and Management's Discussion and Analysis
("MD&A"), please visit www.sedar.com
GT Canada Medical Properties REIT
As Canada's only publicly traded issuer focused exclusively on medical
office buildings, GT Canada Medical Properties Real Estate Investment
Trust 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 medical office
buildings, 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.
Some financial measures used in this press release, such as FFO, 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. As such, they are unlikely to
be comparable to similar measures presented by other real estate
companies. These non-IFRS measures are more fully defined and
discussed in the REIT's MD&A for the first quarter of 2012, which is
available on the SEDAR website at www.sedar.com.
This press release contains forward-looking statements. Forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "estimates", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements may include, among other things,
statements related to acquisitions; development and capital expenditure
activities; future maintenance and leasing expenditures; financing; the
availability of financing sources; and income taxes. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the REIT to be materially different from any future results,
performance or achievements. 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 "Risk Factors"
in the REIT's MD&A, which is 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