NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST ANNOUNCES Q2 2023 FINANCIAL RESULTS AND DECLARES DISTRIBUTIONS
TORONTO, Aug. 11, 2023 /CNW/ - Northwest Healthcare Properties Real Estate Investment Trust ("Northwest" or "REIT") (TSX: NWH.UN), today announced results for the period ending June 30, 2023 ("Q2 2023"). The REIT also provided updates and declared August 2023 distributions.
Q2 2023 Financial and Operational Highlights:
For the three and six months ended June 30, 2023, revenue increased by 13% and 16.6%, respectively. Adjusted Funds From Operations (AFFO)1 per unit decreased from $0.20 in Q2 2022 to $0.13 in Q2 2023 as result of lower management fees and an increase in interest expense related to floating rate debt. Adjusting for the non-recurring component of management fees, AFFO would increase to $0.15 per unit for the quarter.
Operationally, the REIT's high quality and defensive portfolio delivered strong results including 5.1% same property NOI ("SPNOI") growth (see Exhibit 3) on a year over year basis. The REIT's portfolio occupancy of 96% is underpinned by a weighted average lease expiry of 13.5 years and 83% of leases are subject to rent indexation. With a portfolio comprising more than 2,000 tenants the REIT's cash flow is highly diversified across its 231 properties.
Overall Highlights:
Q2 2023 revenue of $126.5M up 12.5% YOY;
Q2 2023 AFFO of $0.13 per unit (see Exhibit 2).
Real Estate
Q2 2023 Same Property NOI increased by 5.1% on a year over year basis, driven primarily by annual rent indexation (see Exhibit 3);
Strong portfolio occupancy of 96% consistent with last quarter;
Weighted average lease expiry of 13.5 years is underpinned by healthcare infrastructure.
Asset Management
Total assets under management ("AUM") was up 1% on a year over year basis to $10.3 billion;
Net asset value ("NAV") per unit decreased by 4.6% to $12.55 (see Exhibit 4) compared to March 31, 2023. The decrease is predominantly due to cap rate expansion of 14 bps to 5.6%
_____________________________ | |
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", Exhibit 1 and Exhibit 2. |
Investments
Total capital deployed in fee bearing vehicles is $5.8 billion up 3.6% year over year;
Consolidated Debt to Gross Book Value Including Convertible Debentures of 50.8% has increased by 80 bps on a quarter over quarter basis.
Commenting on the quarter, Craig Mitchell, Northwest's Interim CEO, said the following:
"These operational results demonstrate Northwest's stability and resilience in a challenging environment with rising interest rates and inflation. Our strong fundamentals as a global asset manager with specialized expertise in healthcare real estate underscore this position."
Other Updates
Settlement Agreement with Australian Unity Funds Management (AUFM): As announced on July 10, 2023, the REIT has entered into a settlement agreement to end litigation against Australian Unity Funds Management ("AUFM"). As part of the settlement, AUFM and other Australian Unity entities have agreed to work in good faith to assist the REIT and its affiliates to divest their units in AUHPT by the end of 2023. To date, the REIT has sold A$67.2 million.
UK Portfolio: The UK portfolio continues to perform well with year over year source currency SPNOI up 4.6% and occupancy was steady at 100%. Moreover, operator performance at the REIT's hospitals continues to be strong. Northwest believes in the attractiveness of the UK healthcare real estate market and its diversified portfolio of hospitals. The REIT will continue to actively consider strategic opportunities in respect of the UK real estate market and its existing UK properties portfolio.
Capital Recycling: The healthcare real estate market continues to adapt to changes in global interest rates while bid-ask spreads are beginning to converge and transaction volumes are normalizing. The REIT remains highly disciplined with respect to capital deployment – acquisition volume was nil in the quarter. The REIT's ~$340 million non-core asset sale program continues to advance. To date, the REIT completed sales totalling $74.2 million. An additional ~$93 million of assets are under conditional letters of intent for sale.
Balance Sheet Initiatives: As at June 30, 2023, the REIT reported Debt to Gross Book Value (including Convertible Debentures) of 50.8% and 58.0% on a consolidated and proportionate basis, respectively. Strengthening the balance sheet is a high priority for the REIT.
As of August 11, 2023, the REIT has refinanced 91% of its 2023 debt maturities, increased its exposure to fixed rate debt (including in-place hedges) to 66% and has a weighted average interest rate of 5.1%.
Declaration of August 2023 Distribution
The Trustees of the REIT declared a distribution of $0.06667 per unit for the month of August 2023, representing $0.80 per unit on an annualized basis. The distribution will be payable on or about September 15, 2023, to unitholders of record as at August 31, 2023.
Q2 2023 Conference Call
A conference call will be held on August 11, 2023, at 10:00 a.m. (EST). Participating on the call will be members of the REIT's senior management team.
An audio replay will be available from August 11, 2023, through August 18, 2023, and can be accessed by dialling 416-764-8677 or 1 (888) 390-0541. The reservation number is 641739#.
Vital Healthcare Property Trust
On August 10, 2023 Vital Trust also announced its financial results for the fiscal year ended June 30, 2023. Details on Vital Trust's financial results are available on Vital Trust's website at www.vitalhealthcareproperty.co.nz.
About Northwest Healthcare Properties Real Estate Investment Trust
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. As at June 30, 2023, 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 231 income-producing properties and 18.5 million square feet of gross leasable area located throughout major markets in the Americas, Europe and Australasia. 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 11 offices in eight countries to serve as a long-term real estate partner to leading healthcare operators.
Non-IFRS Financial Measures
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 3 months ended March 31, 2023, in the "Performance Measurement" and "Results from Operations" sections. The MD&A is available on the SEDAR website at www.sedar.com.
Forward-Looking Statements
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 strategic opportunities in respect of the UK real estate market and its existing UK properties portfolio.. 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, development, joint venture, 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.
(in thousands of Canadian dollars) | |||||||||||||
Unaudited | |||||||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Net Property Operating Income | |||||||||||||
Revenue from investment properties | $ | 126,504 | $ | 112,363 | $ | 261,828 | $ | 216,826 | |||||
Property operating costs | 28,483 | 23,480 | 68,386 | 50,876 | |||||||||
98,021 | 88,883 | 193,442 | 165,950 | ||||||||||
Other Income | |||||||||||||
Interest and other | 3,965 | 3,504 | 8,081 | 6,014 | |||||||||
Development revenue | — | 1,182 | — | 3,746 | |||||||||
Management fees | (3,246) | 11,595 | 7,479 | 18,690 | |||||||||
Share of profit (loss) of equity accounted investments | (25,871) | 14,347 | (21,883) | 19,515 | |||||||||
(25,152) | 30,628 | (6,323) | 47,965 | ||||||||||
Expenses and other | |||||||||||||
Mortgage and loan interest expense | 57,187 | 34,524 | 108,835 | 57,911 | |||||||||
General and administrative expenses | 15,535 | 12,830 | 28,571 | 23,139 | |||||||||
Transaction costs | 18,413 | 6,519 | 23,433 | 12,118 | |||||||||
Development costs | — | 1,082 | — | 3,430 | |||||||||
Foreign exchange (gain) loss | (2,792) | (4,005) | (10,008) | (4,599) | |||||||||
88,343 | 50,950 | 150,831 | 91,999 | ||||||||||
Income before finance costs, fair value | (15,474) | 68,561 | 36,288 | 121,916 | |||||||||
Finance costs | |||||||||||||
Amortization of financing costs | (2,993) | (2,746) | (5,963) | (4,967) | |||||||||
Amortization of mark-to-market adjustment | — | 329 | — | 419 | |||||||||
Class B exchangeable unit distributions | (342) | (342) | (684) | (684) | |||||||||
Fair value adjustment of Class B exchangeable units | 3,745 | 2,924 | 5,506 | 2,958 | |||||||||
Accretion of financial liabilities | (745) | (1,473) | (5,788) | (10,046) | |||||||||
Fair value adjustment of convertible debentures | 10,981 | 6,875 | 14,179 | 9,725 | |||||||||
Convertible debenture issuance costs | (4,489) | — | (4,510) | — | |||||||||
Net gain (loss) on financial instruments | 37,981 | 20,463 | 20,789 | 49,433 | |||||||||
Fair value adjustment of investment properties | (140,424) | 50,826 | (291,985) | 133,167 | |||||||||
Fair value adjustment of deferred unit plan liability | 6,280 | 3,405 | 9,583 | 3,616 | |||||||||
Income before taxes from continuing operations | (105,480) | 148,822 | (222,585) | 305,537 | |||||||||
Current tax expense | 4,470 | 7,234 | 11,466 | 14,427 | |||||||||
Deferred tax expense (recovery) | (2,539) | 24,859 | (37,485) | 51,046 | |||||||||
Income tax expense (recovery) | 1,931 | 32,093 | (26,019) | 65,473 | |||||||||
Net income from continuing operations | $ | (107,411) | $ | 116,729 | $ | (196,566) | $ | 240,064 | |||||
Net income (loss) from discontinued operations | — | — | — | — | |||||||||
Total net income | $ | (107,411) | $ | 116,729 | $ | (196,566) | $ | 240,064 | |||||
Net income attributable to: | |||||||||||||
Unitholders | $ | (32,093) | $ | 69,625 | $ | (129,579) | $ | 157,879 | |||||
Non-controlling interests | (75,318) | 47,104 | (66,987) | 82,185 | |||||||||
$ | (107,411) | $ | 116,729 | $ | (196,566) | $ | 240,064 | ||||||
Financial Exhibits
Exhibit 1 – Funds From Operations Reconciliation
The REIT calculates FFO based on certain adjustments to net income (computed in accordance with IFRS) as detailed below. The REIT makes adjustments for cost incur with respect to exploring new growth opportunities, establishing joint arrangements, building relationships with healthcare operators and institutional investors, which in management view are not reflective of earnings from core operations or impact the REIT's ability in the long-run to make distributions to Unitholders given their discretionary and strategic nature. In addition, beginning in the quarter ended December 31, 2022, FFO is being adjusted for net losses incurred with respect to an investment in unlisted securities and certain G&A expenses that, in each case, management views as not reflective of recurring earnings from core operations (collectively, the "Other FFO Adjustments"). REALpac has established a standardized definition of FFO in a White Paper dated January 2022 ("REALpac Guidance"). The REIT's FFO definition differs from the REALpac Guidance in that, when calculating FFO, the REIT (a) excludes the revaluation of financial liabilities, convertible debenture issuance costs and all transaction costs, and (b) makes the Other FFO Adjustments. The REIT's method of calculating FFO also differs from other issuers' methods and may not be comparable to similar measures used by other issuers.
FUNDS FROM OPERATIONS | |||||||||||||||||
Expressed in thousands of Canadian dollars, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | ||||||||||||
Net income (loss) attributable to | $ | (32,093) | $ | 69,625 | $ | (101,718) | $ | (129,579) | $ | 157,879 | $ | (287,458) | |||||
Add / (Deduct): | |||||||||||||||||
(i) Fair market value losses (gains) | 94,623 | (84,493) | 179,116 | 257,121 | (198,899) | 456,020 | |||||||||||
Less: Non-controlling interests' share | (83,861) | 49,142 | (133,003) | (82,562) | 86,701 | (169,263) | |||||||||||
(ii) Finance cost - Exchangeable Unit | 342 | 342 | — | 684 | 684 | — | |||||||||||
(iii) Revaluation of financial liabilities | 745 | 1,473 | (728) | 5,788 | 10,046 | (4,258) | |||||||||||
(iv) Unrealized foreign exchange loss | (2,390) | (4,202) | 1,812 | (9,146) | (2,385) | (6,761) | |||||||||||
Less: Non-controlling interests' share | (342) | (1) | (341) | (186) | (172) | (14) | |||||||||||
(v) Deferred taxes | (2,539) | 24,859 | (27,398) | (37,485) | 51,046 | (88,531) | |||||||||||
Less: Non-controlling interests' share | 1,482 | (8,971) | 10,453 | 1,859 | (16,872) | 18,731 | |||||||||||
(vi) Transaction costs | 18,626 | 6,624 | 12,002 | 23,646 | 12,321 | 11,325 | |||||||||||
Less: Non-controlling interests' share | (701) | (41) | (660) | (701) | 262 | (963) | |||||||||||
(vii) Convertible Debenture issuance | 4,489 | — | 4,489 | 4,510 | — | 4,510 | |||||||||||
(vii) Net adjustments for equity | 28,752 | (8,741) | 37,493 | 27,938 | (8,501) | 36,439 | |||||||||||
(viii) Internal leasing costs | 466 | 544 | (78) | 960 | 1,450 | (490) | |||||||||||
* Property taxes accounted for under | 271 | — | 271 | 672 | — | 672 | |||||||||||
(xi) Net adjustment for lease amortization | (84) | (70) | (14) | (166) | (142) | (24) | |||||||||||
(xii) Other FFO adjustments | 3,735 | — | 3,735 | 7,706 | — | 7,706 | |||||||||||
Funds From Operations ("FFO") (1) | $ | 31,521 | $ | 46,090 | $ | (14,569) | $ | 71,059 | $ | 93,418 | $ | (22,359) | |||||
FFO per Unit - Basic | $ | 0.13 | $ | 0.19 | $ | (0.06) | $ | 0.29 | $ | 0.40 | $ | (0.11) | |||||
FFO per Unit - fully diluted (3) | $ | 0.13 | $ | 0.19 | $ | (0.06) | $ | 0.29 | $ | 0.40 | $ | (0.11) | |||||
Adjusted weighted average units | |||||||||||||||||
Basic | 244,036,797 | 239,660,302 | 4,376,495 | 243,456,931 | 233,029,149 | 10,427,782 | |||||||||||
Diluted (3) | 246,383,724 | 251,977,578 | (5,593,854) | 245,831,985 | 245,020,957 | 811,028 | |||||||||||
Notes | ||||||||||||
(1) | Other FFO adjustments include items that, in management's view, are not reflective of recurring earnings from core operations. For the six months ended June | |||||||||||
(2) | FFO is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. See Performance Measurements section in | |||||||||||
(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 | |||||||||||
(4) | Diluted units includes vested but unissued deferred trust units and the conversion of the REIT's Convertible Debentures that would have a dilutive effect upon | |||||||||||
Exhibit 2 – Adjusted Funds From Operations Reconciliation
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 makes certain adjustments as detailed below in calculating its FFO and AFFO, which in management view are not reflective of earnings from core operations or impact the REIT's ability in the long-run to make distributions to Unitholders given their discretionary and strategic nature. The REIT's AFFO definition differs from the REALpac Guidance in that, when calculating AFFO, the REIT does not make an adjustment to AFFO for amortization financing charges. The REIT's method of calculating AFFO also differs from other issuers' methods and may not be comparable to similar measures used by other issuers.
ADJUSTED FUNDS FROM OPERATIONS | |||||||||||||||||
Expressed in thousands of Canadian | Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | ||||||||||||
FFO (1) | $ | 31,521 | $ | 46,090 | $ | (14,569) | $ | 71,059 | $ | 93,418 | $ | (22,359) | |||||
Add / (Deduct): | |||||||||||||||||
(i) Amortization of marked to market | — | (329) | 329 | — | (419) | 419 | |||||||||||
(ii) Amortization of transactional | 1,712 | 1,642 | 70 | 3,793 | 2,974 | 819 | |||||||||||
(iii) Straight-line revenue | (271) | (297) | 26 | 444 | 236 | 208 | |||||||||||
Less: non-controlling interests' share | (582) | (513) | (69) | (1,919) | (940) | (979) | |||||||||||
(iv) Leasing costs and non-recoverable | (3,675) | (3,337) | (338) | (6,989) | (6,074) | (915) | |||||||||||
Less: non-controlling interests' share | 188 | 178 | 10 | 305 | 284 | 21 | |||||||||||
(v) DUP Compensation Expense | 3,151 | 3,557 | (406) | 5,497 | 5,205 | 292 | |||||||||||
(vi) Net adjustments for equity | (131) | (177) | 46 | (146) | (420) | 274 | |||||||||||
Adjusted Funds From Operations | $ | 31,913 | $ | 46,814 | $ | (14,901) | $ | 72,044 | $ | 94,264 | $ | (22,220) | |||||
AFFO per Unit - Basic | $ | 0.13 | $ | 0.20 | $ | (0.07) | $ | 0.30 | $ | 0.40 | $ | (0.10) | |||||
AFFO per Unit - fully diluted (3) | $ | 0.13 | $ | 0.19 | $ | (0.06) | $ | 0.29 | $ | 0.40 | $ | (0.11) | |||||
Distributions per Unit - Basic | $ | 0.20 | $ | 0.20 | $ | — | $ | 0.40 | $ | 0.40 | $ | — | |||||
Adjusted weighted average units | |||||||||||||||||
Basic | 244,036,797 | 239,660,302 | 4,376,495 | 243,456,931 | 233,029,149 | 10,427,782 | |||||||||||
Diluted (3) | 246,383,724 | 242,614,282 | 3,769,442 | 245,831,985 | 235,657,661 | 10,174,324 | |||||||||||
Notes | ||||||||||||
(1) | FFO and AFFO are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. See | |||||||||||
(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 | |||||||||||
(3) | Distributions per units is a non-IFRS ratio calculated as sum of the distributions on the REIT's units and finance costs on Class | |||||||||||
Exhibit 3 – Constant Currency Same Property NOI
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 June 30, | Six months ended June 30, | |||||||||||||
2023 | 2022 | Var % | 2023 | 2022 | Var % | ||||||||||
Same property NOI (1) | |||||||||||||||
Americas | $ | 30,028 | $ | 29,233 | 2.7 % | $ | 58,690 | $ | 57,401 | 2.2 % | |||||
Europe | 20,909 | 19,634 | 6.5 % | 40,573 | 38,693 | 4.9 % | |||||||||
Australasia | 30,935 | 29,064 | 6.4 % | 53,294 | 50,043 | 6.5 % | |||||||||
Same property NOI (1) | $ | 81,872 | $ | 77,931 | 5.1 % | $ | 152,557 | $ | 146,137 | 4.4 % | |||||
Impact of foreign currency | — | (1,615) | — | (2,108) | |||||||||||
Straight-line rental revenue | 498 | 354 | 839 | 748 | |||||||||||
Amortization of operating leases | (42) | (49) | (85) | (104) | |||||||||||
Lease termination fees | 10 | — | 41 | — | |||||||||||
Other transactions | 348 | 103 | 893 | 135 | |||||||||||
Developments | 579 | 515 | 8,810 | 7,735 | |||||||||||
Acquisitions | 13,334 | 10,507 | 26,995 | 11,865 | |||||||||||
Dispositions | 929 | 721 | 2,310 | 713 | |||||||||||
Intercompany/Elimination | 493 | 417 | 1,082 | 829 | |||||||||||
NOI | $ | 98,021 | $ | 88,883 | 10.3 % | $ | 193,442 | $ | 165,950 | 16.6 % | |||||
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. |
Exhibit 4 – Net Asset Value ('NAV') per Unit
"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 is 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 | ||||||||
Q2 2023 | Q4 2022 | |||||||
Total Assets | $ | 8,061,118 | $ | 8,514,000 | ||||
less: Total liabilities | (4,679,980) | (4,772,025) | ||||||
less: Non-controlling interests | (1,141,005) | (1,285,128) | ||||||
Unitholders' equity | 2,240,133 | 2,456,847 | ||||||
Add/(deduct): | ||||||||
Goodwill | (37,271) | (39,612) | ||||||
Deferred unit plan liability | 17,116 | 23,837 | ||||||
Deferred tax liability | 406,429 | 443,935 | ||||||
less NCI | (103,337) | 303,092 | (109,584) | 334,351 | ||||
Financial instruments - net | (55,064) | (38,124) | ||||||
less NCI | 15,457 | (39,607) | 13,624 | (24,500) | ||||
Exchangeable Units | 10,739 | 16,245 | ||||||
Global Manager valuation adjustment | 576,318 | 576,318 | ||||||
Other | — | — | ||||||
Net Asset Value ("NAV") | $ | 3,070,520 | $ | 3,343,486 | ||||
Adjusted Units Outstanding (000s)- period end (1) | 244,685 | 242,358 | ||||||
NAV per Unit | $ | 12.55 | $ | 13.80 | ||||
Notes | ||||||
(1) | Under IFRS the REIT's Class B LP Units are treated as a financial liability rather than equity. The REIT | |||||
Exhibit 5 – Proportionate Management Fees
"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 June 30, | Six months ended June 30, | ||||||||||||||||
2022 | 2021 | Variance | 2022 | 2021 | Variance | |||||||||||||
Base fee | $ | 8,168 | $ | 8,394 | $ | (226) | $ | 16,552 | $ | 16,287 | $ | 265 | ||||||
Incentive and performance fee | (89) | (406) | 317 | 4,147 | 4,393 | (246) | ||||||||||||
Trustee fees | 293 | 275 | 18 | 600 | 544 | 56 | ||||||||||||
Project and Acquisition fees | (1,818) | 4,651 | (6,469) | 3,557 | 7,944 | (4,387) | ||||||||||||
Other fees | (3,470) | 6,977 | (10,447) | — | 10,093 | (10,093) | ||||||||||||
Total Management Fees | $ | 3,084 | $ | 19,891 | $ | (16,807) | $ | 24,856 | $ | 39,261 | $ | (14,405) | ||||||
less: inter-company elimination | (6,330) | (8,296) | 1,966 | (17,377) | (20,571) | 3,194 | ||||||||||||
Consolidated Management Fees | $ | (3,246) | $ | 11,595 | $ | (14,841) | $ | 7,479 | $ | 18,690 | $ | (11,211) | ||||||
add: fees charged to non-controlling | 4,427 | 5,908 | (1,481) | 12,232 | 14,760 | (2,528) | ||||||||||||
Proportionate Management Fees | $ | 1,181 | $ | 17,503 | $ | (16,322) | $ | 19,711 | $ | 33,450 | $ | (13,739) | ||||||
SOURCE NorthWest Healthcare Properties Real Estate Investment Trust
View original content: http://www.newswire.ca/en/releases/archive/August2023/11/c9676.html
