AFFO per share Increased 100% Compared to 1Q 2022 as Senior Housing Portfolios Continue Recovery
First Quarter and Subsequent Highlights
- As previously announced, on
January 20, 2023 , the Company entered into a purchase and sale agreement to sellMetroWest Medical Center inOrlando, FL , forUS$6.4 million . The sale occurred onApril 7, 2023 , and the Company used proceeds to repay indebtedness associated with its remaining medical office buildings. - As previously announced, on
February 27, 2023 , the Company entered into a purchase and sale agreement to sell eight skilled nursing facilities the Company currently leases to SymCare. The due diligence period associated with the transaction has lapsed, due diligence conditions have been waived, the purchase price was amended toUS$121 million , and buyer's obligations to close are supported by aUS$2 million non-refundable deposit. Parties are completing documents required for closing and seeking final regulatory approvals. The Company expects to consummate the transaction before the end of the second quarter. - On
April 1 , the Company entered into a 15-year lease with Chapters Living ("Chapters") to manage three standalone memory care communities inTexas (2) andArkansas (1). Chapters managed the portfolio under an interim management structure during the month of April and received full licensure approval effectiveMay 1 . These communities were previously managed byMemory Care of America. - On
April 10 , the Company closed on the acquisition of a 34-unit memory care community inCarrollton, Texas . The community is being operated byConstant Care Management Company ("Constant Care"), one of the Company's preferred operating partners, pursuant to a long-term lease. The Company had previously acquired the first mortgage on the community through a HUD Note Sale Auction onDecember 5 th, 2022. The Company's investment is less than$90,000 per unit. - Reported funds from operations ("FFO")1 of
US$0.12 per common share for the three months endingMarch 31, 2023 . The Company reported adjusted funds from operations ("AFFO")2 ofUS$0.12 per common share for the three months endingMarch 31, 2023 .
"We continue to make strides repositioning our portfolio for future success and creating a portfolio of private pay seniors housing assets, operated by some of the country's best operators" commented
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1 FFO is a measure used by management to evaluate operating performance. Please refer to the section "Non-IFRS Measures" in this press release for more information. |
2 AFFO is a measure used by management to evaluate operating performance. Please refer to the section "Non-IFRS Measures" in this press release for more information. |
Financial Highlights
Three months ended | ||||
(in thousands of | 2023 | 2022 | ||
Revenue | $ | 49,541 | $ | 48,594 |
Net income (loss) | $ | (15,598) | $ | 3,337 |
FFO | $ | 6,903 | $ | 3,906 |
FFO per share | $ | 0.12 | $ | 0.07 |
AFFO | $ | 6,571 | $ | 3,194 |
AFFO per share | $ | 0.12 | $ | 0.06 |
Balance Sheet and Portfolio Highlights
(in thousands of | |||
Total assets | 1,082,108 | 1,097,340 | |
Number of properties3 | 77 | 77 | |
Debt | 769,970 | 765,457 |
Investor Conference Call
A conference call hosted by the Company's executive team will be held on
About
The Company is a North American health care real estate company with an investment thesis focused on the premise that an aging demographic in
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3 Excludes three medical office buildings held for sale as of |
Forward-Looking Information
This press release (this "Press Release") contains certain forward-looking information and/or statements ("forward-looking statements"), that reflect and are provided for the purpose of presenting information about management's current expectations and plans relating to the future, including, without limitation, statements regarding the Company's utilization of proceeds of dispositions and statements regarding the closing of the sale of eight skilled nursing facilities the Company currently leases to SymCare. Forward-looking information is typically identified by terms such as "anticipate," "believe," "continue," "expect," "expectations," "look," "may," "plan," "project," "should," "will," and other similar expressions that do not relate solely to historical matters and suggest future outcomes or events. Readers should not place undue reliance on forward-looking statements and are cautioned that forward-looking statements may not be appropriate for other purposes. Forward-looking statements in this Press Release are based on current beliefs, expectations, and certain assumptions of the Company's management, including that any conditions relating to the sale of the Company's Symcare leased facilities will be satisfied or waived and such transactions will be completed when currently expected. Forward-looking statements in this Press Release are subject to significant known and unknown risks, uncertainties, and other factors that are beyond the Company's ability to predict or control, including the risk that the sale of one or more of the Company's medical office buildings will not close due to the inability to satisfy closing conditions, and may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The Company's actual results may differ as a result of various factors, including without limitation, the negative impact of COVID-19 pandemic on the Company's business and the business of operators/tenants, including without limitation, uncertainty regarding the duration and severity thereof and negative economic conditions arising therefrom, uncertainty regarding implementation and impact of existing and future stimulus and other Covid-19 relief legislation, laws, orders, and guidance throughout
There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which are given as of the date hereof, and not to use such forward-looking statements for anything other than the intended purpose. Further, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements contained in this Press Release are expressly qualified by this cautionary statement.
Non-IFRS Measures
The Company reports its financial results in accordance with International Financial Reporting Standard ("IFRS"). Included in this Press Release are certain non-IFRS financial measures as supplemental indicators used by the Company's management to track the Company's performance. These non-IFRS measures are NOI, FFO, and AFFO. The Company believes that these non-IFRS financial measures provide useful information to both the Company's management and investors in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. For a full definition of these measures, please refer to the Financial Measures section of the
FFO Tables
Three months ended | ||
2023 | 2022 | |
Net loss from continuing operations for the period | $ (11,013) | $ 5,667 |
Add/(deduct): | ||
Change in fair value of investment properties | (164) | (41) |
Property taxes accounted for under IFRIC 21 | 9,058 | 8,515 |
Depreciation and amortization expense | 3,626 | 3,719 |
Amortization of tenant inducements | 61 | 61 |
Accretion expense and amortization of non-cash | 725 | 922 |
Change in fair value of financial instruments | 2,937 | (12,839) |
Loss on sale of property, plant and equipment | (12) | (1,333) |
Deferred income tax recovery | — | (1,127) |
Allowance for credit losses on loans and interest receivable | 1,047 | (24) |
Change in non-controlling interest liability in respect of the | (35) | 130 |
Adjustments for equity accounted entities | 824 | 23 |
FFO from continuing operations | $ 7,054 | $ 3,673 |
FFO from discontinued operations | (151) | 233 |
Total FFO | $ 6,903 | $ 3,906 |
Weighted average number of shares, including fully | 56,746,431 | 56,706,423 |
Funds from operations per share | $ 0.12 | $ 0.07 |
AFFO Tables
Three months ended | ||
2023 | 2022 | |
Cash flows provided by (used in) operating activities | $ (4,482) | $ 1,923 |
Change in non-cash working capital | 9,197 | 1,505 |
Less: interest expense | (9,919) | (9,680) |
Less: change in non-controlling interest liability | (67) | (236) |
Plus: loss from joint ventures | (24) | (448) |
Plus: interest paid | 11,102 | 10,491 |
Less: interest received | (144) | (119) |
Plus: debt extinguishment costs | (9) | 340 |
Plus: realized loss on currency exchange | (5) | — |
Plus: amortization of lease asset | (62) | — |
Plus: current income tax | 551 | — |
Plus: transaction costs for business combination | — | — |
Plus: non-cash portion of non-controlling interest | (38) | 126 |
Plus: adjustments for equity accounted entities | 834 | (119) |
Plus: deferred share incentive plan compensation | 340 | 140 |
Less: capital maintenance reserve | (703) | (729) |
Total AFFO | $ 6,571 | $ 3,194 |
Weighted average number of shares, including fully | 56,746,431 | 56,706,423 |
Adjusted Funds from operations per share | $ 0.12 | $ 0.06 |
SOURCE
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