HealthLease Properties Real Estate Investment Trust Provides Q&A Update 2013
TORONTO, Nov. 8, 2013 /CNW/ - HealthLease Properties Real Estate Investment
Trust (HLP.UN) ("HealthLease" or "the REIT") provides below answers to
questions received since our last Q&A Update on September 27, 2013.
Question 1: Is the timing for deploying the $50mm convertible debt raise
related to the properties in development?
Answer: We wanted to add more flexibility to our balance sheet. However, some
of the proceeds will be used for our development properties.
Question 2: There was a tremendous growth in revenues, but the growth was not
as large in earnings. What was the large added expense that dropped the
profit? Is it a one-time charge or a recurring charge related to the
expansion of the business?
Answer: We had tremendous growth in revenue, and fairly significant growth in
earnings. We also had a very large increase in NOI. There are a number of
non-cash charges in the quarter, including adjustments to Fair Market Value.
We also had some minor increase in interest rates associated with minor
increases in leverage. Notably, there was a meaningful increase in FFO, and
thus greater intrinsic value on a per unit basis.
Question 3: The subsequent disposition of the Valpairiso, IN, property-was it
a gain on the books or a loss?
Answer: The Valparaiso property was sold at carrying cost.
Question 4: Are there plans for lowering the line of credit? Given that it
is almost fully drawn, what are the long term financing options?
Answer: We recently announced a $50M convertible offering which will close
November 12. We will use part of the proceeds to pay down the line of credit.
Question 5: Do you have any currency exposure to flows in vs. flows out (US$
income, C$ debt and equity)? Do you hedge for FX?
Answer: We do have hedges in place for all US income flowing back to Canada.
Supplemental Financial Information
This news release is not in any way a substitute for reading HealthLease's
financial statements, including notes to the financial statements, and
Management's Discussion and Analysis, dated November 7, 2013. The REIT's
2013 Fiscal Third Quarter Financial Statements, and MD&A, have been filed on
SEDAR. The Third Quarter Financial Statements and MD&A can also be viewed in
the Investor Information section of the HealthLease's website at
About HealthLease Properties Real Estate Investment Trust
HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns one of
the youngest and highest quality portfolios of seniors housing and care
facilities with 12 properties located in two provinces of Canada and 32
properties located in seven states of the United States for a total of 4,335
beds. The facilities are leased to experienced tenant operators who have
significant operational experience in the U.S. and Canada. The leases are
structured as long-term and triple-net: features that provide stability and
dependability to the REIT's cash flow and distributions. The REIT's
best-in-class portfolio of premier properties meets the growing demands of
modern seniors by emphasizing features such as hotel-like design, private
rooms and baths and hospitality-inspired amenities. For more information,
This news release contains forward-looking statements which reflect the REIT's
current expectations regarding future events. The forward-looking statements
involve risks and uncertainties, including those set forth in the REIT's
Annual Information Form dated March 6, 2013 under the section "Risk Factors,"
a copy of which can be obtained at www.sedar.com. Actual results could differ
materially from those projected herein. The REIT disclaims any obligation to
update these forward-looking statements.
SOURCE HealthLease Properties Real Estate Investment Trust
Scott White Executive Vice President - Finance HealthLease Properties REIT
Renée Lam Investor Relations TMX Equicom (416) 815-0700 ext. 258
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CO: HealthLease Properties Real Estate Investment Trust
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-0- Nov/08/2013 22:00 GMT
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