TORONTO, June 17, 2011 /CNW/ - GT Canada Medical Properties REIT (the "REIT") is pleased to announce its financial results for the three months ended March 31, 2011.
Highlights
| | - Subsequent to March 31, 2011, the REIT announced on April 20, 2011 that it had entered into a revolving credit facility agreement (the "Credit Facility") in the amount of approximately $5.7 million to be drawn on by the REIT for property acquisitions and working capital. Amounts outstanding under the Credit Facility bear interest at a rate equal to the lender's prime rate plus 200 basis points. The Credit Facility has an initial two-year term and is secured by a first ranking mortgage on the property located at 89 Dawson Road, in Guelph Ontario.
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| | - On April 20, 2011 the REIT also announced that it had refinanced (the "Refinancing") four of its properties for a gross amount of $17.345 million which generated proceeds of $4.158 million. The Refinancing reset the mortgage terms for three of the properties to five years and increased the mortgage amortizations to 25 years. The weighted average interest rate on the REIT's secured mortgage portfolio was decreased from 5.51% to 5.13% as a result of the Refinancing.
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| | - On April 21, 2011 the REIT adopted a deferred unit plan (subject to approval of the unitholders at the next annual general meeting) to promote a greater alignment of interests between the trustees and management of the REIT and unitholders. Under the terms of the deferred unit plan, they have the right to receive a percentage of their annual remuneration in the form of deferred units.
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| | - On June 6, 2011, the REIT announced that Guelph Medical Place 2 - a new, 24,000 square foot medical office building located at 89 Dawson Road in Guelph, Ontario -had been certified substantially complete. Guelph Medical Place 2 is part of a family medical campus that includes its sister building Guelph Medical Place 1 - home to the 'Guelph Family Health Team', one of the largest family health teams in Ontario. Guelph Medical Place 2 was acquired December 24, 2010, while under construction and 80% pre-leased, for an 8.25% cap rate.
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Financial results
| | - For the three month period ended March 31, 2011, the REIT had property rental revenues of $1,475,015 and property operating costs of $611,400. For the same period in 2010, the REIT had property rental revenues of $30,548 and property operating costs of $14,645.
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| - For the three month period ended March 31, 2011, the REIT had net income of $4,759,477 or $0.31 per unit basic and diluted as compared to a net loss of $(302,052) or $(0.41) per unit basic and diluted in the same period in 2010. The net income in Q1 2011 was significantly impacted by deductions of $10,165 for the Class B unit distributions and fair value adjustment additions of $3,442,260 for investment properties, $72,875 for Class B LP unit liability, $20,548 for incentive unit option liability and $943,855 for warrant liability. The net income in Q1 2011 before deducting the Class B unit distributions and adding the fair value adjustments was $290,104 or $0.02 per unit basic and diluted.
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Outlook
The REIT is focusing on achieving its goal of becoming a significant owner of medical office properties throughout Canada through acquisition, aimed at creating a geographically diversified portfolio of high quality income producing properties.
2011 First Quarter Financial Results
For the complete first quarter 2011 Management's Discussion and Analysis and Financial Statements, please visit [ www.sedar.com ]
GT Canada Medical Properties REIT
The REIT intends to become a leading owner and co-developer of medical office buildings in Canada through a disciplined acquisition, development and management program aimed at creating a geographically diversified portfolio of properties that will generate stable and growing rental income and capital appreciation opportunities.
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 involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements.
Business & Finance
Business and Finance
Business and Finance
Mon, June 20, 2011 
