Toronto, Ontario--(Newsfile Corp. - October 15, 2024) - Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the 'REIT' or 'Northwest'), a leading owner and operator of healthcare real estate infrastructure in North America, Brazil, Europe and Australasia, is pleased to announce the successful renewal of the lease at Sabará Hospital, resolving the REIT's only major 2025 lease maturity. Additionally, the REIT has listed Sabará Hospital for sale and finalized lease extensions at two other properties in Brazil, tenanted by Rede D'Or. These leasing activities extend the weighted-average lease expiry ("WALE") of the REIT's Brazil portfolio to 18.2 years with fully inflation indexed leases.
Sabará Hospital Renewal
Sabará Hospital Infantil, São Paulo's leading children's hospital, spans approximately 157,000 square feet and includes 110 beds and 13 surgical suites. The hospital is 100% leased to Sabará Hospital, with the lease fully guaranteed by the Sabará Hospital Foundation.
The lease was renewed for a 10-year term, with a 10-year renewal option, at passing rent, and is subject to inflationary increases.
Following the completion of the lease renewal, the REIT has listed Hospital Sabará for sale with CBRE São Paulo.
Rede D'Or Extensions
The REIT has secured early lease renewals at Hospital São Luiz Morumbi and Hospital Maternidade Brasil, thereby extending the lease terms for both properties to 23.7 years. The properties, both located in São Paulo, totalling approximately 706,000 square feet, are leased to Rede D'Or, the largest private hospital operator in Brazil.
The Rede D'Or lease extension and the Sabara 10-year renewal improve the long-term lease maturity profile of the Brazil portfolio extending the WALE to 18.2 years.
About Northwest
Northwest provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at August 13, 2024, of interests in a diversified portfolio of 186 income-producing properties and 16.1 million square feet of gross leasable area located throughout major markets in North America, Brazil, Europe and Australasia. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. Northwest leverages its global workforce in eight countries to serve as a long-term real estate partner to leading healthcare operators. For additional information please visit: www.nwhreit.com.
Contacts:
Craig Mitchell, CEO, Craig.Mitchell@nwhreit.com,
Stephanie Karamarkovic, CFO, Stephanie.Karamarkovic@nwhreit.com,
Alyssa Barry, Investor Relations, Alyssa.Barry@nwhreit.com, investors@nwhreit.com, (416) 366-2000 Ext. 2202
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 expectations regarding the timing and certainty of the sale of Sabará Hospital and the effect that such sale or the lease renewals discussed in this press release may have on the REIT's financial performance and condition. 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 forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the timing and circumstances relating to the sale of Sabará Hospital may change, 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 SEDAR+ at www.sedarplus.ca.
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.
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