TORONTO - NorthWest Healthcare Properties REIT (TSX: NWH.UN) said Wednesday that its operating profits increased in the second quarter, due to a good environment for mortgage loans.
The real estate trust recorded a profit of $20.2 million in the three months ended June 30, compared with $18.2 million in the same period a year ago.
Funds from operations, a key financial measure in the real estate industry, amounted to $11.5 million, or 25 cents per share in the period, compared with $10.8 million, or 25 cents per share, a year earlier.
The trust said it had revenue of $36.9 million in the period, compared with $32.6 million last year.
NorthWest said it made its first foray into Manitoba real estate in the quarter with the purchase of three office buildings in Winnipeg for $13.2 million. One of the buildings houses the Winnipeg Regional Health Authority on a long-term lease.
"Our results were in line with our expectations for this quarter, as we continue to focus on improving portfolio quality for the long term through operations, asset management and acquisitions, notably our entry into the Winnipeg market," said chief executive Peter Riggin in a release.
"We are also pleased to have concluded the refinancing of a significant number of mortgages in the first half of the year to take advantage of the favourable lending environment."
The trust also refinanced approximately $100 million in mortgage debt, which resulted in $15.7 million of proceeds back to the REIT.
NorthWest Healthcare owns 77 properties in British Columbia, Alberta, Manitoba, Ontario, Quebec, Nova Scotia and New Brunswick.
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