HealthLease Properties REIT Press Releases

HealthLease Properties Real Estate Investment Trust Announces May 2013 Distribution

Tue, 21 May 2013 08:30:00 -0400

TORONTO, May 21, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (the "REIT") (TSX: HLP.UN) announced today a cash distribution in the amount of $0.07083 per unit for the month of May 2013. The distribution will be payable on June 17, 2013 to unitholders of record as at May 31, 2013.

Unitholders can participate in the REIT's Distribution Reinvestment Plan ("DRIP"). The DRIP allows unitholders of the REIT, who are resident in Canada, to automatically reinvest monthly cash distributions paid on their Trust Units in additional Trust Units, plus bonus Trust Units equivalent to 3% of the distributions reinvested. The DRIP offers unitholders the opportunity to increase their ownership in the REIT on a regular basis without incurring any commission or brokerage fees. Complete details on the DRIP are available at the REIT's website (www.hlpreit.com) or from a unitholder's investment advisor.

About HealthLease Properties Real Estate Investment Trust

HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a premier portfolio of seniors housing and care facilities located in the United States and Canada. The properties are leased to experienced tenant operators who have significant operational experience. 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 properties meets the needs of modern seniors by emphasizing features such as hotel-like design, private rooms and baths, and hospitality-inspired amenities. For more information, visit www.hlpreit.com.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Craig MacPhail
Investor Relations
TMX Equicom
(416) 815-0700 ext. 290

HealthLease Properties Real Estate Investment Trust Provides Q&A Update for 2013 First Quarter

Thu, 09 May 2013 18:48:00 -0400

TORONTO, May 9, 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 April 29, 2013.

Question 1: What is the value / cap rate on the property being offered to the REIT by Mainstreet in May?

Answer: The details surrounding this property's acquisition by the REIT have not yet been made public, but will be made so at the appropriate time. Generally, however, the REIT will release details of the acquisition once it has been officially approved and completed.

Question 2: For G&A - you guide to 6% of revenue - is this stabilized revenue including the recently closed acquisitions? G&A under that scenario would be about $500,000 per quarter - is this your expectation going forward?

Answer: We have significant acquisition activity; thus, we are conservatively estimating trust expenses at 6% for 2013. It remains to be seen if this is a long-term run rate. For the near future, however, 6% would be a decent estimate given the level of acquisition activity being seen.

Question 3: The Michigan transactions - was this a tax-efficient structure for the vendor? Or is this a method of acquiring properties you are going to use going forward?

Answer: This is to a third-party operator (Persimmon) on existing cash flowing assets. Persimmon is a great operator who we are excited to partner with. Although this is technically a loan due to certain state of Michigan regulations, these mortgages are structured to act much like leases. If we were to acquire more assets in Michigan, they would follow this same structure. In any other state, this same acquisition would have been structured as a market lease.

Question 4: What kind of credit risk is the REIT assuming? What kind of recourse does the REIT have in case the borrower defaults?

Answer: We are in effectively the same position with this transaction as we are on our other leases. The risk is commensurate with a lease scenario.

Question 5: SP portfolio - What will be the quality mix of the portfolio pro-forma the SP acquisition?

Answer: The portfolio includes a large number of assisted living units. For reference, assisted living, by nature, is 100% quality mix. The portfolio has 10 assisted living facilities. The three remaining skilled nursing facilities are in line with our current skilled portfolio.

Question 6: Why was your Q1/13 G&A 9% higher than that in Q4/12?

Answer: There was $60,000 worth of cost associated with forming the Long Term Incentive Plan. This is one-time in nature. In addition, we continued to have costs associated with sourcing new acquisitions.

Question 7: What is a good run rate for straight-line rents going forward?

Answer: Our straight-line rent should be around $2.7 million annually.

Question 8: What are the occupancy and coverage ratios of your U.S. assets?

Answer: Our occupancy remains strong across our entire portfolio. We have several newly constructed assets that are in lease-up from an operator perspective. To be clear, the REIT has 100% occupancy but the property level occupancy varies. Currently, the U.S. assets that are not in lease-up have a combined coverage ratio in excess of 1.50 to 1.00.

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 (MD&A), dated May 8, 2013. The REIT's 2013 Fiscal First Quarter Financial Statements, and MD&A, have been filed on SEDAR. The First Quarter Financial Statements and MD&A can also be viewed in the Investor Information section of the HealthLease's website at www.hlpreit.com.

About HealthLease Properties Real Estate Investment Trust

Forward-Looking 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.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

HealthLease Announces Election of Trustees

Thu, 09 May 2013 17:09:00 -0400

TORONTO, May 9, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") announced that the nominees listed in the management proxy circular for the 2013 Annual and Special Meeting of Unitholders were elected as Trustees of HealthLease Properties Real Estate Investment Trust. Detailed results of the vote for the election of trustees held at the Annual and Special Meeting earlier today in Toronto are set out below.

Nominee	Votes For	% For	Votes Withheld	% Withheld
David W. Beirnes	6,082,332	99.85%	8,845	0.15%
James Bremner	6,080,124	99.82%	11,053	0.18%
Neil Labatte	6,080,632	99.83%	10,545	0.17%
Michael Salter	6,080,224	99.82%	10,953	0.18%
Aida Tammer	6,081,732	99.84%	9,445	0.16%
Paul Ezekiel Turner	6,081,232	99.84%	9,945	0.16%
Richard Turner	5,538,932	90.93%	552,245	9.07%

About HealthLease Properties Real Estate Investment Trust

HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a portfolio of seniors housing and care facilities located in the United States and Canada. 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 properties meets the needs of modern seniors by emphasizing features such as hotel-like design, private rooms and baths, and hospitality-inspired amenities. For more information, visit www.hlpreit.com.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

Annual and Special Meeting of Unitholders

Thu, 09 May 2013 10:00:00 -0400

10:00 a.m. ET Goodmans, LLP, Bay Adelaide Centre
333 Bay Street, Suite 3400
Toronto, Ontario

HealthLease Properties Real Estate Investment Trust Announces 2013 First Quarter Results

Wed, 08 May 2013 17:00:00 -0400

TORONTO, May 8, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") today announced its financial results for the three months ended March 31, 2013. HealthLease completed its initial public offering (the "IPO") on June 20, 2012, and the three-month period represents the REIT's third full quarter of operation.

Q1 2013 Highlights

With the completion of Wabash, IN and Springfield, IL properties in the quarter, all three of the initial properties under development at IPO, are now generating rental income.
The REIT has been advised that Mainstreet, the manager of the REIT, now has six development projects that the REIT will have the right to purchase, upon completion of construction (five in 2013 and one in 2014).
FFO and AFFO were $2,870,000 ($0.20/unit) and $2,860,000 ($0.20/unit) versus the Forecast⁽¹⁾ of $3,325,000 ($0.25) and $3,047,000 ($0.23), respectfully. The variance was primarily as a result of the exercise of the IPO over-allotment option not being invested during the quarter and increased trust expenses related to acquisition activity.
Closed the quarter with a strong balance sheet with 51.6% debt to gross book value and over $3.1 million in cash.
Announced (and completed subsequent to quarter):

The acquisition of 13 senior housing and care properties in North Carolina, Pennsylvania, and Virginia
A CDN$69-million equity financing of REIT units, including an overallotment option that was fully exercised
Replacement of US$25-million operating line of credit with a new US$110-million operating line of credit

Subsequent to quarter-end, advanced first mortgage loans on two senior care properties in Michigan.

"We achieved a milestone during the first quarter as the REIT announced its first two acquisitions as a public company," said Zeke Turner, Chairman and CEO. "The transactions completed in April double our property portfolio to 30 and add 1,249 beds. This brings our total annualized revenue to approximately $36.2 million, an increase of almost 64% from the projected annual revenue of our initial portfolio. In addition, it expands our geographic presence with the addition of four new states. All this is consistent with our stated growth strategies that include attractive, accretive and high-quality acquisitions."

"As we announced in March, we also completed our two remaining initial properties under development - Wabash and Springfield - such that all three of the initial development properties are now operating and contributing to revenue. In addition, our manager, Mainstreet Asset Management, Inc., has six development projects underway that will be offered to the REIT over the next 12 months. We remain excited about the growth prospects for the REIT as we continue to see acquisition and development opportunities that can contribute to growing our AFFO per unit," added Mr. Turner.

Summary of Results


000's, except per unit data	For the three months ended March 31, 2013	Forecast ⁽¹⁾ for the three months ended March 31, 2013
Revenue	$5,364	$5,654
Funds from Operations (FFO) ⁽²⁾	$2,870	$3,325
Adjusted Funds from Operations (AFFO) ⁽³⁾	$2,860	$3,047
Units Outstanding (diluted)	14,537	13,400

FFO per unit (diluted)	$0.20	$0.25
AFFO per unit (diluted)	$0.20	$0.23
Payout Ratio	108%	93%

Footnotes:
(1)	Forecast refers to financial forecast for the three-month period ended March 31, 2013, as provided in the REIT's Final Long Form Prospectus dated June 8, 2012 and filed on SEDAR at www.sedar.com.
(2)	Funds from operations, or FFO, is an earnings measure used by publicly traded real estate entities. FFO is not defined under International Financial Reporting Standards ("IFRS"). HealthLease calculates FFO in accordance with the Real Property Association of Canada ("REALpac") White Paper on Funds from Operations issued in 2004 and revised in 2010 for the impact of IFRS. FFO is defined as net earnings in accordance with IFRS, (i) plus or minus fair value adjustments on investment properties; (ii) plus or minus gains or losses from sales of investment properties; (iii) plus or minus other fair value adjustments; (iv) plus acquisition costs expensed as a result of the purchase of a property being accounted for as a business combination; (v) plus distributions on exchangeable units; and (vi) plus deferred income tax expense, after adjustments for equity accounted entities and joint ventures calculated to reflect FFO on the same basis as consolidated properties.
(3)	Adjusted funds from operations, or AFFO, is defined by the REIT as a measure of operating cash from generated from the business. AFFO is calculated as FFO subject to certain adjustments, including: (i) amortization of fair value mark-to-market adjustments on mortgages, amortization of deferred financing costs, and compensation expense related to deferred unit incentive plans, (ii) adjusting for any differences resulting from recognizing property rental revenues on a straight-line basis, (iii) adding an amount in respect of Mainstreet development lease payments owed or paid, and (iv) deducting a reserve for normalized maintenance capital expenditures and leasing costs, as determined by the REIT. Other adjustments may be made to AFFO as determined by our Trustees in their sole discretion.

Review of Q1 2013 Operating and Financial Results (rounded to nearest '000)

Revenue. Revenue represents rental income from single tenant operators who are under long-term triple-net leases. Revenue during the quarter was $5,364,000. The variance versus forecast was largely due to a one-month delay in the commencement of rent at the Springfield, Illinois property. The one-month delay did not impact AFFO as a result of the Mainstreet Development Lease.

Net Operating Income. Net operating income, which is revenue less property expenses, was $5,122,000. Net operating income was 95.5% of revenue for the quarter ended March 31, 2012. The high margin is attributable to minimal operating expenses as a result of the triple-net structure of HealthLease's leases.

Net Earnings. Net earnings, which is revenue less all expenses (including non-cash fair market value changes in investment properties and Exchangeable Units), was $2,575,000 for the three months ended March 31, 2013.

Funds from Operations. FFO for the quarter was $2,870,000. Trust expenses were $192,000 higher than forecast as a result of increased business development efforts, some of which were non-recurring. On a per unit basis (diluted), FFO was $0.20 versus forecast of $0.25. The exercise of the overallotment option by the underwriters, which was not included in the forecast, resulted in higher units outstanding and, therefore, contributed to the shortfall in FFO per unit. With the acquisitions in April, HealthLease has deployed excess cash from the proceeds of the overallotment option and expects to eliminate the dilutive impact of the additional units issued.

Adjusted Funds from Operations. AFFO for the quarter was $2,860,000, with the variance attributable to higher trust expenses. On a per unit basis (diluted), AFFO was $0.20 versus forecast of $0.25, with the exercise of the overallotment option also contributing to the variance.

Distributions. Distributions declared, including distributions on exchangeable units, totaled $3,088,000, or $0.21 per unit. This translates into a payout ratio of 108% for the quarter. If the over-allotment option had not been exercised, the payout ratio for the quarter would have been 99%.

Financial Position

Cash. At March 31, 2013, the REIT had cash-on-hand amounting to $3,145,000 and restricted cash of $2,695,000.

Operating Line of Credit. At March 31, 2013, the REIT had an operating line of credit of US$25.0 million, secured by four properties in the U.S.; $5,080,000 was drawn on the operating line at the end of the quarter.

Debt to Gross Book Value. Debt to gross book value is calculated by dividing total indebtedness, net of loan costs, by the total assets of the REIT. At March 31, 2013, the debt to gross book value was 51.6%.

Interest Coverage Ratio. Interest coverage ratio, a measure of credit risk, is calculated by dividing net operating income by net interest expense. For the three months ended March 31, 2013, interest coverage ratio was 3.36 times, while the weighted average cost of debt was 5.09%.

Equity and Exchangeable Units. At March 31, 2013, the REIT had 14,537,416 units outstanding, including exchangeable units. At the closing price of $10.77 per unit on March 28, 2013, the REIT had a market capitalization of $156.6 million.

Acquisition of Senior Care Properties

Subsequent to the end of the quarter, the REIT completed the acquisition of 13 senior housing and care properties in North Carolina, Pennsylvania, and Virginia at an aggregate purchase price of US$141.7 million. The acquisition nearly doubled the REIT's total facilities to 28, for a total of 2,909 beds. The acquisition was funded with a combination of debt financing and proceeds from an offering of trust units.

On April 30, 2013, the REIT indirectly issued interest-only mortgage loans on two properties located in Michigan. The loans were in aggregate US$8,385,741 and carry a 10% interest rate with annual escalators over a 15 year term. The REIT has the option to purchase the properties at the end of the loan term for an amount equal to the outstanding loan principal balance plus US$1.

These two transactions bring the REIT's property portfolio to 30 and the total number of beds to 3,180, with 61% of beds for senior nursing (SNF) and long-term care (LTC) and the remaining 39% for assisted living (AL), Alzheimer's (ALZ), and independent living (ILF) facilities.

Combined with the REIT's existing properties, these investments will generate annual rental revenue of approximately $36.2 million. None of HealthLease's current leases come up for renewal until 2020, with most maturing in or after 2026. The weighted average lease maturity for the portfolio is 12.0 years.


Location	Number of Facilities	SNF/LTC Beds	AL/ALZ/ILF Beds	Total Beds
Alberta	5	515	271	786
British Columbia	1	57	159	216
Illinois	1	75	-	75
Indiana	8	679	175	854
Michigan	2	271		271
North Carolina	10	80	623	703
Pennsylvania	2	185	-	185
Virginia	1	90	-	90
Total	30	1,952	1,228	3,180

On a pro forma basis that assumes that the acquisition and financings were completed at the beginning of the first quarter, subsequent to the equity financing and additional debt incurred to finance the acquisition, the REIT's debt to gross book value is 54.0%. The interest coverage ratio for the quarter would have been 3.29 times.

Additionally, on a pro forma basis, AFFO per unit would have been $0.229 and payout ratio would have been 92.8% for the quarter.

Conference Call

HealthLease will host a conference call tomorrow, May 9, 2013, at 9:00 am ET to discuss its first quarter financial results. To access the conference call, please dial 647-427-7450 or 1-888-231-8191. Please connect approximately 10 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay by telephone until Thursday, May 16, 2013 at midnight. To access the archived conference call, dial 1-855-859-2056 and enter the reservation number 54253857.

With the goal of communicating fairly by providing equal access to all stakeholders, management will answer questions in written form instead of entertaining live questions during the call. All interested parties—including securities analysts, current and potential unitholders, and others—are encouraged to submit questions in writing to info@hlpreit.com by 11:30 am ET on May 9. The REIT will then issue and file on SEDAR a press release before the end of the same day that lists the questions received and the REIT's answers. Related questions will be combined and provided a single answer.

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. The REIT's Fiscal First Quarter Financial Statements have been filed on SEDAR and can also be viewed in the Investor Information section of HealthLease's website at www.hlpreit.com.

About HealthLease Properties Real Estate Investment Trust

Forward-Looking 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 AIF 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.

Non-IFRS Measures
The REIT reports its financial results in accordance with IFRS. Included in this news release are certain non-IFRS financial measures as supplemental indicators used by management to track the REIT's performance. These non-IFRS measures are Net operating income (NOI), Funds from operations (FFO), and Adjusted funds from operations (AFFO). See the sections entitled "Funds from Operations" and "Adjusted Funds from Operations" in Management's Discussion & Analysis of Results of Operations and Financial Condition for the quarter ended March 31, 2013 for the calculation of FFO and AFFO, respectively.

The REIT believes that these non-IFRS financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the REIT. These measures do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other real estate investment trusts or enterprises, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

HealthLease Properties Real Estate Investment Trust Provides Q&A Update for April 2013

Mon, 29 Apr 2013 07:00:00 -0400

TORONTO, April 29, 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 March 7, 2013.

Question 1: How does Mainstreet recover the incremental costs of the new strategic hires from the REIT?

Answer: Under the current management agreement, there is no scheduled recovery of incremental costs by management for additional hires. The management agreement, as drafted, did not contemplate the volume of acquisition activity seen thus far. As discussed in the prior Q&A, management has now reviewed more than $1 billion of potential acquisitions on behalf of HLP. Management is constrained from a human resource perspective to execute on the growth opportunities available to the REIT as there is no established mechanism to recover investments in additional resources, human or otherwise. However, on behalf of unitholders, management continues to utilize the resources it does have available to execute the growth strategy of the REIT.

Question 2: Would the cost of new hires change the REIT's G&A or any other items on its financial statement?

Answer: As seen in the answer to question #1, under the current management agreement, there is currently no scheduled effect of new hires on the REIT's G&A or other items on its financial statements.

Question 3: Which Canadian markets is the REIT targeting for growth - Ontario, Quebec, Alberta, B.C.?

Answer: With its triple-net leasing structure, HLP is able to execute on any good opportunities it sees across the U.S. and Canada. Management is looking at opportunities in all provinces, including some not mentioned in the question. With a focus on need-driven properties, opportunity is not driven by geographic location, but rather by local market demand and good operations. This is true for both development and acquisitions. Sometimes, the best senior housing and care opportunities are found in the secondary and tertiary markets.

Question 4: Can you provide any colour on your 2013 acquisition objectives (high level) for the U.S. and Canada?

Answer: As seen in the answer to question #1, management has already reviewed, or is reviewing, a tremendous volume of potential acquisitions. Just in the previously announced external developments, there is opportunity to acquire more than $100 million worth of "Class A" property in the near future (once complete). In addition, HLP has several hundred million more in its active acquisition pipeline. While there is no assurance that any of these opportunities will ultimately prove successful, management continues to diligently study and analyze acquisitions that could benefit unitholders.

Question 5: What is the cap rate for the SP Senior Care Portfolio?

Answer: Management will not generally reveal the capitalization rates for successful transactions on a go-forward basis. Those figures can typically be calculated by unitholders based on figures released in public filings. However, this being the first material acquisition, management will state that the estimated cap rate for the Smith/Packett (SP) acquisition was approximately 7.8%. (For reference, this rate is in line with the capitalization rates for the various properties acquired at the time of IPO.)

Question 6: How much liquidity does the REIT have after the acquisition of the SP Senior Care Portfolio?

Answer: Actual liquidity figures can typically be calculated by unitholders based on the public information made readily available on SEDAR. Between cash, operating lines and additional debt capacity, HLP does have ample room on its balance sheet for additional investment. However, management will not utilize this liquidity flippantly just to "do deals." Instead, management will continue to be diligent in its use of resources to acquire or develop properties that are beneficial to unitholders' long-term value. It can take a long time to recover from a bad transaction. Instead, management will be patient and will execute swiftly when the right opportunity presents itself.

Question 7: What were the acquisitions fees paid to Mainstreet related to? Will these costs be present in every acquisition? Does the asset management contract have any acquisition fee provisions?

Answer: As seen in the answer to question #1, the business model of the REIT has shifted since the IPO. It was believed that the business model would be more heavily weighted to new developments, wherein compensation was and still is accounted for in the development agreement. While development activity has been consistent with expectations as to volume and pace, acquisitions volume has been substantially higher than was originally envisioned. As such, management has on behalf of HLP expanded its HR resource in Canada and the U.S. in response to this shift in business strategy. For additional clarity, since the IPO, Mainstreet has hired three VPs of acquisitions - one in the U.S. and two in Canada -, a financial analyst, a real estate attorney, a paralegal, and additional accounting and administrative staff.

On the heels of a material acquisition that increased the REIT's asset base by more than 50%, the Board of Trustees decided to allow management to recoup some of these hiring costs by virtue of a one-time fee. Under section 8 of the Asset Management Agreement, "The Client [HLP] and the Asset Manager may from time to time agree in writing on additional services that are to be provided to the Client by the Asset Manager for which the Asset Manager shall be compensated on terms to be agreed upon between the Asset Manager and the Client prior to the provision of such services."

Neither the Board nor unitholders should desire to limit the opportunities for the REIT to grow through good acquisitions, and may decide at some point to review the Asset Management Agreement to address the disparity between the original agreement and the actual reality of the REIT's work volume.

In the meantime, management continues to be focused on bringing value to the REIT through new developments, acquisitions, or other means of growth and also performs its duties under the agreement to manage the REIT's day-to-day operations.

Question 8: I think one of the acquired facilities is licensed for both Medicare and Medicaid? Are the other facilities not?

Answer: All of the skilled nursing facilities (4 of the 13) are licensed for both Medicaid and Medicare. The assisted living facilities (ALF) do not receive reimbursements from Medicare; however, the state of North Carolina will reimburse ALF under the Medicaid program. Thus, they are licensed accordingly.

Question 9: As per the prospectus, the portfolio was appraised at US$139.8MM. The REIT is paying $141.7MM. Is the difference related to a portfolio premium?

Answer: Yes.

Question 10: Agency financing - will this loan be placed under the Fannie Mae or Freddie Mac programs?

Answer: In line with the REIT's debt strategy, management looks to eventually place all debt into longer-term, fixed rate products like agency financing or other appropriate vehicles. How and when this is accomplished will be based on debt availability, suitability, market factors and overall needs at the REIT level. It can be expected that management will be actively reviewing opportunities to position properties to long-term financing such as CMHC, HUD, Fannie Mae, Freddie Mac, insurance products, etc.

Question 11: What accretion are you getting in terms of AFFO/unit from the acquisition?

Answer: Management is estimating accretion of approximately $0.11 per unit (13%).

Question 12: What is your current payout ratio?

Answer: HLP's ratios are discussed in depth in our quarterly and annual public filings on SEDAR. However, this recent transaction will have a positive effect on the REIT's payout ratio, decreasing it to well below 100%. This lower ratio creates flexibility to consider a number of initiatives, including building up additional liquidity and resources on the balance sheet, increasing unitholder distributions, etc.

Question 13: What is the planned use for the new funds being raised?

Answer: These funds, along with cash, were used in part to fund the recently announced acquisition of 13 assets in the US. The balance is being held on the balance sheet to fund future acquisitions or developments, as appropriate.

Question 14: Do any of your tenants have a master lease agreement with you?

Answer: Yes, HLP does in certain instances utilize master leases, as well as cross-defaults or other measures within its leases.

Questions 15: Does your new operating line have a demand option in favor of the lender?

Answer: No.

Question 16: How much rent is the REIT getting from the vendor on these properties [the Smith/Packett acquisition]? In consideration of the $26.7MM vendor take-back and given that the REIT pays 7.0% interest on the loan.

Answer: The REIT will be receiving rent equal to 7.8% on the $26.7MM purchase price. To be clear, this is only the case until the properties are completed and full rent commences (estimated to be June 1, 2013).

Question 17: Why did you prefer short-term variable rate debt over fixed rate mortgages?

Answer: Management does not prefer short-term, variable-rate debt. The operating line is being utilized as acquisition financing and a portion of this line is swapped to fixed rate debt. As per the answer to question #10, management's desire is to focus on longer-term, fixed-rate debt as appropriate and available.

Question 18: What is the incremental G&A of $167K related to?

Answer: Tax and audit related to the new assets.

Question 19: Will there be any capitalized interest given by the vendors for the properties under development?

Answer: The vendors are responsible for completing the assets at their cost - HLP will not be capitalizing interest or booking interest cost.

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, Management's Discussion and Analysis (MD&A), and final short form prospectus dated April 4, 2013. The REIT's Fiscal Fourth Quarter and Year-end Financial Statements, MD&A, and final short form prospectus have been filed on SEDAR. The Year-end Financial Statements and MD&A can also be viewed in the Investor Information section of the HealthLease's website at www.hlpreit.com.

About HealthLease Properties Real Estate Investment Trust

Forward-Looking 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.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

Notice of HealthLease Properties Real Estate Investment Trust 2013 First Quarter Results Conference Call

Thu, 25 Apr 2013 08:30:00 -0400

TORONTO, April 25, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") will release its fiscal 2013 first quarter results on Wednesday, May 8, 2013, after markets close. Management of the REIT will hold a conference call at 9:00 a.m. ET on Thursday, May 9, 2013 to review the financial results. The call will be hosted by Zeke Turner, Chairman and CEO.

HealthLease's goal is to keep the public informed about its business, but intends to communicate in a way that provides equal access to all stakeholders. As such, in lieu of entertaining live questions during the conference call, management will instead answer questions in written form.

All interested parties—including securities analysts, current and potential unitholders, and others—are encouraged to submit questions in writing to info@hlpreit.com by 11:30 a.m. ET on May 9. The REIT will then issue and file on SEDAR a press release before the end of the same day that lists the questions received and the REIT's answers. Related questions will be combined and provided a single answer.

CONFERENCE CALL DETAILS:

DATE:	Thursday, May 9, 2013

TIME:	9:00 a.m. ET

DIAL IN NUMBER:	647-427-7450 1-888-231-8191

TAPED REPLAY:	416-849-0833 or 1-855-859-2056 Available from Thursday, May 9, until midnight Thursday, May 16

REFERENCE NUMBER:	54253857

The call will also be archived on the REIT's website (www.hlpreit.com).

About HealthLease Properties Real Estate Investment Trust

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

HealthLease Properties Real Estate Investment Trust Announces Strategic Hires by its External Manager

Tue, 23 Apr 2013 07:00:00 -0400

TORONTO, April 23, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") today announced that its external manager, Mainstreet Property Group, LLC ("Mainstreet"), notified it of several strategic hires, including Carole Cowper as Vice President-Acquisitions, Alan Vaughan as Vice President-Acquisitions, and Scott White as Executive Vice President-Finance, each of whom will provide services on behalf of the REIT. Ms. Cowper and Mr. Vaughan will be focused on identifying and securing real estate acquisition opportunities for the REIT across Canada, whereas Mr. White will be responsible for driving the fundraising and capital markets needs of Mainstreet, including related to its external development activities for the REIT.

On Ms. Cowper and Mr. Vaughn, Zeke Turner, Chairman and CEO of Mainstreet and HealthLease, says "We are very pleased to welcome Carole and Alan to our team. They both come from credible organizations and bring a wealth of experience and talent to our team. We are committed to helping the REIT grow in Canada, as well as in the U.S., and these hires add significant value to us as an organization. Their particular backgrounds in Canadian real estate are important as we continue to execute the REIT's growth strategy through acquisitions. We look forward to their contributions and insights."

Ms. Cowper has over 25 years of experience in real estate and has gained a comprehensive understanding of the industry through a variety of different roles in both the United Kingdom and Canada. Prior to her appointment to HealthLease, Ms. Cowper worked at HealthTrust Canada (acquired by the Altus Group in 2008), at which she held a number of senior leadership roles from 2007 to 2012. She was also previously involved in a property and asset management role for a property portfolio worth over C$1.2 billion. Ms. Cowper obtained her MRICS and FRICS designations from the Royal Institute of Chartered Surveyors and her AACI designations from the Appraisal Institute of Canada.

Mr. Vaughan has more than 35 years of experience in the business sector with a focus on business development, financings, and real estate acquisitions. From 2002 to 2012, Mr. Vaughan was Vice President, Business Development with Northern Property Real Estate Investment Trust ("NPR") (TSX: NPR.UN). During his tenure with NPR, Mr. Vaughan acquired more than $750 million of income-producing properties and was instrumental to NPR's growth. Prior to joining NPR, Mr. Vaughan founded Arctic Financial Limited, a subsidiary of Pacific & Western Trust Corporation.

On Mr. White, Mr. Turner remarks, "Our company is at an important inflection point in its growth strategy and we are delighted to be able to bring aboard someone with Scott's experience and talent. Scott and I worked together earlier in our careers and I know he brings the capital markets and fundraising knowledge that is vital to the growth of both Mainstreet's and the REIT's business."

Mr. White most recently served as a Senior Vice President in the Private Funds Group of Brookfield Asset Management. Prior to that, he held senior roles in Citigroup's Investment Bank covering both health care companies and alternative asset managers at various points in his career. Mr. White also worked for PricewaterhouseCoopers. Mr. White holds a BA and MBA from Rutgers University as well as a JD from University of Pennsylvania Law School.

"I am excited to be joining Mainstreet at this critical juncture for the business. The team has built a compelling business model and is well positioned as a leader and innovator in a rapidly growing sector of our economy," said Mr. White.

"We have a strong company that is poised to become an industry leader. Expanding our relationships with capital providers is vitally important to our continued success. Scott will be instrumental in helping us realize both Mainstreet's and the REIT's full potential," said Adlai Chester, CFO.

About HealthLease Properties Real Estate Investment Trust

About Mainstreet Property Group

Indiana-based Mainstreet Property Group, the largest skilled nursing developer in the United States, is known for acquiring and developing desirable, concierge-based health care properties with a hotel-like atmosphere for a variety of short-term and long-term needs. The company's innovative and industry-leading Next Generation™ design meets the demands of the Baby Boomer, including communities with multiple social destinations, restaurant-style dining, spacious private rooms and baths, and therapy/wellness. Mainstreet was named to the Inc. 500/5000 list of fastest-growing companies in 2010, 2011, and 2012. For additional information, visit www.mainstreetcap.net.

Forward-Looking 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 AIF 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.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

HealthLease Properties Real Estate Investment Trust Announces April 2013 Distribution

Fri, 19 Apr 2013 08:30:00 -0400

TORONTO, April 19, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (the "REIT") (TSX: HLP.UN) announced today a cash distribution in the amount of $0.07083 per unit for the month of April 2013. The distribution will be payable on May 15, 2013 to unitholders of record as at April 30, 2013.

About HealthLease Properties Real Estate Investment Trust

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242

HealthLease Properties Real Estate Investment Trust Announces Completion of Acquisition of 13 Senior Housing and Care Properties

Tue, 16 Apr 2013 07:00:00 -0400

TORONTO, April 16, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") today announced that it has completed the acquisition of 13 senior housing and care properties, previously announced on March 21, 2013. The properties-ten in North Carolina, two in Pennsylvania, and one in Virginia-were acquired at an aggregate purchase price of US$141.7 million. The properties have an average age of approximately four years from the year built or substantially renovated. The acquisition was funded with a combination of debt financing and proceeds from the recently completed offering of trust units.

"We are very pleased to complete this acquisition, which significantly increases our size, enhances our health care product mix and improves our geographic diversification," said Zeke Turner, Chairman and CEO of HealthLease. "The transaction is immediately accretive and will reduce our payout ratio. Consistent with our growth strategy, the properties expand our portfolio of next-generation facilities that are leased under triple-net structures to leading operators. We continue to see acquisition opportunities in the both the Canadian and U.S. markets, and believe that these opportunities, along with our development pipeline, provide us with significant growth potential over the short and long term."

The acquired properties represent a total of 978 beds, consisting of 355 beds in four skilled nursing facilities ("SNFs"), 563 beds in eight combination assisted living/Alzheimers facilities ("AL/ALZs"), and 60 beds in one standalone Alzheimer facility. Six properties are leased to Meridian Senior Living, which operates 91 facilities across 12 states. The remaining seven properties are leased to Saber Healthcare Group, LLC, which operates 56 facilities across six states. In total, the acquired properties have a weighted average lease term of 10.5 years.

With the completion of the acquisition, HealthLease's portfolio now consists of 28 facilities with a total of 2,909 beds across five states and two provinces, and leased to a total of 11 tenant-operators.


HealthLease Portfolio
Location	Number of Facilities	SNF/LTC Beds	AL/ALZ/ILF Beds	Total Beds
Alberta	5	515	271	786
British Columbia	1	57	159	516
Illinois	1	75	-	75
Indiana	8	679	175	854
North Carolina	10	80	623	703
Pennsylvania	2	185	-	185
Virginia	1	90	-	90
Total	28	1,681	1,228	2,909
* LTC - Long-term Care; ILF - Independent Living Facility

About HealthLease Properties Real Estate Investment Trust

Forward-Looking 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 AIF 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.

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
(317) 420-0205 ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 ext. 242