Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc.

March 01, 2012 08:00 ET

Amica Mature Lifestyles Increases Ownership in Amica at Dundas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2012) - Amica Mature Lifestyles Inc. ("Amica" or the "Company") (TSX:ACC) is pleased to announce the acquisition of an additional 33% ownership interest in Amica at Dundas, located in Dundas, Ontario.

The acquisition of the additional 33% ownership interest brings the Company's ownership position to 50% in Amica at Dundas. The effective date for the acquisition is March 1, 2012. The other 50% ownership interest in Amica at Dundas is held by Amica's developer partner in this property.

The purchase price paid for the acquisition of the 33% ownership interest was approximately $11 million, including: cash consideration of $2.7 million, and the assumption of the vendors' share of a mortgage on the property and other net liabilities in the amount of approximately $8.3 million.

"We are very pleased to increase our ownership in Amica at Dundas," said Samir Manji, Amica's Chairman, President and Chief Executive Officer. "The community has performed extremely well from an operations perspective and we believe it will be a positive, long-term contributor to our overall financial performance. We remain focused on the execution of our growth strategy which includes further increasing our ownership in existing Amica communities, evaluating external acquisitions and developing new communities."

Amica at Dundas was completed in March 2008, has a total of 134 suites and is currently at 100% occupancy. The property includes adjacent land for the future development of approximately 74 suites. Based on the projected fiscal 2013 net operating income, the Company estimates that the capitalization rate paid on the existing rental suites (after adjustment for the price paid for the adjacent land) is approximately 7.4%. The community has a first mortgage in place (non CMHC-insured) with an interest rate swap in place at an interest rate of 4.55% to November 2015.

Selected historical pre-tax financial results for Amica at Dundas for the 8 months ended January 31, 2012 and the years ended May 31, 2011 and May 31, 2010 are as follows:

Amica at Dundas
Expressed in thousands of Canadian dollars
8 months
Year ended
Year ended
Revenue 4,117 5,725 5,145
Net loss (353 ) (672 ) (793 )
Net operating income 1,333 1,751 1,407
Cash flow from operations 355 300 254
Note: Historical results are not an indicator of future results.


Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury housing and services for mature lifestyles. There are 25 Amica Wellness & Vitality™ Residences, including a recent acquisition that the Company is transitioning to rebrand, one under development and one in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit


This news release contains "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements").

These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as otherwise required by law. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to, statements regarding the purchase price of the acquisition; the estimated capitalization rate paid based on projected fiscal 2013 net operating income; future occupancy and financial performance of Amica at Dundas; future development of approximately 74 suites on adjacent land; and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic and market conditions, actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include, among others, risks related to: capital markets; cost overruns, delays and start-up losses for new real estate developments; the availability of capital to finance growth or refinance debt as it comes due; the ability of seniors to pay for Amica's services; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences; risks inherent in the ownership of real property; operational risks inherent in owning and operating residences; dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; regulatory changes; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; foreign exchange rate volatility; as well as those factors discussed in Amica's Annual Information Form dated August 12, 2011, filed with the Canadian Securities Administrators and available at, in the "Risk Factors" section of the Company's Short Form Prospectus dated December 7, 2011 and in the "Risks and Uncertainties" section of the Company's management's discussion and analysis for three and six months ended November 30, 2011, available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such forward looking statements, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements.

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