Amica Mature Lifestyles Inc. : Amica Mature Lifestyles Announces Second Quarter Fiscal 2014 Results and Quarterly Dividend

January 13, 2014 at 08:33 am EST

MarketScreener.com By

Amica Mature Lifestyles Inc. ("Amica" or the "Company") (TSX Symbol: ACC) is pleased to announce the Company's operating and financial results for the second quarter.

SECOND QUARTER HIGHLIGHTS

Revenues increased 12% to $34.2 million compared to Q2/13;
Overall occupancy in mature same communities⁽¹⁾ at November 30, 2013 was 94.2%, compared to 94.4% at May 31, 2013 and 91.3% at November 30, 2012;
Overall occupancy in the Company's communities in lease-up at November 30, 2013 was 76.7% (excluding Amica at Aspen Woods which opened August 9, 2013) compared to 70.5% at May 31, 2013 and 65.2% at November 30, 2012;
Mature same communities MARPAS increased by 5.4% for Q2/14 compared to Q2/13. The Company has experienced monthly year-over-year MARPAS increases in its mature same communities for 47 consecutive months;
Diluted FFO per share increased $0.02 per share to $0.13 per share compared to Q2/13;
Diluted AFFO per share increased $0.01 per share to $0.13 per share compared to Q2/13; and
Amica's Board of Directors (the "Board") approved fiscal 2014 third quarter dividend of $0.105 per common share.

"The second quarter of Fiscal 2014 continued the strong start we saw in the first quarter with revenues up 12% for the quarter over the prior year, interest expense on a same community basis down 10% and a $0.02 per share increase in Funds From Operations to $0.13," said Samir Manji, Amica's Chairman, President & CEO. "Additionally, during the quarter we completed the acquisition of the 50% non-controlling interest in Amica at Erin Mills bringing our ownership to 100% and we made good progress on the Amica at Arbutus Manor listing and redevelopment initiative and are currently negotiating an agreement with one party from the short-listed candidates. During the quarter, we also initiated the restructuring of one of our lease-up communities, Amica at Whitby. The restructuring was completed subsequent to quarter end and resulted in Amica increasing its ownership to 51.25% and forgiving approximately $2.2 million of the non-controlling interest's share of the debt. This forgiveness was a product of the lengthy lease-up time and other factors that resulted in the accumulation of a large amount of secondary debt on this community. It is anticipated that similar restructurings may be required for two other communities that have had lengthy lease-up periods."

"We are pleased with the solid occupancy performance of our mature same communities in Q2/14, finishing the quarter off at 94.2%, a solid 2.9% increase over Q2/13," said Colin Halliwell, Amica's Chief Operating Officer. "The mature Ontario communities continued to make progress with a 0.6% improvement over Q1/14 and a 3.7% improvement over Q2/13, ending Q2/14 at 93.2%. Both Ontario and British Columbia remain competitive markets with many operators offering considerable move-in incentives. We believe our brand reputation for quality, service and value continues to differentiate Amica and negates the need for deep discounting. Our communities in lease-up also made good progress in Q2/14 with a 4.7% increase over Q1/14 (excluding Amica at Aspen Woods). The occupancy performance during the quarter has translated into yet another strong quarter of MARPAS results, and in conjunction with a companywide focus on margin improvement, a solid improvement in retirement community results for the quarter."

FINANCIAL HIGHLIGHTS

The following table provides operational highlights for the three months ended November 30, 2013 ("Q2/14") compared to the three months ended November 30, 2012 ("Q2/13") and the six months ended November 30, 2013 ("YTD Fiscal 2014") compared to the six months ended November 30, 2012 ("YTD Fiscal 2013"):


(Expressed in thousands of Canadian dollars, except per share and share amounts)

	Q2/14	Q2/13 Restated⁽¹⁾	Change	YTD Fiscal 2014	YTD Fiscal 2013 Restated⁽¹⁾	Change
	$	$	$	$	$	$

Revenues	34,235	30,609	3,626	67,647	59,862	7,785
Net loss and comprehensive loss attributable to:
Amica shareholders	(1,510)	(2,208)	698	(1,840)	(3,830)	1,990
Non-controlling interests	(2,808)	(2,431)	(377)	(4,959)	(4,994)	35
	(4,318)	(4,639)	321	(6,799)	(8,824)	2,025
Basic and diluted loss per share attributable to:
Amica shareholders:	(0.05)	(0.07)	0.02	(0.06)	(0.13)	0.07
EBITDA⁽²⁾	9,130	7,921	1,209	17,490	15,672	1,818
FFO⁽²⁾	3,887	3,336	551	7,740	6,310	1,430
Diluted per share	0.13	0.11	0.02	0.25	0.20	0.05
AFFO⁽²⁾	4,079	3,611	468	7,882	6,627	1,255
Diluted per share	0.13	0.12	0.01	0.25	0.21	0.04
Weighted average number of shares (000's):
Basic	30,763	30,585		30,760	30,523
Diluted	30,978	30,915		30,973	30,868

				(1)		Figures restated on adoption of IFRS 10. The Company adopted IFRS 10 effective June 1, 2013 with retroactive application to June 1, 2012. As a result of IFRS 10, the Company has changed its accounting policy for determining whether it has control over and consequently whether it consolidates its investees. Further details regarding this change in accounting policy and the impact thereof are contained in Note 3 to the Company's condensed consolidated interim financial statements for the three and six months ended November 30, 2013 which is available on SEDAR at www.sedar.com.
				(2)		This is a Non-IFRS Financial Measure used by the Company in evaluating its operating and financial performance. Please refer to the cautionary statements under the heading "NON-IFRS FINANCIAL MEASURES" in this news release. The definition of AFFO was changed during the first quarter Fiscal 2014. See "DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES" section of the management's discussion and analysis for the three and six months ended November 30, 2013 (the "MD&A") which is available on SEDAR at www.sedar.com for additional information on Non-IFRS Financial Measures including reconciliations thereof to net income/loss and comprehensive income/loss and the impact of the change in the definition of AFFO.

Consolidated revenues

Q2/14 revenues increased by 12% to $34.2 million compared to $30.6 million in Q2/13. YTD Fiscal 2014 revenues increased by 13% to $67.6 million compared to $59.9 million in YTD Fiscal 2013.

Retirement communities revenues and expenses

Q2/14 retirement communities revenue increased 13% to $34.1 million (Q2/13: $30.3 million), compared with a 10% increase in retirement communities expenses to $22.5 million (Q2/13: $20.5 million). YTD Fiscal 2014 retirement community revenues increased by 14% to $67.4 million (YTD Fiscal 2013: $59.2 million), compared with a 13% increase in retirement community expenses to $45.3 million (YTD Fiscal 2013: $40.1 million).

The following table summarizes the Company's consolidated retirement communities margin (retirement communities revenues less retirement communities expenses before finance costs and depreciation expense) on a mature community and lease-up community basis for Q2/14 compared to Q2/13:


	Q2/14	Q2/13	Change	Q2/14	Q2/13	Change
(Expressed in thousands of Canadian dollars)	$	$	$	%	%	%
Mature communities	9,918	8,880	1,038	36.2	34.1	2.1
Lease-up communities	1,672	893	779	24.9	21.0	3.9
Consolidated communities	11,590	9,773	1,817	34.0	32.3	1.7

Consolidated retirement communities margin increased $1.8 million, due to $1.0 million increase in mature communities margin on a same community basis and $0.8 million increase in lease-up communities margin resulting in a 1.7% increase in consolidated retirement communities margin percentage to 34.0% in Q2/14 from 32.3% in Q2/13. A portion of the margin increase relates to a reduction in certain corporate charges to communities now included in general and administrative expenses.


	YTD 2014	YTD 2013	Change	YTD 2014	YTD 2013	Change
(Expressed in thousands of Canadian dollars)	$	$	$	%	%	%
Mature communities	19,439	17,370	2,069	35.6	34.2	1.4
Lease-up communities	2,598	1,669	929	20.3	19.9	0.4
Consolidated communities	22,037	19,039	2,998	32.7	32.2	0.5

Consolidated retirement communities margin increased $3.0 million, due to $2.1 million increase in mature communities margin and $0.9 million increase in lease-up communities margin resulting in a 0.5% increase in consolidated retirement communities margin percentage to 32.7% in YTD Fiscal 2014 from 32.2% in YTD Fiscal 2013. A portion of the margin increase relates to a reduction in certain corporate charges to communities now included in general and administrative expenses.

Finance costs

Finance costs are summarized as follows:


	Q2/14	Q2/13	Change	YTD Fiscal 2014	YTD Fiscal 2013	Change
(Expressed in thousands of Canadian dollars)	$	$	$	$	$	$

Interest expense and standby fees	4,986	4,890	96	9,610	9,798	(188)
Amortization and accretion, net	432	277	155	815	560	255
Change in fair value of interest rate swaps	779	2	777	211	(187)	398
	6,197	5,169	1,028	10,636	10,171	465

Interest expense and standby fees increased by $0.1 million to $5.0 million in Q2/14 (Q2/13 - $4.9 million) principally due to $0.6 million of interest expense for two communities consolidated in Q2/14 but not in Q2/13 (Amica at Whitby consolidated starting in the three months ended February 28, 2013 ("Q3/13") and Amica at Aspen Woods consolidated starting in Q1/14), offset by interest rate reductions achieved on mortgage renewals and refinancings. Excluding Amica at Whitby and Amica at Aspen Woods, interest expense and standby fees decreased by $0.5 million or 10%.

Interest expense and standby fees decreased by $0.2 million to $9.6 million in YTD Fiscal 2014 (YTD Fiscal 2013 - $9.8 million) principally due to interest rate reductions achieved on mortgage renewals and refinancings, offset by the interest expense of Amica at Whitby and Amica at Aspen Woods as noted above. Excluding Amica at Whitby and Amica at Aspen Woods, interest expense and standby fees decreased by $1.1 million or 11%.

NET LOSS AND COMPREHENSIVE LOSS

For Q2/14, the net loss was $4.3 million compared to $4.6 million in Q2/13. The primary reasons for the decreased loss are the increased retirement communities margin, and lower depreciation expense, partially offset by higher finance costs, general & administrative expenses and a lower tax recovery. For YTD Fiscal 2014, the net loss was $6.8 million compared to $8.8 million in YTD Fiscal 2013. The primary reasons for the decreased loss are the increased retirement communities margin, lower depreciation expense, partially offset by higher finance costs, general & administrative expenses, decrease in other income, no gain on acquisition and a lower tax recovery.

The Q2/14 net loss attributable to Amica shareholders was $1.5 million compared to $2.2 million in Q2/13. The YTD Fiscal 2014 net loss attributable to Amica shareholders was $1.8 million compared to $3.8 million in YTD Fiscal 2013.

FUNDS FROM OPERATIONS (FFO)

Q2/14 FFO increased 17% to $3.9 million ($0.13 per share diluted) compared to $3.3 million in Q2/13 ($0.11 per share diluted). YTD Fiscal 2014 FFO increased 23% to $7.7 million ($0.25 per share diluted) compared to $6.3 million in YTD Fiscal 2013 ($0.20 per share diluted).

ADJUSTED FUNDS FROM OPERATIONS (AFFO)

In Q1/14, the Company changed its definition of AFFO - See "DEFINITION AND RECONCILIATION OF NON-IFRS FINANCIAL MEASURES" section of the MD&A which is available on SEDAR at www.sedar.com. Q2/14 AFFO increased 13% to $4.1 million ($0.13 per share diluted) compared to $3.6 million in Q2/13 ($0.12 per share diluted).

Q2/14 maintenance capital expenditures were $0.7 million (Q2/13 - $0.2 million) inclusive of a $0.3 million maintenance reserve (Q2/13 - $nil). YTD Fiscal 2014 AFFO increased 19% to $7.9 million ($0.25 per share diluted) compared to $6.6 million in YTD Fiscal 2013 ($0.21 per share diluted). YTD Fiscal 2014 maintenance capital expenditures were $1.3 million (YTD Fiscal 2013 - $0.8 million) inclusive of a $0.7 million maintenance reserve (YTD Fiscal 2013 - $0.5 million).

COMMUNITY UPDATE

Mature same community MARPAS increased by 5.4% for Q2/14 compared to Q2/13 and increased 5.6% for YTD Fiscal 2014 compared to YTD Fiscal 2013. The Company has experienced monthly year-over-year MARPAS increases in its mature same communities for 47 consecutive months. The success on the MARPAS front, in addition to improved occupancy, is the result of increasing rents upon turnover and providing additional services that increase ancillary revenue.

The following is a summary of occupancy in the Company's mature same communities:


Mature Same Community Occupancy
	Overall⁽¹⁾	Ontario⁽¹⁾	British Columbia
November 30, 2013	94.2%	93.2%	96.2%
August 31, 2013	94.1%	92.6%	97.0%
May 31, 2013	94.4%	93.6%	95.9%
November 30, 2012	91.3%	89.5%	94.7%
(1) All figures include Amica at Westboro Park, Amica at Thornhill and Amica at London to report on a same community basis.

Amica is pleased with the solid occupancy performance of its mature same communities in Q2/14, finishing the quarter off at 94.2%, a 0.1% improvement over Q1/14 and a 2.9% increase over Q2/13. The mature Ontario communities continued to make progress with a 0.6% improvement over Q1/14 ending Q2/14 at 93.2%. This is a very healthy 3.7% improvement over the 89.5% occupancy at Q2/13. The British Columbia communities slipped slightly with a 0.8% decrease from Q1/14 ending Q2/14 at 96.2%. This is a 1.5% improvement over the 94.7% occupancy at Q2/13. These strong occupancy results were achieved despite the Ontario and British Columbia markets remaining competitive with many operators offering considerable move-in incentives. The Company believes its brand reputation for quality, service and value continues to differentiate Amica and negates the need for deep discounting.

The following is a summary of overall occupancy in the Company's communities in lease-up^(1):


Lease-up Community Occupancy ⁽¹⁾
	With Aspen Woods	Without Aspen Woods
January 5, 2014	68.3%⁽²⁾	77.2%⁽²⁾
November 30, 2013	66.9%	76.7%
August 31, 2013	60.7%	72.0%
May 31, 2013	N/A	70.5%
November 30, 2012	N/A	65.2%

				(1)		At November 30, 2013, there were five communities in lease-up: Amica at Aspen Woods, Amica at Bayview Gardens, Amica at Whitby, Amica at Windsor, and Amica at Quinte Gardens. Amica at Aspen Woods became a lease-up community as of its opening on August 9, 2013.
				(2)		Anticipated to increase to 72.5% (79.5% excluding Amica at Aspen Woods) following an additional 35 (16 excluding Amica at Aspen Woods) net pending move-ins which reflect suites that have been reserved with a deposit made for the reservation, less suites for which notice of termination has been received.

Construction Updates and Expansion Projects

Amica at Oakville, in Ontario, commenced construction (excavation and site servicing) in Q2/13 and is expected to open in early calendar 2015.

The Company continues to advance the design and planning for the Amica at Dundas expansion. Upon obtaining construction financing and a building permit the Company plans to proceed with the Amica at Swan Lake expansion and renovations.

Acquisition of Additional Ownership Interests in Other Co-Tenancies

On September 1, 2013, on September 1, 2013, the Company acquired an additional 50% ownership interest in Amica at Erin Mills for $10.5 million, bringing the Company's ownership position to 100%.

Subsequent to Q2/14, on December 16, 2013, the Company increased its ownership in Amica at Whitby from 24.94% to 51.25%. The aggregate cash consideration for the additional ownership interests totaled $0.8 million and was funded by way of participation in an Amica at Whitby equity financing to fund paying down the construction loans on the property. The Company also funded an additional $0.7 million of the Amica at Whitby equity financing to maintain its previously held 24.94% ownership position.

Listing of Amica at Arbutus Manor

In September 2013, the Company engaged CBRE Limited to act on its behalf and advise on the listing and redevelopment of Amica at Arbutus Manor, located in Vancouver, British Columbia. The Company has undertaken this initiative in an effort to arrange a structured transaction for the prospective sale and redevelopment of Amica at Arbutus Manor, including the Arbutus Manor lands. Amica is currently negotiating an agreement with one party from the short-listed candidates. Amica will provide an update on this initiative as this project progresses.

Debt forgiveness and loan modification

In conjunction with restructuring the debt of a less than 100% owned co-tenancy, the Company forgave $2.2 million of the non-controlling interest's share of the debt and accrued interest.

In addition, the Company reduced the interest rate on the remaining loan due from the co-tenancy. The Company considered the terms of the remaining loan to have been modified substantially and, as such, determined the non-controlling interest's share of the fair value of the amended loan to be $0.8 million less than its carrying value.

As the forgiven amount and the loan modification loss represents a $3.0 million benefit to the non-controlling interests, the Company has recorded a $2.4 million transfer in equity, net of deferred income tax recovery of $0.6 million.

FINANCIAL POSITION

The Company's consolidated cash and cash equivalents balance as at November 30, 2013 was $6.0 million.

The Company has a $20 million demand operating loan facility secured by a 100% Company owned community. As at November 30, 2013, $13.4 million is available to the Company under this loan facility (amount available is net of $5.6 million drawn on the loan facility and $1.0 million in letters of credit secured by the loan facility). On January 10, 2014, the balance owing on the demand loan was $9.0 million.

The following is a summary of the Fiscal 2014 debt maturities re-financed in or subsequent to Q2/14 and those remaining to be refinanced:

Re-financed/Renewed in or subsequent to Q2/14

$10.5 million CMHC loan with a November 1, 2013 maturity date was renewed for five years at 2.77% down from 4.56%;
$15.8 million CMHC loan with a December 1, 2013 maturity date was renewed for five years at 2.79% down from 4.56%; and
$9.3 million CMHC loan with a December 1, 2013 maturity date was renewed for ten years at 3.72% down from 4.56%.

Remaining Maturities in Fiscal 2014

$8.5 million in two CMHC mortgages which the Company plans to renew (interest rates on these mortgages range from 3.22% to 4.7%); and
$107.4 million in non-CMHC mortgages (including $91.6 million in mortgages payable due on demand) which the Company plans to renew or replace. Interest rates on these mortgages range from 4.25% to 6.0%. Subsequent to November 30, 2013, a consolidated co-tenancy repaid $3.0 million on two loans totaling $26.5 million as part of the terms on a proposed two year renewal of the financing on its property. On another pending renewal, the Company anticipates it will need to make a $2.2 million payment on a $32.8 million loan to complete the renewal.

THIRD QUARTER DIVIDEND

The Board has approved a quarterly dividend of $0.105 per common share on all issued and outstanding common shares which will be payable on March 14, 2014, to shareholders of the Company of record on February 28, 2014.

RESULTS CONFERENCE CALL

Amica has scheduled a conference call to discuss the results on Monday, January 13, 2014 at 10:00 am Pacific Time (1:00 pm Eastern Time). To access the call, dial (416) 644-3414 (Local/International access) or 1-800-814-4859 (North American toll-free access). A slide presentation to accompany management's comments during the conference call will be available. To view the slides, access Amica's website at www.amica.ca and click on "Investor Relations" - "Presentations & Webcasts". Please log on at least 15 minutes before the call commences.

The Company's unaudited condensed consolidated interim financial statements for the three and six months ended November 30, 2013 and the management's discussion and analysis are available on SEDAR at www.sedar.com and available on the Company's website at www.amica.ca.



CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION HIGHLIGHTS (Expressed in thousands of Canadian dollars) (Unaudited)

	November 30, 2013	May 31, 2013 Restated ⁽¹⁾
	$	$
ASSETS
Current
Cash and cash equivalents	6,003	8,794
Other	5,527	4,915
	11,530	13,709
Non-current
Deposits and other assets	1,518	2,492
Loans receivable from associates	2,890	4,144
Investments in associates	5,406	8,636
Property and equipment	670,070	639,008
	679,884	654,280
Total assets	691,414	667,989

LIABILITIES
Current
Mortgages payable	265,146	292,044
Other	28,267	22,075
	293,413	314,119
Non-current
Mortgages payable	236,177	183,760
Deferred income taxes	7,957	9,620
	244,134	193,380
Total liabilities	537,547	507,499

EQUITY
Equity attributable to owners of the company	144,496	153,995
Non-controlling interests	9,371	6,495
Total equity	153,867	160,490
Total liabilities and equity	691,414	667,989

(1)

See note 3 to the Company's condensed consolidated interim financial statements for the period ended November 30, 2013 (the "Q2 2014 Financial Statements") which is available on SEDAR at www.sedar.com.



CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS (Expressed in thousands of Canadian dollars) (Unaudited)
	3 Months Ended		6 Months Ended
	November 30,		November 30,
	2013	2012⁽¹⁾	2013	2012⁽¹⁾
	$	$	$	$

Revenues:
Retirement communities	34,113	30,280	67,353	59,155
Other income	122	329	294	707
	34,235	30,609	67,647	59,862
Expenses and other items:
Retirement communities	22,523	20,507	45,316	40,116
General and administrative	2,557	2,184	4,805	4,469
Depreciation	7,626	8,045	15,016	15,753
Finance costs	6,197	5,169	10,636	10,171
Share of losses from associates	25	11	36	11
Gain on acquisition	-	(14)	-	(406)
	38,928	35,902	75,809	70,114

Loss before income tax	(4,693)	(5,293)	(8,162)	(10,252)

Income tax recovery:
Deferred	375	654	1,363	1,428
	375	654	1,363	1,428

Net loss and comprehensive loss	(4,318)	(4,639)	(6,799)	(8,824)

Net loss and comprehensive loss attributable to:
Owners of the Company	(1,510)	(2,208)	(1,840)	(3,830)
Non-controlling interests	(2,808)	(2,431)	(4,959)	(4,994)
	(4,318)	(4,639)	(6,799)	(8,824)

Weighted average shares (000's) - basic and diluted	30,763	30,585	30,760	30,523
Basic and diluted loss per share	($0.05)	($0.07)	($0.06)	($0.13)

			(1)			See note 3 to the Q2 2014 Financial Statements which is available on SEDAR at www.sedar.com.

Forward-Looking Information

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 future occupancy rates; anticipated future revenues, financial results and operating performance; interest rate savings on future re-financings; restructuring debt of two communities with lengthy lease-up periods; future MARPAS growth; opening Amica at Oakville in early 2015; commencing construction on the Amica at Swan Lake expansion and renovations once the building permit and construction financing are in place; advancing the design and planning for the Amica at Dundas expansion; the prospective sale and redevelopment of Amica at Arbutus Manor; dividends 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 to differ materially from future results 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, including the granting of zoning and other approvals and permits; uncertainties associated with potential legal proceedings and negotiations, including negotiations with respect to construction financing and debt refinancing; 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 dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; 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; risks associated with new developments, including cost overruns and start-up losses; the ability of seniors to pay for Amica's services; regulatory changes; risks inherent in the ownership of real property; operational risks inherent in owning and operating residences; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; the availability of capital to finance growth or refinance debt as it comes due; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences, as well as those factors discussed in the "Risks and Uncertainties" section of the Company's Management's Discussion and Analysis for the three and six months ended November 30, 2013, and in the "Risk Factors" section of the Company's Annual Information Form dated August 9, 2013, filed with the Canadian Securities Administrators and available at www.sedar.com. 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.

___________________________________

NON-IFRS FINANCIAL MEASURES

This news release makes reference to the following terms: "Earnings Before Interest, Taxes, Depreciation and Amortization" (or "EBITDA"), "Funds From Operations" (or "FFO"), "Adjusted Funds From Operations" (or "AFFO"), and "Monthly Average Revenue Per Available Suite" (or "MARPAS") (collectively the "Non-IFRS Financial Measures"). These Non-IFRS Financial Measures are not recognized under IFRS and do not have standardized meanings prescribed by IFRS. The Company considers these Non-IFRS Financial Measures relevant in evaluating the operating and financial performance of the Company, along with IFRS measures such as net earnings (loss) and comprehensive income (loss), basic and diluted earnings (loss) per share and cash provided by (used in) operations. Definitions and detailed descriptions of these terms are contained in the MD&A.


			(1)			Mature Same Communities: Effective June 1, 2011, mature same communities was defined by the Company to be mature communities that are classified as income-producing properties for thirteen months after the earlier of reaching 90% occupancy or 36 months of operation, with the exception of Amica at Quinte Gardens. Amica at Quinte Gardens will be classified as a mature community thirteen months after the earlier of reaching 90% occupancy or two years post-acquisition by the Company.

ABOUT AMICA MATURE LIFESTYLES INC.

Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury seniors residences. There are 24 Amica Wellness & Vitality TM Residences in operation in Ontario, British Columbia and Alberta, Canada. Additionally, Amica has one residence under construction in Oakville, Ontario, one residence in pre-development in Calgary, Alberta and two existing operational residences in Ontario with expansions that are in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit www.amica.ca.

For further information, please contact:

Art Ayres

Chief Financial Officer

Amica Mature Lifestyles Inc.

(604) 630-3473

a.ayres@amica.ca

Alyssa Barry

Manager, Investor Communications

Amica Mature Lifestyles Inc.

(604) 639-2171

a.barry@amica.ca

-30-

Amica Mature Lifestyles Inc.
Art Ayres, 604-630-3473
Chief Financial Officer
a.ayres@amica.ca
or
Alyssa Barry, 604-639-2171
Manager, Investor Communications
a.barry@amica.ca