Exhibit 99.1
NEWS RELEASE
HEALTH CARE PROPERTY INVESTORS, INC. REPORTS RESULTS FOR
THE QUARTER AND YEAR ENDED DECEMBER 31, 2004
LONG BEACH, CA, February 14, 2005 — Health Care Property Investors, Inc. (NYSE:HCP), a health care real estate investment trust (“REIT”), today announced operating results for the quarter and year ended December 31, 2004. Net income applicable to common shares for the quarter ended December 31, 2004 totaled $40.8 million, or $0.30 per diluted share of common stock. This compares with net income applicable to common shares of $41.4 million, or $0.32 per diluted share of common stock for the quarter ended December 31, 2003. Net income applicable to common shares for the full year 2004 was $147.9 million, or $1.11 per diluted share of common stock, compared to $121.8 million, or $0.97 per diluted share of common stock, in the year ago period.
The Company’s results for the quarter and year ended December 31, 2004 includes income of $5.7 million resulting from the Company’s change in estimate related to the collectability of straight-line rental income from affiliates of American Retirement Corporation (“ARC”). Net income for the quarter and year ended December 31, 2003 includes a $3.4 million accrual reversal related to the 1999 acquisition of American Health Properties and the full year 2003 includes preferred stock redemption charges of $18.6 million.
Funds From Operations (“FFO”) was $60.6 million, or $0.45 per diluted share of common stock, for the quarter ended December 31, 2004, compared to FFO of $59.9 million, or $0.46 per diluted share of common stock, for the quarter ended December 31, 2003. Prior to asset impairment charges, FFO was $0.45 and $0.47 per diluted share for the quarters ended December 31, 2004 and 2003, respectively. FFO for the year ended December 31, 2004 was $221.5 million, or $1.66 per diluted share of common stock, compared to $192.2 million, or $1.54 per diluted share of common stock in 2003. Prior to asset impairment charges of $17.1 million and $14.0 million, FFO per diluted share of common stock for the years 2004 and 2003 was $1.79 and $1.64, respectively. FFO is a supplemental non-GAAP financial measure used to evaluate the operating performance of real estate investment trusts.
HIGHLIGHTS and RECENT DEVELOPMENTS
| | • | | During the fourth quarter of 2004, the Company made investments of approximately $117 million, principally the previously announced purchase of three medical office buildings, a 42% condominium interest in a fourth medical office building, and one retail/garage building for $111 million from Swedish Medical Center in Seattle, Washington. |
| | • | | Aggregate investments, including $70 million of medical office development properties placed in service, for the full year 2004 were approximately $538 million, or $438 million net of related mezzanine debt repayments. For the year ended December 31, 2004, the Company’s investments were allocated among the following sectors: 23% assisted living and continuing care retirement communities, 19% skilled nursing facilities, 49% medical office buildings, and 9% life sciences properties. The Company also sold properties valued at approximately $170 million, principally comprised of medical office buildings. |
| | • | | On January 31, 2005, the Company announced that its Board of Directors declared a quarterly common stock cash dividend of $0.42 per share. The common stock dividend will be paid on February 18, 2005 to stockholders of record as of the close of business on February 7, 2005. This dividend equals $1.68 per share on an annualized basis. |
COMPANY INFORMATION
Health Care Property Investors, Inc. has scheduled a conference call and webcast for Tuesday, February 15, 2005 at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) in order to present the Company’s performance and operating results for the quarter and year ended December 31, 2004. The conference call is accessible by dialing 800-706-7745 (U.S.) and 617-614-3472 (International). The participant pass code is 34124655. The webcast is accessible via the Company’s Internet web site atwww.hcpi.com. A webcast replay of the conference call will be available after 2:00 p.m. Pacific Time on February 15, 2005 through March 1, 2005 on the Company’s web site.
Health Care Property Investors, Inc. (NYSE:HCP) is a self-administered real estate investment trust (“REIT”) that invests directly or through joint ventures in health care facilities. As of December 31, 2004, the Company’s portfolio of properties, including investments through joint ventures and mortgage loans, included 527 properties in 43 states and consisted of 29 hospitals, 171 skilled nursing facilities, 119 assisted living and continuing care retirement communities (“CCRCs”), 184 medical office buildings and 24 other health care facilities. For more information on Health Care Property Investors, Inc., visit the Company’s web site atwww.hcpi.com.
###
Contact:
Health Care Property Investors, Inc., Long Beach, California
Talya Nevo-Hacohen
Senior Vice President – Strategic Development and Treasurer
(562) 733-5104
Page 2 of 12
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release and in the supplement, which are not historical facts, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Examples of such forward looking statements include the Company’s beliefs and statements regarding net income and FFO guidance for fiscal year 2005. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include competition for the acquisition and financing of health care facilities, competition for lessees and mortgagors (including new leases and mortgages and the renewal or roll-over of existing leases); continuing operational difficulties in the skilled nursing and assisted living sectors; the Company’s ability to acquire, sell or lease facilities and the timing of acquisitions, sales and leasings; changes in health care laws and regulations and other changes in the health care industry which affect the operations of the Company’s lessees or mortgagors; changes in management; costs of compliance with building regulations; changes in tax laws and regulations; changes in the financial position of the Company’s lessees and mortgagors; changes in rules governing financial reporting, including new accounting pronouncements; and changes in economic conditions, including changes in interest rates and the availability and cost of capital, which affect opportunities for profitable investments. Some of these risks, and other risks, are described from time to time in Health Care Property Investors’ Securities and Exchange Commission filings.
Page 3 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Summary of Information (Unaudited)
In Thousands, Except Per Share Data
| | | | | | | | | | | | |
| | | Quarter Ended December 31,
| | Year Ended December 31,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
Revenues | | $ | 115,449 | | $ | 104,134 | | $ | 428,684 | | $ | 376,304 |
Net income applicable to common shares | | $ | 40,848 | | $ | 41,435 | | $ | 147,910 | | $ | 121,849 |
Basic earnings per share | | $ | 0.31 | | $ | 0.32 | | $ | 1.12 | | $ | 0.98 |
Diluted earnings per share | | $ | 0.30 | | $ | 0.32 | | $ | 1.11 | | $ | 0.97 |
Shares used to calculate diluted earnings per share | | | 134,308 | | | 131,020 | | | 133,362 | | | 126,130 |
| | |
|
| |
|
| |
|
| |
|
|
Funds from operations(1) | | $ | 60,646 | | $ | 59,930 | | $ | 221,514 | | $ | 192,239 |
Diluted funds from operations per share(1) | | $ | 0.45 | | $ | 0.46 | | $ | 1.66 | | $ | 1.54 |
| | |
|
| |
|
| |
|
| |
|
|
Impairments | | $ | 450 | | $ | 2,340 | | $ | 17,067 | | $ | 13,992 |
Per share impact of impairments on diluted funds from operations | | $ | — | | $ | 0.01 | | $ | 0.13 | | $ | 0.10 |
| (1) | The Company believes that Funds From Operations (FFO) and Diluted Funds From Operations per share are important supplemental measures of operating performance for a real estate investment trust. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative. The term FFO was designed by the real estate investment trust industry to address this issue. |
The Company defines FFO as net income applicable to common shares (computed in accordance with U.S. generally accepted accounting principles), excluding gains (or losses) from real estate dispositions, plus real estate depreciation and amortization, and after adjustments for joint ventures. Adjustments for joint ventures are calculated to reflect FFO on the same basis. FFO does not represent cash generated from operating activities in accordance with U.S. generally accepted accounting principles, is not necessarily indicative of cash available to fund cash needs, and should not be considered an alternative to net income. A reconciliation of net income applicable to common shares to FFO is provided herein.
Page 4 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Consolidated Statements of Income (Unaudited)
In Thousands, Except Per Share Data
| | | | | | | | | | | | | | | | |
| | | Quarter Ended December 31,
| | | Year Ended December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Revenues | | | | | | | | | | | | | | | | |
Rental income | | $ | 108,646 | | | $ | 87,117 | | | $ | 388,631 | | | $ | 324,796 | |
Equity in income from unconsolidated joint ventures | | | 530 | | | | 2,435 | | | | 2,157 | | | | 2,889 | |
Interest and other income | | | 6,273 | | | | 14,582 | | | | 37,896 | | | | 48,619 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 115,449 | | | | 104,134 | | | | 428,684 | | | | 376,304 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Costs and expenses | | | | | | | | | | | | | | | | |
Interest | | | 23,481 | | | | 22,776 | | | | 89,136 | | | | 88,297 | |
Real estate depreciation and amortization | | | 23,497 | | | | 19,450 | | | | 87,026 | | | | 73,345 | |
Operating | | | 13,905 | | | | 10,339 | | | | 43,255 | | | | 32,513 | |
General and administrative | | | 10,525 | | | | 8,267 | | | | 36,031 | | | | 24,366 | |
Impairments | | | — | | | | 2,090 | | | | 3,186 | | | | 2,090 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 71,408 | | | | 62,922 | | | | 258,634 | | | | 220,611 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Income from operations | | | 44,041 | | | | 41,212 | | | | 170,050 | | | | 155,693 | |
Minority interests | | | (3,105 | ) | | | (3,454 | ) | | | (12,204 | ) | | | (9,751 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Income from continuing operations | | | 40,936 | | | | 37,758 | | | | 157,846 | | | | 145,942 | |
| | | | |
Discontinued operations | | | | | | | | | | | | | | | | |
Operating income from discontinued operations | | | 668 | | | | 2,857 | | | | 3,990 | | | | 12,409 | |
Gain on real estate dispositions, net of impairments | | | 4,527 | | | | 3,783 | | | | 7,204 | | | | 234 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 5,195 | | | | 6,640 | | | | 11,194 | | | | 12,643 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net income | | | 46,131 | | | | 44,398 | | | | 169,040 | | | | 158,585 | |
Dividends to preferred stockholders | | | (5,283 | ) | | | (2,963 | ) | | | (21,130 | ) | | | (18,183 | ) |
Preferred stock redemption charges | | | — | | | | — | | | | — | | | | (18,553 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net income applicable to common shares | | $ | 40,848 | | | $ | 41,435 | | | $ | 147,910 | | | $ | 121,849 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Basic earnings per share | | | | | | | | | | | | | | | | |
Income from continuing operations applicable to common shares | | $ | 0.27 | | | $ | 0.27 | | | $ | 1.04 | | | $ | 0.87 | |
Discontinued operations | | | 0.04 | | | | 0.05 | | | | 0.08 | | | | 0.11 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net Income applicable to common shares | | $ | 0.31 | | | $ | 0.32 | | | $ | 1.12 | | | $ | 0.98 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Diluted earnings per share | | | | | | | | | | | | | | | | |
Income from continuing operations applicable to common shares | | $ | 0.27 | | | $ | 0.27 | | | $ | 1.03 | | | $ | 0.87 | |
Discontinued operations | | | 0.03 | | | | 0.05 | | | | 0.08 | | | | 0.10 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net Income applicable to common shares | | $ | 0.30 | | | $ | 0.32 | | | $ | 1.11 | | | $ | 0.97 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Shares used to calculate earnings per share | | | | | | | | | | | | | | | | |
Basic | | | 132,840 | | | | 129,224 | | | | 131,854 | | | | 124,942 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Diluted | | | 134,308 | | | | 131,020 | | | | 133,362 | | | | 126,130 | |
| | |
|
|
| |
|
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|
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Page 5 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Funds From Operations Information (Unaudited)
In Thousands, Except Per Share Data
| | | | | | | | | | | | | | | | |
| | | Quarter Ended December 31,
| | | Year Ended December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Net income applicable to common shares | | $ | 40,848 | | | $ | 41,435 | | | $ | 147,910 | | | $ | 121,849 | |
Real estate depreciation and amortization: | | | | | | | | | | | | | | | | |
Continuing operations | | | 23,497 | | | | 19,450 | | | | 87,026 | | | | 73,345 | |
Discontinued operations | | | 195 | | | | 1,491 | | | | 2,287 | | | | 6,778 | |
Gain on real estate dispositions | | | (4,977 | ) | | | (4,033 | ) | | | (21,085 | ) | | | (12,136 | ) |
Joint venture FFO adjustments | | | 1,083 | | | | 1,587 | | | | 5,376 | | | | 2,403 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Funds from operations(1) | | $ | 60,646 | | | $ | 59,930 | | | $ | 221,514 | | | $ | 192,239 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Dividends on convertible units | | $ | 2,148 | | | $ | 2,194 | | | $ | 4,342 | | | $ | 3,468 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Diluted funds from operations | | $ | 62,794 | | | $ | 62,124 | | | $ | 225,856 | | | $ | 195,707 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Diluted funds from operations per share(1) | | $ | 0.45 | | | $ | 0.46 | | | $ | 1.66 | | | $ | 1.54 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Shares used to calculate diluted FFO | | | 139,361 | | | | 136,438 | | | | 135,940 | | | | 127,490 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Impairments | | $ | 450 | | | $ | 2,340 | | | $ | 17,067 | | | $ | 13,992 | |
| | | | |
Per share impact of impairments on diluted funds from operations | | $ | — | | | $ | 0.01 | | | $ | 0.13 | | | $ | 0.10 | |
| (1) | The Company believes that Funds From Operations (FFO) and Diluted Funds From Operations per share are important supplemental measures of operating performance for a real estate investment trust. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative. The term FFO was designed by the real estate investment trust industry to address this issue. |
The Company defines FFO as Net Income applicable to common shares (computed in accordance with U.S. generally accepted accounting principles), excluding gains (or losses) from real estate dispositions, plus real estate depreciation and amortization, and after adjustments for joint ventures. Adjustments for joint ventures are calculated to reflect FFO on the same basis. FFO does not represent cash generated from operating activities in accordance with U.S. generally accepted accounting principles, is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income.
Page 6 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Consolidated Balance Sheet (Unaudited)
In Thousands
| | | | | | | | |
| | | December 31,
2004
| | | December 31,
2003
| |
Assets | | | | | | | | |
Real estate investments: | | | | | | | | |
Buildings and improvements | | $ | 3,025,707 | | | $ | 2,682,206 | |
Accumulated depreciation and amortization | | | (534,573 | ) | | | (486,421 | ) |
| | |
|
|
| |
|
|
|
| | | | 2,491,134 | | | | 2,195,785 | |
Development in progress | | | 25,777 | | | | 64,303 | |
Land | | | 299,461 | | | | 283,352 | |
| | |
|
|
| |
|
|
|
| | | | 2,816,372 | | | | 2,543,440 | |
Loans receivable | | | 139,919 | | | | 184,360 | |
Loans to joint venture partners | | | 6,473 | | | | 83,253 | |
Investments in and advances to unconsolidated joint ventures | | | 60,506 | | | | 172,450 | |
Accounts receivable | | | 14,834 | | | | 16,471 | |
Cash and cash equivalents | | | 20,555 | | | | 17,768 | |
Other assets | | | 43,975 | | | | 18,215 | |
| | |
|
|
| |
|
|
|
Total assets | | $ | 3,102,634 | | | $ | 3,035,957 | |
| | |
|
|
| |
|
|
|
Liabilities and Stockholders’ Equity | | | | | | | | |
Bank notes payable | | $ | 300,100 | | | $ | 198,000 | |
Senior notes payable | | | 1,046,690 | | | | 1,050,476 | |
Mortgage notes payable | | | 139,416 | | | | 158,808 | |
Accounts payable and accrued expenses | | | 59,905 | | | | 55,055 | |
Deferred revenue | | | 15,300 | | | | 16,080 | |
Minority interests in joint ventures | | | 21,515 | | | | 12,931 | |
Minority interests convertible into common stock | | | 100,266 | | | | 103,990 | |
Stockholders’ equity: | | | | | | | | |
Preferred stock | | | 285,173 | | | | 285,173 | |
Common stock | | | 133,660 | | | | 131,040 | |
Additional paid-in capital | | | 1,403,333 | | | | 1,355,299 | |
Cumulative net income | | | 1,348,089 | | | | 1,179,049 | |
Cumulative dividends | | | (1,739,859 | ) | | | (1,497,727 | ) |
Other equity | | | (10,954 | ) | | | (12,217 | ) |
| | |
|
|
| |
|
|
|
Total stockholders’ equity | | | 1,419,442 | | | | 1,440,617 | |
| | |
|
|
| |
|
|
|
Total liabilities and stockholders’ equity | | $ | 3,102,634 | | | $ | 3,035,957 | |
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Page 7 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Supplemental Financial and Operating Information (Unaudited)
In Thousands
OTHER FINANCIAL INFORMATION
The following summarizes certain information for the quarters and years ended December 31, 2004 and 2003:
| | | | | | | | | | | | |
| | | Quarter Ended
December 31,
| | Year Ended December 31,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
Capitalized interest | | $ | 769 | | $ | 746 | | $ | 1,650 | | $ | 1,210 |
Amortization of deferred financing costs | | | 1,562 | | | 659 | | | 3,823 | | | 2,639 |
Income from straight-line rents and interest | | | 7,794 | | | 690 | | | 11,864 | | | 2,120 |
Lease commissions and tenant and capital improvements | | | 468 | | | 1,466 | | | 3,419 | | | 6,470 |
| | |
| | | Quarter Ended
December 31,
| | Year Ended December 31,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
Rental Income: | | | | | | | | | | | | |
| | | | |
Triple net | | $ | 79,710 | | $ | 64,054 | | $ | 280,080 | | $ | 240,156 |
Medical office buildings and other | | | 28,936 | | | 23,063 | | | 108,551 | | | 84,640 |
| | |
|
| |
|
| |
|
| |
|
|
| | | $ | 108,646 | | $ | 87,117 | | $ | 388,631 | | $ | 324,796 |
| | |
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| |
|
| |
|
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Page 8 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Supplemental Financial and Operating Information (Unaudited)
As of December 31, 2004
Dollars and Square Feet In Thousands
PORTFOLIO - OVERVIEW BY INVESTMENT(1)
| | | | | | | | | | | | |
| | | Property
Count
| | Investment(2)
| | Revenues Less Operating
Expenses(12)(13)
|
| | | | Amount
| | %
| | Amount
| | %
|
Owned Portfolio | | 401 | | $ | 3,336,929 | | 94 | | $ | 348,785 | | 95 |
Secured Loan Portfolio | | 26 | | | 140,700 | | 4 | | | 14,288 | | 4 |
Unconsolidated Joint Ventures | | 100 | | | 60,506 | | 2 | | | 2,157 | | 1 |
| | |
| |
|
| |
| |
|
| |
|
Totals | | 527 | | $ | 3,538,135 | | 100 | | $ | 365,230 | | 100 |
| | |
| |
|
| |
| |
|
| |
|
PORTFOLIO - OVERVIEW BY PROPERTY TYPE(1)(4)
| | | | | | | | | | | | |
| | | Property Count
| | Beds/Units(3)(5)(6)
| | Square
Ft. (3)(5)(6)
| | Facility
Occupancy%(5)(6)
| | Number of
States
|
| | | | | | 12/31/04
| | 9/30/04
| |
Hospital | | 29 | | 3,466 Beds | | — | | 56 | | 59 | | 16 |
Skilled Nursing | | 171 | | 20,469 Beds | | — | | 82 | | 80 | | 33 |
ALF & CCRC | | 119 | | 12,950 Units | | — | | 85 | | 86 | | 32 |
MOB | | 184 | | — | | 10,065 | | 91 | | 91 | | 23 |
Other | | 24 | | — | | 1,463 | | 100 | | 100 | | 7 |
| | |
| | | | | | | | | | |
Totals | | 527 | | | | | | | | | | |
| | |
| | | | | | | | | | |
OPERATOR CONCENTRATION – OWNED AND SECURED LOAN PORTFOLIO
| | | | | | | | | | |
| | | Property Count
| | Investment(2)
| | Revenues Less Operating
Expenses(12)(13)
|
| | | | | Amount
| | %
|
Tenet Healthcare | | 8 | | $ | 422,539 | | $ | 52,624 | | 14 |
American Retirement Corp. | | 17 | | | 405,678 | | | 49,347 | | 13 |
Emeritus Corporation | | 37 | | | 248,852 | | | 24,098 | | 6 |
Kindred Healthcare, Inc. | | 20 | | | 79,554 | | | 15,995 | | 4 |
HealthSouth Corporation | | 9 | | | 108,432 | | | 15,242 | | 4 |
Beverly Enterprises, Inc. | | 19 | | | 67,804 | | | 8,902 | | 2 |
Pioneer Valley Hospital | | 2 | | | 68,675 | | | 8,351 | | 2 |
Trilogy Healthcare | | 14 | | | 80,146 | | | 8,342 | | 2 |
Covenant Care | | 12 | | | 57,200 | | | 7,868 | | 2 |
HCA Inc. | | 7 | | | 67,762 | | | 7,460 | | 2 |
Other public companies | | 25 | | | 239,658 | | | 27,419 | | 7 |
Other operators | | 257 | | | 1,631,329 | | | 151,467 | | 42 |
| | |
| |
|
| |
|
| |
|
Totals | | 427 | | $ | 3,477,629 | | $ | 377,115 | | 100 |
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Page 9 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Supplemental Financial and Operating Information (Unaudited)
As of December 31, 2004
Dollars and Square Feet In Thousands
OWNED PROPERTY PORTFOLIO - OVERVIEW BY TYPE(4)(11)
| | | | | | | | | | | | | | | | | | |
| | | Property Count
| | Investment
| | Beds Units (3)(5)(6)
| | Square
Feet(3)
| | Facility Occupancy%(5)(6)
| | Cash
Flow
Coverage
(5)(6)(7)
| | Revenues Less
Operating
Expenses(12)(13)
|
| | | | | | | 12/31/04
| | 9/30/04
| | |
Hospital | | 27 | | $ | 729,957 | | 3,352 | | — | | 56 | | 60 | | 1.7 | | $ | 92,768 |
Skilled Nursing | | 157 | | | 656,454 | | 18,548 | | — | | 82 | | 80 | | 1.3 | | | 81,890 |
ALF & CCRC | | 103 | | | 905,643 | | 11,124 | | — | | 85 | | 86 | | 1.1 | | | 83,454 |
MOB | | 90 | | | 830,905 | | — | | 4,729 | | 94 | | 92 | | — | | | 69,471 |
Other | | 24 | | | 213,970 | | — | | 1,463 | | 100 | | 100 | | — | | | 21,202 |
| | |
| |
|
| | | | | | | | | | | |
|
|
Totals | | 401 | | $ | 3,336,929 | | | | | | | | | | | | $ | 348,785 |
| | |
| |
|
| | | | | | | | | | | |
|
|
OWNED PROPERTY PORTFOLIO - OVERVIEW BY STATE(4)
| | | | | | | | | | | | | | | | | | | | | | |
| | | Hospital
| | Skilled
Nursing
| | ALF & CCRC
| | MOB
| | Other
| | Total
|
State
| | No.
| | Beds
(3)(5)(6)
| | No.
| | Beds
(3)(5)(6)
| | No.
| | Units
(3)(5)(6)
| | No.
| | Square
Ft.(3)(5)(6)
| | No.
| | Square
Ft.(3)(5)(6)
| | No.
|
TX | | 4 | | 326 | | 9 | | 1,079 | | 25 | | 2,539 | | 10 | | 905 | | — | | — | | 48 |
IN | | — | | — | | 32 | | 3,716 | | 3 | | 205 | | 13 | | 393 | | — | | — | | 48 |
CA | | 4 | | 828 | | 12 | | 1,162 | | 8 | | 629 | | 11 | | 607 | | 3 | | 420 | | 38 |
FL | | 2 | | 312 | | 8 | | 930 | | 17 | | 2,473 | | 4 | | 138 | | — | | — | | 31 |
UT | | 1 | | 139 | | 1 | | 120 | | — | | — | | 21 | | 897 | | 8 | | 510 | | 31 |
TN | | — | | — | | 13 | | 1,981 | | 1 | | 60 | | 4 | | 410 | | 2 | | 101 | | 20 |
OH | | — | | — | | 12 | | 1,543 | | 3 | | 375 | | 1 | | 37 | | — | | — | | 16 |
AZ | | 2 | | 94 | | 3 | | 286 | | 4 | | 554 | | 7 | | 301 | | — | | — | | 16 |
WA | | — | | — | | 2 | | 252 | | 3 | | 320 | | 6 | | 103 | | — | | — | | 11 |
VA | | — | | — | | 9 | | 934 | | 1 | | 90 | | 1 | | 87 | | — | | — | | 11 |
NC | | 1 | | 355 | | 7 | | 862 | | 2 | | 130 | | — | | — | | — | | — | | 10 |
Other | | 13 | | 1,298 | | 49 | | 5,683 | | 36 | | 3,749 | | 12 | | 851 | | 11 | | 432 | | 121 |
| | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
Totals | | 27 | | 3,352 | | 157 | | 18,548 | | 103 | | 11,124 | | 90 | | 4,729 | | 24 | | 1,463 | | 401 |
| | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
OWNED PROPERTY PORTFOLIO - SAME-PROPERTY GROWTH(11)
| | | | | |
| | | Number of
Properties
| | Revenues Less
Operating Expenses % Change(9)
| |
Owned properties, excluding MOBs | | 272 | | 0.3 | |
Medical office buildings | | 71 | | (0.2 | ) |
Page 10 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Supplemental Financial and Operating Information (Unaudited)
As of December 31, 2004
Dollars and Square Feet In Thousands
SECURED LOAN PORTFOLIO - OVERVIEW BY PROPERTY TYPE
| | | | | | | | | | | | | | | | |
| | | Property Count
| | Investment(2)
| | Beds/ Units(3)(4)
| | Facility Occupancy %(4)
| | Debt
Service Coverage (4)(7)
| | Revenues (13)
|
| | | | | | 12/31/04
| | 9/30/04
| | |
Hospital | | 2 | | $ | 57,667 | | 114 Beds | | 68 | | 69 | | 3.2 | | $ | 6,038 |
Skilled Nursing | | 14 | | | 54,081 | | 1,921 Beds | | 77 | | 76 | | 1.9 | | | 6,157 |
ALF & CCRC | | 10 | | | 28,952 | | 703 Units | | 82 | | 80 | | 1.2 | | | 2,093 |
| | |
| |
|
| | | | | | | | | |
|
|
Totals | | 26 | | $ | 140,700 | | | | | | | | | | $ | 14,288 |
| | |
| |
|
| | | | | | | | | |
|
|
SECURED LOAN PORTFOLIO - OVERVIEW BY STATE
| | | | | | | | | | | | | | | | | | | | |
| | | Hospital
| | Skilled Nursing
| | ALF & CCRC
| | Total
|
State
| | No.
| | Investment
| | No.
| | Investment
| | No.
| | Investment
| | No.
| | Investment
|
TX | | 1 | | $ | 35,950 | | — | | $ | — | | 2 | | $ | 3,171 | | 3 | | $ | 39,121 |
NC | | — | | | — | | 3 | | | 12,040 | | 1 | | | 3,442 | | 4 | | | 15,482 |
CO | | — | | | — | | 2 | | | 15,712 | | — | | | — | | 2 | | | 15,712 |
WI | | — | | | — | | 1 | | | 6,577 | | 1 | | | 743 | | 2 | | | 7,320 |
TN | | — | | | — | | — | | | — | | 2 | | | 6,816 | | 2 | | | 6,816 |
GA | | — | | | — | | 2 | | | 4,494 | | 2 | | | 1,168 | | 4 | | | 5,662 |
IN | | — | | | — | | 1 | | | 4,217 | | — | | | — | | 1 | | | 4,217 |
Other | | 1 | | | 21,717 | | 5 | | | 11,041 | | 2 | | | 13,612 | | 8 | | | 46,370 |
| | |
| |
|
| |
| |
|
| |
| |
|
| |
| |
|
|
Totals | | 2 | | $ | 57,667 | | 14 | | $ | 54,081 | | 10 | | $ | 28,952 | | 26 | | $ | 140,700 |
| | |
| |
|
| |
| |
|
| |
| |
|
| |
| |
|
|
Page 11 of 12
HEALTH CARE PROPERTY INVESTORS, INC.
Supplemental Financial and Operating Information (Unaudited)
As of December 31, 2004
Dollars and Square Feet In Thousands
UNCONSOLIDATED JOINT VENTURES(4)
| | | | | | | | | | | | | | | | | |
| | | Property Count
| | Property Type
| | Investment(2)
| | Beds/
Units
(3)(5)(6)
| | Square
Feet
(3)(5)(6)
| | Occupancy %(5)(6)
| | Number
of States
|
| | | | | | | | 12/31/04
| | 9/30/04
| |
HCP MOP LLC(8) | | 94 | | MOB | | $ | 53,710 | | — | | 5,336 | | 88 | | 88 | | 14 |
Other | | 6 | | Various | | | 6,796 | | 1,123 | | — | | 78 | | 79 | | 4 |
| | |
| | | |
|
| | | | | | | | | | |
Totals | | 100 | | | | $ | 60,506 | | | | | | | | | | |
| | |
| | | |
|
| | | | | | | | | | |
| (1) | Excludes sold assets, assets held for sale and unsecured loans. |
| (2) | Investment represents the historical cost of the Company’s real estate investments and the net book value of our unconsolidated joint ventures and secured loans receivable. |
| (3) | Hospitals and skilled nursing facilities are measured by bed count. Assisted living facilities and CCRCs are apartment-like facilities and are stated in units (studio, 1 or 2 bedroom apartments). Medical office buildings and other health care facilities are measured in square feet. |
| (4) | Information for the Company’s hospitals, skilled nursing facilities and assisted living facilities and CCRCs was derived solely from information provided by the tenants and mortgagors without verification of its accuracy. |
| (5) | Excludes facilities under development. |
| (6) | Excludes newly completed facilities under start-up, vacant facilities and facilities when data is not available or meaningful. |
| (7) | Results are for a twelve-month historical period and include impact of management fee of 2% for hospitals and 5% for skilled nursing facilities, assisted living and CCRCs. |
| (8) | The Company is the managing member of HCP Medical Office Portfolio, LLC, an unconsolidated joint venture, and has a 33% interest therein. |
| (9) | Same property growth reflects comparable facilities for the twelve months ended December 31, 2004 versus December 31, 2003 and excludes the effect of ARC straight-line rent revision in the fourth quarter of 2004. |
| (10) | Revenue excludes non-property specific revenue, equity income from unconsolidated joint ventures and revenue from assets held for sale. |
| (11) | Excludes sold assets and assets held for sale. |
| (12) | Operating expenses exclude depreciation and amortization. |
| (13) | Includes revenue on investments at December 31, 2004. |
Page 12 of 12
