Exhibit 99.1
FOR IMMEDIATE RELEASE
| | | |
| | | February 7, 2006 |
| | | For more information contact: |
| | | Ray Braun — (419) 247-2800 |
| | | Mike Crabtree — (419) 247-2800 |
| | | Scott Estes — (419) 247-2800 |
Health Care REIT, Inc.
Reports Fourth Quarter and Year End Results
Increases 2006 Quarterly Dividend Rate
Toledo, Ohio, February 7, 2006........Health Care REIT, Inc. (NYSE:HCN)announced today operating results for its fourth quarter and year ended December 31, 2005.
“We enjoyed a record year with $642.5 million of gross investments,” commented George L. Chapman, chief executive officer of Health Care REIT, Inc. “In addition, we generated strong FAD growth of 19% and realized improved facility payment coverages. We successfully executed our plan to enhance the overall portfolio and quality of earnings by disposing of approximately $147 million of non-core assets, reducing loans to 6% of gross real estate investments and virtually eliminating subdebt. Our dispositions resulted in the recognition of an additional $4.5 million of interest income. Based on our strengthened portfolio and FFO and FAD growth prospects, the Board of Directors approved a 3% increase in the common stock dividend to $0.64 per quarter commencing with the May 2006 dividend.”
Key Performance Indicators.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter | | | Quarter | | | | | | | Year | | | Year | | | | |
| | | Ended | | | Ended | | | Percentage | | | Ended | | | Ended | | | Percentage | |
| | | 12/31/05 | | | 12/31/04 | | | Change | | | 12/31/05 | | | 12/31/04 | | | Change | |
| Net Income Available to Common Stockholders per Diluted Share | | $ | 0.47 | | | $ | 0.30 | | | | 57 | % | | $ | 1.15 | | | $ | 1.39 | | | | -17 | % |
FFO per Diluted Share — Adjusted(1) | | $ | 0.83 | | | $ | 0.71 | | | | 17 | % | | $ | 3.03 | | | $ | 2.82 | | | | 7 | % |
FAD per Diluted Share — Adjusted(1) | | $ | 0.92 | | | $ | 0.68 | | | | 35 | % | | $ | 3.04 | | | $ | 2.56 | | | | 19 | % |
| Common Dividends per Share | | $ | 0.62 | | | $ | 0.60 | | | | 3 | % | | $ | 2.46 | | | $ | 2.385 | | | | 3 | % |
FFO Payout Ratio — Adjusted(1) | | | 75 | % | | | 85 | % | | | | | | | 81 | % | | | 85 | % | | | | |
FAD Payout Ratio — Adjusted(1) | | | 67 | % | | | 88 | % | | | | | | | 81 | % | | | 93 | % | | | | |
| | |
| (1)Adjusted for losses on extinguishment of debt in 2Q05 and 4Q05 and impairment of assets in 3Q04. |
4Q05 Earnings Discussion.The fourth quarter 2005 reported net income of $0.47 per diluted share includes $2.2 million, or $0.04 per diluted share, of losses on extinguishment of debt, net of $0.8 million of fees collected in connection with the extinguishments. Fourth quarter 2005 earnings were positively impacted by the recognition of $4.2 million, or $0.07 per diluted share, of additional interest income as a result of loans that were repaid during the quarter. These loans were either on non-accrual or partial accrual and all contractual interest was received from the borrowers. Fourth quarter 2005 adjusted FAD was higher than FFO due to the inclusion of $4.9 million, or $0.09 per diluted share, of cash receipts in excess of rental income, which includes non-recurring cash rental payments of $7.8 million, or $0.14 per diluted share. The following table reconciles the FFO and FAD adjustments:
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4Q05 FFO and FAD Reconciliation.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter | | | Quarter | | | | | | | Quarter | | | Quarter | | | | |
| | | Ended | | | Ended | | | | | | | Ended | | | Ended | | | | |
| | | 12/31/05 | | | 12/31/04 | | | Percentage | | | 12/31/05 | | | 12/31/04 | | | Percentage | |
| | | FFO | | | FFO | | | Change | | | FAD | | | FAD | | | Change | |
| Per Diluted Share | | $ | 0.79 | | | $ | 0.71 | | | | 11 | % | | $ | 0.88 | | | $ | 0.68 | | | | 29 | % |
| Debt extinguishment charges, net | | $ | 0.04 | | | | | | | | | | | $ | 0.04 | | | | | | | | | |
| Per Diluted Share — Adjusted | | $ | 0.83 | | | $ | 0.71 | | | | 17 | % | | $ | 0.92 | | | $ | 0.68 | | | | 35 | % |
| Included items: | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-recurring cash payments | | | | | | | | | | | | | | $ | 0.14 | | | $ | 0.06 | | | | | |
| Additional interest income | | $ | 0.07 | | | | | | | | | | | $ | 0.07 | | | | | | | | | |
2005 Earnings Discussion.Reported fiscal 2005 net income of $1.15 per diluted share includes $20.7 million, or $0.38 per diluted share, of losses on extinguishment of debt, which is net of $0.8 million of fees collected in connection with the extinguishments. Additionally, 2005 earnings were positively impacted by the recognition of $4.5 million, or $0.08 per diluted share, of additional interest income as a result of loans that were repaid during the year. Fiscal 2005 adjusted FAD was higher than FFO due to the inclusion of $0.7 million, or $0.01 per diluted share, of cash receipts in excess of rental income, which includes non-recurring cash rental payments of $13.9 million, or $0.25 per diluted share. The following table reconciles the FFO and FAD adjustments:
2005 FFO and FAD Reconciliation.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year | | | Year | | | | | | | Year | | | Year | | | | |
| | | Ended | | | Ended | | | | | | | Ended | | | Ended | | | | |
| | | 12/31/05 | | | 12/31/04 | | | Percentage | | | 12/31/05 | | | 12/31/04 | | | Percentage | |
| | | FFO | | | FFO | | | Change | | | FAD | | | FAD | | | Change | |
| Per Diluted Share | | $ | 2.65 | | | $ | 2.82 | | | | -6 | % | | $ | 2.66 | | | $ | 2.55 | | | | 4 | % |
| Debt extinguishment charges, net | | $ | 0.38 | | | | | | | | | | | $ | 0.38 | | | | | | | | | |
| Impairment charge | | | | | | $ | 0.01 | | | | | | | | | | | $ | 0.01 | | | | | |
| Per Diluted Share — Adjusted | | $ | 3.03 | | | $ | 2.82 | | | | 7 | % | | $ | 3.04 | | | $ | 2.56 | | | | 19 | % |
| Included items: | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-recurring cash payments | | | | | | | | | | | | | | $ | 0.25 | | | $ | 0.16 | | | | | |
| Additional interest income | | $ | 0.08 | | | | | | | | | | | $ | 0.08 | | | | | | | | | |
Dividends for Fourth Quarter 2005.As previously announced, the Board of Directors declared a dividend for the quarter ended December 31, 2005 of $0.62 per share as compared to $0.60 per share for the same period in 2004. The dividend represents the 139th consecutive dividend payment. The dividend will be payable February 21, 2006 to stockholders of record on January 31, 2006.
Dividends for 2006.The Board of Directors approved a new quarterly dividend rate of $0.64 per share per quarter ($2.56 per share annually), commencing with the May 2006 dividend, up 3% from $0.62 per share, the rate during 2005. The company’s dividend policy is reviewed annually during the Board of Directors’ January planning session. The declaration and payment of quarterly dividends remains subject to the review and approval of the Board of Directors.
Kindred / Commonwealth Update. The company previously announced its anticipated sale of four long-term acute care hospitals to Kindred Healthcare, Inc. for $80 million. The company now anticipates Kindred will lease these facilities under a master lease. The terms of the master lease are being negotiated. The transaction between Kindred and Commonwealth is anticipated to occur this quarter.
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Outlook for 2006.The company is introducing its 2006 guidance and expects to report net income available to common stockholders for the full year in the range of $1.28 to $1.36 per diluted share, FFO in a range of $2.88 to $2.96 per diluted share and FAD in a range of $2.77 to $2.85 per diluted share. In preparing guidance, the company made the following assumptions:
| | • | | Gross investments of $450 to $550 million, including acquisitions of $300 million at an average initial yield of 8.25-8.75%. |
| |
| | • | | Gross investments include funded new development of $150 to $250 million with the investment balance capitalized at the company’s average cost of debt (approximately 6.50-6.75%) and recorded as a reduction in interest expense until completion. |
| |
| | • | | Dispositions of $100 to $150 million at an average yield of 11.0%. |
| |
| | • | | Net investments of $300 to $450 million. |
| |
| | • | | General and administrative expenses of $21 to $22 million for the full year 2006. Included in the company’s first quarter 2006 G&A estimate is approximately $1.7 million ($0.03 per diluted share) of non-cash expenses for required accelerated vesting of options and restricted stock grants pursuant to Statement of Financial Accounting Standards No. 123(R), which was adopted on January 1, 2006. This represents a $1.3 million ($0.02 per diluted share) increase compared to the amortization methodology used historically. Excluding this item, the anticipated annual increase in G&A of approximately $2.5 to $3.5 million is attributable to increases in professional services fees, compensation costs, including new hires, and marketing expenses as a result of our larger size and anticipated future growth. |
| |
| | • | | Straight-line rent of $7.0 million before any one-time cash payments. |
| |
| | • | | An anticipated reduction in leverage from year-end 2005 levels through issuance of equity from the company’s DRIP and potential secondary equity offerings. |
The guidance for 2006 FFO is below 2005 FFO primarily as a result of the $4.5 million of non-recurring 2005 interest income, a $3.8 to $4.8 million increase in G&A expenses, and an approximate $4.5 million reduction in rent and interest as a result of the Kindred/Commonwealth transaction, representing a decrease of $0.21 to $0.22 per diluted share.
The company’s guidance excludes any impairments, unanticipated additions to the loan loss reserve or other additional one-time items. Please see Exhibit 15 for a reconciliation of the outlook for net income to FFO and FAD.
Supplemental Reporting Measures.The company believes that net income, as defined by U.S. generally accepted accounting principles (U.S. GAAP), is the most appropriate earnings measurement. However, the company considers funds from operations (FFO) and funds available for distribution (FAD) to be useful supplemental measures of its operating performance. Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In
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response, the National Association of Real Estate Investment Trusts (NAREIT) created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO, as defined by NAREIT, means net income, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FAD represents FFO excluding the non-cash straight-line rental adjustments.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. Additionally, the company excludes the non-cash provision for loan losses. The company believes that EBITDA, along with net income and cash flow provided from operating activities, is an important supplemental measure because it provides additional information to assess and evaluate the performance of its operations. Additionally, restrictive covenants in the company’s long-term debt arrangements contain financial ratios based on EBITDA. The company primarily utilizes EBITDA to measure its interest coverage ratio which represents EBITDA divided by interest expense.
In October 2003, NAREIT informed its member companies that the SEC had changed its position on certain aspects of the NAREIT FFO definition, including impairment charges. Previously, the SEC accepted NAREIT’s view that impairment charges were effectively an early recognition of an expected loss on an impending sale of property and thus should be excluded from FFO similar to other gains and losses on sales. However, the SEC’s clarified interpretation is that recurring impairments taken on real property may not be added back to net income in the calculation of FFO and FAD. Although the company has adopted this recommendation, it has also disclosed FFO and FAD adjusted for the impairment charge in 2004 for enhanced clarity.
In April 2002, the Financial Accounting Standards Board issued Statement No. 145 that requires gains and losses on extinguishments of debt to be classified as income or loss from continuing operations rather than as extraordinary items as previously required under Statement No. 4. The company adopted the standard effective January 1, 2003 and has properly reflected the current quarter loss on extinguishment of debt which may not be added back to net income in the calculation of FFO. Although the company has adopted this treatment, it has also disclosed FFO, FAD and EBITDA adjusted for the loss on extinguishment of debt in 2005 for enhanced clarity.
FFO, FAD and EBITDA are financial measures that are widely used by investors, equity and debt analysts and rating agencies in the valuation, comparison, rating and investment recommendations of companies. The company’s management uses these financial measures to facilitate internal and external comparisons to historical operating results, in making operating decisions and for budget planning purposes. Additionally, FFO and FAD are utilized by the Board of Directors to evaluate management. FFO, FAD and EBITDA do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, FFO, FAD and EBITDA, as defined by the company, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see Exhibits 13, 14 and 16 for reconciliations of FAD, FFO and EBITDA to net income.
Conference Call Information.The company has scheduled a conference call on February 8, 2006, at 9:00 a.m. Eastern time to discuss its fourth quarter and year end results, industry trends, portfolio performance and outlook for 2006. To participate in the webcast, log on to www.hcreit.com or www.earnings.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days through the same Web sites. This earnings release is posted on the company’s Web site under the heading Press Releases.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a real estate investment trust that invests in health care and senior housing properties. At December 31, 2005, the company had
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investments in 442 facilities in 36 states with 54 operators and had total assets of approximately $3.0 billion. The portfolio included 195 assisted living facilities, 203 skilled nursing facilities, 31 independent living/continuing care retirement communities and 13 specialty care facilities. More information is available on the Internet at www.hcreit.com.
This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the company’s portfolio; the sale of properties; the performance of its operators and properties; its ability to enter into agreements with new viable tenants for properties that we take back from financially troubled tenants, if any; its ability to make distributions; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; and its ability to meet its earnings guidance. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The company’s expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including prevailing interest rates; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies and operators’ difficulty in obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and senior housing industries; negative developments in the operating results or financial condition of operators, including, but not limited to, their ability to pay rent and repay loans; the company’s ability to transition or sell facilities with a profitable result; the failure of closings to occur as and when anticipated; acts of God affecting our properties; the company’s ability to reinvest sale proceeds at similar rates to assets sold; operator bankruptcies or insolvencies; government regulations affecting Medicare and Medicaid reimbursement rates; liability claims and insurance costs for operators; unanticipated difficulties and/or expenditures relating to future acquisitions; environmental laws affecting the company’s properties; delays in reinvestment of sale proceeds; changes in rules or practices governing the company’s financial reporting; and structure related factors, including real estate investment trust qualification, anti-takeover provisions and key management personnel. Finally, the company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.
FINANCIAL SCHEDULES FOLLOW
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HEALTH CARE REIT, INC.
Financial Supplement
CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands)
| | | | | | | | | |
| | | December 31 | |
| | | 2005 | | | 2004 | |
Assets | | | | | | | | |
| Real estate investments: | | | | | | | | |
| Real property owned | | | | | | | | |
| Land | | $ | 261,236 | | | $ | 208,173 | |
| Buildings & improvements | | | 2,659,746 | | | | 2,176,327 | |
| Real property held for sale, net of accumulated depreciation | | | 11,912 | | | | 0 | |
| Construction in progress | | | 3,906 | | | | 25,463 | |
| | | | | | | |
| | | | 2,936,800 | | | | 2,409,963 | |
| Less accumulated depreciation | | | (274,875 | ) | | | (219,536 | ) |
| | | | | | | |
| Total real property owned | | | 2,661,925 | | | | 2,190,427 | |
| | | | | | | | | |
| Loans receivable | | | 194,054 | | | | 256,806 | |
| Less allowance for losses on loans receivable | | | (6,461 | ) | | | (5,261 | ) |
| | | | | | | |
| | | | 187,593 | | | | 251,545 | |
| | | | | | | |
| Net real estate investments | | | 2,849,518 | | | | 2,441,972 | |
| | | | | | | | | |
| Other assets: | | | | | | | | |
| Equity investments | | | 2,970 | | | | 3,298 | |
| Deferred loan expenses | | | 12,228 | | | | 9,486 | |
| Cash and cash equivalents | | | 36,237 | | | | 19,763 | |
| Receivables and other assets | | | 71,211 | | | | 77,652 | |
| | | | | | | |
| | | | 122,646 | | | | 110,199 | |
| | | | | | | |
Total assets | | $ | 2,972,164 | | | $ | 2,552,171 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and stockholders’ equity | | | | | | | | |
| Liabilities: | | | | | | | | |
| Borrowings under unsecured lines of credit arrangements | | $ | 195,000 | | | $ | 151,000 | |
| Senior unsecured notes | | | 1,198,278 | | | | 881,733 | |
| Secured debt | | | 107,540 | | | | 160,225 | |
| Accrued expenses and other liabilities | | | 40,590 | | | | 23,934 | |
| | | | | | | |
| Total liabilities | | | 1,541,408 | | | | 1,216,892 | |
| | | | | | | | | |
| Stockholders’ equity: | | | | | | | | |
| Preferred stock | | | 276,875 | | | | 283,751 | |
| Common stock | | | 58,050 | | | | 52,860 | |
| Capital in excess of par value | | | 1,306,471 | | | | 1,139,723 | |
| Treasury stock | | | (2,054 | ) | | | (1,286 | ) |
| Cumulative net income | | | 830,103 | | | | 745,817 | |
| Cumulative dividends | | | (1,039,032 | ) | | | (884,890 | ) |
| Accumulated other comprehensive income | | | 0 | | | | 1 | |
| Other equity | | | 343 | | | | (697 | ) |
| | | | | | | |
Total stockholders’ equity | | | 1,430,756 | | | | 1,335,279 | |
| | | | | | | |
| | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,972,164 | | | $ | 2,552,171 | |
| | | | | | | |
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CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31 | | | December 31 | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Revenues: | | | | | | | | | | | | | | | | |
| Rental income | | $ | 67,417 | | | $ | 59,739 | | | $ | 253,306 | | | $ | 213,755 | |
| Interest income | | | 8,744 | | | | 5,622 | | | | 23,993 | | | | 22,818 | |
| Transaction fees and other income | | | 1,806 | | | | 558 | | | | 4,548 | | | | 2,432 | |
| Prepayment fees | | | 0 | | | | 50 | | | | 0 | | | | 50 | |
| | | | | | | | | | | | | |
| Gross revenues | | | 77,967 | | | | 65,969 | | | | 281,847 | | | | 239,055 | |
| | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Interest expense | | | 21,058 | | | | 17,900 | | | | 80,050 | | | | 68,567 | |
| Provision for depreciation | | | 21,107 | | | | 18,620 | | | | 80,000 | | | | 66,897 | |
| General and administrative | | | 4,254 | | | | 6,247 | | | | 17,249 | | | | 16,585 | |
| Loan expense | | | 502 | | | | 825 | | | | 2,710 | | | | 3,393 | |
| Impairment of assets | | | 0 | | | | 0 | | | | 0 | | | | 314 | |
| Loss on extinguishment of debt | | | 3,036 | | | | 0 | | | | 21,484 | | | | 0 | |
| Provision for loan losses | | | 300 | | | | 300 | | | | 1,200 | | | | 1,200 | |
| | | | | | | | | | | | | |
| Total expenses | | | 50,257 | | | | 43,892 | | | | 202,693 | | | | 156,956 | |
| | | | | | | | | | | | | |
| |
| Income from continuing operations | | | 27,710 | | | | 22,077 | | | | 79,154 | | | | 82,099 | |
| |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Gain (loss) on sales of properties | | | 3,361 | | | | (1,272 | ) | | | 3,227 | | | | (143 | ) |
| Income (loss) from discontinued operations, net | | | 850 | | | | 404 | | | | 1,905 | | | | 3,415 | |
| | | | | | | | | | | | | |
| | | | 4,211 | | | | (868 | ) | | | 5,132 | | | | 3,272 | |
| | | | | | | | | | | | | |
| Net income | | | 31,921 | | | | 21,209 | | | | 84,286 | | | | 85,371 | |
| | | | | | | | | | | | | | | | | |
| Preferred dividends | | | 5,334 | | | | 5,442 | | | | 21,594 | | | | 12,737 | |
| | | | | | | | | | | | | |
| |
| Net income available to common stockholders | | $ | 26,587 | | | $ | 15,767 | | | $ | 62,692 | | | $ | 72,634 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Average number of common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 55,992 | | | | 52,326 | | | | 54,110 | | | | 51,544 | |
| Diluted | | | 56,368 | | | | 52,784 | | | | 54,499 | | | | 52,082 | |
| | | | | | | | | | | | | | | | | |
| Net income available to common stockholders per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.47 | | | $ | 0.30 | | | $ | 1.16 | | | $ | 1.41 | |
| Diluted | | | 0.47 | | | | 0.30 | | | | 1.15 | | | | 1.39 | |
| | | | | | | | | | | | | | | | | |
| Common dividends per share | | $ | 0.62 | | | $ | 0.60 | | | $ | 2.46 | | | $ | 2.385 | |
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HEALTH CARE REIT, INC.
Financial Supplement — December 31, 2005
| | |
| | | |
| Portfolio Composition ($000’s) | | Exhibit 1 |
| | | | | | | | | | | | | | | | | |
| | | # Properties | | # Beds/Units | | Balance | | % Balance |
Balance Sheet Data | | | | | | | | | | | | | | | | |
| Real Property | | | 425 | | | | 42,998 | | | $ | 2,661,925 | | | | 93 | % |
| Loans Receivable (1) | | | 17 | | | | 2,208 | | | | 194,054 | | | | 7 | % |
| | | |
| Total Investments | | | 442 | | | | 45,206 | | | $ | 2,855,979 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
| | | # Properties | | # Beds/Units | | Investment (2) | | % Investment |
Investment Data | | | | | | | | | | | | | | | | |
| Assisted Living Facilities | | | 195 | | | | 11,746 | | | $ | 962,620 | | | | 34 | % |
| Skilled Nursing Facilities | | | 203 | | | | 27,748 | | | | 1,266,196 | | | | 44 | % |
| Independent/CCRCs | | | 31 | | | | 4,400 | | | | 425,845 | | | | 15 | % |
| Specialty Care Facilities | | | 13 | | | | 1,312 | | | | 203,768 | | | | 7 | % |
| | | |
| Real Estate Investments | | | 442 | | | | 45,206 | | | $ | 2,858,429 | | | | 100 | % |
| | | | | | | |
Notes: | | | (1 | ) | | Includes $16,770,000 of loans on non-accrual. |
| |
| | | | (2 | ) | | Real Estate Investments include gross real estate investments and credit enhancements which amounted to $2,855,979,000 and $2,450,000, respectively. |
| | |
| | | |
| Revenue Composition ($000’s) | | Exhibit 2 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | December 31, 2005 | | December 31, 2005 |
Revenue by Investment Type (1) | | | | | | | | | | | | | | | | |
| Real Property | | $ | 69,756 | | | | 88 | % | | $ | 265,941 | | | | 91 | % |
| Loans Receivable | | | 9,620 | | | | 12 | % | | | 25,213 | | | | 9 | % |
| | | | | |
| Total | | $ | 79,376 | | | | 100 | % | | $ | 291,154 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
Revenue by Facility Type (1) | | | | | | | | | | | | | | | | |
| Assisted Living Facilities | | $ | 36,395 | | | | 46 | % | | $ | 132,935 | | | | 46 | % |
| Skilled Nursing Facilities | | | 32,876 | | | | 41 | % | | | 121,986 | | | | 42 | % |
| Independent/CCRCs | | | 5,012 | | | | 6 | % | | | 17,725 | | | | 6 | % |
| Specialty Care Facilities | | | 5,093 | | | | 7 | % | | | 18,508 | | | | 6 | % |
| | | | | |
| Total | | $ | 79,376 | | | | 100 | % | | $ | 291,154 | | | | 100 | % |
Notes: (1) Revenues include gross revenues and revenues from discontinued operations.
Page 8 of 16
| | |
| | | |
| Operator Concentration ($000’s) | | Exhibit 3 |
| | | | | | | | | | | | | |
| | | # Properties | | Investment | | % Investment |
Concentration by Investment | | | | | | | | | | | | |
| Emeritus Corporation | | | 50 | | | $ | 362,832 | | | | 13 | % |
| Merrill Gardens L.L.C. | | | 13 | | | | 204,907 | | | | 7 | % |
| Southern Assisted Living, Inc. | | | 43 | | | | 195,794 | | | | 7 | % |
| Life Care Centers of America, Inc. | | | 23 | | | | 195,129 | | | | 7 | % |
| Commonwealth Communities Management LLC | | | 13 | | | | 191,335 | | | | 7 | % |
| Remaining operators (49) | | | 300 | | | | 1,708,432 | | | | 59 | % |
| | | |
| Total | | | 442 | | | $ | 2,858,429 | | | | 100 | % |
| | |
| | | |
| Geographic Concentration ($000’s) | | Exhibit 4 |
| | | | | | | | | | | | | |
| | | # Properties | | | Investment | | | % Investment | |
Concentration by Region | | | | | | | | | | | | |
| South | | | 272 | | | $ | 1,495,446 | | | | 52 | % |
| Northeast | | | 63 | | | | 521,929 | | | | 18 | % |
| West | | | 62 | | | | 482,426 | | | | 17 | % |
| Midwest | | | 45 | | | | 358,628 | | | | 13 | % |
| | | | | | | | | | |
| Total | | | 442 | | | $ | 2,858,429 | | | | 100 | % |
| | | | | | | | | | | | | |
| | | # Properties | | | Investment | | | % Investment | |
Concentration by State | | | | | | | | | | | | |
| Florida | | | 62 | | | $ | 409,750 | | | | 14 | % |
| Massachusetts | | | 37 | | | | 360,191 | | | | 13 | % |
| Texas | | | 49 | | | | 218,450 | | | | 8 | % |
| North Carolina | | | 44 | | | | 215,514 | | | | 8 | % |
| California | | | 17 | | | | 202,416 | | | | 7 | % |
| Remaining States (31) | | | 233 | | | | 1,452,108 | | | | 50 | % |
| | | | | | | | | | |
| Total | | | 442 | | | $ | 2,858,429 | | | | 100 | % |
Page 9 of 16
| | |
| | | |
Committed Investment Balances
($000’s except Investment per Bed/Unit) | | Exhibit 5 |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Committed | | Investment |
| | | # Properties | | # Beds/Units | | Balance (1) | | per Bed/Unit |
| | | |
| Assisted Living Facilities | | | 195 | | | | 11,746 | | | $ | 975,696 | | | $ | 83,066 | |
| Skilled Nursing Facilities | | | 203 | | | | 27,748 | | | | 1,271,647 | | | | 45,828 | |
| Independent/CCRCs | | | 31 | | | | 4,400 | | | | 443,837 | | | | 100,872 | |
| Specialty Care Facilities | | | 13 | | | | 1,312 | | | | 203,768 | | | | 155,311 | |
| | | |
| Total | | | 442 | | | | 45,206 | | | $ | 2,894,948 | | | -na- |
| | | | | | | |
Notes: | | | (1 | ) | | Committed Balance includes gross real estate investments, credit enhancements and unfunded construction commitments for which initial funding had commenced. |
| | |
| | | |
| Selected Facility Data | | Exhibit 6 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Coverage Data |
| | | | | | | % Payor Mix | | Before | | After |
| | | Census | | Private | | Medicare | | Medicaid | | Mgt. Fees | | Mgt. Fees |
| | | |
| Assisted Living Facilities | | | 88 | % | | | 84 | % | | | 0 | % | | | 16 | % | | | 1.52x | | | | 1.30x | |
| Skilled Nursing Facilities | | | 86 | % | | | 17 | % | | | 15 | % | | | 68 | % | | | 2.18x | | | | 1.61x | |
| Independent/CCRCs | | | 92 | % | | | 97 | % | | | 1 | % | | | 2 | % | | | 1.43x | | | | 1.21x | |
| Specialty Care Facilities | | | 68 | % | | | 20 | % | | | 59 | % | | | 21 | % | | | 3.36x | | | | 2.77x | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Weighted Averages | | | 1.92x | | | | 1.53x | |
Notes: Data as of September 30, 2005.
| | | | | | | | | | | | | |
| Current Capitalization ($000’s except share price) | | Leverage & Performance Ratios |
| | | Balance | | % Balance | | | | |
| Borrowings Under Bank Lines | | $ | 195,000 | | | | 6 | % | | Debt/Total Book Cap | | 51 % |
| Long-Term Debt Obligations | | | 1,305,818 | | | | 45 | % | | Debt/Undepreciated Book Cap | | 47 % |
| Stockholders’ Equity | | | 1,430,756 | | | | 49 | % | | Debt/Total Market Cap | | 40 % |
| | | | | | | |
| Total Book Capitalization | | $ | 2,931,574 | | | | 100 | % | | | | |
| | | | | | | | | | | Interest Coverage | | 3.54x 4th Qtr. |
| Common Shares Outstanding (000’s) | | | 58,125 | | | | | | | | | 3.10x YTD |
| Period-End Share Price | | $ | 33.90 | | | | | | | Interest Coverage | | 3.64x 4th Qtr. |
| Common Stock Market Value | | $ | 1,970,438 | | | | 53 | % | | - adjusted | | 3.35x YTD |
| Preferred Stock | | | 276,875 | | | | 7 | % | | Fixed Charge Coverage | | 2.83x 4th Qtr. |
| Borrowings Under Bank Lines | | | 195,000 | | | | 5 | % | | | | 2.47x YTD |
| Long-Term Debt Obligations | | | 1,305,818 | | | | 35 | % | | Fixed Charge Coverage | | 2.91x 4th Qtr. |
| | | | | | | |
| Total Market Capitalization | | $ | 3,748,131 | | | | 100 | % | | - adjusted | | 2.66x YTD |
Page 10 of 16
| | |
| | | |
| Revenue Maturities ($000’s) | | Exhibit 8 |
Operating Lease Expirations & Loan Maturities
| | | | | | | | | | | | | | | | | |
| | | Current Lease | | Current Interest | | Lease and | | |
| Year | | Revenue (1) | | Revenue (1) | | Interest Revenue | | % of Total |
| |
| 2006 | | $ | 22,209 | | | $ | 4,223 | | | $ | 26,432 | | | | 8 | % |
| 2007 | | | 0 | | | | 358 | | | | 358 | | | | 0 | % |
| 2008 | | | 0 | | | | 2,878 | | | | 2,878 | | | | 1 | % |
| 2009 | | | 906 | | | | 2,003 | | | | 2,909 | | | | 1 | % |
| 2010 | | | 1,726 | | | | 1,922 | | | | 3,648 | | | | 1 | % |
| Thereafter | | | 270,515 | | | | 5,420 | | | | 275,935 | | | | 89 | % |
| | | |
| Total | | $ | 295,356 | | | $ | 16,804 | | | $ | 312,160 | | | | 100 | % |
Notes: (1) Revenue impact by year, annualized.
| | |
| | | |
| Debt Maturities and Principal Payments ($000’s) | | Exhibit 9 |
| | | | | | | | | | | | | | | | | |
| Year | | Lines of Credit (1) | | | Senior Notes (2) | | | Secured Debt | | | Total | |
| |
| 2006 | | $ | 40,000 | | | $ | 0 | | | $ | 2,596 | | | $ | 42,596 | |
| 2007 | | | 0 | | | | 52,500 | | | | 14,544 | | | | 67,044 | |
| 2008 | | | 500,000 | | | | 42,330 | | | | 9,725 | | | | 552,055 | |
| 2009 | | | 0 | | | | 0 | | | | 33,207 | | | | 33,207 | |
| 2010 | | | 0 | | | | 0 | | | | 8,094 | | | | 8,094 | |
| 2011 | | | 0 | | | | 0 | | | | 19,791 | | | | 19,791 | |
| 2012 | | | 0 | | | | 250,000 | | | | 14,126 | | | | 264,126 | |
| Thereafter | | | 0 | | | | 850,000 | | | | 5,457 | | | | 855,457 | |
| | | |
| Total | | $ | 540,000 | | | $ | 1,194,830 | | | $ | 107,540 | | | $ | 1,842,370 | |
| | | | | | | |
Notes: | | | (1 | ) | | Reflected at 100% capacity. |
| |
| | | | (2 | ) | | Amounts above represent principal amounts due and do not reflect unamortized premiums/discounts or the fair value of interest-rate swap agreements as reflected on the balance sheet. |
Page 11 of 16
| | |
| Investment Activity ($000’s) | | Exhibit 10 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | December 31, 2005 | | December 31, 2005 |
| | | | | |
Funding by Investment Type | | | | | | | | | | | | | | | | |
| Real Property | | $ | 374,153 | | | | 100 | % | | $ | 622,547 | | | | 97 | % |
| Loans Receivable | | | 481 | | | | 0 | % | | | 19,936 | | | | 3 | % |
| | | | | |
| Total | | $ | 374,634 | | | | 100 | % | | $ | 642,483 | | | | 100 | % |
| |
Funding by Facility Type | | | | | | | | | | | | | | | | |
| Assisted Living Facilities | | $ | 3,073 | | | | 1 | % | | $ | 52,971 | | | | 8 | % |
| Skilled Nursing Facilities | | | 138,883 | | | | 37 | % | | | 281,278 | | | | 44 | % |
| Independent/CCRCs | | | 232,055 | | | | 62 | % | | | 246,356 | | | | 38 | % |
| Specialty Care Facilities | | | 623 | | | | 0 | % | | | 61,878 | | | | 10 | % |
| | | | | |
| Total | | $ | 374,634 | | | | 100 | % | | $ | 642,483 | | | | 100 | % |
| | |
| | | |
| Disposition Activity ($000’s) | | Exhibit 11 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, 2005 | | | December 31, 2005 | |
Dispositions by Investment Type | | | | | | | | | | | | | | | | |
| Real Property | | $ | 78,064 | | | | 75 | % | | $ | 88,098 | | | | 60 | % |
| Loans Receivable | | | 26,412 | | | | 25 | % | | | 58,923 | | | | 40 | % |
| | | | | | | | | | | | | |
| Total | | $ | 104,476 | | | | 100 | % | | $ | 147,021 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
Dispositions by Facility Type | | | | | | | | | | | | | | | | |
| Assisted Living Facilities | | $ | 104,476 | | | | 100 | % | | $ | 146,042 | | | | 99 | % |
| Skilled Nursing Facilities | | | | | | | 0 | % | | | | | | | 0 | % |
| Independent/CCRCs | | | | | | | 0 | % | | | | | | | 0 | % |
| Specialty Care Facilities | | | | | | | 0 | % | | | 979 | | | | 1 | % |
| | | | | | | | | | | | | |
| Total | | $ | 104,476 | | | | 100 | % | | $ | 147,021 | | | | 100 | % |
| | |
| | | |
| Discontinued Operations ($000’s) | | Exhibit 12 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31 | | | December 31 | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
Revenues | | | | | | | | | | | | | | | | |
| Rental income | | $ | 1,409 | | | $ | 2,936 | | | $ | 9,307 | | | $ | 14,522 | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Interest expense | | | 311 | | | | 842 | | | | 2,574 | | | | 3,989 | |
| Provision for depreciation | | | 248 | | | | 1,690 | | | | 4,828 | | | | 7,118 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations, net | | $ | 850 | | | $ | 404 | | | $ | 1,905 | | | $ | 3,415 | |
Page 12 of 16
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| | | |
Funds Available For Distribution Reconciliation
(Amounts in 000’s except per share data) | | Exhibit 13 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31 | | | December 31 | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net income available to common stockholders | | $ | 26,587 | | | $ | 15,767 | | | $ | 62,692 | | | $ | 72,634 | |
| Provision for depreciation (1) | | | 21,355 | | | | 20,310 | | | | 84,828 | | | | 74,015 | |
| Loss (gain) on sales of properties | | | (3,361 | ) | | | 1,272 | | | | (3,227 | ) | | | 143 | |
| Prepayment fees | | | 0 | | | | (50 | ) | | | 0 | | | | (50 | ) |
| Rental income less than (in excess of) cash received | | | 4,876 | | | | (1,657 | ) | | | 727 | | | | (13,792 | ) |
| | | | | | | | | | | | | |
| Funds available for distribution | | | 49,457 | | | | 35,642 | | | | 145,020 | | | | 132,950 | |
| Impairment of assets | | | 0 | | | | 0 | | | | 0 | | | | 314 | |
| Loss on extinguishment of debt, net (2) | | | 2,214 | | | | 0 | | | | 20,662 | | | | 0 | |
| | | | | | | | | | | | | |
| Funds available for distribution — adjusted | | $ | 51,671 | | | $ | 35,642 | | | $ | 165,682 | | | $ | 133,264 | |
| Average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 55,992 | | | | 52,326 | | | | 54,110 | | | | 51,544 | |
| Diluted | | | 56,368 | | | | 52,784 | | | | 54,499 | | | | 52,082 | |
| | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | |
| Net income available to common stockholders | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.47 | | | $ | 0.30 | | | $ | 1.16 | | | $ | 1.41 | |
| Diluted | | | 0.47 | | | | 0.30 | | | | 1.15 | | | | 1.39 | |
| | | | | | | | | | | | | | | | | |
| Funds available for distribution | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.88 | | | $ | 0.68 | | | $ | 2.68 | | | $ | 2.58 | |
| Diluted | | | 0.88 | | | | 0.68 | | | | 2.66 | | | | 2.55 | |
| | | | | | | | | | | | | | | | | |
| Funds available for distribution — adjusted | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.92 | | | $ | 0.68 | | | $ | 3.06 | | | $ | 2.59 | |
| Diluted | | | 0.92 | | | | 0.68 | | | | 3.04 | | | | 2.56 | |
| | | | | | | | | | | | | | | | | |
FAD Payout Ratio | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.62 | | | $ | 0.60 | | | $ | 2.46 | | | $ | 2.385 | |
| FAD per diluted share | | $ | 0.88 | | | $ | 0.68 | | | $ | 2.66 | | | $ | 2.55 | |
| | | | | | | | | | | | | |
| FAD payout ratio | | | 70 | % | | | 88 | % | | | 92 | % | | | 94 | % |
| | | | | | | | | | | | | | | | | |
FAD Payout Ratio — Adjusted | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.62 | | | $ | 0.60 | | | $ | 2.46 | | | $ | 2.385 | |
| FAD per diluted share — adjusted | | $ | 0.92 | | | $ | 0.68 | | | $ | 3.04 | | | $ | 2.56 | |
| | | | | | | | | | | | | |
| FAD payout ratio — adjusted | | | 67 | % | | | 88 | % | | | 81 | % | | | 93 | % |
| | | | | | | |
Notes: | | | (1 | ) | | Provision for depreciation includes provision for depreciation from discontinued operations. |
| |
| | | | (2 | ) | | Loss on extinguishment of debt is net of recoveries received of $822,000. |
Page 13 of 16
| | |
| | | |
Funds From Operations Reconciliation
(Amounts in 000’s except per share data) | | Exhibit 14 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31 | | | December 31 | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net income available to common stockholders | | $ | 26,587 | | | $ | 15,767 | | | $ | 62,692 | | | $ | 72,634 | |
| Provision for depreciation (1) | | | 21,355 | | | | 20,310 | | | | 84,828 | | | | 74,015 | |
| Loss (gain) on sales of properties | | | (3,361 | ) | | | 1,272 | | | | (3,227 | ) | | | 143 | |
| Prepayment fees | | | 0 | | | | (50 | ) | | | 0 | | | | (50 | ) |
| | | | | | | | | | | | | |
| Funds from operations | | | 44,581 | | | | 37,299 | | | | 144,293 | | | | 146,742 | |
| Impairment of assets | | | 0 | | | | 0 | | | | 0 | | | | 314 | |
| Loss on extinguishment of debt, net (2) | | | 2,214 | | | | 0 | | | | 20,662 | | | | 0 | |
| | | | | | | | | | | | | |
| Funds from operations — adjusted | | $ | 46,795 | | | $ | 37,299 | | | $ | 164,955 | | | $ | 147,056 | |
| | | | | | | | | | | | | | | | | |
| Average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 55,992 | | | | 52,326 | | | | 54,110 | | | | 51,544 | |
| Diluted | | | 56,368 | | | | 52,784 | | | | 54,499 | | | | 52,082 | |
| |
| Per share data: | | | | | | | | | | | | | | | | |
| Net income available to common stockholders | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.47 | | | $ | 0.30 | | | $ | 1.16 | | | $ | 1.41 | |
| Diluted | | | 0.47 | | | | 0.30 | | | | 1.15 | | | | 1.39 | |
| | | | | | | | | | | | | | | | | |
| Funds from operations | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.80 | | | $ | 0.71 | | | $ | 2.67 | | | $ | 2.85 | |
| Diluted | | | 0.79 | | | | 0.71 | | | | 2.65 | | | | 2.82 | |
| | | | | | | | | | | | | | | | | |
| Funds from operations — adjusted | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.84 | | | $ | 0.71 | | | $ | 3.05 | | | $ | 2.85 | |
| Diluted | | | 0.83 | | | | 0.71 | | | | 3.03 | | | | 2.82 | |
| | | | | | | | | | | | | | | | | |
FFO Payout Ratio | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.62 | | | $ | 0.60 | | | $ | 2.46 | | | $ | 2.385 | |
| FFO per diluted share | | $ | 0.79 | | | $ | 0.71 | | | $ | 2.65 | | | $ | 2.82 | |
| | | | | | | | | | | | | |
| FFO payout ratio | | | 78 | % | | | 85 | % | | | 93 | % | | | 85 | % |
| | | | | | | | | | | | | | | | | |
FFO Payout Ratio — Adjusted | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.62 | | | $ | 0.60 | | | $ | 2.46 | | | $ | 2.385 | |
| FFO per diluted share — adjusted | | $ | 0.83 | | | $ | 0.71 | | | $ | 3.03 | | | $ | 2.82 | |
| | | | | | | | | | | | | |
| FFO payout ratio — adjusted | | | 75 | % | | | 85 | % | | | 81 | % | | | 85 | % |
| | | | | | | |
Notes: | | | (1 | ) | | Provision for depreciation includes provision for depreciation from discontinued operations. |
| |
| | | | (2 | ) | | Loss on extinguishment of debt is net of recoveries received of $822,000. |
Page 14 of 16
| | |
| | | |
Outlook Reconciliation
(Amounts in 000’s except per share data) | | Exhibit 15 |
| | | | | | | | | |
| | | Year Ended | |
| | | December 31, 2006 | |
| | | Low | | | High | |
| Net income available to common stockholders | | $ | 78,200 | | | $ | 83,100 | |
| Provision for depreciation (1) | | | 97,500 | | | | 97,500 | |
| | | | | | | |
| Funds from operations | | | 175,700 | | | | 180,600 | |
| Rental income less than (in excess of ) cash received | | | (7,000 | ) | | | (7,000 | ) |
| | | | | | | |
| Funds available for distribution | | $ | 168,700 | | | $ | 173,600 | |
| | | | | | | | | |
| Average common shares outstanding (diluted) | | | 61,000 | | | | 61,000 | |
| | | | | | | | | |
| Per share data (diluted): | | | | | | | | |
| Net income available to common stockholders | | $ | 1.28 | | | $ | 1.36 | |
| Funds from operations | | | 2.88 | | | | 2.96 | |
| Funds available for distribution | | | 2.77 | | | | 2.85 | |
Notes: (1) Provision for depreciation includes provision for depreciation from discontinued operations.
Page 15 of 16
| | |
| | | |
| EBITDA Reconciliation ($000’s) | | Exhibit 16 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31 | | | December 31 | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
| Net income | | $ | 31,921 | | | $ | 21,209 | | | $ | 84,286 | | | $ | 85,371 | |
| Provision for depreciation (1) | | | 21,355 | | | | 20,310 | | | | 84,828 | | | | 74,015 | |
| Interest expense (1) | | | 21,369 | | | | 18,742 | | | | 82,624 | | | | 72,556 | |
| Capitalized interest | | | 39 | | | | 285 | | | | 665 | | | | 875 | |
| Amortization (2) | | | 708 | | | | 1,016 | | | | 4,975 | | | | 4,247 | |
| Provision for loan losses | | | 300 | | | | 300 | | | | 1,200 | | | | 1,200 | |
| | | | | | | | | | | | | |
| EBITDA | | | 75,692 | | | | 61,862 | | | | 258,578 | | | | 238,264 | |
| Loss on extinguishment of debt, net (3) | | | 2,214 | | | | 0 | | | | 20,662 | | | | 0 | |
| | | | | | | | | | | | | |
| EBITDA — adjusted | | $ | 77,906 | | | $ | 61,862 | | | $ | 279,240 | | | $ | 238,264 | |
| | | | | | | | | | | | | | | | | |
Interest Coverage Ratio | | | | | | | | | | | | | | | | |
| Interest expense (1) | | $ | 21,369 | | | $ | 18,742 | | | $ | 82,624 | | | $ | 72,556 | |
| Capitalized interest | | | 39 | | | | 285 | | | | 665 | | | | 875 | |
| | | | | | | | | | | | | |
| Total interest | | | 21,408 | | | | 19,027 | | | | 83,289 | | | | 73,431 | |
| EBITDA | | $ | 75,692 | | | $ | 61,862 | | | $ | 258,578 | | | $ | 238,264 | |
| | | | | | | | | | | | | |
| Interest coverage ratio | | | 3.54 | x | | | 3.25 | x | | | 3.10 | x | | | 3.24 | x |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| EBITDA — adjusted | | $ | 77,906 | | | $ | 61,862 | | | $ | 279,240 | | | $ | 238,264 | |
| | | | | | | | | | | | | |
| Interest coverage ratio — adjusted | | | 3.64 | x | | | 3.25 | x | | | 3.35 | x | | | 3.24 | x |
| | | | | | | | | | | | | | | | | |
Fixed Charge Coverage Ratio | | | | | | | | | | | | | | | | |
| Total interest (1) | | $ | 21,408 | | | $ | 19,027 | | | $ | 83,289 | | | $ | 73,431 | |
| Preferred dividends | | | 5,334 | | | | 5,442 | | | | 21,594 | | | | 12,737 | |
| | | | | | | | | | | | | |
| Total fixed charges | | | 26,742 | | | | 24,469 | | | | 104,883 | | | | 86,168 | |
| EBITDA | | $ | 75,692 | | | $ | 61,862 | | | $ | 258,578 | | | $ | 238,264 | |
| | | | | | | | | | | | | |
| Fixed charge coverage ratio | | | 2.83 | x | | | 2.53 | x | | | 2.47 | x | | | 2.77 | x |
| | | | | | | | | | | | | | | | | |
| EBITDA — adjusted | | $ | 77,906 | | | $ | 61,862 | | | $ | 279,240 | | | $ | 238,264 | |
| | | | | | | | | | | | | |
| Fixed charge coverage ratio — adjusted | | | 2.91 | x | | | 2.53 | x | | | 2.66 | x | | | 2.77 | x |
| | | | | | | |
Notes: | | | (1 | ) | | Provision for depreciation and interest expense include provision for depreciation and interest expense from discontinued operations. |
| |
| | | | (2 | ) | | Amortization includes amortization of deferred loan expenses, restricted stock and stock options. |
| |
| | | | (3 | ) | | Loss on extinguishment of debt is net of recoveries received of $822,000. |
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