Exhibit 99.1
FOR IMMEDIATE RELEASE
July 19, 2006
For more information contact:
Scott Estes — (419) 247-2800
Mike Crabtree — (419) 247-2800
Health Care REIT, Inc.
Reports Second Quarter Results
Toledo, Ohio, July 19, 2006........Health Care REIT, Inc. (NYSE:HCN)announced today operating results for its second quarter ended June 30, 2006.
Second Quarter Highlights.
| | • | | Net new investments total $80.7 million for quarter and $167.1 million for year to date |
| |
| | • | | Increases net investment guidance to $375 to $500 million from $300 to $450 million |
| |
| | • | | Adjusted FFO and FAD increase 6% and 10% quarter-over-quarter |
| |
| | • | | Increases 2006 FAD guidance to $2.95-$3.03 per diluted share from $2.91-$2.99 per diluted share |
| |
| | • | | Total portfolio coverage remains strong at 1.93x |
| |
| | • | | Debt to undepreciated capitalization ratio down sequentially to 44% from 47% last quarter |
Key Performance Indicators.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter | | Quarter | | | | | | Year | | Year | | |
| | | Ended | | Ended | | Percentage | | To Date | | To Date | | Percentage |
| | | 6/30/06 | | 6/30/05 | | Change | | 6/30/06 | | 6/30/05 | | Change |
| Net Income Available to Common Stockholders per Diluted Share | | $ | 0.37 | | | $ | (0.03 | ) | | | n/a | | | $ | 0.70 | | | $ | 0.30 | | | | 133 | % |
| FFO per Diluted Share | | $ | 0.74 | | | $ | 0.36 | | | | 106 | % | | $ | 1.45 | | | $ | 1.08 | | | | 34 | % |
FFO per Diluted Share — Adjusted(1) | | $ | 0.74 | | | $ | 0.70 | | | | 6 | % | | $ | 1.45 | | | $ | 1.42 | | | | 2 | % |
| FAD per Diluted Share | | $ | 0.75 | | | $ | 0.34 | | | | 121 | % | | $ | 1.59 | | | $ | 1.00 | | | | 59 | % |
FAD per Diluted Share — Adjusted(1) | | $ | 0.75 | | | $ | 0.68 | | | | 10 | % | | $ | 1.59 | | | $ | 1.35 | | | | 18 | % |
| Common Dividends per Share | | $ | 0.64 | | | $ | 0.62 | | | | 3 | % | | $ | 1.26 | | | $ | 1.22 | | | | 3 | % |
| FFO Payout Ratio | | | 86 | % | | | 172 | % | | | | | | | 87 | % | | | 113 | % | | | | |
FFO Payout Ratio — Adjusted(1) | | | 86 | % | | | 89 | % | | | | | | | 87 | % | | | 86 | % | | | | |
| FAD Payout Ratio | | | 85 | % | | | 182 | % | | | | | | | 79 | % | | | 122 | % | | | | |
FAD Payout Ratio — Adjusted(1) | | | 85 | % | | | 91 | % | | | | | | | 79 | % | | | 90 | % | | | | |
| | |
| (1) | | Adjusted for loss on extinguishment of debt in 2Q05. |
2Q06 Earnings Discussion.The second quarter 2006 reported net income available to common stockholders of $0.37 per diluted share includes $1.0 million ($0.015 per diluted share) of gains on sales of real property. The second quarter 2005 net loss to common stockholders of $0.03 per share included $18.4 million ($0.34 per diluted share) of loss on extinguishment of debt. FAD for second quarter 2006 was higher than FFO by $0.5 million ($0.01 per diluted share) due to cash rental receipts in excess of gross straight-line rental income. Please see Exhibits 13 and 14 for reconciliations of net income available to
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2Q06 Earnings ReleaseJuly 19, 2006
common stockholders to FAD and FFO. The following table summarizes the items impacting FFO and FAD:
2Q06 FFO and FAD.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter | | Quarter | | | | | | Quarter | | Quarter | | |
| | | Ended | | Ended | | | | | | Ended | | Ended | | |
| | | 6/30/06 | | 6/30/05 | | Percentage | | 6/30/06 | | 6/30/05 | | Percentage |
| | | FFO | | FFO | | Change | | FAD | | FAD | | Change |
| Per Diluted Share | | $ | 0.74 | | | $ | 0.36 | | | | 106 | % | | $ | 0.75 | | | $ | 0.34 | | | | 121 | % |
| Debt extinguishment charges, net | | | | | | $ | 0.34 | | | | | | | | | | | $ | 0.34 | | | | | |
| Per Diluted Share — Adjusted | | $ | 0.74 | | | $ | 0.70 | | | | 6 | % | | $ | 0.75 | | | $ | 0.68 | | | | 10 | % |
| Included items: | | �� | | | | | | | | | | | | | | | | | | | | | | |
| Cash receipts-prepaid/straight-line rent | | | | | | | | | | | | | | $ | 0.04 | | | $ | 0.04 | | | | | |
| Per Diluted Share — Normalized | | | | | | | | | | | | | | $ | 0.71 | | | $ | 0.64 | | | | 11 | % |
2006 Earnings Discussion.The reported net income available to common stockholders of $0.70 per diluted share for the six months ended June 30, 2006 includes $2.5 million ($0.04 per diluted share) of gains on sales of real property. The 2005 net income available to common stockholders of $0.30 per diluted share included $18.4 million ($0.34 per diluted share) of loss on extinguishment of debt. FAD for 2006 was higher than FFO by $8.4 million ($0.14 per diluted share) due to cash rental receipts in excess of gross straight-line rental income. Please see Exhibits 13 and 14 for reconciliations of net income available to common stockholders to FAD and FFO. The following table summarizes the items impacting FFO and FAD:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year | | Year | | | | | | Year | | Year | | |
| | | To Date | | To Date | | | | | | To Date | | To Date | | |
| | | 6/30/06 | | 6/30/05 | | Percentage | | 6/30/06 | | 6/30/05 | | Percentage |
| | | FFO | | FFO | | Change | | FAD | | FAD | | Change |
| Per Diluted Share | | $ | 1.45 | | | $ | 1.08 | | | | 34 | % | | $ | 1.59 | | | $ | 1.00 | | | | 59 | % |
| Debt extinguishment charges, net | | | | | | $ | 0.34 | | | | | | | | | | | $ | 0.34 | | | | | |
| Per Diluted Share — Adjusted | | $ | 1.45 | | | $ | 1.42 | | | | 2 | % | | $ | 1.59 | | | $ | 1.35 | | | | 18 | % |
| Included items: | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash receipts-prepaid/straight-line rent | | | | | | | | | | | | | | $ | 0.22 | | | $ | 0.06 | | | | | |
| SFAS 123(R) accelerated vesting impact | | ($ | 0.02 | ) | | | | | | | | | | ($ | 0.02 | ) | | | | | | | | |
| Per Diluted Share — Normalized | | | | | | | | | | | | | | $ | 1.37 | | | $ | 1.29 | | | | 6 | % |
Dividends for Second Quarter 2006.As previously announced, the Board of Directors declared a dividend for the quarter ended June 30, 2006 of $0.64 per share as compared to $0.62 per share for the same period in 2005. The dividend represents the 141st consecutive dividend payment. The dividend will be payable August 21, 2006 to stockholders of record on July 31, 2006.
Development Initiative.Under the company’s new development initiative, management expects to fund $175 to $250 million for development during 2006. The company expects to fund $164 million for development during 2006 on projects which are already underway, with an additional $11 to $86 million anticipated from projects which have yet to commence. The $164 million of anticipated funding from existing projects is comprised of $72 million which was funded during the six months ended June 30, 2006 and $92 million projected to be funded over the remainder of 2006. The information contained in Exhibit 8 relates only to development projects for which initial funding has commenced as of June 30, 2006 and does not include any additional development projects which may commence later in 2006.
Outlook for 2006.The company is increasing its gross investment guidance to a range of $525 to $600 million from $450 to $550 million for 2006. Gross investments are comprised of $350 million of acquisitions and advances on existing assets and $175 to $250 million of funded new development. The
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2Q06 Earnings ReleaseJuly 19, 2006
company expects $100 to $150 million of dispositions, resulting in net investments of $375 to $500 million. Due primarily to the second quarter gains on sales of properties of $1.0 million, the company is increasing its 2006 guidance for net income available to common stockholders from a range of $1.33 to $1.41 per diluted share to $1.34 to $1.42 per diluted share. The company is reaffirming its 2006 FFO guidance in the range of $2.88 to $2.96 per diluted share. The company is increasing its 2006 FAD guidance from a range of $2.91 to $2.99 per diluted share to $2.95 to $3.03 per diluted share primarily due to the cash receipts of $2.7 million during the second quarter of 2006.
The company’s guidance excludes any impairments, unanticipated additions to the loan loss reserve or other additional one-time items, including any additional cash payments outside the normal monthly rental payments. Please see Exhibit 15 for a reconciliation of the outlook for net income available to common stockholders to FFO and FAD.
Conference Call Information.The company has scheduled a conference call on July 20, 2006 at 9:00 a.m. Eastern time to discuss its second quarter and year to date results, industry trends, portfolio performance and outlook for 2006. Telephone access will be available by dialing 800-811-0667 or 913-981-4901 (international). For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through August 3, 2006. To access the rebroadcast, dial 888-203-1112 or 719-457-0820 (international). The conference ID number is 7840792. 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.
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 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 net straight-line rental adjustments.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. 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, and its fixed charge coverage ratio, which represents EBITDA divided by fixed charges. Fixed charges include interest expense and preferred stock dividends.
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 prior year loss on extinguishment of debt which may not be added back to net income in the calculation of FFO, FAD or EBITDA. Although the company has adopted this treatment, it has also disclosed FFO, FAD and EBITDA adjusted for the loss on extinguishment of debt 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 and in making operating decisions. 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
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2Q06 Earnings ReleaseJuly 19, 2006
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 12, 13 and 14 for reconciliations of EBITDA, FAD and FFO to net income.
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 June 30, 2006, the company had investments in 464 facilities in 37 states with 57 operators and had total assets of approximately $3.1 billion. The portfolio included 35 independent living/continuing care retirement communities, 203 assisted living facilities, 213 skilled nursing facilities 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 the company takes 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,” “project,” “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 the company’s 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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2Q06 Earnings ReleaseJuly 19, 2006
HEALTH CARE REIT, INC.
Financial Supplement
CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands)
| | | | | | | | | |
| | | June 30 | |
| | | 2006 | | | 2005 | |
| | | |
Assets | | | | | | | | |
| Real estate investments: | | | | | | | | |
| Real property owned | | | | | | | | |
| Land | | $ | 270,810 | | | $ | 228,077 | |
| Buildings & improvements | | | 2,758,358 | | | | 2,420,555 | |
| Construction in progress | | | 75,822 | | | | 449 | |
| | | | | | | |
| | | | 3,104,990 | | | | 2,649,081 | |
| Less accumulated depreciation | | | (317,869 | ) | | | (257,543 | ) |
| | | | | | | |
| Total real property owned | | | 2,787,121 | | | | 2,391,538 | |
| | | | | | | | | |
| Loans receivable | | | 178,282 | | | | 244,169 | |
| Less allowance for losses on loans receivable | | | (6,961 | ) | | | (5,861 | ) |
| | | | | | | |
| | | | 171,321 | | | | 238,308 | |
| | | | | | | |
| Net real estate investments | | | 2,958,442 | | | | 2,629,846 | |
| | | | | | | | | |
| Other assets: | | | | | | | | |
| Equity investments | | | 5,070 | | | | 3,298 | |
| Deferred loan expenses | | | 11,523 | | | | 9,172 | |
| Cash and cash equivalents | | | 15,200 | | | | 15,067 | |
| Receivables and other assets | | | 71,877 | | | | 82,556 | |
| | | | | | | |
| | | | 103,670 | | | | 110,093 | |
| | | | | | | |
Total assets | | $ | 3,062,112 | | | $ | 2,739,939 | |
| | | | | | | |
| | | | | | | | | |
Liabilities and stockholders’ equity | | | | | | | | |
| Liabilities: | | | | | | | | |
| Borrowings under unsecured lines of credit arrangements | | $ | 146,000 | | | $ | 318,000 | |
| Senior unsecured notes | | | 1,193,355 | | | | 894,830 | |
| Secured debt | | | 131,178 | | | | 168,790 | |
| Accrued expenses and other liabilities | | | 45,641 | | | | 44,354 | |
| | | | | | | |
| Total liabilities | | | 1,516,174 | | | | 1,425,974 | |
| | | | | | | | | |
| Stockholders’ equity: | | | | | | | | |
| Preferred stock | | | 276,875 | | | | 283,751 | |
| Common stock | | | 62,446 | | | | 53,772 | |
| Capital in excess of par value | | | 1,450,531 | | | | 1,166,234 | |
| Treasury stock | | | (2,714 | ) | | | (1,766 | ) |
| Cumulative net income | | | 883,082 | | | | 772,887 | |
| Cumulative dividends | | | (1,125,810 | ) | | | (960,850 | ) |
| Accumulated other comprehensive income | | | 0 | | | | 1 | |
| Other equity | | | 1,528 | | | | (64 | ) |
| | | | | | | |
Total stockholders’ equity | | | 1,545,938 | | | | 1,313,965 | |
| | | | | | | |
Total liabilities and stockholders’ equity | | $ | 3,062,112 | | | $ | 2,739,939 | |
| | | | | | | |
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2Q06 Earnings ReleaseJuly 19, 2006
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30 | | | June 30 | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| | | | | |
| Revenues: | | | | | | | | | | | | | | | | |
| Rental income | | $ | 74,031 | | | $ | 59,577 | | | $ | 146,817 | | | $ | 118,371 | |
| Interest income | | | 4,480 | | | | 5,269 | | | | 8,742 | | | | 10,252 | |
| Transaction fees and other income | | | 1,665 | | | | 547 | | | | 2,030 | | | | 1,970 | |
| | | | | | | | | | | | | |
| Gross revenues | | | 80,176 | | | | 65,393 | | | | 157,589 | | | | 130,593 | |
| | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Interest expense | | | 23,058 | | | | 19,073 | | | | 47,101 | | | | 37,770 | |
| Provision for depreciation | | | 24,131 | | | | 19,309 | | | | 47,183 | | | | 37,890 | |
| General and administrative | | | 5,089 | | | | 4,337 | | | | 11,291 | | | | 8,355 | |
| Loan expense | | | 707 | | | | 673 | | | | 1,418 | | | | 1,535 | |
| Loss on extinguishment of debt | | | 0 | | | | 18,448 | | | | 0 | | | | 18,448 | |
| Provision for loan losses | | | 250 | | | | 300 | | | | 500 | | | | 600 | |
| | | | | | | | | | | | | |
| Total expenses | | | 53,235 | | | | 62,140 | | | | 107,493 | | | | 104,598 | |
| | | | | | | | | | | | | |
| Income from continuing operations | | | 26,941 | | | | 3,253 | | | | 50,096 | | | | 25,995 | |
| | | | | | | | | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Gain (loss) on sales of properties | | | 929 | | | | (24 | ) | | | 2,482 | | | | (134 | ) |
| Income from discontinued operations, net | | | 131 | | | | 601 | | | | 401 | | | | 1,209 | |
| | | | | | | | | | | | | |
| | | | 1,060 | | | | 577 | | | | 2,883 | | | | 1,075 | |
| | | | | | | | | | | | | |
| Net income | | | 28,001 | | | | 3,830 | | | | 52,979 | | | | 27,070 | |
| | | | | | | | | | | | | | | | | |
| Preferred dividends | | | 5,333 | | | | 5,436 | | | | 10,666 | | | | 10,872 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) available to common stockholders | | $ | 22,668 | | | $ | (1,606 | ) | | $ | 42,313 | | | $ | 16,198 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Average number of common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 61,548 | | | | 53,429 | | | | 59,871 | | | | 53,207 | |
| Diluted | | | 61,868 | | | | 53,429 | | | | 60,201 | | | | 53,616 | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) available to common stockholders per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.37 | | | $ | (0.03 | ) | | $ | 0.71 | | | $ | 0.30 | |
| Diluted | | | 0.37 | | | | (0.03 | ) | | | 0.70 | | | | 0.30 | |
| | | | | | | | | | | | | | | | | |
| Common dividends per share | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.26 | | | $ | 1.22 | |
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July 19, 2006
2Q06 Earnings Release
HEALTH CARE REIT, INC.
Financial Supplement — June 30, 2006
| | | |
Portfolio Composition | | Exhibit 1 |
($000’s except Investment per Bed/Unit) | | |
| | | | | | | | | | | | | | | | | |
| Balance Sheet Data | | # Properties | | # Beds/Units | | Balance | | % Balance |
| | | |
| Real Property | | | 446 | | | | 45,474 | | | $ | 2,787,121 | | | | 94 | % |
| Loans Receivable (1) | | | 18 | | | | 2,208 | | | | 178,282 | | | | 6 | % |
| | | |
| Totals | | | 464 | | | | 47,682 | | | $ | 2,965,403 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Investment Balances | | # Properties | | # Beds/Units | | Investment (2) | | % Investment |
| | | |
| Independent/CCRCs | | | 35 | | | | 4,961 | | | $ | 447,825 | | | | 15 | % |
| Assisted Living Facilities | | | 203 | | | | 12,597 | | | | 984,600 | | | | 33 | % |
| Skilled Nursing Facilities | | | 213 | | | | 28,876 | | | | 1,340,106 | | | | 45 | % |
| Specialty Care Facilities | | | 13 | | | | 1,248 | | | | 195,322 | | | | 7 | % |
| | | |
| Totals | | | 464 | | | | 47,682 | | | $ | 2,967,853 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
| | | | | �� | | | | | | | | | | | | |
| | | | | | | | | | | Committed | | Investment |
| Committed Investments | | # Properties | | # Beds/Units | | Balance (3) | | per Bed/Unit |
| | | |
| Independent/CCRCs | | | 35 | | | | 4,961 | | | $ | 555,360 | | | $ | 111,945 | |
| Assisted Living Facilities | | | 203 | | | | 12,597 | | | | 1,118,553 | | | | 88,795 | |
| Skilled Nursing Facilities | | | 213 | | | | 28,876 | | | | 1,358,757 | | | | 47,055 | |
| Specialty Care Facilities | | | 13 | | | | 1,248 | | | | 195,322 | | | | 156,508 | |
| | | |
| Totals | | | 464 | | | | 47,682 | | | $ | 3,227,992 | | | -na- |
| | | | | | | | | | | | | | | | | |
| | | | | | | |
Notes: | | | (1 | ) | | Includes $15,316,000 of loans on non-accrual. |
| | | | (2 | ) | | Real Estate Investments include gross real estate investments and credit enhancements which amounted to $2,965,403,000 and $2,450,000, respectively. |
| | | | (3 | ) | | Committed Balance includes gross real estate investments, credit enhancements and unfunded construction commitments for which initial funding had commenced. |
| | | |
Selected Facility Data | | Exhibit 2 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Coverage Data |
| | | | | | | % Payor Mix | | Before | | After |
| | | Census | | Private | | Medicare | | Medicaid | | Mgt. Fees | | Mgt. Fees |
| | | |
| Independent/CCRCs | | | 91 | % | | | 97 | % | | | 1 | % | | | 2 | % | | | 1.47x | | | | 1.25x | |
| Assisted Living Facilities | | | 89 | % | | | 83 | % | | | 0 | % | | | 17 | % | | | 1.53x | | | | 1.31x | |
| Skilled Nursing Facilities | | | 86 | % | | | 17 | % | | | 16 | % | | | 67 | % | | | 2.16x | | | | 1.58x | |
| Specialty Care Facilities | | | 69 | % | | | 21 | % | | | 58 | % | | | 21 | % | | | 3.02x | | | | 2.42x | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Weighted Averages
| | | 1.93x | | | | 1.51x | |
Notes: Data as of March 31, 2006.
Page 7 of 15
July 19, 2006
2Q06 Earnings Release
| | | |
Investment Concentrations ($000’s) | | Exhibit 3 |
| | | | | | | | | | | | | |
| Concentration by Operator | | # Properties | | | Investment | | | % Investment | |
| Emeritus Corporation | | | 50 | | | $ | 358,423 | | | | 12 | % |
| Brookdale Living Communities, Inc. | | | 87 | | | | 288,662 | | | | 10 | % |
| Life Care Centers of America, Inc. | | | 26 | | | | 223,505 | | | | 8 | % |
| Merrill Gardens L.L.C. | | | 13 | | | | 202,012 | | | | 7 | % |
| Tara Cares, LLC | | | 34 | | | | 170,583 | | | | 6 | % |
| Remaining operators (52) | | | 254 | | | | 1,724,668 | | | | 57 | % |
| | | | | | | | | | |
| Totals | | | 464 | | | $ | 2,967,853 | | | | 100 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Concentration by Region | | # Properties | | | Investment | | | % Investment | |
| South | | | 275 | | | $ | 1,475,493 | | | | 50 | % |
| Northeast | | | 61 | | | | 485,936 | | | | 16 | % |
| West | | | 64 | | | | 497,284 | | | | 17 | % |
| Midwest | | | 64 | | | | 509,140 | | | | 17 | % |
| | | | | | | | | | |
| Totals | | | 464 | | | $ | 2,967,853 | | | | 100 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Concentration by State | | # Properties | | | Investment | | | % Investment | |
| Florida | | | 62 | | | $ | 402,289 | | | | 14 | % |
| Massachusetts | | | 35 | | | | 331,422 | | | | 11 | % |
| Ohio | | | 30 | | | | 255,994 | | | | 9 | % |
| Texas | | | 55 | | | | 229,442 | | | | 8 | % |
| North Carolina | | | 43 | | | | 200,594 | | | | 7 | % |
| Remaining States (32) | | | 239 | | | | 1,548,112 | | | | 51 | % |
| | | | | | | | | | |
| Totals | | | 464 | | | $ | 2,967,853 | | | | 100 | % |
| | | | | | | | | | | | | |
| | | |
Revenue Composition ($000’s) | | Exhibit 4 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, 2006 | | June 30, 2006 |
| | | | | |
Revenue by Investment Type (1) | | | | | | | | | | | | | | | | |
| Real Property | | $ | 75,792 | | | | 94 | % | | $ | 149,551 | | | | 94 | % |
| Loans Receivable | | | 4,544 | | | | 6 | % | | | 8,872 | | | | 6 | % |
| | | | | |
| Totals | | $ | 80,336 | | | | 100 | % | | $ | 158,423 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
Revenue by Facility Type (1) | | | | | | | | | | | | | | | | |
| Independent/CCRCs | | $ | 9,395 | | | | 12 | % | | $ | 18,695 | | | | 12 | % |
| Assisted Living Facilities | | | 29,636 | | | | 37 | % | | | 58,119 | | | | 37 | % |
| Skilled Nursing Facilities | | | 36,926 | | | | 46 | % | | | 72,540 | | | | 46 | % |
| Specialty Care Facilities | | | 4,379 | | | | 5 | % | | | 9,069 | | | | 5 | % |
| | | | | |
| Totals | | $ | 80,336 | | | | 100 | % | | $ | 158,423 | | | | 100 | % |
Notes: (1) Revenues include gross revenues and revenues from discontinued operations.
Page 8 of 15
July 19, 2006
2Q06 Earnings Release
| | | |
Revenue Maturities ($000’s) | | Exhibit 5 |
| | | |
Operating Lease Expirations & Loan Maturities | | |
| | | | | | | | | | | | | | | | | |
| | | Current Lease | | Current Interest | | Lease and | | |
| Year | | Revenue (1) | | Revenue (1) | | Interest Revenue | | % of Total |
| |
| 2006 | | $ | 0 | | | $ | 1,313 | | | $ | 1,313 | | | | 0 | % |
| 2007 | | | 0 | | | | 691 | | | | 691 | | | | 0 | % |
| 2008 | | | 0 | | | | 2,468 | | | | 2,468 | | | | 1 | % |
| 2009 | | | 906 | | | | 1,999 | | | | 2,905 | | | | 1 | % |
| 2010 | | | 1,726 | | | | 2,174 | | | | 3,900 | | | | 1 | % |
| Thereafter | | | 304,318 | | | | 5,893 | | | | 310,211 | | | | 97 | % |
| | | |
| Totals | | $ | 306,950 | | | $ | 14,538 | | | $ | 321,488 | | | | 100 | % |
Notes: (1) Revenue impact by year, annualized.
| | | |
Debt Maturities and Principal Payments ($000’s) | | Exhibit 6 |
| | | | | | | | | | | | | | | | | |
| Year | | Lines of Credit (1) | | Senior Notes (2) | | Secured Debt | | Total |
| |
| 2006 | | $ | 0 | | | $ | 0 | | | $ | 1,561 | | | $ | 1,561 | |
| 2007 | | | 40,000 | | | | 52,500 | | | | 15,074 | | | | 107,574 | |
| 2008 | | | 500,000 | | | | 42,330 | | | | 10,289 | | | | 552,619 | |
| 2009 | | | 0 | | | | 0 | | | | 33,807 | | | | 33,807 | |
| 2010 | | | 0 | | | | 0 | | | | 8,733 | | | | 8,733 | |
| 2011 | | | 0 | | | | 0 | | | | 20,472 | | | | 20,472 | |
| 2012 | | | 0 | | | | 250,000 | | | | 14,851 | | | | 264,851 | |
| Thereafter | | | 0 | | | | 850,000 | | | | 26,391 | | | | 876,391 | |
| | | |
| Totals | | $ | 540,000 | | | $ | 1,194,830 | | | $ | 131,178 | | | $ | 1,866,008 | |
| | | | | | | |
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 9 of 15
July 19, 2006
2Q06 Earnings Release
| | | |
Investment Activity ($000’s) | | Exhibit 7 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | June 30, 2006 | | June 30, 2006 |
| | | | | |
Funding by Investment Type | | | | | | | | | | | | | | | | |
| Real Property | | $ | 88,914 | | | | 92 | % | | $ | 204,254 | | | | 93 | % |
| Loans Receivable | | | 8,036 | | | | 8 | % | | | 15,779 | | | | 7 | % |
| | | | | |
| Total | | $ | 96,950 | | | | 100 | % | | $ | 220,033 | | | | 100 | % |
| | | | | | | | | | | | | | | | | |
Funding by Facility Type | | | | | | | | | | | | | | | | |
| Independent/CCRCs | | $ | 30,990 | | | | 32 | % | | $ | 35,778 | | | | 16 | % |
| Assisted Living Facilities | | | 37,261 | | | | 38 | % | | | 70,825 | | | | 32 | % |
| Skilled Nursing Facilities | | | 25,407 | | | | 26 | % | | | 109,710 | | | | 50 | % |
| Specialty Care Facilities | | | 3,292 | | | | 4 | % | | | 3,720 | | | | 2 | % |
| | | | | |
| Total | | $ | 96,950 | | | | 100 | % | | $ | 220,033 | | | | 100 | % |
| | | |
Development Activity ($000’s) | | Exhibit 8 |
| | | | | | | | | | | | | | | | | | | | | |
| | | Balance at | | | 2006 YTD | | | Balance at | | | Committed | | | Unfunded | |
| Facility Type | | December 31, 2005 | | | Fundings | | | June 30, 2006 | | | Balances | | | Commitments | |
| Independent/CCRCs | | $ | 0 | | | $ | 21,354 | | | $ | 21,354 | | | $ | 114,635 | | | $ | 93,281 | |
| Assisted Living Facilities | | | 2,995 | | | | 39,428 | | | | 42,423 | | | | 194,311 | | | | 151,888 | |
| Skilled Nursing Facilities | | | 911 | | | | 11,134 | | | | 12,045 | | | | 27,015 | | | | 14,970 | |
| | | | | | | | | | | | | | | | |
| Totals | | $ | 3,906 | | | $ | 71,916 | | | $ | 75,822 | | | $ | 335,961 | | | $ | 260,139 | |
Development Funding Projections ($000’s)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Projected Future Fundings | | | | |
| | | | | | | | | | | 2006 | | | Fundings | | | Unfunded | |
| Facility Type | | Projects | | | # Beds/Units | | | Fundings | | | Thereafter | | | Commitments | |
| Independent/CCRCs | | | 3 | | | | 467 | | | $ | 27,656 | | | $ | 65,625 | | | $ | 93,281 | |
| Assisted Living Facilities | | | 20 | | | | 1,292 | | | | 55,318 | | | | 96,570 | | | | 151,888 | |
| Skilled Nursing Facilities | | | 3 | | | | 263 | | | | 9,454 | | | | 5,516 | | | | 14,970 | |
| | | | | | | | | | | | | | | | |
| Totals | | | 26 | | | | 2,022 | | | $ | 92,428 | | | $ | 167,711 | | | $ | 260,139 | |
| | | | | | | | | | | | | | | | | | | | | |
Project Conversion Projections ($000’s)
| | | | | | | | | | | | | | | | | | | | | |
| 2006 Quarterly Projections | | | Annual Projections | |
| | | | | | | Projected Average | | | | | | | | | | | Projected Average | |
| Quarter | | Amount | | | Initial Yields (1) | | | Year | | | Amount | | | Initial Yields (1) | |
| 1Q06 actual | | $ | 0 | | | | n/a | | | 2006 projected | | $ | 13,191 | | | | 9.09 | % |
| 2Q06 actual | | | 0 | | | | n/a | | | 2007 projected | | | 191,184 | | | | 9.46 | % |
| 3Q06 projected | | | 10,323 | | | | 9.12 | % | | 2008 projected | | | 52,618 | | | | 9.11 | % |
| 4Q06 projected | | | 2,868 | | | | 9.00 | % | | Thereafter | | | 78,968 | | | | 9.28 | % |
| | | | | | | | | | | | | | | | |
| Totals | | $ | 13,191 | | | | 9.09 | % | | Totals | | $ | 335,961 | | | | 9.35 | % |
| | | |
Notes: | | All amounts include both cash advances and non-cash additions such as capitalized interest. |
| | | (1) Actual initial yields may be higher if the underlying market rates increase. |
Page 10 of 15
July 19, 2006
2Q06 Earnings Release
| | | |
Disposition Activity ($000’s) | | Exhibit 9 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, 2006 | | | June 30, 2006 | |
| | | | | |
Dispositions by Investment Type | | | | | | | | | | | | | | | | |
| Real Property | | $ | 16,272 | | | | 100 | % | | $ | 31,665 | | | | 60 | % |
| Loans Receivable | | | | | | | 0 | % | | | 21,240 | | | | 40 | % |
| | | | | | | | | | | | | |
| Totals | | $ | 16,272 | | | | 100 | % | | $ | 52,905 | | | | 100 | % |
| |
Dispositions by Facility Type | | | | | | | | | | | | | | | | |
| Assisted Living Facilities | | $ | 13,325 | | | | 82 | % | | $ | 25,487 | | | | 48 | % |
| Skilled Nursing Facilities | | | 2,947 | | | | 18 | % | | | 20,460 | | | | 39 | % |
| Specialty Care Facilities | | | | | | | 0 | % | | | 6,958 | | | | 13 | % |
| | | | | | | | | | | | | |
| Totals | | $ | 16,272 | | | | 100 | % | | $ | 52,905 | | | | 100 | % |
| | | |
Discontinued Operations ($000’s) | | Exhibit 10 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30 | | | June 30 | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
Revenues | | | | | | | | | | | | | | | | |
| Rental income | | $ | 160 | | | $ | 3,214 | | | $ | 834 | | | $ | 6,586 | |
| | | | | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | | | | |
| Interest expense | | | 29 | | | | 913 | | | | 224 | | | | 1,861 | |
| Provision for depreciation | | | 0 | | | | 1,700 | | | | 209 | | | | 3,516 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations, net | | $ | 131 | | | $ | 601 | | | $ | 401 | | | $ | 1,209 | |
| | | | | | | | | | | | | | | | | |
| Current Capitalization ($000’s except share price) | | | Leverage & Performance Ratios |
| | | Balance | | | % Balance | | | | | | | | | |
| Borrowings Under Bank Lines | | $ | 146,000 | | | | 5 | % | | Debt/Total Book Cap | | | 49 | % |
| Long-Term Debt Obligations | | | 1,324,533 | | | | 44 | % | | Debt/Undepreciated Book Cap | | | 44 | % |
| Stockholders’ Equity | | | 1,545,938 | | | | 51 | % | | Debt/Total Market Cap | | | 37 | % |
| | | | | | | | | | | |
| Total Book Capitalization | | $ | 3,016,471 | | | | 100 | % | | | | | | | | |
| | | | | | | | | | | Interest Coverage | | 3.16x | 2nd Qtr. |
| Common Shares Outstanding (000’s) | | | 62,521 | | | | | | | | | | | 3.08x | YTD |
| Period-End Share Price | | $ | 34.95 | | | | | | | Interest Coverage | | 3.21x | 2nd Qtr. |
| | | | | | | | | | | | | | | | |
| Common Stock Market Value | | $ | 2,185,109 | | | | 56 | % | | - adjusted | | 3.16x | YTD |
| Preferred Stock | | | 276,875 | | | | 7 | % | | Fixed Charge Coverage | | 2.59x | 2nd Qtr. |
| Borrowings Under Bank Lines | | | 146,000 | | | | 3 | % | | | | | | 2.52x | YTD |
| Long-Term Debt Obligations | | | 1,324,533 | | | | 34 | % | | Fixed Charge Coverage | | 2.63x | 2nd Qtr. |
| | | | | | | | | | | |
| Total Market Capitalization | | $ | 3,932,517 | | | | 100 | % | | - adjusted | | 2.59x | YTD |
Page 11 of 15
| | |
| 2Q06 Earnings Release | | July 19, 2006 |
| | | |
| EBITDA Reconciliation ($000’s) | | Exhibit 12 |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30 | | | June 30 | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| Net income | | $ | 28,001 | | | $ | 3,830 | | | $ | 52,979 | | | $ | 27,070 | |
| Interest expense (1) | | | 23,087 | | | | 19,986 | | | | 47,325 | | | | 39,631 | |
| Tax expense | | | 12 | | | | 216 | | | | 12 | | | | 219 | |
| Provision for depreciation (1) | | | 24,131 | | | | 21,009 | | | | 47,392 | | | | 41,406 | |
| Amortization | | | 707 | | | | 1,998 | | | | 1,418 | | | | 2,724 | |
| | | | | | | | | | | | | |
| EBITDA | | | 75,938 | | | | 47,039 | | | | 149,126 | | | | 111,050 | |
| Stock-based compensation expense | | | 838 | | | | 316 | | | | 3,351 | | | | 632 | |
| Provision for loan losses | | | 250 | | | | 300 | | | | 500 | | | | 600 | |
| Loss on extinguishment of debt, net | | | 0 | | | | 18,448 | | | | 0 | | | | 18,448 | |
| | | | | | | | | | | | | |
| EBITDA — adjusted | | $ | 77,026 | | | $ | 66,103 | | | $ | 152,977 | | | $ | 130,730 | |
| | | | | | | | | | | | | | | | | |
Interest Coverage Ratio | | | | | | | | | | | | | | | | |
| Interest expense (1) | | $ | 23,087 | | | $ | 19,986 | | | $ | 47,325 | | | $ | 39,631 | |
| Capitalized interest | | | 909 | | | | 348 | | | | 1,111 | | | | 614 | |
| | | | | | | | | | | | | |
| Total interest | | | 23,996 | | | | 20,334 | | | | 48,436 | | | | 40,245 | |
| EBITDA | | $ | 75,938 | | | $ | 47,039 | | | $ | 149,126 | | | $ | 111,050 | |
| | | | | | | | | | | | | |
| Interest coverage ratio | | | 3.16x | | | | 2.31x | | | | 3.08x | | | | 2.76x | |
| | | | | | | | | | | | | | | | | |
| EBITDA — adjusted | | $ | 77,026 | | | $ | 66,103 | | | $ | 152,977 | | | $ | 130,730 | |
| | | | | | | | | | | | | |
| Interest coverage ratio — adjusted | | | 3.21x | | | | 3.25x | | | | 3.16x | | | | 3.25x | |
| | | | | | | | | | | | | | | | | |
Fixed Charge Coverage Ratio | | | | | | | | | | | | | | | | |
| Total interest (1) | | $ | 23,996 | | | $ | 20,334 | | | $ | 48,436 | | | $ | 40,245 | |
| Preferred dividends | | | 5,333 | | | | 5,436 | | | | 10,666 | | | | 10,872 | |
| | | | | | | | | | | | | |
| Total fixed charges | | | 29,329 | | | | 25,770 | | | | 59,102 | | | | 51,117 | |
| EBITDA | | $ | 75,938 | | | $ | 47,039 | | | $ | 149,126 | | | $ | 111,050 | |
| | | | | | | | | | | | | |
| Fixed charge coverage ratio | | | 2.59x | | | | 1.83x | | | | 2.52x | | | | 2.17x | |
| | | | | | | | | | | | | | | | | |
| EBITDA — adjusted | | $ | 77,026 | | | $ | 66,103 | | | $ | 152,977 | | | $ | 130,730 | |
| | | | | | | | | | | | | |
| Fixed charge coverage ratio - adjusted | | | 2.63x | | | | 2.57x | | | | 2.59x | | | | 2.56x | |
| | | |
| Notes: | | (1) | Provision for depreciation and interest expense include provision for depreciation and interest expense from discontinued operations. |
Page 12 of 15
| | |
| 2Q06 Earnings Release | | July 19, 2006 |
| | | |
| Funds Available For Distribution Reconciliation | | Exhibit 13 |
| (Amounts in 000’s except per share data) | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30 | | | June 30 | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| Net income (loss) available to common stockholders | | $ | 22,668 | | | $ | (1,606 | ) | | $ | 42,313 | | | $ | 16,198 | |
| Provision for depreciation (1) | | | 24,131 | | | | 21,009 | | | | 47,392 | | | | 41,406 | |
| Loss (gain) on sales of properties | | | (929 | ) | | | 24 | | | | (2,482 | ) | | | 134 | |
| Gross straight-line rental income | | | (2,216 | ) | | | (3,536 | ) | | | (4,616 | ) | | | (7,245 | ) |
| Prepaid/straight-line rent receipts | | | 2,710 | | | | 2,360 | | | | 13,020 | | | | 3,213 | |
| | | | | | | | | | | | | |
| Funds available for distribution | | | 46,364 | | | | 18,251 | | | | 95,627 | | | | 53,706 | |
| Loss on extinguishment of debt, net | | | 0 | | | | 18,448 | | | | 0 | | | | 18,448 | |
| | | | | | | | | | | | | |
| Funds available for distribution — adjusted | | | 46,364 | | | | 36,699 | | | | 95,627 | | | | 72,154 | |
| Prepaid/straight-line rent receipts | | | (2,710 | ) | | | (2,360 | ) | | | (13,020 | ) | | | (3,213 | ) |
| | | | | | | | | | | | | |
| Funds available for distribution — normalized | | $ | 43,654 | | | $ | 34,339 | | | $ | 82,607 | | | $ | 68,941 | |
| | | | | | | | | | | | | | | | | |
| Average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 61,548 | | | | 53,429 | | | | 59,871 | | | | 53,207 | |
| Diluted — for net income (loss) purposes | | | 61,868 | | | | 53,429 | | | | 60,201 | | | | 53,616 | |
| Diluted — for FAD purposes | | | 61,868 | | | | 53,765 | | | | 60,201 | | | | 53,616 | |
| | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | |
| Net income (loss) available to common stockholders | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.37 | | | $ | (0.03 | ) | | $ | 0.71 | | | $ | 0.30 | |
| Diluted | | | 0.37 | | | | (0.03 | ) | | | 0.70 | | | | 0.30 | |
| | | | | | | | | | | | | | | | | |
| Funds available for distribution | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.75 | | | $ | 0.34 | | | $ | 1.60 | | | $ | 1.01 | |
| Diluted | | | 0.75 | | | | 0.34 | | | | 1.59 | | | | 1.00 | |
| | | | | | | | | | | | | | | | | |
| Funds available for distribution — adjusted | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.75 | | | $ | 0.69 | | | $ | 1.60 | | | $ | 1.36 | |
| Diluted | | | 0.75 | | | | 0.68 | | | | 1.59 | | | | 1.35 | |
| | | | | | | | | | | | | | | | | |
| Funds available for distribution — normalized | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.71 | | | $ | 0.64 | | | $ | 1.38 | | | $ | 1.30 | |
| Diluted | | | 0.71 | | | | 0.64 | | | | 1.37 | | | | 1.29 | |
| | | | | | | | | | | | | | | | | |
FAD Payout Ratio | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.26 | | | $ | 1.22 | |
| FAD per diluted share | | $ | 0.75 | | | $ | 0.34 | | | $ | 1.59 | | | $ | 1.00 | |
| | | | | | | | | | | | | |
| FAD payout ratio | | | 85 | % | | | 182 | % | | | 79 | % | | | 122 | % |
| | | | | | | | | | | | | | | | | |
FAD Payout Ratio — Adjusted | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.26 | | | $ | 1.22 | |
| FAD per diluted share — adjusted | | $ | 0.75 | | | $ | 0.68 | | | $ | 1.59 | | | $ | 1.35 | |
| | | | | | | | | | | | | |
| FAD payout ratio — adjusted | | | 85 | % | | | 91 | % | | | 79 | % | | | 90 | % |
| | | | | | | | | | | | | | | | | |
FAD Payout Ratio — Normalized | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.26 | | | $ | 1.22 | |
| FAD per diluted share — normalized | | $ | 0.71 | | | $ | 0.64 | | | $ | 1.37 | | | $ | 1.29 | |
| | | | | | | | | | | | | |
| FAD payout ratio — normalized | | | 90 | % | | | 97 | % | | | 92 | % | | | 95 | % |
| | |
| Notes: | | (1) Provision for depreciation includes provision for depreciation from discontinued operations. |
Page 13 of 15
| | |
| 2Q06 Earnings Release | | July 19, 2006 |
| | | |
| Funds From Operations Reconciliation | | Exhibit 14 |
| (Amounts in 000’s except per share data) | | |
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30 | | | June 30 | |
| | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
| Net income (loss) available to common stockholders | | $ | 22,668 | | | $ | (1,606 | ) | | $ | 42,313 | | | $ | 16,198 | |
| Provision for depreciation (1) | | | 24,131 | | | | 21,009 | | | | 47,392 | | | | 41,406 | |
| Loss (gain) on sales of properties | | | (929 | ) | | | 24 | | | | (2,482 | ) | | | 134 | |
| | | | | | | | | | | | | |
| Funds from operations | | | 45,870 | | | | 19,427 | | | | 87,223 | | | | 57,738 | |
| Loss on extinguishment of debt, net | | | 0 | | | | 18,448 | | | | 0 | | | | 18,448 | |
| | | | | | | | | | | | | |
| Funds from operations — adjusted | | $ | 45,870 | | | $ | 37,875 | | | $ | 87,223 | | | $ | 76,186 | |
| | | | | | | | | | | | | | | | | |
| Average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 61,548 | | | | 53,429 | | | | 59,871 | | | | 53,207 | |
| Diluted — for net income (loss) purposes | | | 61,868 | | | | 53,429 | | | | 60,201 | | | | 53,616 | |
| Diluted — for FFO purposes | | | 61,868 | | | | 53,765 | | | | 60,201 | | | | 53,616 | |
| | | | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | | | |
| Net income (loss) available to common stockholders | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.37 | | | $ | (0.03 | ) | | $ | 0.71 | | | $ | 0.30 | |
| Diluted | | | 0.37 | | | | (0.03 | ) | | | 0.70 | | | | 0.30 | |
| | | | | | | | | | | | | | | | | |
| Funds from operations | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.75 | | | $ | 0.36 | | | $ | 1.46 | | | $ | 1.09 | |
| Diluted | | | 0.74 | | | | 0.36 | | | | 1.45 | | | | 1.08 | |
| | | | | | | | | | | | | | | | | |
| Funds from operations — adjusted | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.75 | | | $ | 0.71 | | | $ | 1.46 | | | $ | 1.43 | |
| Diluted | | | 0.74 | | | | 0.70 | | | | 1.45 | | | | 1.42 | |
| | | | | | | | | | | | | | | | | |
FFO Payout Ratio | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.26 | | | $ | 1.22 | |
| FFO per diluted share | | $ | 0.74 | | | $ | 0.36 | | | $ | 1.45 | | | $ | 1.08 | |
| | | | | | | | | | | | | |
| FFO payout ratio | | | 86 | % | | | 172 | % | | | 87 | % | | | 113 | % |
| | | | | | | | | | | | | | | | | |
FFO Payout Ratio — Adjusted | | | | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.26 | | | $ | 1.22 | |
| FFO per diluted share — adjusted | | $ | 0.74 | | | $ | 0.70 | | | $ | 1.45 | | | $ | 1.42 | |
| | | | | | | | | | | | | |
| FFO payout ratio — adjusted | | | 86 | % | | | 89 | % | | | 87 | % | | | 86 | % |
| | |
| Notes: | | (1) Provision for depreciation includes provision for depreciation from discontinued operations. |
Page 14 of 15
| | |
| 2Q06 Earnings Release | | July 19, 2006 |
| | | |
| Outlook Reconciliation | | Exhibit 15 |
| (Amounts in 000’s except per share data) | | |
| | | | | | | | | | | | | | | | | |
| | | Current Outlook | | | Prior Outlook | |
| | | Year Ended | | | Year Ended | |
| | | December 31, 2006 | | | December 31, 2006 | |
| | | Low | | | High | | | Low | | | High | |
| Net income available to common stockholders | | $ | 83,292 | | | $ | 88,192 | | | $ | 82,363 | | | $ | 87,263 | |
| Loss (gain) on sales of properties | | | (2,482 | ) | | | (2,482 | ) | | | (1,553 | ) | | | (1,553 | ) |
| Provision for depreciation (1) | | | 97,500 | | | | 97,500 | | | | 97,500 | | | | 97,500 | |
| | | | | | | | | | | | | |
| Funds from operations | | | 178,310 | | | | 183,210 | | | | 178,310 | | | | 183,210 | |
| Rental income less than (in excess of ) cash received | | | 4,500 | | | | 4,500 | | | | 2,000 | | | | 2,000 | |
| | | | | | | | | | | | | |
| Funds available for distribution | | $ | 182,810 | | | $ | 187,710 | | | $ | 180,310 | | | $ | 185,210 | |
| | | | | | | | | | | | | | | | | |
| Average common shares outstanding (diluted) | | | 62,000 | | | | 62,000 | | | | 62,000 | | | | 62,000 | |
| | | | | | | | | | | | | | | | | |
| Per share data (diluted): | | | | | | | | | | | | | | | | |
| Net income available to common stockholders | | $ | 1.34 | | | $ | 1.42 | | | $ | 1.33 | | | $ | 1.41 | |
| Funds from operations | | | 2.88 | | | | 2.96 | | | | 2.88 | | | | 2.96 | |
| Funds available for distribution | | | 2.95 | | | | 3.03 | | | | 2.91 | | | | 2.99 | |
| | |
| Notes: | | (1) Provision for depreciation includes provision for depreciation from discontinued operations. |
Page 15 of 15
