Exhibit 99.1
![(HEALTHCARE REIT LOGO)](https://capedge.com/proxy/8-K/0000950152-07-006508/l27379al2737900.gif)
FOR IMMEDIATE RELEASE
August 7, 2007
For more information contact:
Scott Estes — (419) 247-2800
Mike Crabtree — (419) 247-2800
For more information contact:
Scott Estes — (419) 247-2800
Mike Crabtree — (419) 247-2800
Health Care REIT, Inc.
Reports Second Quarter Results
Reports Second Quarter Results
Toledo, Ohio, August 7, 2007........Health Care REIT, Inc. (NYSE:HCN)announced today operating results for its second quarter ended June 30, 2007.
Recent Highlights.
• | Completed net new investments year-to-date totaling $610 million | ||
• | Acquired 17 medical office buildings and Paramount Real Estate Services for approximately $292 million during the second quarter | ||
• | Reported 2Q07 normalized FFO growth of 5% | ||
• | Issued $400 million of 4.75% convertible senior unsecured notes in July | ||
• | Received debt upgrade to BBB from Fitch Ratings | ||
• | Expanded and extended existing unsecured lines of credit to $1.15 billion |
Key Performance Indicators.
2Q07 | 2Q06 | Change | 2007 | 2006 | Change | |||||||||||||||||||
Net income available to common stockholders (NICS) per diluted share | $ | 0.32 | $ | 0.37 | -14 | % | $ | 0.64 | $ | 0.70 | -9 | % | ||||||||||||
Normalized FFO per diluted share | $ | 0.78 | $ | 0.74 | 5 | % | $ | 1.54 | $ | 1.45 | 6 | % | ||||||||||||
Normalized FAD per diluted share | $ | 0.73 | $ | 0.72 | 1 | % | $ | 1.43 | $ | 1.40 | 2 | % | ||||||||||||
Dividends per common share | $ | 0.66 | $ | 0.64 | 3 | % | $ | 1.30 | $ | 1.26 | 3 | % | ||||||||||||
Normalized FFO Payout Ratio | 85 | % | 86 | % | 84 | % | 87 | % | ||||||||||||||||
Normalized FAD Payout Ratio | 90 | % | 89 | % | 91 | % | 90 | % |
2Q07 Earnings.The following table summarizes certain items impacting NICS, FFO and FAD:
NICS | FFO | FAD | ||||||||||||||||||||||||||||||||||
2Q07 | 2Q06 | Change | 2Q07 | 2Q06 | Change | 2Q07 | 2Q06 | Change | ||||||||||||||||||||||||||||
Per diluted share | $ | 0.32 | $ | 0.37 | -14 | % | $ | 0.75 | $ | 0.74 | 1 | % | $ | 0.74 | $ | 0.76 | -3 | % | ||||||||||||||||||
Includes impact of: | ||||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real property(1) | $ | 0.01 | $ | 0.02 | -50 | % | ||||||||||||||||||||||||||||||
One-time acquisition finders’ fees(2) | ($ | 0.02 | ) | ($ | 0.02 | ) | ($ | 0.02 | ) | |||||||||||||||||||||||||||
Cash receipts — prepaid/straight-line rent(3) | $ | 0.04 | $ | 0.04 | 0 | % | ||||||||||||||||||||||||||||||
Per diluted share — normalized (a) | $ | 0.78 | $ | 0.74 | 5 | % | $ | 0.73 | $ | 0.72 | 1 | % |
(a) | Amounts may not sum due to rounding | |
(1) | $1,033,000 and $929,000 of gains for 2Q07 and 2Q06, respectively. | |
(2) | $1,750,000 of one-time acquisition finders’ fees for 2Q07. | |
(3) | $2,832,000 and $2,710,000 of receipts for 2Q07 and 2Q06, respectively. |
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2Q07 Earnings Release | August 7, 2007 |
2007 Year-To-Date Earnings.The following table summarizes certain items impacting NICS, FFO and FAD:
NICS | FFO | FAD | ||||||||||||||||||||||||||||||||||
2007 | 2006 | Change | 2007 | 2006 | Change | 2007 | 2006 | Change | ||||||||||||||||||||||||||||
Per diluted share | $ | 0.64 | $ | 0.70 | -9 | % | $ | 1.51 | $ | 1.45 | 4 | % | $ | 1.47 | $ | 1.61 | -9 | % | ||||||||||||||||||
Includes impact of: | ||||||||||||||||||||||||||||||||||||
Gain (loss) on sales of real property(1) | $ | 0.03 | $ | 0.04 | -25 | % | ||||||||||||||||||||||||||||||
One-time acquisition finders’ fees(2) | ($ | 0.02 | ) | ($ | 0.02 | ) | ($ | 0.02 | ) | |||||||||||||||||||||||||||
Cash receipts — prepaid/straight-line rent(3) | $ | 0.06 | $ | 0.22 | -73 | % | ||||||||||||||||||||||||||||||
Per diluted share — normalized (a) | $ | 1.54 | $ | 1.45 | 6 | % | $ | 1.43 | $ | 1.40 | 2 | % |
(a) | Amounts may not sum due to rounding | |
(1) | $2,010,000 and $2,482,000 of gains for 2007 and 2006, respectively. | |
(2) | $1,750,000 of one-time acquisition finders’ fees for 2007. | |
(3) | $4,910,000 and $13,020,000 of receipts for 2007 and 2006, respectively. |
Dividends for Second Quarter 2007.As previously announced, the Board of Directors declared a dividend for the quarter ended June 30, 2007 of $0.66 per share, as compared to $0.64 per share for the same period in 2006. The dividend will be payable August 20, 2007 to stockholders of record on August 3, 2007 and will be the company’s 145th consecutive dividend payment.
Outlook for 2007.The company is affirming its investment guidance of $1.0 billion to $1.2 billion for 2007. Acquisition guidance has been increased to a range of $750 to $950 million from $700 to $800 million, while development funding is now projected to be approximately $250 million versus the prior range of $300 to $400 million. The decline in funded development projection is due to estimated timing of fundings as the company’s overall development pipeline remains strong. In addition, the company expects $100 to $200 million of dispositions, resulting in net investments of $800 million to $1.1 billion.
The company is adjusting its 2007 guidance for net income available to common stockholders to a range of $1.27 to $1.33 per diluted share from $1.18 to $1.26 per diluted share primarily due to the increase in acquisition guidance, expected interest savings from the $400 million convertible debt offering completed in July 2007, a reduction in projected depreciation and amortization to $146 million from $151 million and $1.0 million in gains on sales of real property in the second quarter. The company is increasing its 2007 normalized FFO guidance to a range of $3.09 to $3.15 per diluted share, from $3.06 to $3.14 per diluted share primarily due to the increase in acquisition guidance and the interest savings noted above. The company is increasing its 2007 FAD guidance to a range of $2.91 to $2.97 per diluted share, from $2.82 to $2.90 per diluted share primarily due to the increase in acquisition guidance, the interest savings noted above, cash receipts during the second quarter of $2.8 million and a reduction in expected capital expenditures, tenant improvements and lease commissions totaling $6 million from $7 million, offset in part by the $1.75 million in one-time acquisition finders' fees paid during the second quarter.
FFO and FAD for the quarter ended June 30, 2007 have been adjusted for $1.75 million of one-time acquisition finders’ fees paid to former Windrose management in connection with the closing of the Rendina/Paramount transaction. These fees relate to services rendered prior to the completion of the Windrose merger in December 2006. Due to the recipients’ current employment status with the company, the fees have been expensed as compensation rather than included in the purchase price of the acquisition, as is typical with such fees. These fees are excluded from the company’s normalized FFO guidance for 2007.
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 other than normal monthly rental payments. Please see Exhibit 16 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 Wednesday, August 8, 2007 at 9:00 a.m. Eastern Time to discuss its second quarter results, industry trends, portfolio performance and outlook for 2007. Telephone access will be available by dialing 800-811-8845 or 913-981-4905
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2Q07 Earnings Release | August 7, 2007 |
(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 22, 2007. To access the rebroadcast, dial 888-203-1112 or 719-457-0820 (international). The conference ID number is 2934492. 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 News & Events.
Supplemental Reporting Measures.The company believes that net income available to common stockholders (NICS), 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 real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Normalized FFO represents FFO adjusted for unusual and non-recurring items. FAD represents FFO excluding the net straight-line rental adjustments, rental income related to above/below market leases and amortization of deferred loan expenses and less cash used to fund capital expenditures, tenant improvements and lease commissions. Normalized FAD represents FAD excluding prepaid/straight-line rent cash receipts and adjusted for unusual and non-recurring items.
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. Adjusted EBITDA represents EBITDA as adjusted for stock-based compensation expenses and the provision for loan losses pursuant to covenant provisions of our unsecured lines of credit arrangements. The company primarily utilizes EBITDA to measure its interest coverage ratio, which represents EBITDA divided by total interest, and its fixed charge coverage ratio, which represents EBITDA divided by fixed charges. Fixed charges include total interest, secured debt principal amortization and preferred stock dividends.
Net operating income (NOI) is used to evaluate the operating performance of certain real estate properties such as medical office buildings. The company defines NOI as total revenues, including tenant reimbursements and discontinued operations, less property operating expenses, which exclude depreciation and amortization, general and administrative expenses, impairments and interest expense. The company believes NOI provides investors relevant and useful information because it measures the operating performance of our medical office buildings at the property level on an unleveraged basis. The company uses NOI to make decisions about resource allocations and to assess the property level performance of our medical office buildings.
The company’s supplemental reporting measures 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, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures 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
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2Q07 Earnings Release | August 7, 2007 |
profitability or liquidity. Finally, the supplemental reporting measures, 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 the Exhibits for reconciliations of the supplemental reporting measures.
About Health Care REIT.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a self-administered, equity real estate investment trust that invests across the full spectrum of senior housing and health care real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals and medical office buildings. Founded in 1970, the company was the first real estate investment trust to invest exclusively in health care facilities. As of June 30, 2007, the company’s broadly diversified portfolio consisted of 617 properties in 38 states. The company also offers a full array of property management and development services. 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 occupancy rates; its ability to acquire or develop properties; its ability to manage properties; its ability to enter into agreements with new viable tenants for vacant space or 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; its critical accounting policies; 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; operators’ and tenants’ difficulty in cost-effectively 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 or tenants, 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 timely reinvest sale proceeds at similar rates to assets sold; the company’s ability to re-lease space at similar rates as vacancies occur; operator or tenant bankruptcies or insolvencies; government regulations affecting Medicare and Medicaid reimbursement rates; liability or contract claims by or against operators and tenants; unanticipated difficulties and/or expenditures relating to future acquisitions and the integration of multi-property acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; and legal and operational matters, including real estate investment trust qualification and key management personnel recruitment and retention. 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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2Q07 Earnings Release | August 7, 2007 |
HEALTH CARE REIT, INC.
Financial Supplement
Financial Supplement
CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands)
June 30, | ||||||||
2007 | 2006 | |||||||
Assets | ||||||||
Real estate investments: | ||||||||
Real property owned | ||||||||
Land and land improvements | $ | 403,460 | $ | 270,810 | ||||
Buildings and building improvements | 4,086,599 | 2,758,358 | ||||||
Acquired lease intangibles | 136,589 | 0 | ||||||
Real property held for sale, net of accumulated depreciation | 24,520 | 0 | ||||||
Construction in progress | 173,408 | 75,822 | ||||||
4,824,576 | 3,104,990 | |||||||
Less accumulated depreciation and intangible amortization | (414,628 | ) | (317,869 | ) | ||||
Total real property owned | 4,409,948 | 2,787,121 | ||||||
Loans receivable | 250,238 | 178,282 | ||||||
Less allowance for losses on loans receivable | (7,406 | ) | (6,961 | ) | ||||
242,832 | 171,321 | |||||||
Net real estate investments | 4,652,780 | 2,958,442 | ||||||
Other assets: | ||||||||
Equity investments | 4,700 | 5,070 | ||||||
Deferred loan expenses | 19,036 | 11,523 | ||||||
Cash and cash equivalents | 38,472 | 15,200 | ||||||
Receivables and other assets | 109,816 | 71,877 | ||||||
172,024 | 103,670 | |||||||
Total assets | $ | 4,824,804 | $ | 3,062,112 | ||||
Liabilities and stockholders’ equity | ||||||||
Liabilities: | ||||||||
Borrowings under unsecured lines of credit arrangements | $ | 364,400 | $ | 146,000 | ||||
Senior unsecured notes | 1,539,155 | 1,193,355 | ||||||
Secured debt | 500,811 | 131,178 | ||||||
Liability to subsidiary trust issuing preferred securities | 52,195 | 0 | ||||||
Accrued expenses and other liabilities | 98,545 | 45,641 | ||||||
Total liabilities | 2,555,106 | 1,516,174 | ||||||
Minority interests | 2,294 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | 338,993 | 276,875 | ||||||
Common stock | 80,752 | 62,446 | ||||||
Capital in excess of par value | 2,181,830 | 1,450,531 | ||||||
Treasury stock | (3,941 | ) | (2,714 | ) | ||||
Cumulative net income | 994,463 | 883,082 | ||||||
Cumulative dividends | (1,327,018 | ) | (1,125,810 | ) | ||||
Accumulated other comprehensive income | (135 | ) | 0 | |||||
Other equity | 2,460 | 1,528 | ||||||
Total stockholders’ equity | 2,267,404 | 1,545,938 | ||||||
Total liabilities and stockholders’ equity | $ | 4,824,804 | $ | 3,062,112 | ||||
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2Q07 Earnings Release | August 7, 2007 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues: | ||||||||||||||||
Rental income | $ | 111,532 | $ | 71,757 | $ | 216,670 | $ | 142,396 | ||||||||
Interest income | 6,576 | 4,480 | 11,725 | 8,742 | ||||||||||||
Other income | 1,144 | 1,665 | 2,737 | 2,030 | ||||||||||||
Gross revenues | 119,252 | 77,902 | 231,132 | 153,168 | ||||||||||||
Expenses: | ||||||||||||||||
Interest expense | 33,457 | 22,325 | 65,138 | 45,597 | ||||||||||||
Property operating expenses | 8,657 | 0 | 15,825 | 0 | ||||||||||||
Depreciation and amortization | 35,341 | 22,788 | 68,995 | 44,407 | ||||||||||||
General and administrative expenses | 9,888 | 4,798 | 19,680 | 10,773 | ||||||||||||
Loan expense | 1,236 | 707 | 2,503 | 1,418 | ||||||||||||
Provision for loan losses | 0 | 250 | 0 | 500 | ||||||||||||
Total expenses | 88,579 | 50,868 | 172,141 | 102,695 | ||||||||||||
Income from continuing operations before minority interests | 30,673 | 27,034 | 58,991 | 50,473 | ||||||||||||
Minority interests | (161 | ) | 0 | (286 | ) | 0 | ||||||||||
Income from continuing operations | 30,512 | 27,034 | 58,705 | 50,473 | ||||||||||||
Discontinued operations: | ||||||||||||||||
Gain (loss) on sales of properties | 1,033 | 929 | 2,010 | 2,482 | ||||||||||||
Income (loss) from discontinued operations, net | 392 | 38 | 895 | 24 | ||||||||||||
1,425 | 967 | 2,905 | 2,506 | |||||||||||||
Net income | 31,937 | 28,001 | 61,610 | 52,979 | ||||||||||||
Preferred dividends | 6,317 | 5,333 | 12,634 | 10,666 | ||||||||||||
Net income available to common stockholders | $ | 25,620 | $ | 22,668 | $ | 48,976 | $ | 42,313 | ||||||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 79,060 | 61,548 | 76,159 | 59,871 | ||||||||||||
Diluted | 79,546 | 61,868 | 76,714 | 60,201 | ||||||||||||
Net income available to common stockholders per share: | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.37 | $ | 0.64 | $ | 0.71 | ||||||||
Diluted | 0.32 | 0.37 | 0.64 | 0.70 | ||||||||||||
Common dividends per share | $ | 0.66 | $ | 0.64 | $ | 0.9591 | $ | 1.26 |
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2Q07 Earnings Release | August 7, 2007 |
HEALTH CARE REIT, INC.
Financial Supplement — June 30, 2007
Financial Supplement — June 30, 2007
Exhibit 1
Portfolio Composition
($000’s except Investment per Bed/Unit/Sq. Ft.)
($000’s except Investment per Bed/Unit/Sq. Ft.)
# Properties | Balance | % Balance | ||||||||||
Balance Sheet Data | ||||||||||||
Real Property | 585 | $ | 4,409,948 | 95 | % | |||||||
Loans Receivable (1) | 32 | 250,238 | 5 | % | ||||||||
Totals | 617 | $ | 4,660,186 | 100 | % |
# Properties | Investment (2) | % Investment | ||||||||||
Investment Balances | ||||||||||||
Independent/CCRCs | 50 | $ | 588,241 | 13 | % | |||||||
Assisted Living Facilities | 206 | 1,032,430 | 22 | % | ||||||||
Skilled Nursing Facilities | 232 | 1,535,795 | 33 | % | ||||||||
Medical Office Buildings | 109 | 1,202,284 | 26 | % | ||||||||
Specialty Care Facilities | 20 | 303,886 | 6 | % | ||||||||
Totals | 617 | $ | 4,662,636 | 100 | % |
# Beds/Units | Committed | Investment | ||||||||||||||
# Properties | or Sq. Ft. | Balance (3) | per metric | |||||||||||||
Committed Investments | ||||||||||||||||
Independent/CCRCs | 50 | 6,037 units | $ | 876,957 | $145,264 unit | |||||||||||
Assisted Living Facilities | 206 | 12,516 units | 1,132,955 | 90,521 unit | ||||||||||||
Skilled Nursing Facilities | 232 | 31,446 beds | 1,542,352 | 49,048 bed | ||||||||||||
Medical Office Buildings | 109 | 4,275,776 sq. ft. | 1,202,284 | 281 sq. ft. | ||||||||||||
Specialty Care Facilities | 20 | 1,508 beds | 339,200 | 224,934 bed | ||||||||||||
Totals | 617 | -na- | $ | 5,093,748 | -na- |
Notes: (1) Includes $799,000 of loans on non-accrual.
(2) Real Estate Investments include gross real estate investments and credit enhancements which amounted to $4,660,186,000 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.
Exhibit 2
Selected Facility Data
Coverage Data | ||||||||||||||||||||||||
% Payor Mix - Revenues | Before | After | ||||||||||||||||||||||
Census | Private | Medicare | Medicaid | Mgt. Fees | Mgt. Fees | |||||||||||||||||||
Independent/CCRCs | 92 | % | 96 | % | 3 | % | 1 | % | 1.42x | 1.22x | ||||||||||||||
Assisted Living Facilities | 88 | % | 85 | % | 0 | % | 15 | % | 1.59x | 1.38x | ||||||||||||||
Skilled Nursing Facilities | 85 | % | 19 | % | 30 | % | 51 | % | 2.20x | 1.58x | ||||||||||||||
Medical Office Buildings | 91 | % | 100 | % | 0 | % | 0 | % | -na- | -na- | ||||||||||||||
Specialty Care Facilities | 60 | % | 21 | % | 61 | % | 18 | % | 2.64x | 2.09x | ||||||||||||||
Weighted Averages | 1.96x | 1.52x |
Notes: Data as of March 31, 2007. Payor mix represents percentage of facility/operator revenues.
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2Q07 Earnings Release | August 7, 2007 |
Exhibit 3
Investment Concentrations ($000’s)
# Properties | Investment | % Investment | ||||||||||
Concentration by Customer | ||||||||||||
Emeritus Corporation | 50 | $ | 350,273 | 8 | % | |||||||
Brookdale Senior Living Inc. | 87 | 279,699 | 6 | % | ||||||||
Life Care Centers of America, Inc. | 26 | 252,144 | 5 | % | ||||||||
Home Quality Management, Inc. | 35 | 229,039 | 5 | % | ||||||||
Merrill Gardens L.L.C. | 13 | 180,490 | 4 | % | ||||||||
Remaining portfolio | 406 | 3,370,991 | 72 | % | ||||||||
Totals | 617 | $ | 4,662,636 | 100 | % |
# Properties | Investment | % Investment | ||||||||||
Concentration by Region | ||||||||||||
South | 378 | $ | 2,506,404 | 54 | % | |||||||
West | 87 | 886,444 | 19 | % | ||||||||
Midwest | 81 | 704,372 | 15 | % | ||||||||
Northeast | 71 | 565,416 | 12 | % | ||||||||
Totals | 617 | $ | 4,662,636 | 100 | % |
# Properties | Investment | % Investment | ||||||||||
Concentration by State | ||||||||||||
Florida | 90 | $ | 733,707 | 16 | % | |||||||
Texas | 79 | 614,743 | 13 | % | ||||||||
California | 24 | 344,779 | 7 | % | ||||||||
Massachusetts | 37 | 326,399 | 7 | % | ||||||||
Ohio | 31 | 272,884 | 6 | % | ||||||||
Remaining portfolio | 356 | 2,370,124 | 51 | % | ||||||||
Totals | 617 | $ | 4,662,636 | 100 | % |
Exhibit 4
NOI Reconciliation ($000’s)
Gross | Property Operating | Net Operating | ||||||||||||||||||||||
Revenues (1) | Expenses | Income | ||||||||||||||||||||||
Current Quarter | ||||||||||||||||||||||||
Independent/CCRCs | $ | 10,914 | 9 | % | $ | 10,914 | 10 | % | ||||||||||||||||
Assisted Living Facilities | 26,287 | 22 | % | 26,287 | 24 | % | ||||||||||||||||||
Skilled Nursing Facilities | 47,964 | 40 | % | 47,964 | 43 | % | ||||||||||||||||||
Medical Office Buildings | 26,289 | 22 | % | $ | 8,597 | 99 | % | 17,692 | 16 | % | ||||||||||||||
Specialty Care Facilities | 7,419 | 6 | % | 60 | 1 | % | 7,359 | 7 | % | |||||||||||||||
Other income | 1,144 | 1 | % | 1,144 | 0 | % | ||||||||||||||||||
Totals | $ | 120,017 | 100 | % | $ | 8,657 | 100 | % | $ | 111,360 | 100 | % | ||||||||||||
Year-To-Date | ||||||||||||||||||||||||
Independent/CCRCs | $ | 21,137 | 9 | % | $ | 21,137 | 10 | % | ||||||||||||||||
Assisted Living Facilities | 52,815 | 23 | % | 52,815 | 24 | % | ||||||||||||||||||
Skilled Nursing Facilities | 91,458 | 39 | % | 91,458 | 42 | % | ||||||||||||||||||
Medical Office Buildings | 50,076 | 21 | % | $ | 15,748 | 100 | % | 34,328 | 16 | % | ||||||||||||||
Specialty Care Facilities | 14,703 | 6 | % | 77 | 0 | % | 14,626 | 7 | % | |||||||||||||||
Other income | 2,737 | 2 | % | 2,737 | 1 | % | ||||||||||||||||||
Totals | $ | 232,926 | 100 | % | $ | 15,825 | 100 | % | $ | 217,101 | 100 | % |
Notes: (1) Revenues include gross revenues and revenues from discontinued operations.
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2Q07 Earnings Release | August 7, 2007 |
Exhibit 5
Revenue Maturities ($000’s)
Investment Properties | Operating Properties | Interest | Total | ||||||||||||||||||
Year | Rental Income (1) | Rental Income (1) | Income (1) | Revenues | % of Total | ||||||||||||||||
2007 | $ | 2,525 | $ | 5,543 | $ | 2,364 | $ | 10,432 | 2 | % | |||||||||||
2008 | 367 | 11,738 | 2,272 | 14,377 | 3 | % | |||||||||||||||
2009 | 939 | 7,475 | 2,435 | 10,849 | 2 | % | |||||||||||||||
2010 | 578 | 7,833 | 3,744 | 12,155 | 3 | % | |||||||||||||||
2011 | 7,251 | 7,098 | 400 | 14,749 | 3 | % | |||||||||||||||
Thereafter | 318,630 | 50,273 | 11,136 | 380,039 | 87 | % | |||||||||||||||
Totals | $ | 330,290 | $ | 89,960 | $ | 22,351 | $ | 442,601 | 100 | % |
Notes: (1) Revenue impact by year, annualized.
Exhibit 6
Debt Maturities and Principal Payments ($000’s)
Trust | ||||||||||||||||||||
Preferred | ||||||||||||||||||||
Year | Lines of Credit (1) | Senior Notes (2) | Secured Debt (2) | Liability (2) | Total | |||||||||||||||
2007 | $ | 0 | $ | 52,500 | $ | 4,070 | $ | 0 | $ | 56,570 | ||||||||||
2008 | 14,400 | 42,330 | 27,456 | 0 | 84,186 | |||||||||||||||
2009 | 350,000 | 0 | 53,260 | 0 | 403,260 | |||||||||||||||
2010 | 0 | 0 | 14,933 | 0 | 14,933 | |||||||||||||||
2011 | 0 | 0 | 52,056 | 0 | 52,056 | |||||||||||||||
2012 | 0 | 250,000 | 23,478 | 0 | 273,478 | |||||||||||||||
2013 | 0 | 300,000 | 51,884 | 0 | 351,884 | |||||||||||||||
Thereafter | 0 | 895,000 | 273,298 | 51,000 | 1,219,298 | |||||||||||||||
Totals | $ | 364,400 | $ | 1,539,830 | $ | 500,435 | $ | 51,000 | $ | 2,455,665 |
Notes: (1) Subsequent to June 30, 2007, the lines of credit have been combined and the maturity extended to 2011.
(2) Amounts above represent principal amounts due and do not reflect unamortized premiums/discounts or other fair value adjustments as reflected on the balance sheet.
Exhibit 7
Fill-Up Concentrations ($000’s)
Investment | ||||||||||||||||
# Properties | # Beds/Units | Balance | % Investment | |||||||||||||
Facility Type | ||||||||||||||||
Independent/CCRCs | 8 | 1,549 | $ | 192,183 | 4 | % | ||||||||||
Assisted Living Facilities | 18 | 1,040 | 153,728 | 3 | % | |||||||||||
Skilled Nursing Facilities | 11 | 1,229 | 82,848 | 2 | % | |||||||||||
Specialty Care Facilities | 1 | 62 | 13,266 | 0 | % | |||||||||||
Totals | 38 | 3,880 | $ | 442,025 | 9 | % |
Average Months | ||||||||||||||||
# Properties | in Operation | Revenues (1) | % Revenues | |||||||||||||
Occupancy | ||||||||||||||||
0% - 50% | 12 | 4 | $ | 2,376 | 1 | % | ||||||||||
50% - 70% | 3 | 7 | 1,561 | 1 | % | |||||||||||
70% + | 23 | 13 | 12,992 | 6 | % | |||||||||||
Totals | 38 | 9 | $ | 16,929 | 7 | % |
Notes: (1) Revenues include gross revenues and revenues from discontinued operations for the six months ended June 30, 2007.
Page 9 of 15
2Q07 Earnings Release | August 7, 2007 |
Exhibit 8
Investment Activity ($000’s)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2007 | June 30, 2007 | |||||||||||||||
Funding by Investment Type | ||||||||||||||||
Real Property | $ | 407,169 | 97 | % | $ | 570,399 | 86 | % | ||||||||
Loans Receivable | 10,964 | 3 | % | 91,391 | 14 | % | ||||||||||
Totals | $ | 418,133 | 100 | % | $ | 661,790 | 100 | % | ||||||||
Funding by Facility Type | ||||||||||||||||
Independent/CCRCs | $ | 40,036 | 10 | % | $ | 72,841 | 11 | % | ||||||||
Assisted Living Facilities | 15,042 | 4 | % | 57,393 | 9 | % | ||||||||||
Skilled Nursing Facilities | 14,294 | 3 | % | 160,463 | 24 | % | ||||||||||
Medical Office Buildings | 312,304 | 75 | % | 320,302 | 48 | % | ||||||||||
Specialty Care Facilities | 36,457 | 8 | % | 50,791 | 8 | % | ||||||||||
Totals | $ | 418,133 | 100 | % | $ | 661,790 | 100 | % |
Exhibit 9
Development Activity ($000’s)
Balance at | 2007 YTD | 2007 YTD | Balance at | Committed | ||||||||||||||||
Facility Type | December 31, 2006 | Fundings | Conversions | June 30, 2007 | Balances | |||||||||||||||
Independent/CCRCs | $ | 61,709 | $ | 47,125 | $ | (23,857 | ) | $ | 84,977 | $ | 373,693 | |||||||||
Assisted Living Facilities | 55,197 | 27,061 | (42,454 | ) | 39,804 | 140,329 | ||||||||||||||
Skilled Nursing Facilities | 14,852 | 7,849 | (7,910 | ) | 14,791 | 21,348 | ||||||||||||||
Specialty Care Facilities | 6,464 | 27,372 | 0 | 33,836 | 69,150 | |||||||||||||||
Totals | $ | 138,222 | $ | 109,407 | $ | (74,221 | ) | $ | 173,408 | $ | 604,520 |
Development Funding Projections for Existing Projects ($000’s)
Projected Future Fundings | ||||||||||||||||||||
2007 | Fundings | Unfunded | ||||||||||||||||||
Facility Type | Projects | # Beds/Units | Fundings | Thereafter | Commitments | |||||||||||||||
Independent/CCRCs | 9 | 1,343 | $ | 54,742 | $ | 233,974 | $ | 288,716 | ||||||||||||
Assisted Living Facilities | 8 | 869 | 17,023 | 83,502 | 100,525 | |||||||||||||||
Skilled Nursing Facilities | 2 | 175 | 5,643 | 914 | 6,557 | |||||||||||||||
Specialty Care Facilities | 4 | 212 | 25,159 | 10,155 | 35,314 | |||||||||||||||
Totals | 23 | 2,599 | $ | 102,567 | $ | 328,545 | $ | 431,112 |
Project Conversion Projections ($000’s)
2007 Quarterly Conversions | Annual Projections | |||||||||||||||||||
Projected Average | Projected Average | |||||||||||||||||||
Quarter | Amount | Initial Yields (1) | Year | Amount | Initial Yields (1) | |||||||||||||||
1Q07 actual | $ | 6,921 | 9.06 | % | 2007 projected | $ | 163,936 | 9.31 | % | |||||||||||
2Q07 actual | 67,300 | 9.35 | % | 2008 projected | 232,336 | 9.39 | % | |||||||||||||
3Q07 projected | 16,630 | 9.63 | % | 2009 projected | 111,319 | 10.00 | % | |||||||||||||
4Q07 projected | 73,085 | 9.23 | % | 2010 projected | 171,150 | 9.77 | % | |||||||||||||
Totals | $ | 163,936 | 9.31 | % | Totals | $ | 678,741 | 9.57 | % |
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
2Q07 Earnings Release | August 7, 2007 |
Exhibit 10
Disposition Activity ($000’s)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2007 | June 30, 2007 | |||||||||||||||
Dispositions by Investment Type | ||||||||||||||||
Real Property | $ | 11,613 | 43 | % | $ | 22,173 | 43 | % | ||||||||
Loans Receivable | 15,683 | 57 | % | 29,865 | 57 | % | ||||||||||
Totals | $ | 27,296 | 100 | % | $ | 52,038 | 100 | % | ||||||||
Dispositions by Facility Type | ||||||||||||||||
Assisted Living Facilities | $ | 5,140 | 19 | % | $ | 27,475 | 53 | % | ||||||||
Skilled Nursing Facilities | 7,377 | 27 | % | 7,377 | 14 | % | ||||||||||
Independent/CCRCs | 14,779 | 54 | % | 17,186 | 33 | % | ||||||||||
Totals | $ | 27,296 | 100 | % | $ | 52,038 | 100 | % |
Exhibit 11
Discontinued Operations ($000’s)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues | ||||||||||||||||
Rental income | $ | 765 | $ | 2,434 | $ | 1,794 | $ | 5,255 | ||||||||
Expenses | ||||||||||||||||
Interest expense | 167 | 762 | 486 | 1,728 | ||||||||||||
Depreciation and amortization | 206 | 1,343 | 413 | 2,985 | ||||||||||||
General and administrative | 0 | 291 | 0 | 518 | ||||||||||||
Income (loss) from discontinued operations, net | $ | 392 | $ | 38 | $ | 895 | $ | 24 |
Exhibit 12
Current Capitalization ($000’s except share price) | Leverage & Performance Ratios | |||||||||||||||
Balance | % Balance | |||||||||||||||
Borrowings Under Bank Lines | $ | 364,400 | 8 | % | Debt/Total Book Cap | 52 | % | |||||||||
Long-Term Debt Obligations | 2,039,966 | 43 | % | |||||||||||||
Trust Preferred Liability | 52,195 | 1 | % | Debt/Undepreciated Book Cap | 48 | % | ||||||||||
Stockholders’ Equity | 2,267,404 | 48 | % | |||||||||||||
Total Book Capitalization | $ | 4,723,965 | 100 | % | Debt/Total Market Cap | 41 | % | |||||||||
Common Shares Outstanding (000’s) | 80,882 | Interest Coverage | 2.83x 2nd Qtr. | |||||||||||||
Period-End Share Price | $ | 40.36 | 2.82x YTD | |||||||||||||
Common Stock Market Value | $ | 3,264,398 | 54 | % | Interest Coverage | 2.86x 2nd Qtr. | ||||||||||
Preferred Stock | 338,993 | 5 | % | - adjusted | 2.89x YTD | |||||||||||
Borrowings Under Bank Lines | 364,400 | 6 | % | Fixed Charge Coverage | 2.30x 2nd Qtr. | |||||||||||
Trust Preferred Liability | 52,195 | 1 | % | 2.29x YTD | ||||||||||||
Long-Term Debt Obligations | 2,039,966 | 34 | % | Fixed Charge Coverage | 2.33x 2nd Qtr. | |||||||||||
Total Market Capitalization | $ | 6,059,952 | 100 | % | - adjusted | 2.34x YTD |
Page 11 of 15
2Q07 Earnings Release | August 7, 2007 |
Exhibit 13
EBITDA Reconciliation ($000’s)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net income | $ | 31,937 | $ | 28,001 | $ | 61,610 | $ | 52,979 | ||||||||
Interest expense (1) | 33,624 | 23,087 | 65,624 | 47,325 | ||||||||||||
Tax expense (benefit) | (69 | ) | 12 | (58 | ) | 12 | ||||||||||
Depreciation and amortization (1) | 35,547 | 24,131 | 69,408 | 47,392 | ||||||||||||
Amortization of deferred loan expenses | 1,236 | 707 | 2,503 | 1,418 | ||||||||||||
EBITDA | 102,275 | 75,938 | 199,087 | 149,126 | ||||||||||||
Stock-based compensation expense | 1,276 | 838 | 4,453 | 3,351 | ||||||||||||
Provision for loan losses | 0 | 250 | 0 | 500 | ||||||||||||
EBITDA — adjusted | $ | 103,551 | $ | 77,026 | $ | 203,540 | $ | 152,977 | ||||||||
Interest Coverage Ratio | ||||||||||||||||
Interest expense (1) | $ | 33,624 | $ | 23,087 | $ | 65,624 | $ | 47,325 | ||||||||
Capitalized interest | 2,570 | 909 | 4,896 | 1,111 | ||||||||||||
Total interest | 36,194 | 23,996 | 70,520 | 48,436 | ||||||||||||
EBITDA | $ | 102,275 | $ | 75,938 | $ | 199,087 | $ | 149,126 | ||||||||
Interest coverage ratio | 2.83 | x | 3.16 | x | 2.82 | x | 3.08 | x | ||||||||
EBITDA — adjusted | $ | 103,551 | $ | 77,026 | $ | 203,540 | $ | 152,977 | ||||||||
Interest coverage ratio — adjusted | 2.86 | x | 3.21 | x | 2.89 | x | 3.16 | x | ||||||||
Fixed Charge Coverage Ratio | ||||||||||||||||
Total interest (1) | $ | 36,194 | $ | 23,996 | $ | 70,520 | $ | 48,436 | ||||||||
Secured debt principal amortization | 1,894 | 768 | 3,788 | 1,411 | ||||||||||||
Preferred dividends | 6,317 | 5,333 | 12,634 | 10,666 | ||||||||||||
Total fixed charges | 44,405 | 30,097 | 86,942 | 60,513 | ||||||||||||
EBITDA | $ | 102,275 | $ | 75,938 | $ | 199,087 | $ | 149,126 | ||||||||
Fixed charge coverage ratio | 2.30 | x | 2.52 | x | 2.29 | x | 2.46 | x | ||||||||
EBITDA — adjusted | $ | 103,551 | $ | 77,026 | $ | 203,540 | $ | 152,977 | ||||||||
Fixed charge coverage ratio — adjusted | 2.33 | x | 2.56 | x | 2.34 | x | 2.53 | x |
Notes: | (1) Depreciation and amortization and interest expense include depreciation and amortization and interest expense from discontinued operations. |
Page 12 of 15
2Q07 Earnings Release | August 7, 2007 |
Exhibit 14
Funds Available For Distribution Reconciliation
(Amounts in 000’s except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net income available to common stockholders | $ | 25,620 | $ | 22,668 | $ | 48,976 | $ | 42,313 | ||||||||
Depreciation and amortization (1) | 35,547 | 24,131 | 69,408 | 47,392 | ||||||||||||
Loss (gain) on sales of properties | (1,033 | ) | (929 | ) | (2,010 | ) | (2,482 | ) | ||||||||
Minority interests | (82 | ) | 0 | (87 | ) | 0 | ||||||||||
Gross straight-line rental income | (3,878 | ) | (2,216 | ) | (8,109 | ) | (4,616 | ) | ||||||||
Prepaid/straight-line rent receipts | 2,832 | 2,710 | 4,910 | 13,020 | ||||||||||||
Rental income related to above/(below) market leases, net | (464 | ) | 0 | (924 | ) | 0 | ||||||||||
Amortization of deferred loan expenses | 1,236 | 707 | 2,503 | 1,418 | ||||||||||||
Cap Ex, tenant improvements, lease commissions | (762 | ) | 0 | (1,825 | ) | 0 | ||||||||||
Funds available for distribution | 59,016 | 47,071 | 112,842 | 97,045 | ||||||||||||
One-time acquisition finder’s fees | 1,750 | 0 | 1,750 | 0 | ||||||||||||
Prepaid/straight-line rent receipts | (2,832 | ) | (2,710 | ) | (4,910 | ) | (13,020 | ) | ||||||||
Funds available for distribution — normalized | $ | 57,934 | $ | 44,361 | $ | 109,682 | $ | 84,025 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 79,060 | 61,548 | 76,159 | 59,871 | ||||||||||||
Diluted | 79,546 | 61,868 | 76,714 | 60,201 | ||||||||||||
Per share data: | ||||||||||||||||
Net income available to common stockholders | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.37 | $ | 0.64 | $ | 0.71 | ||||||||
Diluted | 0.32 | 0.37 | 0.64 | 0.70 | ||||||||||||
Funds available for distribution | ||||||||||||||||
Basic | $ | 0.75 | $ | 0.76 | $ | 1.48 | $ | 1.62 | ||||||||
Diluted | 0.74 | 0.76 | 1.47 | 1.61 | ||||||||||||
Funds available for distribution — normalized | ||||||||||||||||
Basic | $ | 0.73 | $ | 0.72 | $ | 1.44 | $ | 1.40 | ||||||||
Diluted | 0.73 | 0.72 | 1.43 | 1.40 | ||||||||||||
FAD Payout Ratio | ||||||||||||||||
Dividends per common share (2) | $ | 0.66 | $ | 0.64 | $ | 1.30 | $ | 1.26 | ||||||||
FAD per diluted share | $ | 0.74 | $ | 0.76 | $ | 1.47 | $ | 1.61 | ||||||||
FAD payout ratio | 89 | % | 84 | % | 88 | % | 78 | % | ||||||||
FAD Payout Ratio — Normalized | ||||||||||||||||
Dividends per common share (2) | $ | 0.66 | $ | 0.64 | $ | 1.30 | $ | 1.26 | ||||||||
FAD per diluted share — normalized | $ | 0.73 | $ | 0.72 | $ | 1.43 | $ | 1.40 | ||||||||
FAD payout ratio — normalized | 90 | % | 89 | % | 91 | % | 90 | % |
Notes: (1) | Depreciation and amortization includes depreciation and amortization from discontinued operations. | |
(2) | Includes $0.3409 prorated dividend paid on December 28, 2006 in connection with the Windrose merger. |
Page 13 of 15
2Q07 Earnings Release | August 7, 2007 |
Exhibit 15
Funds From Operations Reconciliation
(Amounts in 000’s except per share data)
(Amounts in 000’s except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net income available to common stockholders | $ | 25,620 | $ | 22,668 | $ | 48,976 | $ | 42,313 | ||||||||
Depreciation and amortization (1) | 35,547 | 24,131 | 69,408 | 47,392 | ||||||||||||
Loss (gain) on sales of properties | (1,033 | ) | (929 | ) | (2,010 | ) | (2,482 | ) | ||||||||
Minority interests | (155 | ) | 0 | (187 | ) | 0 | ||||||||||
Funds from operations | $ | 59,979 | $ | 45,870 | $ | 116,187 | $ | 87,223 | ||||||||
One-time acquisition finder’s fees | 1,750 | 0 | 1,750 | 0 | ||||||||||||
Funds from operations — normalized | $ | 61,729 | $ | 45,870 | $ | 117,937 | $ | 87,223 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 79,060 | 61,548 | 76,159 | 59,871 | ||||||||||||
Diluted | 79,546 | 61,868 | 76,714 | 60,201 | ||||||||||||
Per share data: | ||||||||||||||||
Net income available to common stockholders | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.37 | $ | 0.64 | $ | 0.71 | ||||||||
Diluted | 0.32 | 0.37 | 0.64 | 0.70 | ||||||||||||
Funds from operations | ||||||||||||||||
Basic | $ | 0.76 | $ | 0.75 | $ | 1.53 | $ | 1.46 | ||||||||
Diluted | 0.75 | 0.74 | 1.51 | 1.45 | ||||||||||||
Funds from operations — normalized | ||||||||||||||||
Basic | $ | 0.78 | $ | 0.75 | $ | 1.55 | $ | 1.46 | ||||||||
Diluted | 0.78 | 0.74 | 1.54 | 1.45 | ||||||||||||
FFO Payout Ratio | ||||||||||||||||
Dividends per common share (2) | $ | 0.66 | $ | 0.64 | $ | 1.30 | $ | 1.26 | ||||||||
FFO per diluted share | $ | 0.75 | $ | 0.74 | $ | 1.51 | $ | 1.45 | ||||||||
FFO payout ratio | 88 | % | 86 | % | 86 | % | 87 | % | ||||||||
FFO Payout Ratio — Normalized | ||||||||||||||||
Dividends per share (2) | $ | 0.66 | $ | 0.64 | $ | 1.30 | $ | 1.26 | ||||||||
FFO per diluted share — normalized | $ | 0.78 | $ | 0.74 | $ | 1.54 | $ | 1.45 | ||||||||
FFO payout ratio — normalized | 85 | % | 86 | % | 84 | % | 87 | % |
Notes: (1) | Depreciation and amortization includes depreciation and amortization from discontinued operations. | |
(2) | Includes $0.3409 prorated dividend paid on December 28, 2006 in connection with the Windrose merger. |
Page 14 of 15
2Q07 Earnings Release | August 7, 2007 |
Exhibit 16
Outlook Reconciliations
(Amounts in 000’s except per share data)
(Amounts in 000’s except per share data)
Previous Outlook | Current Outlook | |||||||||||||||
Year Ended | Year Ended | |||||||||||||||
December 31, 2007 | December 31, 2007 | |||||||||||||||
Low | High | Low | High | |||||||||||||
FFO Reconciliation: | ||||||||||||||||
Net income available to common stockholders | $ | 94,777 | $ | 101,177 | $ | 101,610 | $ | 106,410 | ||||||||
Loss (gain) on sales of properties | (977 | ) | (977 | ) | (2,010 | ) | (2,010 | ) | ||||||||
Depreciation and amortization (1) | 151,000 | 151,000 | 146,000 | 146,000 | ||||||||||||
Funds from operations | 244,800 | 251,200 | 245,600 | 250,400 | ||||||||||||
One-time acquisition finders’ fees | 1,750 | 1,750 | ||||||||||||||
Funds from operations — normalized | $ | 244,800 | $ | 251,200 | $ | 247,350 | $ | 252,150 | ||||||||
Average common shares outstanding (diluted) | 80,000 | 80,000 | 80,000 | 80,000 | ||||||||||||
Per share data (diluted): | ||||||||||||||||
Net income available to common stockholders | $ | 1.18 | $ | 1.26 | $ | 1.27 | $ | 1.33 | ||||||||
Funds from operations | 3.06 | 3.14 | 3.07 | 3.13 | ||||||||||||
Funds from operations — normalized | 3.06 | 3.14 | 3.09 | 3.15 | ||||||||||||
FAD Reconciliation: | ||||||||||||||||
Net income available to common stockholders | $ | 94,777 | $ | 101,177 | $ | 101,610 | $ | 106,410 | ||||||||
Loss (gain) on sales of properties | (977 | ) | (977 | ) | (2,010 | ) | (2,010 | ) | ||||||||
Depreciation and amortization (1) | 151,000 | 151,000 | 146,000 | 146,000 | ||||||||||||
Gross straight-line rental income | (16,000 | ) | (16,000 | ) | (16,000 | ) | (16,000 | ) | ||||||||
Prepaid/straight-line rent receipts | 2,078 | 2,078 | 4,910 | 4,910 | ||||||||||||
Rental income related to above/below market leases | (2,000 | ) | (2,000 | ) | (2,000 | ) | (2,000 | ) | ||||||||
Amortization of deferred loan expenses | 4,000 | 4,000 | 6,000 | 6,000 | ||||||||||||
Cap Ex, tenant improvements, lease commissions | (7,000 | ) | (7,000 | ) | (6,000 | ) | (6,000 | ) | ||||||||
Funds available for distribution | 225,878 | 232,278 | 232,510 | 237,310 | ||||||||||||
One-time acquisition finders’ fees | 1,750 | 1,750 | ||||||||||||||
Prepaid/straight-line rent receipts | (2,078 | ) | (2,078 | ) | (4,910 | ) | (4,910 | ) | ||||||||
Funds available for distribution — normalized | $ | 223,800 | $ | 230,200 | $ | 229,350 | $ | 234,150 | ||||||||
Average common shares outstanding (diluted) | 80,000 | 80,000 | 80,000 | 80,000 | ||||||||||||
Per share data (diluted): | ||||||||||||||||
Net income available to common stockholders | $ | 1.18 | $ | 1.26 | $ | 1.27 | $ | 1.33 | ||||||||
Funds available for distribution | 2.82 | 2.90 | 2.91 | 2.97 | ||||||||||||
Funds available for distribution — normalized | 2.80 | 2.88 | 2.87 | 2.93 |
Notes: | (1) Depreciation and amortization includes depreciation and amortization from discontinued operations. |
Page 15 of 15