Exhibit 99.1
F O R I M M E D I A T E R E L E A S E | | |
| | | October 18, 2006 For more information contact: Scott Estes - (419) 247-2800 Mike Crabtree - (419) 247-2800 |
Health Care REIT, Inc.
Reports Third Quarter Results
Toledo, Ohio, October 18, 2006........Health Care REIT, Inc. (NYSE:HCN) announced today operating results for its third quarter ended September 30, 2006.
Third Quarter Highlights.
| · | Announced merger agreement with Windrose Medical Properties Trust to further diversify and expand our health care real estate portfolio with over 550 properties and approximately $4 billion in gross real estate investments |
| · | Completed net new investments totaling $163.3 million for the quarter and $330.4 million year-to-date |
| · | Increased 2006 FAD guidance to $3.04-$3.06 per diluted share from $2.95-$3.03 per diluted share |
| · | Expanded and extended existing unsecured line of credit to $700 million |
| · | Increased portfolio payment coverage to 1.95x from 1.93x in the prior quarter |
Key Performance Indicators.
| | | Quarter | | Quarter | | | | Year | | Year | | | |
| | | Ended | | Ended | | Percentage | | To Date | | To Date | | Percentage | |
| | | 9/30/06 | | 9/30/05 | | Change | | 9/30/06 | | 9/30/05 | | Change | |
| Net Income Available to Common | | | | | | | | | | | | | |
| Stockholders per Diluted Share | | $ | 0.34 | | $ | 0.37 | | | -8% | | $ | 1.04 | | $ | 0.67 | | | 55% | |
| FFO per Diluted Share | | $ | 0.73 | | $ | 0.77 | | | -5% | | $ | 2.18 | | $ | 1.85 | | | 18% | |
FFO per Diluted Share - Adjusted (1) | | $ | 0.73 | | $ | 0.77 | | | -5% | | $ | 2.18 | | $ | 2.19 | | | 0% | |
| FAD per Diluted Share | | $ | 0.75 | | $ | 0.77 | | | -3% | | $ | 2.34 | | $ | 1.77 | | | 32% | |
FAD per Diluted Share - Adjusted (1) | | $ | 0.75 | | $ | 0.77 | | | -3% | | $ | 2.34 | | $ | 2.12 | | | 10% | |
| Common Dividends per Share | | $ | 0.64 | | $ | 0.62 | | | 3% | | $ | 1.90 | | $ | 1.84 | | | 3% | |
| FFO Payout Ratio | | | 88% | | | 81% | | | | | | 87% | | | 99% | | | | |
FFO Payout Ratio - Adjusted (1) | | | 88% | | | 81% | | | | | | 87% | | | 84% | | | | |
| FAD Payout Ratio | | | 85% | | | 81% | | | | | | 81% | | | 104% | | | | |
FAD Payout Ratio - Adjusted (1) | | | 85% | | | 81% | | | | | | 81% | | | 87% | | | | |
3Q06 Earnings Discussion. The third quarter 2006 reported net income available to common stockholders of $0.34 per diluted share includes $108,000 of gains on sales of real property. FAD for third quarter 2006 was higher than FFO by $1.4 million ($0.02 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:
3Q06 Earnings Release | | October 18, 2006 |
| | | Quarter | | Quarter | | | | Quarter | | Quarter | | | |
| | | Ended | | Ended | | | | Ended | | Ended | | | |
| | | 9/30/06 | | 9/30/05 | | Percentage | | 9/30/06 | | 9/30/05 | | Percentage | |
| | | FFO | | FFO | | Change | | FAD | | FAD | | Change | |
| Per Diluted Share | | $ | 0.73 | | $ | 0.77 | | | -5% | | $ | 0.75 | | $ | 0.77 | | | -3% | |
| Included items: | | | | | | | | | | | | | | | | | | | |
| Cash receipts - prepaid/straight-line rent | | | | | | | | | | | $ | 0.05 | | $ | 0.05 | | | | |
| Per Diluted Share - Normalized | | | | | | | | | | | $ | 0.70 | | $ | 0.72 | | | -3% | |
| | | Year | | Year | | | | Year | | Year | | | |
| | | To Date | | To Date | | | | To Date | | To Date | | | |
| | | 9/30/06 | | 9/30/05 | | Percentage | | 9/30/06 | | 9/30/05 | | Percentage | |
| | | FFO | | FFO | | Change | | FAD | | FAD | | Change | |
| Per Diluted Share | | $ | 2.18 | | $ | 1.85 | | | 18% | | $ | 2.34 | | $ | 1.77 | | | 32% | |
| Debt extinguishment charges, net | | | | | $ | 0.34 | | | | | | | | $ | 0.34 | | | | |
| Per Diluted Share - Adjusted | | $ | 2.18 | | $ | 2.19 | | | 0% | | $ | 2.34 | | $ | 2.12 | | | 10% | |
| Included items: | | | | | | | | | | | | | | | | | | | |
| Cash receipts - prepaid/straight-line rent | | | | | | | | | | | $ | 0.27 | | $ | 0.11 | | | | |
| Per Diluted Share - Normalized | | | | | | | | | | | $ | 2.07 | | $ | 2.00 | | | 4% | |
Dividends for Third Quarter 2006. As previously announced, the Board of Directors declared a dividend for the quarter ended September 30, 2006 of $0.64 per share as compared to $0.62 per share for the same period in 2005. The dividend represents the 142nd consecutive dividend payment. The dividend will be payable November 20, 2006 to stockholders of record on October 31, 2006.
Development Initiative. The company currently expects to fund $175 million for development during 2006 comprised of $150 million on existing projects and an additional $25 million from projects which have yet to commence. The $150 million of expected funding from existing projects is comprised of $107 million funded during the nine months ended September 30, 2006 and $43 million expected to be funded during the fourth quarter of 2006. The information contained in Exhibit 8 relates only to development projects for which initial funding has commenced as of September 30, 2006, and does not include any additional development projects which may commence later in 2006.
Outlook for 2006. The company is revising its gross investment guidance to a range of $525 to $575 million from $525 to $600 million for 2006. Gross investments are comprised of $350 to $400 million of acquisitions and advances on existing assets and $175 million of funded new development. The company expects $150 million of dispositions, resulting in net investments of $375 to $425 million. The company is refining its 2006 guidance for net income available to common stockholders to a range of $1.38 to $1.40 per diluted share from a range of $1.34 to $1.42 per diluted share. The company is refining its 2006 FFO guidance to a range of $2.91 to $2.93 per diluted share from a range of $2.88 to $2.96 per diluted share. The company is increasing its 2006 FAD guidance to a range of $3.04 to $3.06 per diluted share from a range of $2.95 to $3.03 per diluted share primarily due to the cash receipts of $3.3 million during the third quarter of 2006.
3Q06 Earnings Release | | October 18, 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.
Windrose Merger Update. The company and Windrose Medical Properties Trust are working towards successfully closing the transaction and integrating the two companies. Management continues to anticipate that the merger will close on or around year-end 2006.
Conference Call Information. The company has scheduled a conference call on October 19, 2006 at 9:00 a.m. Eastern time to discuss its third 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 November 2, 2006. To access the rebroadcast, dial 888-203-1112 or 719-457-0820 (international). The conference ID number is 2816324. 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 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.
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.
3Q06 Earnings Release | | October 18, 2006 |
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 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 September 30, 2006, the company had investments in 477 facilities in 37 states with 58 operators and had total assets of approximately $3.2 billion. The portfolio included 39 independent living/continuing care retirement communities, 204 assisted living facilities, 220 skilled nursing facilities and 14 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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3Q06 Earnings Release | | October 18, 2006 |
HEALTH CARE REIT, INC.
Financial Supplement
CONSOLIDATED BALANCE SHEETS (unaudited) | | | | | | | |
| | | | | | | | |
(In thousands) | | | | | | | |
| | | September 30 | |
| | | 2006 | | | | 2005 | |
Assets | | | | | | | |
| Real estate investments: | | | | | | | | | | |
| Real property owned | | | | | | | | | | |
| Land | | $ | 276,480 | | | | | $ | 225,604 | |
| Buildings & improvements | | | 2,815,206 | | | | | | 2,373,762 | |
| Real property held for sale, net of accumulated depreciation | | | 27,678 | | | | | | 52,167 | |
| Construction in progress | | | 98,675 | | | | | | 1,135 | |
| | | | 3,218,039 | | | | | | 2,652,668 | |
| Less accumulated depreciation | | | (332,925 | ) | | | | | (265,478 | ) |
| Total real property owned | | | 2,885,114 | | | | | | 2,387,190 | |
| | | | | | | | | | | |
| Loans receivable | | | 216,870 | | | | | | 235,259 | |
| Less allowance for losses on loans receivable | | | (7,156 | ) | | | | | (6,161 | ) |
| | | | 209,714 | | | | | | 229,098 | |
| Net real estate investments | | | 3,094,828 | | | | | | 2,616,288 | |
| | | | | | | | | | | |
| Other assets: | | | | | | | | | | |
| Equity investments | | | 5,070 | | | | | | 3,298 | |
| Deferred loan expenses | | | 12,309 | | | | | | 8,781 | |
| Cash and cash equivalents | | | 15,490 | | | | | | 27,119 | |
| Receivables and other assets | | | 73,132 | | | | | | 81,412 | |
| | | | 106,001 | | | | | | 120,610 | |
| | | | | | | | | | | |
Total assets | | $ | 3,200,829 | | | | | $ | 2,736,898 | |
| | | | | | | | | | | |
Liabilities and stockholders’ equity | | | | | | | | | | |
| Liabilities: | | | | | | | | | | |
| Borrowings under unsecured lines of credit arrangements | | $ | 276,000 | | | | | $ | 304,000 | |
| Senior unsecured notes | | | 1,196,897 | | | | | | 894,830 | |
| Secured debt | | | 130,405 | | | | | | 174,324 | |
| Accrued expenses and other liabilities | | | 50,558 | | | | | | 44,048 | |
| Total liabilities | | | 1,653,860 | | | | | | 1,417,202 | |
| | | | | | | | | | | |
| Stockholders’ equity: | | | | | | | | | | |
| Preferred stock | | | 276,875 | | | | | | 276,989 | |
| Common stock | | | 63,005 | | | | | | 54,534 | |
| Capital in excess of par value | | | 1,469,491 | | | | | | 1,191,240 | |
| Treasury stock | | | (2,714 | ) | | | | | (1,766 | ) |
| Cumulative net income | | | 909,894 | | | | | | 798,183 | |
| Cumulative dividends | | | (1,171,302 | ) | | | | | (999,737 | ) |
| Accumulated other | | | | | | | | | | |
| comprehensive income | | | 0 | | | | | | 1 | |
| Other equity | | | 1,720 | | | | | | 252 | |
Total stockholders’ equity | | | 1,546,969 | | | | | | 1,319,696 | |
| | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 3,200,829 | | | | | $ | 2,736,898 | |
3Q06 Earnings Release | | October 18, 2006 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
(In thousands, except per share data) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | Three Months EndedSeptember 30 | | Nine Months EndedSeptember 30 | |
| | | 2006 | | | | 2005 | | 2006 | | | | 2005 | |
| Revenues: | | | | | | | | | | | | | |
| Rental income | | $ | 75,290 | | | | | $ | 64,516 | | $ | 220,002 | | | | | $ | 180,960 | |
| Interest income | | | 4,436 | | | | | | 4,997 | | | 13,178 | | | | | | 15,249 | |
| Transaction fees and other income | | | 1,019 | | | | | | 773 | | | 3,049 | | | | | | 2,742 | |
| Gross revenues | | | 80,745 | | | | | | 70,286 | | | 236,229 | | | | | | 198,951 | |
| | | | | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | 24,007 | | | | | | 20,477 | | | 70,587 | | | | | | 57,707 | |
| Provision for depreciation | | | 24,094 | | | | | | 19,915 | | | 70,256 | | | | | | 56,879 | |
| General and administrative | | | 5,223 | | | | | | 4,640 | | | 16,517 | | | | | | 12,993 | |
| Loan expense | | | 782 | | | | | | 673 | | | 2,199 | | | | | | 2,209 | |
| Loss on extinguishment of debt | | | 0 | | | | | | 0 | | | 0 | | | | | | 18,448 | |
| Provision for loan losses | | | 250 | | | | | | 300 | | | 750 | | | | | | 900 | |
| Total expenses | | | 54,356 | | | | | | 46,005 | | | 160,309 | | | | | | 149,136 | |
| | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | | 26,389 | | | | | | 24,281 | | | 75,920 | | | | | | 49,815 | |
| | | | | | | | | | | | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | | | | | | | | |
| Gain (loss) on sales of properties | | | 108 | | | | | | 0 | | | 2,590 | | | | | | (134 | ) |
| Income from discontinued | | | | | | | | | | | | | | | | | | | |
| operations, net | | | 316 | | | | | | 1,016 | | | 1,281 | | | | | | 2,685 | |
| | | | 424 | | | | | | 1,016 | | | 3,871 | | | | | | 2,551 | |
| | | | | | | | | | | | | | | | | | | | |
| Net income | | | 26,813 | | | | | | 25,297 | | | 79,791 | | | | | | 52,366 | |
| | | | | | | | | | | | | | | | | | | | |
| Preferred dividends | | | 5,333 | | | | | | 5,389 | | | 15,998 | | | | | | 16,261 | |
| | | | | | | | | | | | | | | | | | | | |
| Net income (loss) available to | | | | | | | | | | | | | | | | | | | |
| common stockholders | | $ | 21,480 | | | | | $ | 19,908 | | $ | 63,793 | | | | | $ | 36,105 | |
| | | | | | | | | | | | | | | | | | | | |
| Average number of common shares | | | | | | | | | | | | | | | | | | | |
| outstanding: | | | | | | | | | | | | | | | | | | | |
| Basic | | | 62,524 | | | | | | 54,038 | | | 60,766 | | | | | | 53,498 | |
| Diluted | | | 62,866 | | | | | | 54,359 | | | 61,102 | | | | | | 53,867 | |
| | | | | | | | | | | | | | | | | | | | |
| Net income (loss) available to | | | | | | | | | | | | | | | | | | | |
| common stockholders per share: | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.34 | | | | | $ | 0.37 | | $ | 1.05 | | | | | $ | 0.67 | |
| Diluted | | | 0.34 | | | | | | 0.37 | | | 1.04 | | | | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | |
| Common dividends per share | | $ | 0.64 | | | | | $ | 0.62 | | $ | 1.90 | | | | | $ | 1.84 | |
3Q06 Earnings Release | | October 18, 2006 |
HEALTH CARE REIT, INC.
Financial Supplement - September 30, 2006
Portfolio Composition | | | | | | | | Exhibit 1 |
($000’s except Investment per Bed/Unit) | | | | | | | | | | | |
| | | | | | | | | | | | |
Balance Sheet Data | | # Properties | | # Beds/Units | | Balance | | % Balance | | | |
| Real Property | | | 456 | | | 47,040 | | $ | 2,885,114 | | | 93% | | | | |
| Loans Receivable (1) | | | 21 | | | 2,127 | | | 216,870 | | | 7% | | | | |
| Totals | | | 477 | | | 49,167 | | $ | 3,101,984 | | | 100% | | | | |
| | | | | | | | | | | | | | | | | |
Investment Balances | | | # Properties | | | # Beds/Units | | | Investment (2) | | | % Investment | | | | |
| Independent/CCRCs | | | 39 | | | 5,224 | | $ | 488,863 | | | 16% | | | | |
| Assisted Living Facilities | | | 204 | | | 12,615 | | | 996,318 | | | 32% | | | | |
| Skilled Nursing Facilities | | | 220 | | | 30,063 | | | 1,413,508 | | | 46% | | | | |
| Specialty Care Facilities | | | 14 | | | 1,265 | | | 205,745 | | | 6% | | | | |
| Totals | | | 477 | | | 49,167 | | $ | 3,104,434 | | | 100% | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | Committed | | | Investment | | | | |
Committed Investments | | | # Properties | | | # Beds/Units | | | Balance (3) | | | per Bed/Unit | | | | |
| Independent/CCRCs | | | 39 | | | 5,224 | | $ | 588,940 | | $ | 112,737 | | | | |
| Assisted Living Facilities | | | 204 | | | 12,615 | | | 1,116,176 | | | 88,480 | | | | |
| Skilled Nursing Facilities | | | 220 | | | 30,063 | | | 1,432,850 | | | 47,662 | | | | |
| Specialty Care Facilities | | | 14 | | | 1,265 | | | 231,580 | | | 183,067 | | | | |
| Totals | | | 477 | | | 49,167 | | $ | 3,369,546 | | | -na- | | | | |
Notes: | (1) | | Includes $10,979,000 of loans on non-accrual. |
| | (2) | | Real Estate Investments include gross real estate investments and credit enhancements which amounted to $3,101,984,000 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 | | | 90% | | | 98% | | | 1% | | | 1% | | | 1.47x | | | | | | 1.25x | |
| Assisted Living Facilities | | | 88% | | | 82% | | | 0% | | | 18% | | | 1.51x | | | | | | 1.30x | |
| Skilled Nursing Facilities | | | 86% | | | 18% | | | 16% | | | | | | 2.16x | | | | | | 1.55x | |
| Specialty Care Facilities | | | 70% | | | 20% | | | 58% | | | 22% | | | 3.18x | | | | | | 2.65x | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Weighted Averages | | | 1.95x | | | | | | 1.53x | |
| | | | | | | | | | | | | | | | | | | | | | | |
Notes: Data as of June 30, 2006. | | | | | | | | | | | | | | | | | | | | | | |
3Q06 Earnings Release | | October 18, 2006 |
Investment Concentrations ($000’s) | | | | | | Exhibit 3 |
| | | | | | | | | | |
Concentration by Operator | | # Properties | | Investment | | % Investment | | | |
| Emeritus Corporation | | | 50 | | $ | 356,023 | | | 11% | | | | |
| Brookdale Senior Living Inc. | | | 87 | | | 286,392 | | | 9% | | | | |
| Home Quality Management, Inc. | | | 37 | | | 246,979 | | | 8% | | | | |
| Life Care Centers of America, Inc. | | | 26 | | | 230,698 | | | 7% | | | | |
| Merrill Gardens L.L.C. | | | 13 | | | 200,231 | | | 6% | | | | |
| Remaining operators (53) | | | 264 | | | 1,784,111 | | | 59% | | | | |
| Totals | | | 477 | | $ | 3,104,434 | | | 100% | | | | |
| | | | | | | | | | | | | | |
Concentration by Region | | | # Properties | | | Investment | | | % Investment | | | | |
| South | | | 285 | | $ | 1,572,043 | | | 51% | | | | |
| Northeast | | | 61 | | | 482,485 | | | 16% | | | | |
| West | | | 65 | | | 517,293 | | | 17% | | | | |
| Midwest | | | 66 | | | 532,613 | | | 16% | | | | |
| Totals | | | 477 | | $ | 3,104,434 | | | 100% | | | | |
| | | | | | | | | | | | | | |
Concentration by State | | | # Properties | | | Investment | | | % Investment | | | | |
| Florida | | | 67 | | $ | 478,422 | | | 15% | | | | |
| Massachusetts | | | 35 | | | 328,127 | | | 11% | | | | |
| Ohio | | | 31 | | | 254,753 | | | 8% | | | | |
| Texas | | | 56 | | | 240,962 | | | 8% | | | | |
| North Carolina | | | 43 | | | 199,186 | | | 6% | | | | |
| Remaining States (32) | | | 245 | | | 1,602,984 | | | 52% | | | | |
| Totals | | | 477 | | $ | 3,104,434 | | | 100% | | | | |
Revenue Composition ($000’s) | | | | | | | | | | Exhibit 4 |
| | | | | Three Months Ended September 30, 2006 | | Nine Months Ended September 30, 2006 | | | |
Revenue by Investment Type (1) | | | | | | | | | | | | |
| Real Property | | | | | $ | 77,058 | | | 94% | | $ | 226,609 | | | 94% | | | | |
| Loans Receivable | | | | | | 4,702 | | | 6% | | | 13,574 | | | 6% | | | | |
| Totals | | | | | $ | 81,760 | | | 100% | | $ | 240,183 | | | 100% | | | | |
| | | | | | | | | | | | | | | | | | | | |
Revenue by Facility Type (1) | | | | | | | | | | | | | | | | | | | |
| Independent/CCRCs | | | | | $ | 10,273 | | | 13% | | $ | 29,756 | | | 12% | | | | |
| Assisted Living Facilities | | | | | | 28,470 | | | 35% | | | 85,271 | | | 36% | | | | |
| Skilled Nursing Facilities | | | | | | 38,194 | | | 47% | | | 111,262 | | | 46% | | | | |
| Specialty Care Facilities | | | | | | 4,823 | | | 5% | | | 13,894 | | | 6% | | | | |
| Totals | | | | | $ | 81,760 | | | 100% | | $ | 240,183 | | | 100% | | | | |
| | | | | | | | | | | | | | | | | | | | |
Notes: (1) Revenues include gross revenues and revenues from discontinued operations.
3Q06 Earnings Release | | October 18, 2006 |
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 | | $ | 3,603 | | $ | 211 | | $ | 3,814 | | | 1% | | | | |
| 2007 | | | 0 | | | 1,324 | | | 1,324 | | | 0% | | | | |
| 2008 | | | 0 | | | 2,737 | | | 2,737 | | | 1% | | | | |
| 2009 | | | 906 | | | 2,347 | | | 3,253 | | | 1% | | | | |
| 2010 | | | 1,089 | | | 2,704 | | | 3,793 | | | 1% | | | | |
| Thereafter | | | 301,648 | | | 9,302 | | | 310,950 | | | 96% | | | | |
| Totals | | $ | 307,246 | | $ | 18,625 | | $ | 325,871 | | | 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 | | $ | 787 | | $ | 787 | | | | |
| 2007 | | | 40,000 | | | 52,500 | | | 15,074 | | | 107,574 | | | | |
| 2008 | | | 0 | | | 42,330 | | | 10,289 | | | 52,619 | | | | |
| 2009 | | | 700,000 | | | 0 | | | 33,807 | | | 733,807 | | | | |
| 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 | | | 26,392 | | | 876,392 | | | | |
| Totals | | $ | 740,000 | | $ | 1,194,830 | | $ | 130,405 | | $ | 2,065,235 | | | | |
| | | | | | | | | | | | | | | | | |
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. |
3Q06 Earnings Release | | October 18, 2006 |
Investment Activity ($000’s) | | | | | | | | | | | | Exhibit 7 |
| | | | | | | | | | | | | | | | |
| | | | | Three Months Ended September 30, 2006 | | | | Nine Months Ended September 30, 2006 | | | |
Funding by Investment Type | | | | | | | | | | | | | | | |
| Real Property | | | | | $ | 115,015 | | | 65% | | | | | $ | 319,270 | | | 81% | | | | |
| Loans Receivable | | | | | | 60,765 | | | 35% | | | | | | 76,544 | | | 19% | | | | |
| Total | | | | | $ | 175,780 | | | 100% | | | | | $ | 395,814 | | | 100% | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Funding by Facility Type | | | | | | | | | | | | | | | | | | | | | | |
| Independent/CCRCs | | | | | $ | 37,657 | | | 21% | | | | | $ | 73,435 | | | 19% | | | | |
| Assisted Living Facilities | | | | | | 20,046 | | | 11% | | | | | | 90,872 | | | 23% | | | | |
| Skilled Nursing Facilities | | | | | | 101,036 | | | 57% | | | | | | 210,746 | | | 53% | | | | |
| Specialty Care Facilities | | | | | | 17,041 | | | 11% | | | | | | 20,761 | | | 5% | | | | |
| Total | | | | | $ | 175,780 | | | 100% | | | | | $ | 395,814 | | | 100% | | | | |
Development Activity ($000’s) | | | | | | | | | | | | Exhibit 8 |
| | | | | | | | | | | | | | |
| Facility Type | | Balance at
December 31, 2005 | | 2006 YTD
Fundings | | 2006 YTD
Conversions | | Balance at
September 30, 2006 | | Committed
Balances | | | |
| Independent/CCRCs | | $ | 1,202 | | $ | 32,550 | | $ | (1,751) | | $ | 32,001 | | $ | 132,078 | | | | |
| Assisted Living Facilities | | | 1,793 | | | 53,478 | | | (3,972) | | | 51,299 | | | 171,157 | | | | |
| Skilled Nursing Facilities | | | 911 | | | 15,519 | | | (6,370) | | | 10,060 | | | 29,402 | | | | |
| Specialty Care Facilities | | | 0 | | | 5,315 | | | 0 | | | 5,315 | | | 31,150 | | | | |
| Totals | | $ | 3,906 | | $ | 106,862 | | $ | (12,093) | | $ | 98,675 | | $ | 363,787 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Development Funding Projections ($000's) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Projected Future Fundings | | | | | | | |
| | | | | | | | | | 2006 | | | Fundings | | | Unfunded | | | | |
| Facility Type | | | Projects | | | # Beds/Units | | | Fundings | | | Thereafter | | | Commitments | | | | |
| Independent/CCRCs | | | 7 | | | 588 | | $ | 16,950 | | $ | 83,127 | | $ | 100,077 | | | | |
| Assisted Living Facilities | | | 16 | | | 1,177 | | | 17,729 | | | 102,129 | | | 119,858 | | | | |
| Skilled Nursing Facilities | | | 4 | | | 365 | | | 3,351 | | | 15,991 | | | 19,342 | | | | |
| Specialty Care Facilities | | | 2 | | | 110 | | | 5,350 | | | 20,485 | | | 25,835 | | | | |
| Totals | | | 29 | | | 2,240 | | $ | 43,380 | | $ | 221,732 | | $ | 265,112 | | | | |
Project Conversion Projections ($000's) | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | 2006 Quarterly Projections | | Annual Projections | |
| | Quarter | | | Amount | | Projected AverageInitial Yields (1) | | Year | | Amount | | Projected AverageInitial Yields (1) | |
| | 1Q06 actual | | | $ | 0 | | | n/a | | | 2006 projected | | $ | 14,961 | | | 9.12% | |
| | 2Q06 actual | | | | 0 | | | n/a | | | 2007 projected | | | 146,363 | | | 9.11% | |
| 3Q06 actual | | | | 12,093 | | | 9.14% | | | 2008 projected | | | 137,339 | | | 9.59% | |
| | 4Q06 projected | | | | 2,868 | | | 9.00% | | | Thereafter | | | 77,217 | | | 8.89% | |
| | Totals | | | $ | 14,961 | | | 9.12% | | | Totals | | $ | 375,880 | | | 9.24% | |
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. |
3Q06 Earnings Release | | October 18, 2006 |
Disposition Activity ($000's) | Exhibit 9 |
| | | Three Months Ended September 30, 2006 | | Nine Months Ended September 30, 2006 | |
Dispositions by Investment Type | | | | | | | | | |
| Real Property | | $ | 3,702 | | | 30% | | $ | 35,366 | | | 54% | |
| Loans Receivable | | | 8,806 | | | 70% | | | 30,046 | | | 46% | |
| Totals | | $ | 12,508 | | | 100% | | $ | 65,412 | | | 100% | |
| | | | | | | | | | | | | | |
Dispositions by Facility Type | | | | | | | | | | | | | |
| Assisted Living Facilities | | | | | | 0% | | $ | 25,487 | | | 39% | |
| Skilled Nursing Facilities | | $ | 8,702 | | | 70% | | | 29,162 | | | 45% | |
| Specialty Care Facilities | | | 3,806 | | | 30% | | | 10,763 | | | 16% | |
| Totals | | $ | 12,508 | | | 100% | | $ | 65,412 | | | 100% | |
Discontinued Operations ($000’s) | Exhibit 10 |
| | | Three Months Ended September 30 | | Nine Months Ended September 30 | |
| | | 2006 | | 2005 | | 2006 | | 2005 | |
Revenues | | | | | | | | | |
| Rental income | | $ | 1,015 | | $ | 4,314 | | $ | 3,954 | | $ | 12,827 | |
| | | | | | | | | | | | | | |
Expenses | | | | | | | | | | | | | |
| Interest expense | | | 267 | | | 1,147 | | | 1,012 | | | 3,548 | |
| Provision for depreciation | | | 432 | | | 2,151 | | | 1,661 | | | 6,594 | |
| | | | | | | | | | | | | | |
| Income (loss) from discontinued | | | | | | | | | | | | | |
| operations, net | | $ | 316 | | $ | 1,016 | | $ | 1,281 | | $ | 2,685 | |
Current Capitalization ($000’s except share price) | | | Leverage & Performance Ratios | |
| | | Balance | | % Balance | | | | | |
| Borrowings Under Bank Lines | | $ | 276,000 | | | 9 | % | Debt/Total Book Cap | | 51 | % |
| Long-Term Debt Obligations | | | 1,327,302 | | | 42 | % | Debt/Undepreciated Book Cap | 46 | % |
| Stockholders’ Equity | | | 1,546,969 | | | 49 | % | Debt/Total Market Cap | | 36 | % |
| Total Book Capitalization | | $ | 3,150,271 | | | 100 | % | | | | |
| | | | | | | | | Interest Coverage | 2.98x | 3rd Qtr. | |
| Common Shares Outstanding (000's) | | | 63,067 | | | | | | 3.04x | YTD | |
| Period-End Share Price | | $ | 40.01 | | | | | Interest Coverage | 3.00x | 3rd Qtr. | |
| Common Stock Market Value | | $ | 2,523,311 | | | 57 | % | - adjusted | 3.10x | YTD | |
| Preferred Stock | | | 276,875 | | | 7 | % | Fixed Charge Coverage | 2.41x | 3rd Qtr. | |
| Borrowings Under Bank Lines | | | 276,000 | | | 6 | % | | 2.44x | YTD | |
| Long-Term Debt Obligations | | | 1,327,302 | | | 30 | % | Fixed Charge Coverage | 2.42x | 3rd Qtr. | |
| Total Market Capitalization | | $ | 4,403,488 | | | 100 | % | - adjusted | 2.49x | YTD | |
3Q06 Earnings Release | | October 18, 2006 |
EBITDA Reconciliation ($000’s) | Exhibit 12 |
| | | Three Months Ended September 30 | | Nine Months Ended September 30 | |
| | | 2006 | | 2005 | | 2006 | | 2005 | |
| | | | | | | | | | |
| Net income | | $ | 26,813 | | $ | 25,297 | | $ | 79,791 | | $ | 52,366 | |
| Interest expense (1) | | | 24,274 | | | 21,624 | | | 71,599 | | | 61,255 | |
| Tax expense | | | 70 | | | 1 | | | 82 | | | 220 | |
| Provision for depreciation (1) | | | 24,526 | | | 22,066 | | | 71,917 | | | 63,473 | |
| Amortization | | | 781 | | | 594 | | | 2,199 | | | 3,318 | |
| EBITDA | | | 76,464 | | | 69,582 | | | 225,588 | | | 180,632 | |
| Stock-based compensation expense | | | 192 | | | 317 | | | 3,543 | | | 949 | |
| Provision for loan losses | | | 250 | | | 300 | | | 750 | | | 900 | |
| Loss on extinguishment of debt, net | | | 0 | | | 0 | | | 0 | | | 18,448 | |
| EBITDA - adjusted | | $ | 76,906 | | $ | 70,199 | | $ | 229,881 | | $ | 200,929 | |
| | | | | | | | | | | | | | |
Interest Coverage Ratio | | | | | | | | | | | | | |
| Interest expense (1) | | $ | 24,274 | | $ | 21,624 | | $ | 71,599 | | $ | 61,255 | |
| Capitalized interest | | | 1,384 | | | 12 | | | 2,494 | | | 626 | |
| Total interest | | | 25,658 | | | 21,636 | | | 74,093 | | | 61,881 | |
| EBITDA | | $ | 76,464 | | $ | 69,582 | | $ | 225,588 | | $ | 180,632 | |
| Interest coverage ratio | | | 2.98x | | | 3.22x | | | 3.04x | | | 2.92x | |
| | | | | | | | | | | | | | |
| EBITDA - adjusted | | $ | 76,906 | | $ | 70,199 | | $ | 229,881 | | $ | 200,929 | |
| Interest coverage ratio - adjusted | | | 3.00x | | | 3.24x | | | 3.10x | | | 3.25x | |
| | | | | | | | | | | | | | |
Fixed Charge Coverage Ratio | | | | | | | | | | | | | |
| Total interest (1) | | $ | 25,658 | | $ | 21,636 | | $ | 74,093 | | $ | 61,881 | |
| Secured debt principal amortization | | | 773 | | | 699 | | | 2,184 | | | 2,042 | |
| Preferred dividends | | | 5,333 | | | 5,389 | | | 15,998 | | | 16,261 | |
| Total fixed charges | | | 31,764 | | | 27,724 | | | 92,275 | | | 80,184 | |
| EBITDA | | $ | 76,464 | | $ | 69,582 | | $ | 225,588 | | $ | 180,632 | |
| Fixed charge coverage ratio | | | 2.41x | | | 2.51x | | | 2.44x | | | 2.25x | |
| | | | | | | | | | | | | | |
| EBITDA - adjusted | | $ | 76,906 | | $ | 70,199 | | $ | 229,881 | | $ | 200,929 | |
| Fixed charge coverage ratio - adjusted | | | 2.42x | | | 2.53x | | | 2.49x | | | 2.51x | |
Notes: (1) | Provision for depreciation and interest expense include provision for depreciation and interest expense from discontinued operations. |
| | |
3Q06 Earnings Release | | October 18, 2006 |
Funds Available For Distribution Reconciliation (Amounts in 000’s except per share data) | Exhibit 13 |
| | | Three Months Ended September 30 | | Nine Months Ended September 30 | |
| | | 2006 | | 2005 | | 2006 | | 2005 | |
| | | | | | | | | | |
| Net income (loss) available to | | | | | | | | | |
| common stockholders | | $ | 21,480 | | $ | 19,908 | | $ | 63,793 | | $ | 36,105 | |
| Provision for depreciation (1) | | | 24,526 | | | 22,066 | | | 71,917 | | | 63,473 | |
| Loss (gain) on sales of properties | | | (108 | ) | | 0 | | | (2,590 | ) | | 134 | |
| Gross straight-line rental income | | | (1,904 | ) | | (2,950 | ) | | (6,520 | ) | | (10,193 | ) |
| Prepaid/straight-line rent receipts | | | 3,256 | | | 2,832 | | | 16,276 | | | 6,044 | |
| Funds available for distribution | | | 47,250 | | | 41,856 | | | 142,876 | | | 95,563 | |
| Loss on extinguishment of debt, net | | | 0 | | | 0 | | | 0 | | | 18,448 | |
| Funds available for distribution - adjusted | | | 47,250 | | | 41,856 | | | 142,876 | | | 114,011 | |
| Prepaid/straight-line rent receipts | | | (3,256 | ) | | (2,832 | ) | | (16,276 | ) | | (6,044 | ) |
| Funds available for distribution - normalized | | $ | 43,994 | | $ | 39,024 | | $ | 126,600 | | $ | 107,967 | |
| | | | | | | | | | | | | | |
| Average common shares outstanding: | | | | | | | | | | | | | |
| Basic | | | 62,524 | | | 54,038 | | | 60,766 | | | 53,498 | |
| Diluted | | | 62,866 | | | 54,359 | | | 61,102 | | | 53,867 | |
| | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | |
| Net income (loss) available to common stockholders | | | | | | | | | | | | | |
| Basic | | $ | 0.34 | | $ | 0.37 | | $ | 1.05 | | $ | 0.67 | |
| Diluted | | | 0.34 | | | 0.37 | | | 1.04 | | | 0.67 | |
| | | | | | | | | | | | | | |
| Funds available for distribution | | | | | | | | | | | | | |
| Basic | | $ | 0.76 | | $ | 0.77 | | $ | 2.35 | | $ | 1.79 | |
| Diluted | | | 0.75 | | | 0.77 | | | 2.34 | | | 1.77 | |
| | | | | | | | | | | | | | |
| Funds available for distribution - adjusted | | | | | | | | | | | | | |
| Basic | | $ | 0.76 | | $ | 0.77 | | $ | 2.35 | | $ | 2.13 | |
| Diluted | | | 0.75 | | | 0.77 | | | 2.34 | | | 2.12 | |
| | | | | | | | | | | | | | |
| Funds available for distribution - normalized | | | | | | | | | | | | | |
| Basic | | $ | 0.70 | | $ | 0.72 | | $ | 2.08 | | $ | 2.02 | |
| Diluted | | | 0.70 | | | 0.72 | | | 2.07 | | | 2.00 | |
| | | | | | | | | | | | | | |
FAD Payout Ratio | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | $ | 0.62 | | $ | 1.90 | | $ | 1.84 | |
| FAD per diluted share | | $ | 0.75 | | $ | 0.77 | | $ | 2.34 | | $ | 1.77 | |
| FAD payout ratio | | | 85 | % | | 81 | % | | 81 | % | | 104 | % |
| | | | | | | | | | | | | | |
FAD Payout Ratio - Adjusted | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | $ | 0.62 | | $ | 1.90 | | $ | 1.84 | |
| FAD per diluted share - adjusted | | $ | 0.75 | | $ | 0.77 | | $ | 2.34 | | $ | 2.12 | |
| FAD payout ratio - adjusted | | | 85 | % | | 81 | % | | 81 | % | | 87 | % |
| | | | | | | | | | | | | | |
FAD Payout Ratio - Normalized | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | $ | 0.62 | | $ | 1.90 | | $ | 1.84 | |
| FAD per diluted share - normalized | | $ | 0.70 | | $ | 0.72 | | $ | 2.07 | | $ | 2.00 | |
| FAD payout ratio - normalized | | | 91 | % | | 86 | % | | 92 | % | | 92 | % |
Notes: (1) | Provision for depreciation includes provision for depreciation from discontinued operations. |
3Q06 Earnings Release | | October 18, 2006 |
Funds From Operations Reconciliation (Amounts in 000’s except per share data) | Exhibit 14 |
| | | Three Months Ended September 30 | | Nine Months Ended September 30 | |
| | | 2006 | | 2005 | | 2006 | | 2005 | |
| | | | | | | | | | |
| Net income (loss) available to | | | | | | | | | |
| common stockholders | | $ | 21,480 | | $ | 19,908 | | $ | 63,793 | | $ | 36,105 | |
| Provision for depreciation (1) | | | 24,526 | | | 22,066 | | | 71,917 | | | 63,473 | |
| Loss (gain) on sales of properties | | | (108 | ) | | 0 | | | (2,590 | ) | | 134 | |
| Funds from operations | | | 45,898 | | | 41,974 | | | 133,120 | | | 99,712 | |
| Loss on extinguishment of debt, net | | | 0 | | | 0 | | | 0 | | | 18,448 | |
| Funds from operations - adjusted | | $ | 45,898 | | $ | 41,974 | | $ | 133,120 | | $ | 118,160 | |
| | | | | | | | | | | | | | |
| Average common shares outstanding: | | | | | | | | | | | | | |
| Basic | | | 62,524 | | | 54,038 | | | 60,766 | | | 53,498 | |
| Diluted | | | 62,866 | | | 54,359 | | | 61,102 | | | 53,867 | |
| | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | |
| Net income (loss) available to common stockholders | | | | | | | | | | | | | |
| Basic | | $ | 0.34 | | $ | 0.37 | | $ | 1.05 | | $ | 0.67 | |
| Diluted | | | 0.34 | | | 0.37 | | | 1.04 | | | 0.67 | |
| | | | | | | | | | | | | | |
| Funds from operations | | | | | | | | | | | | | |
| Basic | | $ | 0.73 | | $ | 0.78 | | $ | 2.19 | | $ | 1.86 | |
| Diluted | | | 0.73 | | | 0.77 | | | 2.18 | | | 1.85 | |
| | | | | | | | | | | | | | |
| Funds from operations - adjusted | | | | | | | | | | | | | |
| Basic | | $ | 0.73 | | $ | 0.78 | | $ | 2.19 | | $ | 2.21 | |
| Diluted | | | 0.73 | | | 0.77 | | | 2.18 | | | 2.19 | |
| | | | | | | | | | | | | | |
FFO Payout Ratio | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | $ | 0.62 | | $ | 1.90 | | $ | 1.84 | |
| FFO per diluted share | | $ | 0.73 | | $ | 0.77 | | $ | 2.18 | | $ | 1.85 | |
| FFO payout ratio | | | 88 | % | | 81 | % | | 87 | % | | 99 | % |
| | | | | | | | | | | | | | |
FFO Payout Ratio - Adjusted | | | | | | | | | | | | | |
| Dividends per share | | $ | 0.64 | | $ | 0.62 | | $ | 1.90 | | $ | 1.84 | |
| FFO per diluted share - adjusted | | $ | 0.73 | | $ | 0.77 | | $ | 2.18 | | $ | 2.19 | |
| FFO payout ratio - adjusted | | | 88 | % | | 81 | % | | 87 | % | | 84 | % |
Notes: (1) | Provision for depreciation includes provision for depreciation from discontinued operations. |
3Q06 Earnings Release | | October 18, 2006 |
Outlook Reconciliation (Amounts in 000’s except per share data) | Exhibit 15 |
| | | Current Outlook Year Ended December 31, 2006 | | Prior Outlook Year Ended December 31, 2006 | |
| | | Low | | High | | Low | | High | |
| | | | | | | | | | |
| Net income available to | | | | | | | | | |
| common stockholders | | $ | 85,740 | | $ | 86,990 | | $ | 83,292 | | $ | 88,192 | |
| Loss (gain) on sales | | | | | | | | | | | | | |
| of properties | | | (2,590 | ) | | (2,590 | ) | | (2,482 | ) | | (2,482 | ) |
| Provision for depreciation (1) | | | 97,500 | | | 97,500 | | | 97,500 | | | 97,500 | |
| Funds from operations | | | 180,650 | | | 181,900 | | | 178,310 | | | 183,210 | |
| Rental income less than (in | | | | | | | | | | | | | |
| excess of ) cash received | | | 7,700 | | | 7,700 | | | 4,500 | | | 4,500 | |
| Funds available for | | | | | | | | | | | | | |
| distribution | | $ | 188,350 | | $ | 189,600 | | $ | 182,810 | | $ | 187,710 | |
| | | | | | | | | | | | | | |
| Average common shares | | | | | | | | | | | | | |
| outstanding (diluted) | | | 62,000 | | | 62,000 | | | 62,000 | | | 62,000 | |
| | | | | | | | | | | | | | |
| Per share data (diluted): | | | | | | | | | | | | | |
| Net income available to | | | | | | | | | | | | | |
| common stockholders | | $ | 1.38 | | $ | 1.40 | | $ | 1.34 | | $ | 1.42 | |
| Funds from operations | | | 2.91 | | | 2.93 | | | 2.88 | | | 2.96 | |
| Funds available for | | | | | | | | | | | | | |
| distribution | | | 3.04 | | | 3.06 | | | 2.95 | | | 3.03 | |
Notes: (1) | Provision for depreciation includes provision for depreciation from discontinued operations. |
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