8-K: Current report filing
Published on February 6, 2009
PRESS
RELEASE
OMEGA
ANNOUNCES FOURTH QUARTER 2008 FINANCIAL RESULTS AND
ADJUSTED
FFO OF $0.37 PER SHARE FOR THE FOURTH QUARTER
HUNT VALLEY, MARYLAND – February 6,
2009 – Omega Healthcare Investors, Inc. (NYSE:OHI) today announced its
results of operations for the quarter and fiscal year ended December 31,
2008. The Company also reported Funds From Operations (“FFO”)
available to common stockholders for the three months and twelve months ended
December 31, 2008 of $26.3 million or $0.32 per common share and $98.1 million
or $1.30 per common share, respectively. The $26.3 million of FFO
available to common stockholders for the fourth quarter includes a net gain of
$2.1 million on the purchase of the Company’s preferred stock, a $3.9 million
non-cash provision for impairment on real estate assets, a net loss of $1.9
million associated with owned and operated assets and $0.5 million of non-cash
restricted stock expense. FFO is presented in accordance with the
guidelines for the calculation and reporting of FFO issued by the National
Association of Real Estate Investment Trusts (“NAREIT”). Adjusted FFO
was $0.37 per common share for the three months ended December 31, 2008 and
$1.45 per common share for the twelve months ended December 31,
2008. Adjusted FFO is a non-GAAP financial measure, which excludes
the impact of certain non-cash items and certain items of revenue or expenses
(including non-cash provisions for impairment, results of operations of owned
and operated facilities, restricted stock expense, gains on purchase and sale of
securities, income taxes) as well as non-cash consolidation adjustments due to
Financial Accounting Standards Board Interpretation No. 46R, Consolidation of
Variable Interest Entities (“FIN 46R”) adjustments. For more
information regarding FFO and adjusted FFO, see the “Funds From Operations”
section below.
COMPANY
COMMENTS
“Omega
ended the year with an extremely strong balance sheet with debt to adjusted
EBITDA leverage under 3.5x, no bond maturities prior to 2014 and availability of
over $190 million on our $255 million revolving credit facility which matures in
March 2010,” stated Taylor Pickett, Omega’s President and CEO. Mr.
Pickett added, “We will continue to conservatively manage and protect our very
strong balance sheet through the current market turmoil and we will take a
conservative approach to new investments focusing primarily on our existing
portfolio.”
GAAP NET
INCOME
For the
three-month period ended December 31, 2008, the Company reported net income of
$15.7 million, net income available to common stockholders of $15.6 million, or
$0.19 per diluted common share and operating revenues of $49.2
million. This compares to net income of $17.3 million, net income
available to common stockholders of $14.8 million, or $0.22 per diluted common
share, and operating revenues of $39.6 million for the same period in
2007.
For the
twelve-month period ended December 31, 2008, the Company reported net income of
$78.1 million, net income available to common stockholders of $70.6 million, or
$0.94 per diluted common share and operating revenues of $193.8
million. This compares to net income of $69.4 million, net income
available to common stockholders of $59.5 million, or $0.90 per diluted common
share, and operating revenues of $159.6 million for the same period in
2007.
The
increases in net income and net income available to common stockholders for the
twelve-month period ended December 31, 2008 compared to the prior year were
primarily due to the impact of: i) revenue associated with $162 million of new
investments completed since December 2007; ii) a net gain of $12.3 million on
five sold facilities; and (iii) a $4.4 million reduction in interest expense due
to lower average borrowings and LIBOR rates. This impact was
partially offset by: i) increased depreciation expense associated with the new
investments; ii) a $3.4 million net loss associated with owned and operated
assets; iii) a $4.2 million expense for uncollectible accounts receivable; iv) a
$3.9 million provision for impairment and v) the impact of an allowance
adjustment of $5.0 million with respect to straight-line rent recognition
recorded during the first quarter of 2007.
2008 FOURTH QUARTER
HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
|
·
|
On
January 15, 2009, the Company declared the quarterly common dividend of
$0.30 per share.
|
|
·
|
On
December 31, 2008, the Company closed $19.5 million of new investment
yielding 12.5%.
|
|
·
|
On
October 16, 2008, the Company declared the quarterly common dividend of
$0.30 per share.
|
|
·
|
On
October 16, 2008, the Company purchased 400,000 shares of its Series D
Preferred Stock at a 24.4% discount to its liquidation preference or an
11.1% effective yield.
|
FOURTH QUARTER 2008
RESULTS
Operating
Revenues and Expenses – Operating revenues for the three months ended
December 31, 2008, when excluding nursing home revenues of owned and operated
assets, were $44.3 million. Operating expenses for the three months
ended December 31, 2008, when excluding nursing home expenses for owned and
operated assets, totaled $17.3 million, comprised of $10.7 million of
depreciation and amortization expense, $2.2 million of general and
administrative expenses, $0.5 million of restricted stock expense and a $3.9
million impairment.
Other Income and
Expense – Other income and expense for the three months ended December
31, 2008 was a net expense of $9.4 million; comprised primarily of $8.9 million
of interest expense, $0.5 million of amortization of deferred financing
costs.
Funds From
Operations – For the three months ended December 31, 2008, reportable FFO
available to common stockholders was $26.3 million, or $0.32 per common share,
compared to $23.7 million, or $0.35 per common share, for the same period in
2007. The $26.3 million of FFO for the quarter includes the impact
of: (i) a $3.9 million non-cash impairment; (ii) a $1.9 million net loss
associated with owned and operated assets; a $2.1 million net gain associated
with the purchase of a portion of the Company’s preferred stock and (iii) $0.5
million of non-cash restricted stock expense.
The $23.7
million of FFO for the three months ended December 31, 2007, includes the impact
of: (i) a non-cash impairment adjustment of $0.2 million; (ii) $0.5
million of non-cash restricted stock expense; (iii) $0.1 million
reduction in the Company’s provision for income taxes; and (iv) $0.1 million of
non-cash FIN 46R consolidation adjustments.
When
excluding the above mentioned items in 2008 and 2007, adjusted FFO was $30.5
million, or $0.37 per common share, for the three months ended December 31,
2008, compared to $24.1 million, or $0.35 per common share, for the same period
in 2007. For further information, see the attached “Funds From
Operations” schedule and notes.
2008 ANNUAL
RESULTS
Operating
Revenues and Expenses – Operating revenues for the twelve months ended
December 31, 2008, when excluding nursing home revenues of owned and operated
assets, were $169.6 million. Operating expenses for the twelve months
ended December 31, 2008, when excluding nursing home expenses of owned and
operated assets, totaled $61.4 million, comprised of $39.9 million of
depreciation and amortization expense, $9.6 million of general and
administrative expenses, a non-cash impairment of $5.6 million, $4.2 million
expense for uncollectible accounts receivable and $2.1 million of restricted
stock compensation expense.
The $4.2
million expense for uncollectible accounts receivable recorded in the second
quarter of 2008 was primarily associated with a former tenant, Haven
Eldercare. The expense consisted of $3.3 million associated with
straight-line receivables and $1.0 million in pre-petition contractual
receivables.
Other Income and
Expense – Other income and expense for the twelve months ended December
31, 2008 was a net expense of $39.0 million and was primarily comprised of $37.7
million of interest expense and $2.0 million of deferred financing amortization
costs; partially offset by $0.5 million of net cash proceeds received from a
legal settlement received in the first quarter of 2008.
Funds From
Operations – For the twelve months ended December 31, 2008, reportable
FFO available to common stockholders was $98.1 million, or $1.30 per common
share, compared to $93.5 million, or $1.42 per common share, for the same period
in 2007. The $98.1 million of FFO for the year includes the impact
of: (i) $5.6 million of non-cash impairments on real estate assets; (ii) a $4.2
million non-cash expense for uncollectible accounts receivable; (iii) a $3.4
million net loss associated with owned and operated assets; (iv) $2.1 million of
non-cash restricted stock expense; (v) a $2.1 million net gain on the purchase
of preferred stock; (vi) $0.7 million of one-time cash revenue; (vii) $0.7
million collected from a claim associated with a prior operator’s past due
rental obligations; (viii) $0.5 million of net cash proceeds received from a
legal settlement; and (ix) $0.1 million of non-cash FIN 46R consolidation
adjustments.
The $93.5
million of FFO for twelve months ended December 31, 2007 includes (i) an
adjustment to the allowance for straight-line revenue of $5.0 million (resulted
in an increase in first quarter 2007 revenue of $5.0 million); (ii) $1.4 million
of non-cash impairments; (iii) $1.4 million of non-cash restricted stock
compensation expense; (iv) $0.3 million of non-cash FIN 46R consolidation
adjustments; and (v) $7 thousand reduction in non-cash provision for income
taxes.
When
excluding the above mentioned non-cash or non-recurring items in 2008 and 2007,
adjusted FFO was $109.3 million, or $1.45 per common share for the twelve months
ended December 31, 2008, compared to $91.0 million, or $1.38 per common share,
for the same period in 2007. For further information, see the
attached “Funds From Operations” schedule and notes.
2008 FINANCING
ACTIVITIES
6.0 Million Share
Common Stock Offering
– On September 19, 2008,
the Company completed an underwritten public offering of 6.0 million shares of
its common stock at $16.37 per share. The net proceeds, after
deducting underwriting discounts and offering expenses, were approximately $97
million. UBS Investment Bank was the sole book-running manager and
Stifel Nicolaus was the co-manager for the offering. The net proceeds
were used to repay indebtedness under the Company’s senior credit facility and
for working capital and general corporate purposes.
400,000 Series D
Preferred Stock Purchase –
On October 16, 2008, the Company purchased 400,000 shares of its 8.375%
Series D Preferred Stock (NYSE:OHI PrD) at a price of $18.90 per
share. The liquidation preference for the Company’s Series D
Preferred Stock (“Series D”) is $25.00 per share. The purchase of the
Series D shares resulted in a fourth quarter 2008 gain of approximately $2.4
million. The gain was offset by a charge to net income available to
common shareholders of approximately $0.3 million reflecting the write-off of
the pro-rata portion of the original issuance costs of the Series
D.
5.9 Million
Common Share Offering –
On May 6, 2008, the Company issued 5.9 million shares of its common stock
in a registered direct offering at a purchase price of $16.93 per share with
certain institutional investors. The Company’s total net proceeds
from the offering were approximately $99 million, after deducting the placement
agent’s fee and other offering expenses. The Company used all of the
proceeds to repay indebtedness outstanding under the Company’s senior credit
facility.
PORTFOLIO
DEVELOPMENTS
Formation
Capital – On
December 31, 2008, the Company acquired two skilled nursing facilities (“SNFs”)
in West Virginia, totaling 291 beds, for approximately $19.5 million, from an
unrelated third party and leased the facilities to affiliates of Formation
Capital (“Formation”), an existing tenant of the Company. These
facilities were added to Formation’s existing master lease (“Master Lease”) and
provides for an additional $2.4 million of cash rent annually. As
part of the transaction, Genesis Eldercare Network, Inc. (“Genesis”) entered
into a long-term management agreement with Formation, to oversee the day-to-day
operations of each of these facilities.
Guardian LTC
Management, Inc. – On September 30, 2008, the
Company completed a $40.0 million investment with subsidiaries of Guardian LTC
Management, Inc. (“Guardian”), an existing operator of the
Company. The transaction involved the sale and leaseback of three
SNFs and a continuing care retirement community all located in
Pennsylvania. The facilities and related $4.0 million of initial
annual rent were added to an existing master lease with Guardian. The
amended and restated master lease now includes 21 facilities and $15.7 million
of annual rent, with annual escalators. In addition, the master lease
term was extended from August 2016 through September 30, 2018.
Acquisition and
Transition of Former Haven Operating Assets – Since November 2007,
affiliates of Haven Eldercare (“Haven”) were operating under Chapter 11
bankruptcy protection. Commencing in February 2008, the assets of
Haven were marketed for sale via an auction process conducted through
proceedings established by the bankruptcy court. The auction process
failed to produce a qualified buyer. As a result, and pursuant to the
Company’s rights as ordered by the bankruptcy court, Haven moved the bankruptcy
court to authorize the Company to credit bid certain of the indebtedness that
Haven owed to the Company in exchange for taking ownership of and transitioning
certain of the assets of Haven to a new entity in which the Company had a
substantial ownership interest, all of which was approved by the bankruptcy
court on July 4, 2008. Effective as of July 7, 2008, the Company took
ownership and/or possession of its 15 facilities and a new operator (which the
Company consolidates pursuant to FIN 46R) assumed operations of the
facilities.
On August
6, 2008, subsidiaries of the Company entered into a Master Transaction Agreement
(“MTA”) with affiliates of Formation whereby Formation agreed (subject to
certain closing conditions, including the receipt of licensure) to lease the
aforementioned facilities under a Master Lease. The lease has an
initial term of 10 years with initial annual rent of approximately $12
million. In addition, Formation has an option after the initial 12
months of the lease to convert eight (8) of the leased facilities into mortgaged
properties, with economic terms substantially similar to that of the original
lease.
On
September 8, 2008, the Company completed the operational transfer, effective as
of September 1, 2008, of 13 of the facilities to affiliates of Formation, in
accordance with the terms of the MTA. The 13 facilities are located
in Connecticut (5), Rhode Island (4), New Hampshire (3) and Massachusetts
(1). As part of the transaction, Genesis entered into a long-term
management agreement with Formation, to oversee the day-to-day operations of
each of these facilities. As of the date of this release, eight (8) of the
facilities (located in Connecticut and New Hampshire) have received licensure
and are part of the Master Lease; five (5) of the facilities (located in Rhode
Island and Massachusetts) are awaiting licensure, but are subject to economic
terms and conditions identical to the Master Lease; and the two (2) remaining
facilities in Vermont are still awaiting appropriate regulatory
approvals.
Under the
terms of the MTA, Formation had the right to elect to close one Connecticut
facility. During the fourth quarter of 2008, Formation gave notice to
the Company of their election to close this facility. As a result,
the Company has recorded a $3.9 million impairment charge on this facility to
reduce its carrying value to its estimated fair value.
CommuniCare
Health Services – On April 18, 2008, the Company completed approximately
$118 million of combined new investments with affiliates of CommuniCare Heath
Services (“CommuniCare”), an existing operator. Effective April 18,
2008, the Company purchased from several unrelated third parties seven (7) SNFs,
one (1) assisted living facility and one (1) rehabilitation hospital, all
located in Ohio, totaling 709 beds for a total investment of $47
million. The facilities were added into an existing master lease
(“Master Lease”) with CommuniCare. Annualized cash rent increasing by
approximately $4.7 million, subject to annual escalators, and two ten-year
renewal options. The term of the Master Lease with CommuniCare was
extended to April 30, 2018.
Also on
April 18, 2008, and simultaneous with the close of the amended CommuniCare
Master Lease, the Company entered into a first mortgage loan with CommuniCare in
the amount of $70 million (the “CommuniCare Loan”). The CommuniCare
Loan matures on April 30, 2018 and carries an interest rate of 11% per year.
CommuniCare used the proceeds of the CommuniCare Loan to acquire seven (7) SNFs
located in Maryland, totaling 965 beds from several unrelated third
parties. The CommuniCare Loan is secured by a lien on the seven (7)
facilities.
Sun Healthcare
Group, Inc. – On
February 1, 2008, the Company amended its master lease with Sun Healthcare
Group, Inc. and certain of its affiliates (“Sun”) primarily to: (i) consolidate
three existing master leases into one master lease; (ii) extend the lease terms
of the agreement through September 2017 for facilities acquired in August 2006;
and (iii) allow for the sale of two rehabilitation hospitals currently operated
by Sun. As of June 30, 2008, these facilities had a net book value of
$16.4 million and were included in assets held for sale. On July 1,
2008, the two rehabilitation hospitals were sold for approximately $29.0 million
and contractual rent was decreased by $1.7 million annually.
Advocat Inc.
– During
the first quarter of 2008, the Company amended its master lease with Advocat
Inc. (“Advocat”) to allow for the construction of a new facility to replace an
existing facility currently operated by Advocat. Upon completion
(estimated to be in mid-2009), Advocat’s annual cash rent will increase by
approximately $0.8 million. As a result of the Company’s plans to
replace an existing facility, the Company recorded a $1.5 million impairment
charge during the first quarter of 2008.
FIN 46R
Consolidation – In
January 2008, the Company purchased from General Electric Capital Corporation
(“GE Capital”) a $39.0 million mortgage loan on seven facilities operated by
Haven due October 2012. Prior to the acquisition of this mortgage,
the Company had a $22.8 million second mortgage on these facilities, resulting
in a combined $61.8 million mortgage on these facilities immediately following
the purchase from GE Capital. In conjunction with the above noted
mortgage and purchase option and the application of FIN 46R, the Company
consolidated the financial statements and real estate of the Haven entity into
its financial statements. On July 7, 2008, the Company took ownership
and/or possession of its 15 facilities and a new operator assumed operations of
the facilities. As a result of the Company taking ownership and/or
possession of the Haven facilities, pursuant to FIN 46R, effective July 7, 2008,
the Company was no longer required to consolidate the Haven entity into its
financial statements. However, pursuant to FIN 46R and effective July
7, 2008, the Company is required to consolidate the financial position and
results of operations of the new operator which assumed the operations of these
facilities. Effective September 1, 2008, the operator that the
Company consolidates pursuant to FIN 46R transferred the operations of 13 of the
15 facilities to Formation. Therefore, beginning September 1, 2008,
the operator that the Company consolidates pursuant to FIN 46R includes only the
financial results of the two remaining facilities that are currently pending
state approval prior to the transfer of these facilities.
DIVIDENDS
Common Dividends
– On January 15, 2009, the Company’s Board of Directors announced a
common stock dividend of $0.30 per share, to be paid February 17, 2009 to common
stockholders of record on January 30, 2009. At the date of this
release, the Company had approximately 82.4 million outstanding common
shares.
Series D
Preferred Dividends – On January 15, 2009, the Company’s Board of
Directors declared its regular quarterly dividend for the Series D preferred
stock, payable February 17, 2009 to preferred stockholders of record on January
30, 2009. Series D preferred stockholders of record on January 30,
2009 will be paid dividends in the approximate amount of $0.52344 per preferred
share, on February 17, 2009. The liquidation preference for the
Company’s Series D preferred stock is $25.00 per share. Regular
quarterly preferred dividends represent dividends for the period November 1,
2008 through January 31, 2009.
2009 ADJUSTED FFO
GUIDANCE
The
Company currently expects its 2009 adjusted FFO to be between $1.47 and $1.50
per diluted share. The Company's adjusted FFO guidance for 2009 excludes the
impacts of future acquisitions, gains and losses from the sale of assets,
additional divestitures, certain revenue and expense items, capital transactions
and restricted stock amortization expense. A reconciliation of the adjusted FFO
guidance to the Company's projected GAAP earnings is provided on a schedule
attached to this press release. The Company may, from time to time,
update its publicly announced adjusted FFO guidance, but it is not obligated to
do so.
The
Company's adjusted FFO guidance is based on a number of assumptions, which are
subject to change and many of which are outside the control of the
Company. If actual results vary from these assumptions, the Company's
expectations may change. Without limiting the generality of the
foregoing, the completion of acquisitions, divestitures, capital and financing
transactions, variations in restricted stock amortization expense, and the
factors identified under the factors identified below may cause actual results
to vary materially from our current expectations. There can be no assurance that
the Company will achieve its projected results.
TAX TREATMENT FOR 2008
DIVIDENDS
Preferred D
Dividends –The Company has determined that 100% of all dividends on
Series D Preferred Stock in 2008 should be treated for tax purposes as an
ordinary dividend.
Common Dividends
– On February 15, 2008, May 15, 2008, August 15, 2008 and November 17,
2008, the Company paid dividends to its common stockholders in the per share
amounts of $0.29, $0.30, $0.30 and $0.30, for stockholders of record on January
31, 2008, April 30, 2008, July 31, 2008 and October 31, 2008,
respectively. The Company has determined that 17.04% of the common
dividends paid in 2008 should be treated for tax purposes as a return of
capital, with the balance of 82.96% treated as an ordinary
dividend.
ANNUAL
MEETING
As
previously announced on January 15, 2009, the Company's 2009 Annual Meeting of
Stockholders will be held on Thursday, May 21, 2009, at 10:00 a.m., local time,
at the Embassy Suites, 213 International Circle, Hunt Valley, Maryland.
Stockholders of record as of the close of business on April 19, 2009 will be
entitled to receive notice of and to participate at the 2009 Annual Meeting of
Stockholders.
CONFERENCE
CALL
The
Company will be conducting a conference call on Friday, February 6, 2009, at 10
a.m. EST to review the Company’s 2008 fourth quarter results and current
developments. To listen to the conference call via webcast, log on to
www.omegahealthcare.com
and click the earnings call announcement in the “Upcoming Events” section on the
Company’s home page. Webcast replays of the call will be available on
the Company’s website for two weeks following the call.
* * * * * *
The
Company is a real estate investment trust investing in and providing financing
to the long-term care industry. At December 31, 2008, the Company
owned or held mortgages on 256 SNFs and assisted living facilities with
approximately 29,193 beds located in 28 states and operated by 25 third-party
healthcare operating companies.
FOR
FURTHER INFORMATION, CONTACT
Bob
Stephenson, CFO at (410) 427-1700
________________________
This
announcement includes forward-looking statements. Actual results may differ
materially from those reflected in such forward-looking statements as a result
of a variety of factors, including, among other things: (i) uncertainties
relating to the business operations of the operators of the Company’s
properties, including those relating to reimbursement by third-party payors,
regulatory matters and occupancy levels; (ii) regulatory and other changes in
the healthcare sector, including without limitation, changes in Medicare
reimbursement; (iii) changes in the financial position of the Company’s
operators; (iv) the ability of operators in bankruptcy to reject unexpired lease
obligations, modify the terms of the Company’s mortgages, and impede the ability
of the Company to collect unpaid rent or interest during the pendency of a
bankruptcy proceeding and retain security deposits for the debtor's obligations;
(v) the availability and cost of capital; (vi) the Company’s ability to maintain
its credit ratings; (vii) competition in the financing of healthcare facilities;
(viii) the Company’s ability to maintain its status as a real estate investment
trust; (ix) the Company’s ability to manage, re-lease or sell any
owned and operated facilities; (x) the Company’s ability to sell closed or
foreclosed assets on a timely basis and on terms that that allow the Company to
realize the carrying value of these assets; (xi) the effect of economic and
market conditions generally, and particularly in the healthcare finance
industry; (xii) the potential impact of a general economic slowdown on
governmental budgets and healthcare reimbursement expenditures; and (xiii) other
factors identified in the Company’s filings with the Securities and Exchange
Commission. Statements regarding future events and developments and the
Company’s future performance, as well as management's expectations, beliefs,
plans, estimates or projections relating to the future, are forward-looking
statements. The Company undertakes no obligation to update any
forward-looking statements contained in this material.
OMEGA
HEALTHCARE INVESTORS, INC.
CONSOLIDATED
BALANCE SHEETS
(in
thousands)
|
December
31,
|
December
31,
|
|||||||
|
2008
|
2007
|
|||||||
|
ASSETS
|
||||||||
|
Real
estate properties
|
||||||||
|
Land and
buildings
|
$ | 1,372,012 | $ | 1,274,722 | ||||
|
Less accumulated
depreciation
|
(251,854 | ) | (221,366 | ) | ||||
|
Real estate properties –
net
|
1,120,158 | 1,053,356 | ||||||
|
Mortgage notes receivable –
net
|
100,821 | 31,689 | ||||||
| 1,220,979 | 1,085,045 | |||||||
|
Other
investments – net
|
29,864 | 13,683 | ||||||
| 1,250,843 | 1,098,728 | |||||||
|
Assets
held for sale – net
|
150 | 2,870 | ||||||
|
Total
investments
|
1,250,993 | 1,101,598 | ||||||
|
Cash
and cash equivalents
|
209 | 1,979 | ||||||
|
Restricted
cash
|
6,294 | 2,104 | ||||||
|
Accounts
receivable – net
|
75,037 | 64,992 | ||||||
|
Other
assets
|
18,613 | 11,614 | ||||||
|
Operating
assets for owned properties
|
13,321 | — | ||||||
|
Total assets
|
$ | 1,364,467 | $ | 1,182,287 | ||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Revolving
line of credit
|
$ | 63,500 | $ | 48,000 | ||||
|
Unsecured
borrowings
|
484,697 | 484,714 | ||||||
|
Other
long–term borrowings
|
— | 40,995 | ||||||
|
Accrued
expenses and other liabilities
|
25,420 | 22,378 | ||||||
|
Accrued
income tax liabilities
|
— | 73 | ||||||
|
Operating
liabilities for owned properties
|
2,862 | — | ||||||
|
Total
liabilities
|
576,479 | 596,160 | ||||||
|
Stockholders’
equity:
|
||||||||
|
Preferred stock issued and
outstanding – 4,340 shares Class D with an aggregate liquidation
preference of $108,488 in 2008 and 4,740 shares Class D with an aggregate
liquidation preference of $118,488 in 2007
|
108,488 | 118,488 | ||||||
|
Common stock $.10 par value
authorized – 100,000 shares: Issued and outstanding – 82,382 shares in
2008 and 68,114 shares in 2007
|
8,238 | 6,811 | ||||||
|
Common
stock – additional paid-in-capital
|
1,054,157 | 825,925 | ||||||
|
Cumulative
net earnings
|
440,277 | 362,140 | ||||||
|
Cumulative
dividends paid
|
(823,172 | ) | (727,237 | ) | ||||
|
Total stockholders’
equity
|
787,988 | 586,127 | ||||||
|
Total liabilities and
stockholders’ equity
|
$ | 1,364,467 | $ | 1,182,287 | ||||
OMEGA
HEALTHCARE INVESTORS, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
Unaudited
(in
thousands, except per share amounts)
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenues
|
||||||||||||||||
|
Rental
income
|
$ | 40,713 | $ | 37,969 | $ | 155,765 | $ | 152,061 | ||||||||
|
Mortgage interest
income
|
3,026 | 992 | 9,562 | 3,888 | ||||||||||||
|
Other investment income –
net
|
500 | 485 | 2,031 | 2,821 | ||||||||||||
|
Miscellaneous
|
94 | 148 | 2,234 | 788 | ||||||||||||
|
Nursing home revenues of owned
and operated assets
|
4,829 | - | 24,170 | - | ||||||||||||
|
Total
operating
revenues
|
49,162 | 39,594 | 193,762 | 159,558 | ||||||||||||
|
Expenses
|
||||||||||||||||
|
Depreciation and
amortization
|
10,705 | 9,288 | 39,890 | 36,028 | ||||||||||||
|
General and
administrative
|
2,185 | 2,461 | 9,598 | 9,661 | ||||||||||||
|
Restricted stock
expense
|
526 | 545 | 2,103 | 1,425 | ||||||||||||
|
Provision for impairment on real
estate properties
|
3,900 | (220 | ) | 5,584 | 1,416 | |||||||||||
|
Provision for uncollectible
mortgages, notes and accountsreceivable
|
(20 | ) | - | 4,248 | - | |||||||||||
|
Nursing home expenses of owned and
operated assets
|
6,768 | - | 27,601 | - | ||||||||||||
|
Total
operating
expenses
|
24,064 | 12,074 | 89,024 | 48,530 | ||||||||||||
|
Income
before other income and
expense
|
25,098 | 27,520 | 104,738 | 111,028 | ||||||||||||
|
Other
income (expense):
|
||||||||||||||||
|
Interest and other investment
income
|
43 | 123 | 240 | 257 | ||||||||||||
|
Interest
|
(8,940 | ) | (10,146 | ) | (37,745 | ) | (42,134 | ) | ||||||||
|
Interest – amortization of
deferred financing costs
|
(501 | ) | (499 | ) | (2,001 | ) | (1,958 | ) | ||||||||
|
Litigation
settlements
|
- | - | 526 | - | ||||||||||||
|
Total
other
expense
|
(9,398 | ) | (10,522 | ) | (38,980 | ) | (43,835 | ) | ||||||||
|
Income
before gain on assets
sold
|
15,700 | 16,998 | 65,758 | 67,193 | ||||||||||||
|
Gain
from assets sold,
net
|
9 | 398 | 11,861 | 398 | ||||||||||||
|
Income
from continuing operations before income taxes
|
15,709 | 17,396 | 77,619 | 67,591 | ||||||||||||
|
Provision
for income
taxes
|
- | (125 | ) | 72 | 7 | |||||||||||
|
Income
from continuing
operations
|
15,709 | 17,271 | 77,691 | 67,598 | ||||||||||||
|
Discontinued
operations
|
- | 45 | 446 | 1,776 | ||||||||||||
|
Net
income
|
15,709 | 17,316 | 78,137 | 69,374 | ||||||||||||
|
Preferred
stock
dividends
|
(2,272 | ) | (2,481 | ) | (9,714 | ) | (9,923 | ) | ||||||||
|
Preferred
stock conversion and redemption
gain
|
2,128 | - | 2,128 | - | ||||||||||||
|
Net
income available to
common
|
$ | 15,565 | $ | 14,835 | $ | 70,551 | $ | 59,451 | ||||||||
|
Income
per common share:
|
||||||||||||||||
|
Basic:
|
||||||||||||||||
|
Income from continuing
operations
|
$ | 0.19 | $ | 0.22 | $ | 0.93 | $ | 0.88 | ||||||||
|
Net
income
|
$ | 0.19 | $ | 0.22 | $ | 0.94 | $ | 0.90 | ||||||||
|
Diluted:
|
||||||||||||||||
|
Income from continuing
operations
|
$ | 0.19 | $ | 0.22 | $ | 0.93 | $ | 0.88 | ||||||||
|
Net
income
|
$ | 0.19 | $ | 0.22 | $ | 0.94 | $ | 0.90 | ||||||||
|
Dividends
declared and paid per common
share
|
$ | 0.30 | $ | 0.28 | $ | 1.19 | $ | 1.08 | ||||||||
|
Weighted-average
shares outstanding,
basic
|
82,294 | 68,148 | 75,127 | 65,858 | ||||||||||||
|
Weighted-average
shares outstanding,
diluted
|
82,362 | 68,200 | 75,213 | 65,886 | ||||||||||||
|
Components
of other comprehensive income:
|
||||||||||||||||
|
Net
income
|
$ | 15,709 | $ | 17,316 | $ | 78,137 | $ | 69,374 | ||||||||
|
Total
comprehensive
income
|
$ | 15,709 | $ | 17,316 | $ | 78,137 | $ | 69,374 | ||||||||
OMEGA
HEALTHCARE INVESTORS, INC.
FUNDS
FROM OPERATIONS
Unaudited
(In
thousands, except per share amounts)
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Net
income available to common stockholders
|
$ | 15,565 | $ | 14,835 | $ | 70,551 | $ | 59,451 | ||||||||
|
Deduct gain from real estate
dispositions(1)
|
(9 | ) | (398 | ) | (12,292 | ) | (1,994 | ) | ||||||||
|
Sub-total
|
15,556 | 14,437 | 58,259 | 57,457 | ||||||||||||
|
Elimination of non-cash items
included in net income:
|
||||||||||||||||
|
Depreciation and
amortization(1)
|
10,705 | 9,288 | 39,890 | 36,056 | ||||||||||||
|
Funds
from operations available to common stockholders
|
$ | 26,261 | $ | 23,725 | $ | 98,149 | $ | 93,513 | ||||||||
|
Weighted-average
common shares outstanding, basic
|
82,294 | 68,148 | 75,127 | 65,858 | ||||||||||||
|
Effect of restricted stock
awards
|
58 | 38 | 75 | 12 | ||||||||||||
|
Assumed exercise of stock
options
|
10 | 14 | 11 | 16 | ||||||||||||
|
Weighted-average
common shares outstanding, diluted
|
82,362 | 68,200 | 75,213 | 65,886 | ||||||||||||
|
Fund
from operations per share available to common stockholders
|
$ | 0.32 | $ | 0.35 | $ | 1.30 | $ | 1.42 | ||||||||
|
Adjusted
funds from operations:
|
||||||||||||||||
|
Funds from operations available
to common stockholders
|
$ | 26,261 | $ | 23,725 | $ | 98,149 | $ | 93,513 | ||||||||
|
Deduct litigation
settlements
|
— | — | (526 | ) | — | |||||||||||
|
Deduct Advocat straight-line
valuation allowance adjustment
|
— | — | — | (5,040 | ) | |||||||||||
|
Deduct one-time cash
revenue
|
— | — | (702 | ) | — | |||||||||||
|
Deduct FIN 46
adjustment
|
— | (66 | ) | (90 | ) | (296 | ) | |||||||||
|
Deduct nursing home
revenues
|
(4,829 | ) | — | (24,170 | ) | — | ||||||||||
|
Deduct collection of prior
operator’s past due obligation
|
— | — | (650 | ) | — | |||||||||||
|
Deduct/add back provision for
income taxes
|
— | 125 | (72 | ) | (7 | ) | ||||||||||
|
Deduct preferred stock gain and
redemption charges - net
|
(2,128 | ) | — | (2,128 | ) | — | ||||||||||
|
Deduct/add back non-cash
provision for impairments on real estate properties(1)
|
3,900 | (220 | ) | 5,584 | 1,416 | |||||||||||
|
Deduct/add back non-cash
provisions for uncollectible accounts receivable
|
(20 | ) | — | 3,764 | — | |||||||||||
|
Add back non-cash restricted
stock expense
|
526 | 545 | 2,103 | 1,425 | ||||||||||||
|
Add back non-cash provision for
uncollectible accounts receivable – FIN 46R related
|
— | — | 484 | — | ||||||||||||
|
Add Vermont net
income
|
10 | — | 100 | — | ||||||||||||
|
Add back nursing home
expenses
|
6,768 | — | 27,601 | — | ||||||||||||
|
Adjusted
funds from operations available to common stockholders
|
$ | 30,488 | $ | 24,109 | $ | 109,447 | $ | 91,011 | ||||||||
(1) Includes amounts
in discontinued operations
This
press release includes Funds From Operations, or FFO, which is a non-GAAP
financial measure. For purposes of the Securities and Exchange
Commission’s Regulation G, a non-GAAP financial measure is a numerical measure
of a company’s historical or future financial performance, financial position or
cash flows that excludes amounts, or is subject to adjustments that have the
effect of excluding amounts, that are included in the most directly comparable
financial measure calculated and presented in accordance with GAAP in the
statement of operations, balance sheet or statement of cash flows (or equivalent
statements) of the company, or includes amounts, or is subject to adjustments
that have the effect of including amounts, that are excluded from the most
directly comparable financial measure so calculated and presented. As
used in this press release, GAAP refers to generally accepted accounting
principles in the United States of America. Pursuant to the
requirements of Regulation G, the Company has provided reconciliations of the
non-GAAP financial measures to the most directly comparable GAAP financial
measures.
The
Company calculates and reports FFO in accordance with the definition and
interpretive guidelines issued by the National Association of Real Estate
Investment Trusts ("NAREIT"), and consequently, FFO is defined as net income
available to common stockholders, adjusted for the effects of asset dispositions
and certain non-cash items, primarily depreciation and
amortization. The Company believes that FFO is an important
supplemental measure of its operating performance. Because the
historical cost accounting convention used for real estate assets requires
depreciation (except on land), such accounting presentation implies that the
value of real estate assets diminishes predictably over time, while real estate
values instead have historically risen or fallen with market
conditions. The term FFO was designed by the real estate industry to
address this issue. FFO herein is not necessarily comparable to FFO
of other real estate investment trusts, or REITs, that do not use the same
definition or implementation guidelines or interpret the standards differently
from the Company.
In
February 2004, NAREIT informed its member companies that it was adopting the
position of the SEC with respect to asset impairment charges and would no longer
recommend that impairment write-downs be excluded from FFO. In the
tables included in this press release, the Company has applied this
interpretation and has not excluded asset impairment charges in calculating its
FFO. As a result, its FFO may not be comparable to similar measures
reported in previous disclosures. According to NAREIT, there is
inconsistency among NAREIT member companies as to the adoption of this
interpretation of FFO. Therefore, a comparison of the Company’s FFO
results to another company's FFO results may not be meaningful.
The
Company uses FFO as one of several criteria to measure the operating performance
of its business. The Company further believes that by excluding the
effect of depreciation, amortization and gains or losses from sales of real
estate, all of which are based on historical costs and which may be of limited
relevance in evaluating current performance, FFO can facilitate comparisons of
operating performance between periods and between other REITs. The Company offers this
measure to assist the users of its financial statements in analyzing its
performance; however, this is not a measure of financial performance under GAAP
and should not be considered a measure of liquidity, an alternative to net
income or an indicator of any other performance measure determined in accordance
with GAAP. Investors and potential investors in the Company’s
securities should not rely on this measure as a substitute for any GAAP measure,
including net income.
Adjusted
FFO is calculated as FFO available to common stockholders less non-cash
stock-based compensation and one-time revenue and expense items. The
Company believes that adjusted FFO provides an enhanced measure of the operating
performance of the Company’s core portfolio as a REIT. The Company's
computation of adjusted FFO is not comparable to the NAREIT definition of FFO or
to similar measures reported by other REITs, but the Company believes it is an
appropriate measure for this Company.
The
following table presents a reconciliation of the Company’s 2009 guidance
regarding FFO and Adjusted FFO to net income available to common
stockholders:
|
2009
Projected
|
||||||||||||
|
Per
diluted share:
|
||||||||||||
|
Net
income available to common stockholders
|
$ | 0.95 | − | $ | 0.98 | |||||||
|
Adjustments:
|
||||||||||||
|
Depreciation and
amortization
|
0.50 | − | 0.50 | |||||||||
|
Funds
from operations available to common stockholders
|
$ | 1.45 | − | $ | 1.48 | |||||||
|
Adjustments:
|
||||||||||||
|
Nursing home revenue and expense
- net
|
0.00 | − | 0.00 | |||||||||
|
Restricted stock
expense
|
0.02 | − | 0.02 | |||||||||
|
Adjusted
funds from operations available to common stockholders
|
$ | 1.47 | − | $ | 1.50 | |||||||
The
following table summarizes the results of operations of assets held for sale and
facilities sold during the three- and twelve- months ended December 31, 2008 and
2007, respectively.
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
(in
thousands)
|
||||||||||||||||
|
Revenues
|
||||||||||||||||
|
Rental income
|
$ | — | $ | 45 | $ | 15 | $ | 212 | ||||||||
|
Expenses
|
||||||||||||||||
|
Depreciation and
amortization
|
— | — | — | 28 | ||||||||||||
|
General and
administrative
|
— | — | — | 3 | ||||||||||||
|
Subtotal
expenses
|
— | — | — | 31 | ||||||||||||
|
Income
before gain on sale of assets
|
— | 45 | 15 | 181 | ||||||||||||
|
Gain
on assets sold – net
|
— | — | 431 | 1,595 | ||||||||||||
|
Discontinued
operations
|
$ | — | $ | 45 | $ | 446 | $ | 1,776 | ||||||||
The
table below reconciles reported revenues and expenses to revenues and expenses
excluding nursing home revenues and expenses of owned and operated
assets.
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
(in
thousands)
|
||||||||||||||||
|
Total
operating revenues
|
$ | 49,162 | $ | 39,594 | $ | 193,762 | $ | 159,558 | ||||||||
|
Nursing
home revenues of owned and operated assets
|
4,829 | — | 24,170 | — | ||||||||||||
|
Revenues
excluding nursing home revenues of owned and operated
assets
|
$ | 44,333 | $ | 39,594 | $ | 169,592 | $ | 159,558 | ||||||||
|
Total
operating expenses
|
$ | 24,064 | $ | 12,074 | $ | 89,024 | $ | 48,530 | ||||||||
|
Nursing
home expenses of owned and operated assets
|
6,768 | — | 27,601 | — | ||||||||||||
|
Expenses
excluding nursing home expenses of owned and operated
assets
|
$ | 17,296 | $ | 12,074 | $ | 61,423 | $ | 48,530 | ||||||||
This
press release includes references to revenues and expenses excluding nursing
home and operated assets, which are non-GAAP financial measures. The
Company believes that presentation of the Company's revenues and expenses,
excluding nursing home owned and operated assets, provides a useful measure of
the operating performance of the Company's core portfolio as a real estate
investment trust in view of the disposition of all but two of the Company's
owned and operated assets and short term holding of owned and operated assets.
The table below reconciles reported revenues and expenses to revenues and
expenses excluding nursing home revenues and expenses of owned and operated
assets.
The
following tables present selected portfolio information, including operator and
geographic concentrations, and revenue maturities for the period ending December
31, 2008.
|
Portfolio
Composition ($000's)
|
||||||||||||||||||||
|
Balance
Sheet Data
|
#
of Properties
|
#
Beds
|
Investment
|
%
Investment
|
||||||||||||||||
|
Real
Property(1)(3)
|
240 | 27,208 | $ | 1,391,212 | 93 | % | ||||||||||||||
|
Loans
Receivable(2)
|
15 | 1,985 | 100,821 | 7 | % | |||||||||||||||
|
Total
Investments
|
255 | 29,193 | $ | 1,492,033 | 100 | % | ||||||||||||||
|
Investment
Data
|
#
of Properties
|
#
Beds
|
Investment
|
%
Investment
|
Investment
per Bed
|
|||||||||||||||
|
Skilled
Nursing Facilities (1) (2)
(3)
|
244 | 28,601 | $ | 1,432,472 | 96 | % | $ | 50 | ||||||||||||
|
Assisted
Living Facilities
|
7 | 380 | 29,838 | 2 | % | 85 | ||||||||||||||
|
Specialty
Hospitals
|
4 | 212 | 29,723 | 2 | % | 140 | ||||||||||||||
| 255 | 29,193 | $ | 1,492,033 | 100 | % | $ | 51 | |||||||||||||
|
(1)
Includes $19.2 million for lease inducement.
(2)
Includes $1.1 million of unamortized principal.
(3)
Excludes one facility classified as held for sale.
|
||||||||||||||||||||
|
Revenue
Composition ($000's)
|
||||||||||||||||
|
Revenue
by Investment Type
|
Three
Months Ended
|
Year
Ended
|
||||||||||||||
|
December
31, 2008
|
December
31, 2008
|
|||||||||||||||
|
Rental
Property (1)
|
$ | 40,713 | 92 | % | $ | 155,765 | 93 | % | ||||||||
|
Mortgage
Notes
|
3,026 | 7 | % | 9,562 | 6 | % | ||||||||||
|
Other
Investment Income
|
500 | 1 | % | 2,031 | 1 | % | ||||||||||
| $ | 44,239 | 100 | % | $ | 167,358 | 100 | % | |||||||||
|
Revenue
by Facility Type
|
Three
Months Ended
|
Year
Ended
|
||||||||||||||
|
December
31, 2008
|
December
31, 2008
|
|||||||||||||||
|
Skilled
Nursing Facilities (1)
|
$ | 42,834 | 97 | % | $ | 162,566 | 97 | % | ||||||||
|
Assisted
Living Facilities
|
600 | 1 | % | 1,925 | 1 | % | ||||||||||
|
Specialty
Hospitals
|
305 | 1 | % | 836 | 1 | % | ||||||||||
|
Other
|
500 | 1 | % | 2,031 | 1 | % | ||||||||||
| $ | 44,239 | 100 | % | $ | 167,358 | 100 | % | |||||||||
|
(1)
4th
quarter revenue includes $0.9 million reduction for lease inducement, and
$3.3 million for year-to-date. Excludes revenue from Owned and
Operated assets.
|
||||||||||||||||
|
Operator
Concentration ($000's)
|
||||||||||||
|
Concentration
by Investment
|
#
of Properties
|
Investment
|
%
Investment
|
|||||||||
|
CommuniCare
Health Services
|
36 | $ | 317,751 | 21 | % | |||||||
|
Sun
Healthcare Group, Inc.
|
40 | 210,542 | 14 | % | ||||||||
|
Advocat
Inc.
|
40 | 146,339 | 10 | % | ||||||||
|
Guardian
LTC Management (1)
|
23 | 145,171 | 10 | % | ||||||||
|
Signature
Holdings, LLC
|
18 | 141,903 | 10 | % | ||||||||
|
Formation
Capital (2)
|
15 | 119,112 | 8 | % | ||||||||
|
Nexion
Health, Inc.
|
19 | 79,942 | 5 | % | ||||||||
|
Essex
Healthcare Corp.
|
13 | 79,354 | 5 | % | ||||||||
|
Alpha
Healthcare Properties, LLC
|
8 | 55,834 | 4 | % | ||||||||
|
Mark
Ide Limited Liability Company
|
10 | 35,924 | 2 | % | ||||||||
|
Remaining
Operators(3)
|
33 | 160,161 | 11 | % | ||||||||
| 255 | $ | 1,492,033 | 100 | % | ||||||||
|
(1) Investment
amount includes a $19.2 million lease inducement.
(2) Includes
$1.1 million of unamortized principal.
(3) Excludes
one facility classified as held for sale.
|
||||||||||||
|
Concentration
by State
|
#
of Properties
|
Investment
|
%
Investment
|
|||||||||
|
Ohio
|
47 | $ | 333,691 | 22 | % | |||||||
|
Florida
(2)
|
25 | 173,044 | 12 | % | ||||||||
|
Pennsylvania
|
23 | 150,225 | 10 | % | ||||||||
|
Texas
|
20 | 81,136 | 5 | % | ||||||||
|
West
Virginia (1)
|
10 | 73,300 | 5 | % | ||||||||
|
Maryland
|
7 | 69,928 | 5 | % | ||||||||
|
Louisiana
|
14 | 55,343 | 4 | % | ||||||||
|
Colorado
|
8 | 52,784 | 3 | % | ||||||||
|
Arkansas
|
11 | 44,820 | 3 | % | ||||||||
|
Alabama
|
10 | 44,068 | 3 | % | ||||||||
|
Rhode
Island
|
4 | 39,430 | 3 | % | ||||||||
|
Massachusetts
|
6 | 38,948 | 3 | % | ||||||||
|
Kentucky
|
10 | 36,857 | 2 | % | ||||||||
|
California
|
11 | 34,756 | 2 | % | ||||||||
|
Connecticut
|
5 | 30,906 | 2 | % | ||||||||
|
Remaining
States (3)
|
44 | 232,797 | 16 | % | ||||||||
| 255 | $ | 1,492,033 | 100 | % | ||||||||
|
(1) Investment
amount includes a $19.2 million lease inducement.
(2) Includes
$1.1 million of unamortized principal.
(3) Excludes
one facility classified as held for sale.
|
||||||||||||
|
Revenue
Maturities ($000's)
|
|||||||||||||||||
|
Operating
Lease Expirations & Loan Maturities
|
Year
|
Current
Lease Revenue (1)
|
Current
Interest Revenue (1)
|
Lease
and Interest Revenue
|
%
|
||||||||||||
|
2009
|
$ | - | $ | - | $ | - | 0 | % | |||||||||
|
2010
|
1,996 | 1,431 | 3,427 | 2 | % | ||||||||||||
|
2011
|
4,598 | 68 | 4,666 | 3 | % | ||||||||||||
|
2012
|
3,175 | - | 3,175 | 2 | % | ||||||||||||
|
2013
|
24,717 | - | 24,717 | 14 | % | ||||||||||||
|
Thereafter
|
124,753 | 9,888 | 134,641 | 79 | % | ||||||||||||
| $ | 159,239 | $ | 11,387 | $ | 170,626 | 100 | % | ||||||||||
|
(1)
Based on 2009 contractual rents and interest (assumes no annual
escalators).
|
|||||||||||||||||
|
Selected
Facility Data
|
|||||||||||||||||
|
TTM
ending 9/30/08
|
Coverage
Data
|
||||||||||||||||
|
%
Revenue Mix
|
Before
|
After
|
|||||||||||||||
|
Census
|
Private
|
Medicare
|
Mgmt.
Fees
|
Mgmt.
Fees
|
|||||||||||||
|
Total
Portfolio
|
81.5%
|
9.7 | % | 26.2 | % | 2.1 | x | 1.7 | x | ||||||||
The
following tables present selected financial information, including leverage and
interest coverage ratios, as well as a debt maturity schedule for the period
ending December 31, 2008.
|
Current
Capitalization ($000's)
|
||||||||
|
Outstanding
Balance
|
%
|
|||||||
|
Borrowings
Under Bank Lines
|
$ | 63,500 | 5 | % | ||||
|
Long-Term
Debt Obligations (1)
|
485,000 | 36 | % | |||||
|
Stockholders’
Equity(2)
|
791,419 | 59 | % | |||||
|
Total
Book Capitalization
|
$ | 1,339,919 | 100 | % | ||||
|
(1) Excludes
net discount of $0.3 million on unsecured borrowings.
(2) Excludes
earnings related to Owned and Operated Assets
|
||||||||
|
Leverage
& Performance Ratios(1)
|
||||||||
|
Debt
/ Total Book Cap
|
40.9 | % | ||||||
|
Debt
/ Total Market Cap
|
28.2 | % | ||||||
|
Interest
Coverage:
|
||||||||
|
4th
quarter 2008
|
4.54 | x | ||||||
|
(1) Excludes
earnings related to Owned and Operated
Assets
|
||||||||
|
Debt
Maturities ($000's)
|
Secured
Debt
|
||||||||||||
|
Year
|
Lines
of Credit (1)
|
Senior
Notes
|
Total
|
||||||||||
|
2009
|
$ | - | $ | - | $ | - | |||||||
|
2010
|
255,000 | - | 255,000 | ||||||||||
|
2011
|
- | - | - | ||||||||||
|
2012
|
- | - | - | ||||||||||
|
2013
|
- | - | - | ||||||||||
|
Thereafter
|
- | 485,000 | 485,000 | ||||||||||
| $ | 255,000 | $ | 485,000 | $ | 740,000 | ||||||||
|
(1) Reflected
at 100% borrowing capacity. Actual borrowing at February 6, 2009 is
$47.5 million.
|
|||||||||||||
The
following table presents investment activity for the three- and twelve-month
periods ending December 31, 2008.
|
Investment
Activity ($000's)
|
||||||||||||||||
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||
|
December
31, 2008
|
December
31, 2008
|
|||||||||||||||
|
$
Amount
|
%
|
$
Amount
|
%
|
|||||||||||||
|
Funding by Investment
Type:
|
||||||||||||||||
|
Real
Property
|
$ | 19,525 | 84 | % | $ | 112,135 | 57 | % | ||||||||
|
Mortgages
|
- | 0 | % | 70,000 | 36 | % | ||||||||||
|
Other
|
3,762 | 16 | % | 14,683 | 7 | % | ||||||||||
|
Total
|
$ | 23,287 | 100 | % | $ | 196,818 | 100 | % | ||||||||