Delaware | 1-10989 | 61-1055020 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
111 S. Wacker Drive, Suite 4800, Chicago, Illinois |
60606 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(a) | Financial Statements of Businesses Acquired. | ||
Not applicable. | |||
(b) | Pro Forma Financial Information. | ||
Not applicable. | |||
(c) | Shell Company Transactions. | ||
Not applicable. | |||
(d) | Exhibits: |
Exhibit | ||||
Number | Description | |||
99.1 | Press release issued by the Company on May 5, 2011. |
VENTAS, INC. |
||||
Date: May 5, 2011 | By: | /s/ T. Richard Riney | ||
T. Richard Riney | ||||
Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary |
Exhibit | ||||
Number | Description | |||
99.1 | Press release issued by the Company on May 5, 2011. |
Ventas, Inc. | 111 South Wacker Drive, Suite 4800 | Chicago, Illinois 60606 | (877) 4-VENTAS | www.ventasreit.com |
Contact: | David J. Smith (877) 4-VENTAS |
| As previously announced, in October 2010, Ventas entered into a definitive agreement
to acquire 118 private pay seniors housing communities managed by privately-owned Atria
Senior Living Group, Inc. (Atria) from funds affiliated with Lazard Real Estate
Partners for a purchase price of $3.1 billion. Prior to the closing, Atria will spin
off its management company, which will continue to operate the acquired assets under
long-term management contracts with the Company. Upon closing, which is expected to
occur shortly, Ventas will become the largest owner of seniors housing nationally. The transaction is subject to various closing conditions,
including receipt of approvals and consents. |
| On February 28, 2011, Ventas announced that it had entered into a definitive
agreement to acquire Nationwide Health Properties, Inc. (NYSE: NHP) (NHP) in a
stock-for-stock transaction valued at approximately $7.4 billion. Under the terms of
the agreement, in the merger, NHP stockholders will receive a fixed exchange ratio of
0.7866 shares of Ventas common stock for each share of NHP common stock they own. Upon
closing, which is expected to occur in the third quarter of 2011, this transaction will
create one of the largest publicly traded REITs and the leading healthcare REIT by
equity value. Completion of the transaction is subject to the approval of shareholders of both companies and satisfaction
of customary closing conditions. |
| On February 4, 2011, the Company sold 5,563,000 shares of its common stock in an
underwritten public offering at $53.93 per share and received total proceeds of $300
million. |
| In February 2011, the Company repaid $307.2 million of mortgage debt and recognized
a loss on early extinguishment of debt of $16.5 million. |
| At March 31, 2011, the Company had $8.0 million outstanding under its revolving
credit facilities, $988.9 million of undrawn availability, and $41.9 million of cash
and short-term cash investments. |
| The Companys debt to total capitalization at March 31, 2011 was approximately 23
percent. The Companys net debt to Adjusted Pro Forma EBITDA (as defined herein) at
quarter end was 3.8x. |
| The 197 skilled nursing facilities and hospitals leased by the Company to Kindred
Healthcare, Inc. (NYSE: KND) (Kindred) produced EBITDARM (earnings before interest,
taxes, depreciation, amortization, rent and management fees) to actual cash rent
coverage of 2.0x for the trailing 12-month period ended December 31, 2010 (the latest
date available). |
| Same-store cash NOI growth was 2.7 percent in the quarter ended March 31, 2011 for
the Companys triple-net leased healthcare and seniors housing assets, compared to the
first quarter of 2010. |
| Same-store cash NOI growth for the Companys total portfolio was 3.7 percent in
the first quarter of 2011, compared to the first quarter of 2010. |
| On March 10, 2011, the United States Court of Appeals for the Sixth Circuit (the
Court) heard oral argument in the cross-appeals of the $101,672,807 judgment in favor
of Ventas, and against HCP, Inc. (HCP). The Company expects the Court to issue its
opinion during 2011. |
| Supplemental information regarding the Company can be found on the Companys website
under the For Investors section or at www.ventasreit.com/investors/supplemental.asp. |
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Assets |
||||||||||||||||||||
Real estate investments: |
||||||||||||||||||||
Land |
$ | 560,086 | $ | 559,072 | $ | 557,880 | $ | 556,469 | $ | 557,370 | ||||||||||
Buildings and improvements |
6,051,148 | 6,035,295 | 5,982,708 | 5,732,421 | 5,735,896 | |||||||||||||||
Construction in progress |
5,848 | 6,519 | 5,955 | 3,788 | 4,370 | |||||||||||||||
Acquired lease intangibles |
147,381 | 146,813 | 143,356 | 106,296 | 107,036 | |||||||||||||||
6,764,463 | 6,747,699 | 6,689,899 | 6,398,974 | 6,404,672 | ||||||||||||||||
Accumulated depreciation and amortization |
(1,521,039 | ) | (1,468,180 | ) | (1,416,546 | ) | (1,367,396 | ) | (1,319,747 | ) | ||||||||||
Net real estate property |
5,243,424 | 5,279,519 | 5,273,353 | 5,031,578 | 5,084,925 | |||||||||||||||
Loans receivable, net |
130,608 | 149,263 | 164,829 | 140,870 | 147,725 | |||||||||||||||
Investments in unconsolidated entities |
15,011 | 15,332 | 16,044 | | | |||||||||||||||
Net real estate investments |
5,389,043 | 5,444,114 | 5,454,226 | 5,172,448 | 5,232,650 | |||||||||||||||
Cash and cash equivalents |
41,899 | 21,812 | 33,790 | 27,794 | 132,729 | |||||||||||||||
Escrow deposits and restricted cash |
35,399 | 38,940 | 41,985 | 43,484 | 41,023 | |||||||||||||||
Deferred financing costs, net |
17,141 | 19,533 | 22,739 | 24,891 | 27,964 | |||||||||||||||
Other |
210,616 | 233,622 | 248,077 | 193,500 | 199,459 | |||||||||||||||
Total assets |
$ | 5,694,098 | $ | 5,758,021 | $ | 5,800,817 | $ | 5,462,117 | $ | 5,633,825 | ||||||||||
Liabilities and equity |
||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Senior notes payable and other debt |
$ | 2,571,368 | $ | 2,900,044 | $ | 2,895,547 | $ | 2,580,849 | $ | 2,698,171 | ||||||||||
Accrued interest |
34,543 | 19,296 | 33,748 | 16,682 | 35,773 | |||||||||||||||
Accounts payable and other liabilities |
203,594 | 207,143 | 202,985 | 181,343 | 183,574 | |||||||||||||||
Deferred income taxes |
238,146 | 241,333 | 252,351 | 251,829 | 252,687 | |||||||||||||||
Total liabilities |
3,047,651 | 3,367,816 | 3,384,631 | 3,030,703 | 3,170,205 | |||||||||||||||
Commitments and contingencies |
||||||||||||||||||||
Equity: |
||||||||||||||||||||
Ventas stockholders equity: |
||||||||||||||||||||
Preferred stock, $1.00 par value; 10,000 shares
authorized, unissued |
| | | | | |||||||||||||||
Common stock, $0.25 par value; 163,118, 157,279,
157,095,
156,872 and 156,862 shares issued at March 31, 2011,
December 31, 2010, September 30, 2010, June 30, 2010 and
March 31, 2010, respectively |
40,818 | 39,391 | 39,346 | 39,343 | 39,341 | |||||||||||||||
Capital in excess of par value |
2,874,879 | 2,576,843 | 2,587,367 | 2,583,412 | 2,578,577 | |||||||||||||||
Accumulated other comprehensive income |
28,097 | 26,868 | 23,816 | 16,506 | 25,154 | |||||||||||||||
Retained earnings (deficit) |
(300,382 | ) | (255,628 | ) | (249,047 | ) | (222,853 | ) | (196,972 | ) | ||||||||||
Treasury stock, 0, 14, 0, 0 and 10 shares at March
31, 2011,
December 31, 2010, September 30, 2010, June 30, 2010, and
March 31, 2010, respectively |
(8 | ) | (748 | ) | | | (467 | ) | ||||||||||||
Total Ventas stockholders equity |
2,643,404 | 2,386,726 | 2,401,482 | 2,416,408 | 2,445,633 | |||||||||||||||
Noncontrolling interest |
3,043 | 3,479 | 14,704 | 15,006 | 17,987 | |||||||||||||||
Total equity |
2,646,447 | 2,390,205 | 2,416,186 | 2,431,414 | 2,463,620 | |||||||||||||||
Total liabilities and equity |
$ | 5,694,098 | $ | 5,758,021 | $ | 5,800,817 | $ | 5,462,117 | $ | 5,633,825 | ||||||||||
2011 | 2010 | |||||||
Revenues: |
||||||||
Rental income: |
||||||||
Triple-net leased |
$ | 118,603 | $ | 116,333 | ||||
Medical office buildings |
24,236 | 12,189 | ||||||
142,839 | 128,522 | |||||||
Resident fees and services |
114,502 | 108,486 | ||||||
Medical office building services revenue |
6,957 | | ||||||
Income from loans and investments |
6,085 | 3,617 | ||||||
Interest and other income |
78 | 263 | ||||||
Total revenues |
270,461 | 240,888 | ||||||
Expenses: |
||||||||
Interest |
42,558 | 44,090 | ||||||
Depreciation and amortization |
51,759 | 52,314 | ||||||
Property-level operating expenses: |
||||||||
Senior living |
78,111 | 74,677 | ||||||
Medical office buildings |
8,676 | 4,202 | ||||||
86,787 | 78,879 | |||||||
Medical office building services costs |
5,536 | | ||||||
General, administrative and professional fees (including non-cash
stock-based compensation expense of $4,016 and $3,032 for the three
months ended March 31, 2011 and 2010, respectively) |
14,832 | 10,683 | ||||||
Foreign currency loss (gain) |
1 | (106 | ) | |||||
Loss on extinguishment of debt |
16,520 | | ||||||
Merger-related expenses and deal costs |
6,449 | 2,319 | ||||||
Total expenses |
224,442 | 188,179 | ||||||
Income before loss from unconsolidated entities, income taxes, discontinued
operations and noncontrolling interest |
46,019 | 52,709 | ||||||
Loss from unconsolidated entities |
(170 | ) | | |||||
Income tax benefit (expense) |
3,197 | (286 | ) | |||||
Income from continuing operations |
49,046 | 52,423 | ||||||
Discontinued operations |
| 745 | ||||||
Net income |
49,046 | 53,168 | ||||||
Net income attributable to noncontrolling interest (net of tax of $0 and
$419 for
the three months ended March 31, 2011 and 2010, respectively) |
62 | 549 | ||||||
Net income attributable to common stockholders |
$ | 48,984 | $ | 52,619 | ||||
Earnings per common share: |
||||||||
Basic: |
||||||||
Income from continuing operations attributable to
common stockholders |
$ | 0.31 | $ | 0.34 | ||||
Discontinued operations |
| 0.00 | ||||||
Net income attributable to common stockholders |
$ | 0.31 | $ | 0.34 | ||||
Diluted: |
||||||||
Income from continuing operations attributable to
common stockholders |
$ | 0.30 | $ | 0.34 | ||||
Discontinued operations |
| 0.00 | ||||||
Net income attributable to common stockholders |
$ | 0.30 | $ | 0.34 | ||||
Weighted average shares used in computing earnings per common share: |
||||||||
Basic |
160,420 | 156,453 | ||||||
Diluted |
162,023 | 156,967 | ||||||
Dividends declared per common share |
$ | 0.575 | $ | 0.535 |
2011 First | 2010 Quarters | |||||||||||||||||||
Quarter | Fourth | Third | Second | First | ||||||||||||||||
Revenues: |
||||||||||||||||||||
Rental income: |
||||||||||||||||||||
Triple-net leased |
$ | 118,603 | $ | 118,200 | $ | 117,906 | $ | 117,386 | $ | 116,333 | ||||||||||
Medical office buildings |
24,236 | 22,501 | 22,817 | 12,240 | 12,189 | |||||||||||||||
142,839 | 140,701 | 140,723 | 129,626 | 128,522 | ||||||||||||||||
Resident fees and services |
114,502 | 114,766 | 113,182 | 109,867 | 108,486 | |||||||||||||||
Medical office building services revenue |
6,957 | 7,387 | 6,711 | | | |||||||||||||||
Income from loans and investments |
6,085 | 5,076 | 4,014 | 3,705 | 3,617 | |||||||||||||||
Interest and other income |
78 | 64 | 35 | 122 | 263 | |||||||||||||||
Total revenues |
270,461 | 267,994 | 264,665 | 243,320 | 240,888 | |||||||||||||||
Expenses: |
||||||||||||||||||||
Interest |
42,558 | 45,414 | 45,519 | 43,840 | 44,090 | |||||||||||||||
Depreciation and amortization |
51,759 | 51,142 | 52,104 | 50,040 | 52,314 | |||||||||||||||
Property-level operating expenses: |
||||||||||||||||||||
Senior living |
78,111 | 72,029 | 74,066 | 71,059 | 74,677 | |||||||||||||||
Medical office buildings |
8,676 | 7,855 | 7,941 | 4,124 | 4,202 | |||||||||||||||
86,787 | 79,884 | 82,007 | 75,183 | 78,879 | ||||||||||||||||
Medical office building services costs |
5,536 | 4,885 | 4,633 | | | |||||||||||||||
General, administrative and professional fees (including non-cash
stock-based compensation expense of $4,016, $3,950, $4,039, $3,057
and $3,032, respectively) |
14,832 | 14,011 | 15,278 | 9,858 | 10,683 | |||||||||||||||
Foreign currency loss (gain) |
1 | 676 | (419 | ) | 121 | (106 | ) | |||||||||||||
Loss on extinguishment of debt |
16,520 | 3,242 | | 6,549 | | |||||||||||||||
Merger-related expenses and deal costs |
6,449 | 7,575 | 5,142 | 4,207 | 2,319 | |||||||||||||||
Total expenses |
224,442 | 206,829 | 204,264 | 189,798 | 188,179 | |||||||||||||||
Income before loss from unconsolidated entities, income taxes, discontinued
operations and noncontrolling interest |
46,019 | 61,165 | 60,401 | 53,522 | 52,709 | |||||||||||||||
Loss from unconsolidated entities |
(170 | ) | (272 | ) | (392 | ) | | | ||||||||||||
Income tax benefit (expense) |
3,197 | (2,849 | ) | (1,657 | ) | (409 | ) | (286 | ) | |||||||||||
Income from continuing operations |
49,046 | 58,044 | 58,352 | 53,113 | 52,423 | |||||||||||||||
Discontinued operations |
| 20,658 | 542 | 5,852 | 745 | |||||||||||||||
Net income |
49,046 | 78,702 | 58,894 | 58,965 | 53,168 | |||||||||||||||
Net income attributable to noncontrolling interest (net of tax of $0,
$680, $613,
$559 and $419, respectively) |
62 | 1,119 | 996 | 898 | 549 | |||||||||||||||
Net income attributable to common stockholders |
$ | 48,984 | $ | 77,583 | $ | 57,898 | $ | 58,067 | $ | 52,619 | ||||||||||
Earnings per common share: |
||||||||||||||||||||
Basic: |
||||||||||||||||||||
Income from continuing operations attributable to common stockholders |
$ | 0.31 | $ | 0.36 | $ | 0.37 | $ | 0.33 | $ | 0.34 | ||||||||||
Discontinued operations |
| 0.13 | 0.00 | 0.04 | 0.00 | |||||||||||||||
Net income attributable to common stockholders |
$ | 0.31 | $ | 0.49 | $ | 0.37 | $ | 0.37 | $ | 0.34 | ||||||||||
Diluted: |
||||||||||||||||||||
Income from continuing operations attributable to common stockholders |
$ | 0.30 | $ | 0.36 | $ | 0.37 | $ | 0.33 | $ | 0.34 | ||||||||||
Discontinued operations |
| 0.13 | 0.00 | 0.04 | 0.00 | |||||||||||||||
Net income attributable to common stockholders |
$ | 0.30 | $ | 0.49 | $ | 0.37 | $ | 0.37 | $ | 0.34 | ||||||||||
Weighted average shares used in computing earnings per common share: |
||||||||||||||||||||
Basic |
160,420 | 156,734 | 156,631 | 156,611 | 156,453 | |||||||||||||||
Diluted |
162,023 | 158,231 | 157,941 | 157,441 | 156,967 | |||||||||||||||
Dividends declared per common share |
$ | 0.575 | $ | 0.535 | $ | 0.535 | $ | 0.535 | $ | 0.535 |
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 49,046 | $ | 53,168 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization (including amounts in discontinued operations) |
51,759 | 52,537 | ||||||
Amortization of deferred revenue and lease intangibles, net |
(1,799 | ) | (1,549 | ) | ||||
Other amortization expenses |
2,436 | 2,154 | ||||||
Stock-based compensation |
4,016 | 3,032 | ||||||
Straight-lining of rental income |
(1,772 | ) | (2,449 | ) | ||||
Gain on real estate loan investments |
(177 | ) | | |||||
Gain on sale of marketable securities |
(733 | ) | | |||||
Loss on extinguishment of debt |
16,520 | | ||||||
Net gain on sale of real estate assets (including amounts in discontinued
operations) |
| (184 | ) | |||||
Income tax (benefit) expense |
(3,197 | ) | 286 | |||||
Loss from unconsolidated entities |
170 | | ||||||
Other |
398 | 53 | ||||||
Changes in operating assets and liabilities: |
||||||||
Increase in other assets |
(1,540 | ) | (3,772 | ) | ||||
Increase in accrued interest |
15,253 | 17,799 | ||||||
Increase (decrease) in accounts payable and other liabilities |
389 | (5,514 | ) | |||||
Net cash provided by operating activities |
130,769 | 115,561 | ||||||
Cash flows from investing activities: |
||||||||
Net investment in real estate property |
| (11,860 | ) | |||||
Purchase of noncontrolling interest |
(3,319 | ) | | |||||
Investment in loans receivable |
| (15,796 | ) | |||||
Proceeds from marketable securities |
23,050 | | ||||||
Proceeds from real estate disposals |
| 754 | ||||||
Proceeds from loans receivable |
19,950 | 1,192 | ||||||
Capital expenditures |
(7,963 | ) | (4,295 | ) | ||||
Other |
(37 | ) | | |||||
Net cash provided by (used in) investing activities |
31,681 | (30,005 | ) | |||||
Cash flows from financing activities: |
||||||||
Net change in borrowings under revolving credit facilities |
(32,000 | ) | 29,089 | |||||
Proceeds from debt |
14,630 | 196 | ||||||
Repayment of debt |
(331,069 | ) | (7,807 | ) | ||||
Payment of deferred financing costs |
(314 | ) | (1,113 | ) | ||||
Issuance of common stock, net |
299,926 | | ||||||
Cash distribution to common stockholders |
(93,738 | ) | (83,881 | ) | ||||
Contributions from noncontrolling interest |
| 265 | ||||||
Distributions to noncontrolling interest |
(349 | ) | (1,989 | ) | ||||
Other |
458 | 4,169 | ||||||
Net cash used in financing activities |
(142,456 | ) | (61,071 | ) | ||||
Net increase in cash and cash equivalents |
19,994 | 24,485 | ||||||
Effect of foreign currency translation on cash and cash equivalents |
93 | 847 | ||||||
Cash and cash equivalents at beginning of period |
21,812 | 107,397 | ||||||
Cash and cash equivalents at end of period |
$ | 41,899 | $ | 132,729 | ||||
Supplemental schedule of non-cash activities: |
||||||||
Assets and liabilities assumed from acquisitions: |
||||||||
Real estate investments |
$ | | $ | 496 | ||||
Other assets acquired |
| (355 | ) | |||||
Other liabilities |
| 141 |
2011 First | 2010 Quarters | |||||||||||||||||||
Quarter | Fourth | Third | Second | First | ||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ | 49,046 | $ | 78,702 | $ | 58,894 | $ | 58,965 | $ | 53,168 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
Depreciation and amortization (including amounts in discontinued operations) |
51,759 | 51,142 | 52,200 | 50,185 | 52,537 | |||||||||||||||
Amortization of deferred revenue and lease intangibles, net |
(1,799 | ) | (1,853 | ) | (1,637 | ) | (1,394 | ) | (1,549 | ) | ||||||||||
Other amortization expenses |
2,436 | 2,188 | 2,088 | 2,213 | 2,154 | |||||||||||||||
Stock-based compensation |
4,016 | 3,950 | 4,039 | 3,057 | 3,032 | |||||||||||||||
Straight-lining of rental income |
(1,772 | ) | (2,192 | ) | (3,000 | ) | (2,526 | ) | (2,449 | ) | ||||||||||
Gain on real estate loan investments |
(177 | ) | (915 | ) | | | | |||||||||||||
Gain on sale of marketable securities |
(733 | ) | | | | | ||||||||||||||
Loss on extinguishment of debt |
16,520 | 3,242 | | 6,549 | | |||||||||||||||
Net gain on sale of real estate assets (including amounts in discontinued
operations) |
| (19,848 | ) | (168 | ) | (5,041 | ) | (184 | ) | |||||||||||
Income tax (benefit) expense |
(3,197 | ) | 2,849 | 1,657 | 409 | 286 | ||||||||||||||
Loss from unconsolidated entities |
170 | 272 | 392 | | | |||||||||||||||
Other |
398 | (38 | ) | 230 | (291 | ) | 53 | |||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||||||
(Increase) decrease in other assets |
(1,540 | ) | 772 | (3,843 | ) | (1,402 | ) | (3,772 | ) | |||||||||||
Increase (decrease) in accrued interest |
15,253 | (14,452 | ) | 17,055 | (19,091 | ) | 17,799 | |||||||||||||
Increase (decrease) in accounts payable and other liabilities |
389 | (2,316 | ) | 10,495 | 523 | (5,514 | ) | |||||||||||||
Net cash provided by operating activities |
130,769 | 101,503 | 138,402 | 92,156 | 115,561 | |||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Net investment in real estate property |
| (35,284 | ) | (216,242 | ) | (11,055 | ) | (11,860 | ) | |||||||||||
Purchase of noncontrolling interest |
(3,319 | ) | (42,333 | ) | | | | |||||||||||||
Investment in loans receivable |
| | (22,929 | ) | | (15,796 | ) | |||||||||||||
Proceeds from sale of marketable securities |
23,050 | | | | | |||||||||||||||
Proceeds from real estate disposals |
| 32,566 | 2,568 | 22,275 | 754 | |||||||||||||||
Proceeds from loans receivable |
19,950 | 17,739 | 229 | 131 | 1,192 | |||||||||||||||
Capital expenditures |
(7,963 | ) | (6,612 | ) | (6,165 | ) | (2,783 | ) | (4,295 | ) | ||||||||||
Other |
(37 | ) | 480 | (4,500 | ) | | | |||||||||||||
Net cash provided by (used in) investing activities |
31,681 | (33,444 | ) | (247,039 | ) | 8,568 | (30,005 | ) | ||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Net change in borrowings under revolving credit facilities |
(32,000 | ) | (204,440 | ) | 115,724 | 88,191 | 29,089 | |||||||||||||
Proceeds from debt |
14,630 | 396,145 | 200,541 | 500 | 196 | |||||||||||||||
Repayment of debt |
(331,069 | ) | (193,382 | ) | (116,207 | ) | (207,364 | ) | (7,807 | ) | ||||||||||
Payment of deferred financing costs |
(314 | ) | (822 | ) | (32 | ) | (727 | ) | (1,113 | ) | ||||||||||
Issuance of common stock, net |
299,926 | | | | | |||||||||||||||
Cash distribution to common stockholders |
(93,738 | ) | (84,164 | ) | (84,092 | ) | (83,948 | ) | (83,881 | ) | ||||||||||
Contributions from noncontrolling interest |
| | 185 | 368 | 265 | |||||||||||||||
Distributions to noncontrolling interest |
(349 | ) | (1,449 | ) | (2,356 | ) | (2,288 | ) | (1,989 | ) | ||||||||||
Other |
458 | 7,979 | 753 | 504 | 4,169 | |||||||||||||||
Net cash (used in) provided by financing activities |
(142,456 | ) | (80,133 | ) | 114,516 | (204,764 | ) | (61,071 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents |
19,994 | (12,074 | ) | 5,879 | (104,040 | ) | 24,485 | |||||||||||||
Effect of foreign currency translation on cash and cash equivalents |
93 | 96 | 117 | (895 | ) | 847 | ||||||||||||||
Cash and cash equivalents at beginning of period |
21,812 | 33,790 | 27,794 | 132,729 | 107,397 | |||||||||||||||
Cash and cash equivalents at end of period |
$ | 41,899 | $ | 21,812 | $ | 33,790 | $ | 27,794 | $ | 132,729 | ||||||||||
Supplemental schedule of non-cash activities: |
||||||||||||||||||||
Assets and liabilities assumed from acquisitions: |
||||||||||||||||||||
Real estate investments |
$ | | $ | | $ | 125,350 | $ | | $ | 496 | ||||||||||
Other assets acquired |
| | (30 | ) | | (355 | ) | |||||||||||||
Debt assumed |
| | 125,320 | | | |||||||||||||||
Other liabilities |
| | | | 141 |
First Quarter | 2010 Quarters | |||||||||||||||||||
2011 | Fourth | Third | Second | First | ||||||||||||||||
Net income attributable to common stockholders |
$ | 48,984 | $ | 77,583 | $ | 57,898 | $ | 58,067 | $ | 52,619 | ||||||||||
Adjustments: |
||||||||||||||||||||
Depreciation and amortization on real estate assets |
51,173 | 50,645 | 51,449 | 49,787 | 52,085 | |||||||||||||||
Depreciation on real estate assets related to noncontrolling
interest |
(204 | ) | (1,184 | ) | (1,627 | ) | (1,680 | ) | (1,726 | ) | ||||||||||
Depreciation on real estate assets related to unconsolidated
entities |
1,035 | 1,092 | 1,275 | | | |||||||||||||||
Discontinued operations: |
||||||||||||||||||||
Gain on sale of real estate assets |
| (19,848 | ) | (168 | ) | (5,041 | ) | (184 | ) | |||||||||||
Depreciation and amortization on real estate assets |
| | 96 | 145 | 223 | |||||||||||||||
FFO |
100,988 | 108,288 | 108,923 | 101,278 | 103,017 | |||||||||||||||
Merger-related expenses and deal costs |
6,449 | 7,575 | 5,142 | 4,207 | 2,319 | |||||||||||||||
Income tax (benefit) expense |
(3,197 | ) | 2,169 | 1,044 | (150 | ) | (133 | ) | ||||||||||||
Loss on extinguishment of debt |
16,520 | 3,242 | | 6,549 | | |||||||||||||||
Amortization of other intangibles |
256 | 173 | 338 | | | |||||||||||||||
Normalized FFO |
$ | 121,016 | $ | 121,447 | $ | 115,447 | $ | 111,884 | $ | 105,203 | ||||||||||
Per diluted share (1): |
||||||||||||||||||||
Net income attributable to common stockholders |
$ | 0.30 | $ | 0.49 | $ | 0.37 | $ | 0.37 | $ | 0.34 | ||||||||||
Adjustments: |
||||||||||||||||||||
Depreciation and amortization on real estate assets |
0.32 | 0.32 | 0.33 | 0.32 | 0.33 | |||||||||||||||
Depreciation on real estate assets related to noncontrolling
interest |
0.00 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||
Depreciation on real estate assets related to unconsolidated
entities |
0.01 | 0.01 | 0.01 | | | |||||||||||||||
Discontinued operations: |
||||||||||||||||||||
Gain on sale of real estate assets |
| (0.13 | ) | (0.00 | ) | (0.03 | ) | (0.00 | ) | |||||||||||
Depreciation and amortization on real estate assets |
| | 0.00 | 0.00 | 0.00 | |||||||||||||||
FFO |
0.62 | 0.68 | 0.69 | 0.64 | 0.66 | |||||||||||||||
Merger-related expenses and deal costs |
0.04 | 0.05 | 0.03 | 0.03 | 0.01 | |||||||||||||||
Income tax (benefit) expense |
(0.02 | ) | 0.01 | 0.01 | (0.00 | ) | (0.00 | ) | ||||||||||||
Loss on extinguishment of debt |
0.10 | 0.02 | | 0.04 | | |||||||||||||||
Amortization of other intangibles |
0.00 | 0.00 | 0.00 | | | |||||||||||||||
Normalized FFO |
$ | 0.75 | $ | 0.77 | $ | 0.73 | $ | 0.71 | $ | 0.67 | ||||||||||
(1) | Per share amounts may not add due to rounding. |
GUIDANCE | ||||||||||||
For the Year | ||||||||||||
Ending | ||||||||||||
December 31, 2011 | ||||||||||||
Net income attributable to common stockholders |
$ | 1.12 | | $ | 1.35 | |||||||
Adjustments: |
||||||||||||
Depreciation and amortization on real estate
assets, depreciation related to noncontrolling
interest
and gain/loss on sale of real estate assets, net |
1.54 | | 1.54 | |||||||||
FFO |
2.66 | | 2.89 | |||||||||
Adjustments: |
||||||||||||
Income tax benefit/expense (net of noncontrolling
interest), gain/loss on extinguishment of debt, transition and integration expenses, amortization
of
intangibles, merger-related expenses and deal
costs, net |
0.40 | | 0.25 | |||||||||
Normalized FFO |
$ | 3.06 | | $ | 3.14 | |||||||
Net income attributable to common stockholders |
$ | 48,984 | ||
Pro forma adjustments for current period investments,
capital
transactions and dispositions |
(291 | ) | ||
Pro forma net income for the three months ended
March 31, 2011 |
$ | 48,693 | ||
Add back: |
||||
Pro forma interest |
39,453 | |||
Pro forma depreciation and amortization |
51,759 | |||
Stock-based compensation |
4,016 | |||
Loss on extinguishment of debt |
16,520 | |||
Income tax benefit |
(3,197 | ) | ||
Other taxes |
268 | |||
Merger-related expenses and deal costs |
6,449 | |||
Adjusted Pro Forma EBITDA |
$ | 163,961 | ||
Adjusted Pro Forma EBITDA annualized |
$ | 655,844 | ||
As March 31, 2011: |
||||
Debt |
$ | 2,571,368 | ||
Cash, including cash escrows pertaining to debt |
(50,195 | ) | ||
Net debt |
$ | 2,521,173 | ||
Net debt to Adjusted Pro Forma EBITDA |
3.8 | x | ||
2011 First | 2010 Quarters | |||||||||||||||||||
Quarter | Fourth | Third | Second | First | ||||||||||||||||
Revenues |
||||||||||||||||||||
Triple-Net |
||||||||||||||||||||
Triple-Net Rental Income, excluding Discontinued
Operations |
$ | 118,603 | $ | 118,200 | $ | 117,906 | $ | 117,387 | $ | 116,332 | ||||||||||
Medical Office Buildings |
||||||||||||||||||||
Medical Office Stabilized |
20,810 | 19,326 | 18,734 | 10,149 | 10,225 | |||||||||||||||
Medical Office Lease up |
3,426 | 3,175 | 4,083 | 2,091 | 1,965 | |||||||||||||||
Total Medical Office Buildings Rental Income |
24,236 | 22,501 | 22,817 | 12,240 | 12,190 | |||||||||||||||
Total Rental Income |
142,839 | 140,701 | 140,723 | 129,627 | 128,522 | |||||||||||||||
Medical Office Building Services Revenue |
6,957 | 7,387 | 6,711 | | | |||||||||||||||
Total Medical Office Buildings Revenue |
31,193 | 29,888 | 29,528 | 12,240 | 12,190 | |||||||||||||||
Seniors Housing Operating |
||||||||||||||||||||
Sunrise Managed Stabilized |
113,226 | 110,320 | 109,065 | 106,572 | 105,355 | |||||||||||||||
Sunrise Managed Lease up |
| 3,208 | 2,876 | 2,797 | 2,765 | |||||||||||||||
Seniors Housing Other |
1,276 | 1,238 | 1,241 | 498 | 366 | |||||||||||||||
Total Resident Fees and Services |
114,502 | 114,766 | 113,182 | 109,867 | 108,486 | |||||||||||||||
Non-Segment Income from Loans and Investments |
6,085 | 5,076 | 4,014 | 3,705 | 3,617 | |||||||||||||||
Total Revenues, excluding Interest and Other Income |
270,383 | 267,930 | 264,630 | 243,199 | 240,625 | |||||||||||||||
Property-Level Operating Expenses |
||||||||||||||||||||
Medical Office Buildings |
||||||||||||||||||||
Medical Office Stabilized |
7,281 | 6,431 | 6,474 | 3,417 | 3,382 | |||||||||||||||
Medical Office Lease up |
1,395 | 1,424 | 1,467 | 704 | 822 | |||||||||||||||
Total Medical Office Buildings |
8,676 | 7,855 | 7,941 | 4,121 | 4,204 | |||||||||||||||
Seniors Housing Operating |
||||||||||||||||||||
Sunrise Managed Stabilized |
76,952 | 68,816 | 70,994 | 69,305 | 72,291 | |||||||||||||||
Sunrise Managed Lease up |
| 2,088 | 1,919 | 1,264 | 2,020 | |||||||||||||||
Seniors Housing Other |
1,159 | 1,125 | 1,153 | 493 | 364 | |||||||||||||||
Total Seniors Housing |
78,111 | 72,029 | 74,066 | 71,062 | 74,675 | |||||||||||||||
Total Property-Level Operating Expenses |
86,787 | 79,884 | 82,007 | 75,183 | 78,879 | |||||||||||||||
Medical Office Building Services Costs |
5,536 | 4,885 | 4,633 | | | |||||||||||||||
Net Operating Income |
||||||||||||||||||||
Triple-Net |
118,603 | 118,200 | 117,906 | 117,387 | 116,332 | |||||||||||||||
Medical Office Buildings |
||||||||||||||||||||
Medical Office Stabilized |
13,529 | 12,895 | 12,260 | 6,732 | 6,843 | |||||||||||||||
Medical Office Lease up |
2,031 | 1,751 | 2,616 | 1,387 | 1,143 | |||||||||||||||
Medical Office Buildings Services |
1,421 | 2,502 | 2,078 | | | |||||||||||||||
Total Medical Office Buildings |
16,981 | 17,148 | 16,954 | 8,119 | 7,986 | |||||||||||||||
Seniors Housing Operating |
||||||||||||||||||||
Sunrise Managed Stabilized |
36,274 | 41,504 | 38,071 | 37,267 | 33,064 | |||||||||||||||
Sunrise Managed Lease up |
| 1,120 | 957 | 1,533 | 745 | |||||||||||||||
Seniors Housing Other |
117 | 113 | 88 | 5 | 2 | |||||||||||||||
Total Seniors Housing |
36,391 | 42,737 | 39,116 | 38,805 | 33,811 | |||||||||||||||
Non-Segment |
6,085 | 5,076 | 4,014 | 3,705 | 3,617 | |||||||||||||||
Net Operating Income |
$ | 178,060 | $ | 183,161 | $ | 177,990 | $ | 168,016 | $ | 161,746 | ||||||||||
Non-GAAP Financial Measures Reconciliation
Same-store Quarterly NOI Reconciliation by Segment
(Dollars in thousands)
For the Three Months | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Revenues |
||||||||
Triple-Net |
||||||||
Triple-Net Rental Income |
$ | 118,603 | $ | 116,332 | ||||
Less: |
||||||||
Rental Income not Included in Same-Store |
265 | 5 | ||||||
Straight-Lining of Rental Income |
1,076 | 2,061 | ||||||
Non-Cash Rental Income |
192 | 388 | ||||||
Other Pro Forma Adjustments |
68 | (21 | ) | |||||
1,601 | 2,433 | |||||||
Same-Store Cash Rental Income |
$ | 117,002 | $ | 113,899 | ||||
Percentage Increase |
2.7 | % | ||||||
Net Operating Income |
||||||||
Triple-Net Same-Store NOI |
$ | 117,002 | $ | 113,899 | ||||
Total Seniors Housing |
36,391 | 33,811 | ||||||
Total Medical Office Buildings |
16,981 | 7,986 | ||||||
Less: |
||||||||
Noncontrolling Interest Portion of NOI |
418 | 302 | ||||||
MOB NOI not Included in Same-Store |
8,842 | — | ||||||
Straight-Lining of Rental Income |
323 | 458 | ||||||
Non-Cash Rental Income |
61 | 74 | ||||||
Seniors Housing NOI not Included in Same-Store |
93 | — | ||||||
Other Pro Forma Adjustments |
116 | 126 | ||||||
Same-Store Net Operating Income |
$ | 160,521 | $ | 154,736 | ||||
Percentage Increase |
3.7 | % | ||||||