-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HRiFznWvBM1UiFL81eGZ2/JFWnKyIWZ65lCWVCJWbXK7yaR227GjKhhXuVXzAr7v 1ufdkhzIv7Yie2e8f7VoqA== 0000950152-03-006834.txt : 20030715 0000950152-03-006834.hdr.sgml : 20030715 20030715172458 ACCESSION NUMBER: 0000950152-03-006834 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030715 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEALTH CARE REIT INC /DE/ CENTRAL INDEX KEY: 0000766704 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 341096634 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08923 FILM NUMBER: 03787921 BUSINESS ADDRESS: STREET 1: ONE SEAGATE STE 1500 STREET 2: P O BOX 1475 CITY: TOLEDO STATE: OH ZIP: 43604 BUSINESS PHONE: 4192472800 8-K 1 l02100ae8vk.txt HEALTH CARE REIT, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of report (Date of earliest event reported): July 15, 2003 HEALTH CARE REIT, INC. (Exact name of registrant as specified in its charter) DELAWARE 1-8923 34-1096634 (State or other jurisdiction of (Commission File (I.R.S. Employer incorporation or organization) Number) Identification Number) One SeaGate, Suite 1500, Toledo, Ohio 43604 (Address of principal executive office) (Zip Code) (419) 247-2800 (Registrant's telephone number, including area code) ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION On July 15, 2003, Health Care REIT, Inc. issued a press release that announced operating results of its second quarter ended June 30, 2003. The press release is posted on the Company's Web site (www.hcreit.com) under the heading Press Releases. A copy of the press release has been furnished as Exhibit 99.1 to this Current Report. SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant had duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. HEALTH CARE REIT, INC. By: /s/ GEORGE L. CHAPMAN ------------------------------- George L. Chapman Its: Chairman of the Board and Chief Executive Officer Dated: July 15, 2003 ------------- EXHIBIT INDEX ------------- Designation Number Under Exhibit No. Item 601 of Regulation S-K Description ----------- -------------------------- ----------- 99.1 99 Press release dated July 15, 2003 EX-99.1 3 l02100aexv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 HEALTH CARE REIT, INC. REPORTS SECOND QUARTER RESULTS Toledo, Ohio, July 15, 2003........HEALTH CARE REIT, INC. (NYSE/HCN) today announced operating results for its second quarter ended June 30, 2003. We continue to meet our financial and operational expectations. "We are pleased to report the fourth consecutive quarter of strong quarter over prior year quarter FFO growth," commented George L. Chapman, chief executive officer of Health Care REIT, Inc. "We believe that this growth, coupled with our strong investment pipeline, should enable us to reach our goal of driving our FFO payout ratio to the low 80 percent level within the next several quarters. During the second quarter, we completed $132.1 million of solid investments that further strengthen and diversify our portfolio. Our continued access to the capital markets, combined with our strong relationships with operators, enables us to successfully close new investments." The Board of Directors declared a dividend for the quarter ended June 30, 2003 of $0.585 per share. The dividend represents the 129th consecutive dividend payment. The dividend will be payable August 20, 2003 to stockholders of record on July 31, 2003. SUMMARY OF SECOND QUARTER RESULTS - --------------------------------- (In thousands, except per share data)
THREE MONTHS ENDED THREE MONTHS ENDED JUNE 30, 2003 JUNE 30, 2002 ------------- ------------- Revenues $47,856 $39,384 Net Income Available to Common Stockholders $16,744 $13,490 Funds From Operations $28,600 $23,942 Net Income Per Diluted Share $0.41 $0.37 FFO Per Diluted Share $0.70 $0.66 Dividend Per Share $0.585 $0.585 FFO Payout Ratio 84% 89%
Net income available to common stockholders totaled $16.7 million, or $0.41 per diluted share for the second quarter of 2003, compared with $13.5 million, or $0.37 per diluted share, for the same period in 2002. Funds from operations totaled $28.6 million, or $0.70 per diluted share, for the second quarter of 2003, compared with $23.9 million, or $0.66 per diluted share, for the same period in 2002. SUMMARY OF YEAR TO DATE RESULTS - ------------------------------- (In thousands, except per share data)
SIX MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2003 JUNE 30, 2002 ------------- ------------- Revenues $94,148 $75,467 Net Income Available to Common Stockholders $33,195 $26,002 Funds From Operations $56,674 $45,131 Net Income Per Diluted Share $0.81 $0.74 FFO Per Diluted Share $1.39 $1.29 Dividend Per Share $1.17 $1.17 FFO Payout Ratio 84% 91%
Page 1 of 12 2Q03 Earnings Release July 15, 2003 - -------------------------------------------------------------------------------- Net income available to common stockholders totaled $33.2 million, or $0.81 per diluted share for the six months ended June 30, 2003, compared with $26.0 million, or $0.74 per diluted share, for the same period in 2002. Funds from operations totaled $56.7 million, or $1.39 per diluted share, for the six months ended June 30, 2003, compared with $45.1 million, or $1.29 per diluted share, for the same period in 2002. We had a total outstanding debt balance of $833.5 million at June 30, 2003, as compared with $576.0 million at June 30, 2002, and stockholders' equity of $895.3 million, which represents a debt to total book capitalization ratio of 48 percent. The debt to total market capitalization at June 30, 2003 was 38 percent. Our coverage ratio of EBITDA to interest was 3.50 to 1.00 for the six months ended June 30, 2003. PORTFOLIO UPDATE. Two assisted living facilities stabilized during the quarter and no assisted living facilities in fill-up were acquired. We ended the quarter with 18 assisted living facilities remaining in fill-up, representing eight percent of revenues. None of these facilities has occupancy of less than 50 percent. Previously we reported on the impact of the bankruptcy filings of Doctors Community Health Care Corporation and Alterra Healthcare Corporation. At this time, there is no additional information to report. SUPPLEMENTAL REPORTING MEASURES. FFO stands for funds from operations, the generally accepted measure of operating performance for the real estate investment trust industry. EBITDA stands for earnings before interest, taxes, depreciation and amortization. We believe that FFO and EBITDA, along with net income and cash flow provided from operating activities, are important supplemental measures because they provide investors an indication of our ability to service debt, to make dividend payments and to fund other cash needs. We primarily utilize FFO to measure our payout ratio which represents dividends paid per share divided by FFO per diluted share. We primarily utilize EBITDA to measure our interest coverage ratio which represents EBITDA divided by interest expense. FFO and EBITDA do not represent net income or cash flow provided from operating activities as determined in accordance with generally accepted accounting principles and should not be considered as alternative measures of profitability or liquidity. Additionally, FFO and EBITDA, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see Exhibits 14 and 16 for reconciliations of FFO and EBITDA to net income. OUTLOOK FOR 2003. We expect to report net income available to common stockholders in the range of $1.69 to $1.74 per diluted share and FFO in the range of $2.78 to $2.83 per diluted share for the year 2003. The guidance assumes gross investments of $325-350 million, net investments of $250 million and non-recognition of interest income on the mortgage loan with Doctors Community Health Care Corporation. Please see Exhibit 15 for a reconciliation of the outlook for net income and FFO. DIVIDEND REINVESTMENT PLAN. As previously announced, we have implemented our new, enhanced dividend reinvestment and stock purchase plan. Existing stockholders are now able to purchase up to $5,000 of common stock per month at a discount, currently set at four percent. Additionally, investors who are not stockholders of the company may use this plan to make an initial investment in the company. We have the discretion to grant waivers for purchases in excess of $5,000 per month. CONFERENCE CALL INFORMATION. We have scheduled a conference call on July 16, 2003, at 11:00 A.M. EDST to discuss our second quarter 2003 results, industry trends, portfolio performance and outlook for the remainder of 2003. To participate on the webcast, log on to www.hcreit.com or www.ccbn.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 our Web site under the heading Press Releases. Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a real estate investment trust that invests in health care facilities, primarily skilled nursing and assisted living facilities. At June 30, 2003, we had investments in 270 health care facilities in 33 states with 47 operators and had total assets of approximately $1.7 billion. For more information on Health Care REIT, Inc., via facsimile at no cost, dial 1-800-PRO-INFO and enter the company code - HCN. More information is available on the Internet at http://www.hcreit.com. Page 2 of 12 2Q03 Earnings Release July 15, 2003 - -------------------------------------------------------------------------------- This document may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the possible expansion of our portfolio; the performance of our operators and properties; our ability to enter into agreements with new viable tenants for properties which we take back from financially troubled tenants, if any; our ability to make distributions; our policies and plans regarding investments, financings and other matters; our tax status as a real estate investment trust; our ability to appropriately balance the use of debt and equity; and our ability to access capital markets or other sources of funds. When we use words such as "believe," "expect," "anticipate," or similar expressions, we are making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Our expected results may not be achieved, and actual results may differ materially from our 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; compliance with and changes to regulations and payment policies within the health care industry; changes in financing terms; competition within the health care and senior housing industries; and changes in federal, state and local legislation. Finally, we assume 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 ##### Page 3 of 12 HEALTH CARE REIT, INC. FINANCIAL SUPPLEMENT CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS)
JUNE 30 ------------------------------------------- 2003 2002 ---- ---- ASSETS Real estate investments: Real property owned Land $ 131,905 $ 106,299 Buildings & improvements 1,431,662 1,155,541 Construction in progress 35,151 0 --------- --------- 1,598,718 1,261,840 Less accumulated depreciation (137,029) (98,637) --------- --------- Total real property owned 1,461,689 1,163,203 Loans receivable Real property loans 202,287 226,158 Subdebt investments 15,965 24,132 --------- --------- 218,252 250,290 Less allowance for losses on loans receivable (5,455) (7,361) --------- --------- 212,797 242,929 --------- --------- Net real estate investments 1,674,486 1,406,132 Other assets: Equity investments 7,492 6,891 Deferred loan expenses 6,187 6,358 Cash and cash equivalents 7,953 9,256 Receivables and other assets 49,982 37,667 --------- --------- 71,614 60,172 --------- --------- TOTAL ASSETS $ 1,746,100 $ 1,466,304 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Borrowings under unsecured lines of credit obligations $ 156,900 $ 99,000 Senior unsecured notes 615,000 365,000 Secured debt 61,608 112,033 Accrued expenses and other liabilities 17,282 19,114 --------- --------- Total liabilities 850,790 595,147 Stockholders' equity: Preferred stock 106,150 135,000 Common stock 41,360 38,116 Capital in excess of par value 821,897 743,875 Cumulative net income 618,855 545,557 Cumulative dividends (690,366) (586,669) Accumulated other comprehensive income 79 (558) Other equity (2,665) (4,164) --------- --------- TOTAL STOCKHOLDERS' EQUITY 895,310 871,157 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,746,100 $ 1,466,304 =========== ===========
Page 4 of 12 HEALTH CARE REIT, INC. FINANCIAL SUPPLEMENT CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 ---------------------------------- --------------------------- 2003 2002 2003 2002 ---- ---- ---- ---- Revenues: Rental income $ 42,023 $ 31,528 $ 82,783 $ 60,267 Interest income 5,190 7,107 10,130 13,894 Commitment fees and other income 643 749 1,235 1,306 ------------ ----------- ---------- ---------- Gross revenues 47,856 39,384 94,148 75,467 Expenses: Interest expense 13,161 10,026 25,037 19,505 Provision for depreciation 11,856 9,261 23,508 17,554 General and administrative 2,847 2,285 5,457 4,546 Loan expense 680 580 1,315 1,157 Impairment of assets 0 550 0 550 Loss on extinguishment of debt 0 403 0 403 Provision for loan losses 250 250 500 500 ------------ ----------- ---------- ---------- Total expenses 28,794 23,355 55,817 44,215 ------------ ----------- ---------- ---------- Income from continuing operations 19,062 16,029 38,331 31,252 Discontinued operations: Gain (loss) on sales of properties 0 145 34 145 Income (loss) from discontinued operations, net 0 657 (6) 1,323 ------------ ----------- ---------- ---------- 0 802 28 1,468 ------------ ----------- ---------- ---------- Net income 19,062 16,831 38,359 32,720 Preferred dividends 2,318 3,341 5,164 6,718 ------------ ----------- ---------- ---------- Net income available to common stockholders $ 16,744 $ 13,490 $ 33,195 $ 26,002 ============ =========== ========== ========== Average number of common shares outstanding: Basic 40,546 35,446 40,269 34,196 Diluted 41,136 36,223 40,822 34,954 Net income available to common stockholders per share: Basic $ 0.41 $ 0.38 $ 0.82 $ 0.76 Diluted 0.41 0.37 0.81 0.74 Funds from operations $ 28,600 $ 23,942 $ 56,674 $ 45,131 Funds from operations per share: Basic $ 0.71 $ 0.68 $ 1.41 $ 1.32 Diluted 0.70 0.66 1.39 1.29 Dividends per share $ 0.585 $ 0.585 $ 1.170 $ 1.170
Page 5 of 12 HEALTH CARE REIT, INC. FINANCIAL SUPPLEMENT - JUNE 30, 2003 PORTFOLIO COMPOSITION ($000's) EXHIBIT 1 - -----------------------------
BALANCE SHEET DATA # Properties # Beds/Units Balance % Balance ------------------------------------------------------------ Real Property 249 23,402 $1,461,689 87% Loans Receivable 21 2,562 202,287 12% Subdebt Investments 0 0 15,965 1% ------------------------------------------------------------ Total Investments 270 25,964 $1,679,941 100%
INVESTMENT DATA # Properties # Beds/Units Investment (1) % Investment ------------------------------------------------------------ Assisted Living Facilities 166 11,043 $ 914,724 54% Skilled Nursing Facilities 96 13,617 634,505 38% Specialty Care Facilities 8 1,304 138,557 8% ------------------------------------------------------------ Real Estate Investments 270 25,964 $1,687,786 100%
NOTES: (1) REAL ESTATE INVESTMENTS INCLUDE GROSS REAL ESTATE INVESTMENTS AND CREDIT ENHANCEMENTS WHICH AMOUNTED TO $1,679,941,000 AND $7,845,000, RESPECTIVELY. REVENUE COMPOSITION ($000's) EXHIBIT 2 - ---------------------------
Three Months Ended Six Months Ended June 30, 2003 June 30, 2003 --------------------- --------------------- REVENUE BY INVESTMENT TYPE (1) Real Property $42,556 89% $83,756 89% Loans Receivable 4,890 10% 9,723 10% Subdebt Investments 410 1% 669 1% --------------------- --------------------- Total $47,856 100% $94,148 100% REVENUE BY FACILITY TYPE (1) Assisted Living Facilities $27,570 58% $53,405 57% Skilled Nursing Facilities 17,580 37% 35,085 37% Specialty Care Facilities 2,706 5% 5,658 6% --------------------- --------------------- Total $47,856 100% $94,148 100%
NOTES: (1) REVENUES INCLUDE GROSS REVENUES AND REVENUES FROM DISCONTINUED OPERATIONS. PAGE 6 OF 12 OPERATOR CONCENTRATION ($000's) EXHIBIT 3 - -------------------------------
CONCENTRATION BY INVESTMENT # Properties Investment % Investment -------------------------------------------- Commonwealth Communities L.L.C. 14 $ 198,309 12% Merrill Gardens L.L.C. 14 120,443 7% Life Care Centers of America, Inc. 17 118,529 7% Home Quality Management, Inc. 19 114,747 7% Alterra Healthcare Corporation 45 104,806 6% Remaining Operators (42) 161 1,030,952 61% -------------------------------------------- Total 270 $1,687,786 100%
CONCENTRATION BY REVENUE # Properties Revenue (1) % Revenue -------------------------------------------- Commonwealth Communities L.L.C. 14 $ 13,345 14% Home Quality Management, Inc. 19 7,771 8% Merrill Gardens L.L.C. 14 7,150 8% Life Care Centers of America, Inc. 17 7,056 7% Alterra Healthcare Corporation 45 6,904 7% Remaining Operators (42) 161 51,922 56% -------------------------------------------- Total 270 $ 94,148 100%
NOTES: (1) SIX MONTHS ENDED JUNE 30, 2003. GEOGRAPHIC CONCENTRATION ($000's) EXHIBIT 4 - ---------------------------------
CONCENTRATION BY REGION # Properties Investment % Investment ------------ ---------- ------------ South 156 $ 777,779 46% Northeast 43 398,540 24% Midwest 37 260,420 15% West 34 251,047 15% ------------ ---------- ------------ Total 270 $1,687,786 100%
CONCENTRATION BY STATE # Properties Investment % Investment ------------ ---------- ------------ Massachusetts 22 $ 247,233 15% Florida 29 151,639 9% Texas 31 115,738 7% Ohio 13 115,503 7% Tennessee 18 98,253 6% Remaining States (28) 157 959,420 56% ------------ ---------- ------------ Total 270 $1,687,786 100%
REVENUE BY STATE # Properties Revenue (1) % Revenue ------------ ---------- ------------ Massachusetts 22 $ 15,961 17% Florida 29 9,752 10% Texas 31 7,877 8% Ohio 13 5,980 6% Tennessee 18 5,132 5% Remaining States (28) 157 49,446 54% ------------ ---------- ------------ Total 270 $ 94,148 100%
NOTES: (1) SIX MONTHS ENDED JUNE 30, 2003. PAGE 7 OF 12 COMMITTED INVESTMENT BALANCES EXHIBIT 5 - ----------------------------- ($000's EXCEPT INVESTMENT PER BED/UNIT)
Committed Investment # Properties # Beds/Units Balance (1) per Bed/Unit ---------------------------------------------------------- Assisted Living Facilities 166 11,043 $ 933,807 $ 84,561 Skilled Nursing Facilities 96 13,617 634,505 46,597 Specialty Care Facilities 8 1,304 147,023 112,748 ---------------------------------------------------------- Total 270 25,964 $1,715,335 -na-
NOTES: (1) COMMITTED BALANCE INCLUDES GROSS REAL ESTATE INVESTMENTS, CREDIT ENHANCEMENTS AND UNFUNDED COMMITMENTS FOR WHICH INITIAL FUNDING HAD COMMENCED. LEASE UP STATISTICS ON ASSISTED LIVING FACILITIES ($000's) EXHIBIT 6 - ---------------------------------------------------------
Average Months OCCUPANCY # Properties in Operation Revenue (1) % of Revenue ---------------------------------------------------------- 0% - 50% 0 -na- $ 0 0% 50% - 70% 8 28 4,890 5% 70% + 10 20 3,104 3% ---------------------------------------------------------- 18 -na- $7,994 8%
NOTES: (1) INTEREST AND RENTAL INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2003. SELECTED FACILITY DATA EXHIBIT 7 - ----------------------
Coverage Data % Payor Mix ------------------------ ------------------- Before After Census Private Medicare Mgt. Fees Mgt. Fees ------------------------------------------------------------------------- Assisted Living Facilities 85% 96% 0% 1.31x 1.11x Skilled Nursing Facilities 85% 20% 16% 1.73x 1.31x Specialty Care Facilities 68% 16% 37% 2.23x 1.71x ------------------------ Weighted Averages 1.53x 1.25x
NOTES: DATA AS OF MARCH 31, 2003. PAGE 8 OF 12 CREDIT SUPPORT ($000's) EXHIBIT 8 - -----------------------
Balance % Investment ------------------------- Cross Defaulted $1,586,174 94% of gross real estate investments Cross Collateralized 163,065 81% of real property loans receivable Master Leases 1,211,150 83% of real property owned
CURRENT CAPITALIZATION ($000's) LEVERAGE & PERFORMANCE RATIOS - ------------------------------- ----------------------------------- Balance % Balance ----------------------- Borrowings Under Bank Lines $ 156,900 9% Debt/Total Book Cap 48% Long-Term Debt Obligations 676,608 39% Debt/Total Market Cap 38% Stockholders' Equity 895,310 52% Interest Coverage 3.36x 2nd Qtr. -------------------- 3.50x YTD Total Book Capitalization $1,728,818 100% FFO Payout Ratio 84% 2nd Qtr. 84% YTD
REVENUE MATURITIES ($000's) EXHIBIT 9 OPERATING LEASE EXPIRATIONS & LOAN MATURITIES - ---------------------------------------------
Current Lease Current Interest Interest and Year Revenue (1) Revenue (1) Lease Revenue % of Total - -------------------------------------------------------------------------------------------------------------- 2003 $ 3,670 $ 624 $ 4,294 2% 2004 410 1,430 1,840 1% 2005 0 5,500 5,500 3% 2006 942 3,914 4,856 2% 2007 0 0 0 0% Thereafter 169,592 10,098 179,690 92% ---------------------------------------------------------------------------------------- Total $174,614 $ 21,566 $196,180 100%
NOTES: (1) REVENUE IMPACT BY YEAR, ANNUALIZED. DEBT MATURITIES AND PRINCIPAL PAYMENTS ($000's) EXHIBIT 10 - -----------------------------------------------
Year Lines of Credit (1) Senior Notes Secured Debt (1) Total ----------------------------------------------------------------------------------------------------------- 2003 $ 0 $ 0 $ 418 $ 418 2004 30,000 40,000 60,888 130,888 2005 0 0 966 966 2006 225,000 50,000 1,032 276,032 2007 0 175,000 12,910 187,910 2008 0 100,000 601 100,601 2009 0 0 641 641 Thereafter 0 250,000 44,152 294,152 ----------------------------------------------------------------------------------- Total $255,000 $615,000 $121,608 $991,608
NOTES: (1) REFLECTED AT 100% CAPACITY. PAGE 9 OF 12 INVESTMENT ACTIVITY ($000's) EXHIBIT 11 - ----------------------------
Three Months Ended Six Months Ended June 30, 2003 June 30, 2003 ------------------------- ------------------------- FUNDING BY INVESTMENT TYPE Real Property $127,418 96% $166,216 90% Loans Receivable 3,729 3% 13,382 8% Subdebt Investments 946 1% 4,133 2% ------------------------- ------------------------- Total $132,093 100% $183,731 100% FUNDING BY FACILITY TYPE Assisted Living Facilities $ 30,976 24% $ 62,954 34% Skilled Nursing Facilities 90,047 68% 104,109 57% Specialty Care Facilities 11,070 8% 16,668 9% ------------------------- ------------------------- Total $132,093 100% $183,731 100%
DISPOSITION ACTIVITY ($000's) EXHIBIT 12 - ----------------------------
Three Months Ended Six Months Ended June 30, 2003 June 30, 2003 ------------------------- ------------------------- DISPOSITIONS BY INVESTMENT TYPE Real Property $ 145 3% $ 255 1% Loans Receivable 4,952 97% 20,558 99% ---------- ----- --------- ----- Total $ 5,097 100% $20,813 100% DISPOSITIONS BY FACILITY TYPE Assisted Living Facilities $ 5,097 100% $20,813 100% Skilled Nursing Facilities 0 0% 0 0% Specialty Care Facilities 0 0% 0 0% ---------- ----- --------- ----- Total $ 5,097 100% $20,813 100%
DISCONTINUED OPERATIONS ($000's) EXHIBIT 13 - --------------------------------
Three Months Ended Six Months Ended June 30, 2003 June 30, 2003 ------------------ ---------------- REVENUES Rental income $ 0 $ 0 EXPENSES Interest expense 0 1 Provision for depreciation 0 5 ------------------ ---------------- Income (loss) from discontinued operations, net $ 0 $(6)
PAGE 10 OF 12 FUNDS FROM OPERATIONS RECONCILIATION EXHIBIT 14 - ------------------------------------ (AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
Three Months Ended Six Months Ended June 30 June 30 ------------------------ ------------------------- 2003 2002 2003 2002 -------- -------- -------- -------- Net income available to common stockholders $ 16,744 $ 13,490 $ 33,195 $ 26,002 Provision for depreciation (1) 11,856 9,644 23,513 18,321 Loss on extinguishment of debt 0 403 0 403 Impairment of assets 0 550 0 550 Loss (gain) on sales of properties 0 (145) (34) (145) -------- -------- -------- -------- Funds from operations $ 28,600 $ 23,942 $ 56,674 $ 45,131 Average common shares outstanding: Basic 40,546 35,446 40,269 34,196 Diluted 41,136 36,223 40,822 34,954 Per share data: Net income available to common stockholders Basic $ 0.41 $ 0.38 $ 0.82 $ 0.76 Diluted 0.41 0.37 0.81 0.74 Funds from operations Basic $ 0.71 $ 0.68 $ 1.41 $ 1.32 Diluted 0.70 0.66 1.39 1.29 FFO PAYOUT RATIO Dividends per share $ 0.585 $ 0.585 $ 1.170 $ 1.170 FFO per diluted share $ 0.70 $ 0.66 $ 1.39 $ 1.29 -------- -------- -------- -------- FFO payout ratio 84% 89% 84% 91%
NOTES: (1) PROVISION FOR DEPRECIATION INCLUDES PROVISION FOR DEPRECIATION FROM DISCONTINUED OPERATIONS. FFO OUTLOOK RECONCILIATION EXHIBIT 15 - -------------------------- (AMOUNTS IN 000's EXCEPT PER SHARE DATA)
Year Ended December 31, 2003 ------------------------ Low High -------- -------- Net income available to common stockholders $ 73,601 $ 75,699 Provision for depreciation 47,382 47,382 -------- -------- Funds from operations $120,983 $123,081 Average common shares outstanding (diluted) 43,505 43,505 Per share data (diluted): Net income available to common stockholders $ 1.69 $ 1.74 Funds from operations 2.78 2.83
PAGE 11 OF 12 EBITDA RECONCILIATION ($000's) EXHIBIT 16
Three Months Ended Six Months Ended June 30 June 30 ---------------------- ----------------------- 2003 2002 2003 2002 ------- ------- ------- ------- Net income $19,062 $16,831 $38,359 $32,720 Provision for depreciation (1) 11,856 9,644 23,513 18,321 Interest expense (1) 13,161 10,290 25,038 20,031 Capitalized interest 380 0 638 0 Amortization (2) 736 980 1,924 1,961 Provision for loan losses 250 250 500 500 ------- ------- ------- ------- EBITDA $45,445 $37,995 $89,972 $73,533 INTEREST COVERAGE RATIO Interest expense (1) $13,161 $10,290 $25,038 $20,031 Capitalized interest 380 0 638 0 ------- ------- ------- ------- Total interest 13,541 10,290 25,676 20,031 EBITDA 45,445 37,995 89,972 73,533 ------- ------- ------- ------- Interest coverage ratio 3.36x 3.69x 3.50x 3.67x
NOTES: (1) PROVISION FOR DEPRECIATION AND INTEREST EXPENSE INCLUDE PROVISION FOR DEPRECIATION AND INTEREST EXPENSE FROM DISCONTINUED OPERATIONS. (2) AMORTIZATION INCLUDES AMORTIZATION OF DEFERRED LOAN EXPENSES, RESTRICTED STOCK AND STOCK OPTIONS. PAGE 12 OF 12 -----END PRIVACY-ENHANCED MESSAGE-----