EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

CONTACT:    Abdo H. Khoury
   Chief Financial and Portfolio Officer
   (949) 718-4400

NHP REPORTS INCREASED FFO GUIDANCE WITH 2006 INVESTMENTS EXPECTED TO TOP $1 BILLION

(NEWPORT BEACH, California, November 1, 2006)… Nationwide Health Properties, Inc. (NYSE:NHP) today announced third quarter 2006 operating results and an increase in its 2006 diluted FFO guidance range to between $1.92 per share and $1.93 per share.

“NHP continues to have great success completing accretive investments with an additional $40 million of closed investments during the third quarter and over $200 million approved by our Board. This brings us to over $850 million of new investments this year,” commented Douglas M. Pasquale, NHP’s President and Chief Executive Officer. “The substantial rent escalators in the new leases and our proven investment strategy should bring continued growth and value creation for our shareholders. With $350 million of long-term debt and nearly $340 million of net equity issued through the end of the third quarter, NHP is well positioned for growth with $600 million available on our credit facility,” Mr. Pasquale added.

2006 THIRD QUARTER RESULTS

The following tables present selected financial results for the third quarter of 2006 and the nine months ended September 30, 2006 as compared to 2005:

 

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SELECTED FINANCIAL RESULTS

($ in thousands, except per share amounts)

Three Months Ended September 30

 

Item

   2006    2005    Change  

Revenues

   $ 73,314    $ 53,883    $ 19,431    36.1 %

Net Income

   $ 31,719    $ 12,715    $ 19,004    149.5 %

Income Available to Common Stockholders Per Share

   $ 0.34    $ 0.12    $ 0.22    183.3 %

Diluted FFO

   $ 42,627    $ 24,688    $ 17,939    72.7 %

Diluted FFO Before Extinguishments

   $ 42,627    $ 34,048    $ 8,579    25.2 %

Diluted FFO Per Share

   $ 0.49    $ 0.33    $ 0.16    48.5 %

Diluted FFO Per Share Before Impairments and Extinguishments

   $ 0.49    $ 0.47    $ 0.02    4.3 %
Nine Months Ended September 30  

Item

   2006    2005    Change  

Revenues

   $ 196,708    $ 152,592    $ 44,116    28.9 %

Net Income

   $ 82,821    $ 46,058    $ 36,763    79.8 %

Income Available to Common Stockholders Per Share

   $ 0.95    $ 0.50    $ 0.45    90.0 %

Diluted FFO

   $ 115,997    $ 81,420    $ 34,577    42.5 %

Diluted FFO Before Impairments and Extinguishments

   $ 116,080    $ 98,842    $ 17,238    17.4 %

Diluted FFO Per Share

   $ 1.45    $ 1.12    $ 0.33    29.5 %

Diluted FFO Per Share Before Impairments and Extinguishments

   $ 1.45    $ 1.37    $ 0.08    5.8 %

Funds From Operation (FFO)

FFO is a non-GAAP measure that NHP believes is important to an understanding of its operations. A reconciliation between net income, the most directly comparable GAAP financial measure, and FFO is included in the accompanying financial data. We believe FFO is an important supplemental measure of operating performance because it excludes the effects of depreciation and gains (losses) from sales of facilities (both of which are based on historical costs and which may be of limited relevance in evaluating current performance).

The results for the nine months ended September 30, 2006 include impairments totaling $83,000. The results for the three months ended September 30, 2005 include extinguishments (loss on extinguishment of debt and preferred stock redemption charge) totaling $9,360,000. The results for the nine months ended September 30, 2005 include

 

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impairments totaling $8,062,000, extinguishments totaling $9,360,000 and a separation charge of $585,000.

NEW INVESTMENTS

The following table summarizes our third quarter and year to date investment activity (excluding $79 million of approved developments in progress and capital expenditures of $4 million for the third quarter and $10 million year to date):

2006 INVESTMENT ACTIVITY

 

Type

   Amount
($million)
   Unit Price
(000s)
   Under-
written
Cap
Rate
    Initial
Yield
    Annual
CPI
Ups
    Underwritten
Rent Coverage
               DARM    DAR (1)
SENIOR HOUSING

CLOSED Q1 & Q2

   $ 463    $ 139    9.2 %   8.1 %   3.0 %   1.3x    1.1x

CLOSED Q3

   $ 40    $ 76    10.7 %   8.6 %   2.8 %   1.5x    1.2z

CLOSING QUEUE Q4 (2)

   $ 243    $ 149    10.1 %   8.2 %   3.0 %   1.4x    1.3x

TOTAL SENIOR HOUSING

   $ 746    $ 139/unit    9.6 %   8.2 %   3.0 %   1.4x    1.2x
MEDICAL OFFICE BUILDINGS (3)

TOTAL MEDICAL OFFICE

   $ 56    $ 74/sq.ft.    9.3 %   8.5 %   n/a     n/a    n/a
LONG-TERM CARE

CLOSED Q1 & Q2 (4)

   $ 204    $ 77    12.2 %   8.8 %   2.1 %   1.9x    1.4x

CLOSED Q3

   $ 0               

CLOSING QUEUE Q4 (2)

   $ 17    $ 74    13.0 %   9.7 %   2.1 %   1.8x    1.3x

TOTAL LONG-TERM CARE

   $ 221    $ 77/bed    12.3 %   8.8 %   2.1 %   1.9x    1.4x
GRAND TOTALS

TOTAL INVESTMENTS

   $ 1,023       10.2 %   8.3 %   2.8 (5)     

 

(1) After 5% management fee.

 

(2) Includes previously announced Koelsch ($29M) and Wingate ($10M) Phase II closings.

 

(3) Medical Office Building joint venture.

 

(4) Includes $171M Wingate investment announced in 2005.

 

(5) Excludes Medical Office Buildings.

 

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Nearly all of these investments are with new, growth oriented customers, all of which have expressed a desire to grow with NHP with varying commitments to look to NHP for a portion of their future financings. These commitments currently total approximately $425 million. A key feature of most of these investments is that by using our extensive healthcare operating backgrounds to partner with the management teams and enable them to benefit further from the excellent operating platforms they have developed, we have been successful in turning potential auction exit strategies into privately negotiated transactions.

2006 FINANCING TRANSACTIONS

On July 14, 2006, we issued $350 million of 6.5% senior unsecured notes maturing on July 15, 2011, resulting in net proceeds of approximately $347 million. The issuance of these notes, combined with the issuance of 5.4 million shares of stock through September 30, 2006 through our controlled equity issuance program and our dividend reinvestment plan, resulted in net proceeds of approximately $126.3 million. Through these transactions, we reduced our floating rate debt as a percentage of our total debt from 41% at June 30, 2006, to 12% at September 30, 2006.

Earlier this year we closed on an offering totaling 10.4 million shares, including the underwriters’ over-allotments, related to the Hearthstone transaction that resulted in net proceeds of approximately $211 million after underwriters’ discounts and expenses.

2006 GUIDANCE

We have increased our 2006 diluted FFO guidance for diluted FFO before impairments to between $1.92 per share and $1.93 per share from between $1.90 per

 

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share and $1.92 per share. The increase is due to the acquisitions and financings noted above and updated information regarding the expected leakage for the year.

Although management has reiterated its commitment to continue accretive acquisitions in 2006, this guidance incorporates no results from acquisitions that have not already been announced or closed, nor does it incorporate the impact of any future impairments that might arise or any future capital transactions that have not already been announced or closed. This guidance assumes asset sales, mortgage loan receivable prepayments and other leakage during 2006 as described in the supplementary analyst information section of this press release.

CONFERENCE CALL INFORMATION

The Company has scheduled a conference call and webcast on Thursday, November 2, 2006 at 8:00 a.m. Pacific time in order to present the Company’s performance and operating results for the quarter ended September 30, 2006. The conference call is accessible by dialing (877) 356-5705 and referencing conference ID number 8563232 or by logging on to our website at www.nhp-reit.com. The earnings release and any additional financial information that may be discussed on the conference call will also be available at the same location on our website. A digitized replay of the conference call will be available from 12:00 p.m. Pacific time that day until midnight Pacific time on Thursday, November 16, 2006. Callers can access the replay by dialing (800) 642-1687 or (706) 645-9291 and entering conference ID number 8563232. Webcast replays will also be available on our website for at least 12 months following the conference call.

 

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Nationwide Health Properties, Inc. is a real estate investment trust that invests in senior housing and long-term care facilities. The Company has investments in 493 facilities in 40 states. For more information on Nationwide Health Properties, Inc., visit our website at www.nhp-reit.com.

###

Certain information contained in this news release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. All forward-looking statements included in this news release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and we assume no obligation to update such forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; occupancy levels at certain facilities; changes in the ratings of our debt securities; access to the capital markets and the cost of capital; government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the health care industry; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; our ability to meet acquisition goals, including the achievement of the anticipated benefits from the Hearthstone acquisition; the ability of our operators to repay deferred rent or loans in future periods; the ability of our operators to obtain and maintain adequate liability and other insurance; our ability to attract new operators for certain facilities; our ability to sell certain facilities for their book value; changes in or inadvertent violations of tax laws and regulations and other factors that can affect real estate investment trusts and our status as a real estate investment trust; and the risk factors described in our Annual Report on Form 10-K filed with the SEC on February 8, 2006 and our quarterly report on Form 10-Q filed with the SEC on August 2, 2006.

 

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NATIONWIDE HEALTH PROPERTIES, INC.

STATEMENTS OF OPERATIONS

SEPTEMBER 30, 2006

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2006     2005     2006     2005  

Revenues:

        

Rental income

        

Triple net lease rent

   $ 66,775     $ 51,385     $ 179,840     $ 145,128  

Medical office building rent

     2,479       —         6,902       —    
                                
     69,254       51,385       186,742       145,128  

Interest and other income

     4,060       2,498       9,966       7,464  
                                
     73,314       53,883       196,708       152,592  

Expenses:

        

Interest & amortization of deferred financing costs

     24,890       17,886       65,492       49,506  

Depreciation and amortization

     21,190       13,797       55,093       39,171  

General and administrative

     4,165       3,421       11,819       10,465  

Medical office building operating expenses

     1,513       —         3,895       —    

Impairment of assets from continuing operations

     —         —         —         310  

Loss on extinguishment of debt

     —         8,565       —         8,565  
                                
     51,758       43,669       136,299       108,017  
                                

Income before unconsolidated entity and minority interest

     21,556       10,214       60,409       44,575  

Income from unconsolidated joint venture

     —         —         —         689  

Minority interest in net loss of consolidated joint venture

     160       —         287       —    
                                

Income from continuing operations

     21,716       10,214       60,696       45,264  

Discontinued operations

        

Gain on sale of facilities, net

     8,682       54       17,508       87  

Income from discontinued operations

     1,321       2,447       4,617       707  
                                
     10,003       2,501       22,125       794  
                                

Net income

     31,719       12,715       82,821       46,058  

Preferred stock dividends

     (3,791 )     (3,868 )     (11,372 )     (11,831 )

Preferred stock redemption charge

     —         (795 )     —         (795 )
                                

Income available to common stockholders

   $ 27,928     $ 8,052     $ 71,449     $ 33,432  
                                

Basic/diluted per share amounts available to common stockholders:

        

Income from continuing operations

   $ 0.22     $ 0.08     $ 0.66     $ 0.49  

Discontinued operations

     0.12       0.04       0.29       0.01  
                                

Income available to common stockholders

   $ 0.34     $ 0.12     $ 0.95     $ 0.50  
                                

Diluted weighted average shares outstanding

     81,826       67,623       75,125       67,339  
                                


NATIONWIDE HEALTH PROPERTIES, INC.

RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS

SEPTEMBER 30, 2006

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2006     2005     2006     2005  

Net income

   $ 31,719     $ 12,715     $ 82,821     $ 46,058  

Preferred stock dividends

     (3,791 )     (3,868 )     (11,372 )     (11,831 )

Preferred stock redemption charge

     —         (795 )     —         (795 )

Real estate related depreciation and amortization

     21,319       14,628       55,869       41,973  

Depreciation in income from joint venture

     —         —         —         246  

Gain on sale of facilities

     (8,682 )     (54 )     (17,508 )     (87 )

Gain on sale of facility from joint venture

     —         —         —         (330 )
                                

Funds From Operations (“FFO”) available to common stockholders (1)

     40,565       22,626       109,810       75,234  

Series B preferred dividend add-back

     2,062       2,062       6,187       6,186  
                                

Diluted FFO

     42,627       24,688       115,997       81,420  

Impairments

     —         —         83       8,062  

Loss on extinguishment of debt

     —         8,565       —         8,565  

Preferred stock redemption charge

     —         795       —         795  
                                

Diluted FFO before impairments and extinguishment

   $ 42,627     $ 34,048     $ 116,080     $ 98,842  
                                

Weighted average shares outstanding

     81,826       67,623       75,125       67,339  

Series B preferred stock add-back

     4,689       4,681       4,686       4,681  
                                

Diluted weighted average shares outstanding

     86,515       72,304       79,811       72,020  
                                

Basic/diluted per share amounts:

        

FFO

   $ 0.49     $ 0.33     $ 1.45     $ 1.12  
                                

FFO before impairments and extinguishment

   $ 0.49     $ 0.47     $ 1.45     $ 1.37  
                                

Cash rent in excess of (less than) rent received

   $ (386 )   $ 243     $ (391 )   $ 895  
                                

 

(1) We believe that funds from operations is an important supplemental measure of operating performance because it excludes the effect of depreciation and gains (losses) from sales of facilities (both of which are based on historical costs which may be of limited relevance in evaluating current performance). Additionally, funds from operations is widely used by industry analysts as a measure of operating performance for equity REITs. We therefore disclose funds from operations, although it is a measurement that is not defined by accounting principles generally accepted in the United States. We calculate funds from operations in accordance with the National Association of Real Estate Investment Trusts' definition. Funds from operations does not represent cash generated from operating activities as defined by accounting principles generally accepted in the United States (funds from operations does not include changes in operating assets and liabilities) and, therefore, should not be considered as an alternative to net income as the primary indicator of operating performance or to cash flow as a measure of liquidity.


NATIONWIDE HEALTH PROPERTIES, INC.

BALANCE SHEETS

JUNE 30, 2006

(IN THOUSANDS)

 

     September 30,
2006
    December 31,
2005
 

ASSETS

    

Investments in real estate:

    

Real estate properties

    

Land

   $ 260,523     $ 207,563  

Buildings and improvements

     2,451,415       1,835,183  
                
     2,711,938       2,042,746  

Less accumulated depreciation

     (374,557 )     (344,224 )
                
     2,337,381       1,698,522  

Mortgage loans receivable, net

     110,246       87,553  
                
     2,447,627       1,786,075  

Cash and cash equivalents

     22,477       10,005  

Receivables

     6,860       5,741  

Assets held for sale

     9,605       9,198  

Other assets

     79,283       56,201  
                
   $ 2,565,852     $ 1,867,220  
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Credit facility

   $ 100,000     $ 224,000  

Senior notes due 2006 - 2038

     920,225       570,225  

Notes and bonds payable

     362,328       236,278  

Accounts payable and accrued liabilities

     74,385       55,685  
                

Total liabilities

     1,456,938       1,086,188  

Minority interest

     1,440       —    

Stockholders’ equity:

    

Series A preferred stock

     90,049       90,049  

Series B convertible preferred stock

     106,450       106,450  

Common stock

     8,371       6,781  

Capital in excess of par value

     1,228,069       889,008  

Cumulative net income

     961,537       878,716  

Other comprehensive income

     1,153       —    

Cumulative dividends

     (1,288,155 )     (1,189,972 )
                

Total stockholders’ equity

     1,107,474       781,032  
                
   $ 2,565,852     $ 1,867,220  
                


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

SEPTEMBER 30, 2006

PORTFOLIO COMPOSITION

 

EQUITY OWNERSHIP

   96 %

MORTGAGE LOANS RECEIVABLE

   4 %
      
   100 %
      

ASSISTED AND INDEPENDENT LIVING FACILITIES

   61 %

SKILLED NURSING FACILITIES

   32 %

CONTINUING CARE RETIREMENT COMMUNITIES

   3 %

SPECIALTY HOSPITALS

   2 %

MEDICAL OFFICE BUILDINGS

   2 %
      
   100 %
      

OWNED FACILITIES

 

     FACILITIES    INVESTMENT    INVESTMENT
PER BED/
UNIT SQ FT
    BEDS/
UNITS/
SQ FT

ASSISTED & IND LIVING FACILITIES

   244    $ 1,686,089,000    $ 90,000     18,820

SKILLED NURSING FACILITIES

   182      842,607,000    $ 40,000     21,192

CONTINUING CARE RETIREMENT COM

   6      76,750,000    $ 65,000     1,177

SPECIALTY HOSPITALS

   7      67,138,000    $ 222,000     303

MEDICAL OFFICE BUILDINGS

   21      39,354,000    $ 75 *   759,283
                
   460    $ 2,711,938,000     
                

*  Medical office building cost per square foot reflects total purchase price including amounts classified as other assets

MORTGAGE LOANS RECEIVABLE           
     FACILITIES    LOAN VALUE    LOAN VALUE
PER BED/
UNIT
    BEDS/
UNITS

SKILLED NURSING FACILITIES

   14    $ 53,183,000    $ 25,000     2,107

ASSISTED & IND LIVING FACILITIES

   6      37,520,000    $ 75,000     502

CONTINUING CARE RETIREMENT COM.

   1      19,543,000    $ 46,000     428
                
   21    $ 110,246,000     
                
     FACILITIES    INVESTMENT           

ASSETS HELD FOR SALE

   6    $ 9,605,000     
                

PORTFOLIO STATISTICS

 

     2006    2005

RENT COVERAGE

     

EBITDARM

     

ASSISTED AND INDEPENDENT LIVING FACILITIES

   1.3x    1.4x

SKILLED NURSING FACILITIES

   2.2x    2.4x

CONTINUING CARE RETIREMENT COMMUNITIES

   1.4x    1.5x

EBITDAR

     

ASSISTED AND INDEPENDENT LIVING FACILITIES

   1.1x    1.2x

SKILLED NURSING FACILITIES

   1.4x    1.7x

CONTINUING CARE RETIREMENT COMMUNITIES

   1.1x    1.2x

EBITDAR MINUS CAPEX

     

ASSISTED AND INDEPENDENT LIVING FACILITIES

   1.1x    1.1x

SKILLED NURSING FACILITIES

   1.3x    1.6x

CONTINUING CARE RETIREMENT COMMUNITIES

   1.0x    1.1x


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

SEPTEMBER 30, 2006

 

     2006     2005  

OCCUPANCY

    

ASSISTED AND INDEPENDENT LIVING FACILITIES

   89 %   88 %

SKILLED NURSING FACILITIES

   82 %   80 %

CONTINUING CARE RETIREMENT COMMUNITIES

   87 %   89 %

TENANT PRIVATE PAY AND MEDICARE REVENUES

    

ASSISTED AND INDEPENDENT LIVING FACILITIES

   99 %   100 %

SKILLED NURSING FACILITIES

   43 %   43 %

CONTINUING CARE RETIREMENT COMMUNITIES

   72 %   71 %

TOTAL PORTFOLIO

   64 %   62 %

NHP RENT BY PAYMENT SOURCE

    

MEDICAID

   21 %   22 %

MEDICARE

   12 %   14 %

PRIVATE AND OTHER

   67 %   64 %

AVERAGE AGE OF FACILITY IN YEARS

    

ASSISTED AND INDEPENDENT LIVING FACILITIES

   10     10  

SKILLED NURSING FACILITIES

   28     30  

CONTINUING CARE RETIREMENT COMMUNITIES

   27     27  

AVERAGE REMAINING LEASE TERM IN YEARS

    

ASSISTED AND INDEPENDENT LIVING FACILITIES

   14     13  

SKILLED NURSING FACILITIES

   9     8  

CONTINUING CARE RETIREMENT COMMUNITIES

   11     11  

INVESTMENT BY OPERATOR

(excluding six assets held for sale and medical office buildings)

 

     NUMBER OF
FACILITIES
   INVESTMENT
AMOUNT
   PERCENT OF
INVESTMENT
    PERCENT OF
REVENUES
 

BROOKDALE SENIOR LIVING, INC.*

   126    $ 583,873,000    21 %   24 %

HEARTHSTONE SENIOR SERVICES

   32      430,922,000    15 %   14 %

WINGATE HEALTHCARE, INC.

   18      219,445,000    8 %   7 %

EMERITUS CORPORATION*

   23      179,467,000    6 %   6 %

ATRIA SENIOR LIVING GROUP

   17      124,583,000    5 %   7 %

LAUREATE GROUP

   9      118,946,000    4 %   4 %

BEVERLY ENTERPRISES, INC.

   28      100,113,000    4 %   5 %

COMPLETE CARE SERVICES

   37      87,878,000    3 %   4 %

EPOCH SENIOR LIVING, INC.

   8      81,067,000    3 %   3 %

SENIOR SERVICES OF AMERICA

   11      72,587,000    3 %   2 %

NEXION HEALTH MANAGEMENT, INC.

   18      55,275,000    2 %   3 %

HEALTH SYSTEMS, INC.

   12      48,974,000    2 %   2 %

HEALTHSOUTH CORPORATION*

   2      45,645,000    2 %   2 %

HEARTH MANAGEMENT, LLC

   3      41,285,000    1 %   1 %

LIBERTY HEALTHCARE

   11      41,138,000    1 %   1 %

OTHER - PUBLIC COMPANIES

   14      56,975,000    2 %   2 %

OTHER

   91      494,657,000    18 %   13 %
                        
   460    $ 2,782,830,000    100 %   100 %
                        

 

* PUBLIC COMPANY


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

SEPTEMBER 30, 2006

TOP FIVE STATES INVESTMENT AND REVENUE

 

     NUMBER OF
FACILITIES
   INVESTMENT
AMOUNT
   PERCENT OF
INVESTMENT
    PERCENT OF
REVENUES
    MEDICAID AS A
PERCENTAGE
OF REVENUES
 

TEXAS

   106    $ 538,132,000    19 %   19 %   7 %

MASSACHUSETTS

   30    $ 292,450,000    11 %   10 %   5 %

FLORIDA

   33    $ 192,762,000    7 %   7 %   2 %

CALIFORNIA

   24    $ 181,089,000    7 %   9 %   1 %

WISCONSIN

   23    $ 164,494,000    6 %   5 %   1 %

SECURITY DEPOSITS

 

BANK LETTERS OF CREDIT

   $ 52,441,000

CASH DEPOSITS

     17,530,000
      
   $ 69,971,000
      

CURRENT CAPITALIZATION

 

CREDIT FACILITY

   $ 100,000,000    3 %

SENIOR DEBT

     1,282,553,000    45 %

EQUITY (UNDEPRECIATED BOOK BASIS)

     1,482,031,000    52 %
         
   $ 2,864,584,000   
         

DEBT COMPOSITION

 

     AMOUNT    WEIGHTED RATE  

FIXED RATE

   $ 1,222,523,000    6.6 %

FLOATING RATE SECURED

   $ 60,030,000    5.5 %

FLOATING RATE CREDIT FACILITY

   $ 100,000,000    8.25% Prime/6.22% LIBOR  

 

     FACILITIES    INVESTMENT    INVESTMENT
PER BED/
UNIT/ SQ FT.
   BEDS/UNITS/
SQ FT.

CURRENT QUARTER INVESTMENTS

           

REAL ESTATE

           

ASSISTED & IND LIVING FACILITIES

   5    $ 40,000,000    $ 76,000    523

SKILLED NURSING FACILITIES

   —        —        —      —  

CAPITAL EXPENDITURES

   —        4,000,000      
                 
   5    $ 44,000,000      
                 


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

SEPTEMBER 30, 2006

CURRENT YEAR INVESTMENTS

     FACILITIES    INVESTMENT    INVESTMENT
PER BED/
UNIT/ SQ FT.
   BEDS/
UNITS/
SQ FT.

REAL ESTATE

           

ASSISTED & IND LIVING FACILITIES

   40    $ 503,000,000    $ 130,000    3,858

SKILLED NURSING FACILITIES

   19      201,000,000    $ 78,000    2,570

JV MEDICAL OFFICE BUILDINGS

   21      56,000,000    $ 74    759,283

CAPITAL EXPENDITURES

   —        10,000,000      
                 
   80    $ 770,000,000      
                 

MORTGAGE LOANS

           

SKILLED NURSING FACILITIES

   1    $ 3,000,000    $ 30,000    100
                 

ANNOUNCED INVESTMENTS

           

ASSISTED & IND LIVING FACILITIES

      $ 243,000,000      

SKILLED NURSING FACILITIES

        17,000,000      
               
      $ 260,000,000      
               

TOTAL CLOSED AND ANNOUNCED

      $ 1,033,000,000      
               

TOTAL EXCLUDING WINGATE ANNOUNCED IN 2005

      $ 859,000,000      
               

SENIOR NOTE MATURITIES

 

YEAR

   AMOUNT     WEIGHTED
RATE
 

Q4 2006

   $ 32,725,000     7.4 %

Q1 2007

     5,000,000     7.4 %

Q2 2007

     12,000,000     7.3 %

Q4 2007

     55,000,000 (1)   6.9 %

Q1 2008

     10,000,000     6.7 %

Q3 2008

     40,000,000 (2)   6.6 %

Q4 2008

     33,500,000 (3)   7.6 %

2009

     32,000,000     7.8 %

2011

     350,000,000     6.5 %

2012

     100,000,000     8.3 %

2015

     250,000,000     6.0 %
              
   $ 920,225,000     6.7 %
              

 

(1) Includes $55,000,000 of 6.9% MTNs putable October of 2007, ‘09, ‘12, ‘17, ‘27 with a final maturity in 2037.

 

(2) Includes $40,000,000 of 6.59% MTNs putable July of 2008, ‘13, ‘18, ‘23, ‘28 with a final maturity in 2038.

 

(3) Includes $33,500,000 of 7.6% MTNs putable November of 2008, ‘13, ‘18, ‘23 with a final maturity in 2028.

NOTES AND BONDS PAYABLE MATURITIES

 

YEAR

   AMOUNT    WEIGHTED
RATE
 

2007

   $ 671,000    6.6 %

2008

     850,000    6.4 %

2009

     38,050,000    6.7 %

2010

     75,587,000    6.0 %

2011

     5,625,000    7.7 %

2012

     33,752,000    7.6 %

2013

     49,868,000    6.0 %

2015

     17,919,000    5.8 %

THEREAFTER

     140,006,000    6.0 %
             
   $ 362,328,000    6.3 %
             


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

SEPTEMBER 30, 2006

LEASE EXPIRATIONS (excluding held for sale and medical office building portfolio)

 

YEAR    MINIMUM
RENT
   NUMBER OF
FACILITIES
2007      5,101,000    12
2008      3,205,000    6
2009      3,313,000    7
2010      12,395,000    24
2011      6,763,000    20
2012      16,715,000    18
2013      16,906,000    30
2014      21,282,000    25
2015      5,738,000    5
THEREAFTER      164,444,000    292
           
   $ 255,862,000    439
           

MORTGAGE LOAN RECEIVABLE PRINCIPAL PAYMENTS

 

YEAR    PRINCIPAL
PAYMENTS
   NUMBER OF
FACILITIES
2006    $ 181,000    —  
2007      1,394,000    —  
2008      11,278,000    5
2009      33,774,000    5
2010      894,000    —  
2011      4,853,000    2
2012      1,053,000    —  
2013      10,091,000    —  
2014      1,251,000    —  
2015      3,630,000    1
THEREAFTER      51,240,000    8
           
   $ 119,639,000    21
           

RECONCILIATION OF 2006 NET INCOME GUIDANCE TO 2006 DILUTED FFO GUIDANCE

 

     LOW     HIGH  

NET INCOME

   $ 1.46     $ 1.47  

LESS: PREFERRED DIVIDENDS

     (0.09 )     (0.09 )

REAL ESTATE RELATED DEPRECIATION AND AMORTIZATION

     0.99       0.99  

LESS: GAINS ON SALE

     (0.32 )     (0.32 )

DILUTION FROM CONVERTIBLE PREFERRED STOCK

     (0.12 )     (0.12 )
                

DILUTED FUNDS FROM OPERATIONS

   $ 1.92     $ 1.93  
                

We are projecting FFO of between $0.48 and $0.49 per share for the fourth quarter, however, full year guidance is diluted by one cent as a result of the approximately 3.4 million shares of common stock sold during the third quarter.


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

SEPTEMBER 30, 2006

2006 EXPECTED REVENUE LEAKAGE

 

     2006
REVENUE
   FULL YEAR
REVENUE
   PROCEEDS    GAIN    YIELD  

First Nine Months 2006

              

Purchase Option Sales Closed

   $ 1,696,000    $ 3,320,000    $ 34,149,000    $ 15,507,000    11.4 %

Loan Payoffs

     785,000      1,681,000      13,663,000      —      12.3 %

Asset Recycling

     1,160,000      1,707,000      10,150,000      1,807,000    10.8 %

Lease Restructurings/Renewals

     1,022,000      1,460,000      —        —     
                              

Total Nine Months 2006

     4,663,000      8,168,000      57,962,000      17,314,000   
                              

Projected Remaining 2006

              

Certain

              

Purchase Options

     93,000      1,085,000      11,491,000      2,090,000    9.4 %

Loan Payoffs

     14,000      506,000      3,885,000      —     

Lease Restructurings/Renewals

     166,000      434,000      —        —     
                              

Total Certain

     273,000      2,025,000      15,376,000      2,090,000   
                              

High Probability

              

Purchase Options

     15,000      89,000      750,000      106,000    12.3 %

Lease Restructurings/Renewals

     117,000      276,000      —        —     
                              

Total High

     132,000      365,000      750,000      106,000   
                              

Total Projected Remaining 2006

     405,000      2,390,000      16,126,000      2,196,000   

Total Actual and Projected 2006

              

Total Certain

     4,936,000      10,193,000      73,338,000      19,404,000   

Total High

     132,000      365,000      750,000      106,000   
                              
   $ 5,068,000    $ 10,558,000    $ 74,088,000    $ 19,510,000