EX-99.1 2 dex991.htm PRESS RELEASE DATED AUGUST 1, 2007 Press Release dated August 1, 2007

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

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

NHP REPORTS SECOND QUARTER 2007 EARNINGS, $252 MILLION OF

INVESTMENTS AND A $128 MILLION STRATEGIC SALE

(NEWPORT BEACH, California, August 1, 2007)… Nationwide Health Properties, Inc. (NYSE:NHP) today announced its second quarter and six months 2007 operating results and investment activity.

“The second quarter and first half of 2007 have been very successful based on investments, operating results and strategic asset sales,” commented Douglas M. Pasquale, NHP’s President and Chief Executive Officer. “We closed $252 million of accretive investments in the second quarter, bringing our total for the first half of the year to $535 million. Year to date revenues are up 40% and FFO per share increased by 5%. In addition, following through on one of our strategic initiatives, we took the opportunity to improve the overall quality of our portfolio by selling at an 8.5% rent cap rate a 35-year old portfolio of 35 Texas skilled nursing facilities. This sale reduced the average age of our skilled portfolio, improved its quality mix and resulted in a gain of $60 million,” Mr. Pasquale added.

 

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2007 SECOND QUARTER RESULTS

The following table presents selected financial results for the second quarter of 2007 as compared to the second quarter of 2006:

SELECTED FINANCIAL RESULTS

($ in thousands, except per share amounts)

Three Months Ended June 30,

 

Item    2007    2006    Change  

Revenues

   $ 80,795    $ 59,328    $ 21,467    36.2 %

Income from continuing operations

   $ 24,345    $ 15,962    $ 8,383    52.5 %

Net Income

   $ 87,433    $ 23,029    $ 64,404    279.7 %

Diluted Income from Continuing Operations Available to Common Stockholders Per Share

   $ 0.23    $ 0.16    $ 0.07    43.8 %

Diluted Income Available to Common Stockholders Per Share

   $ 0.93    $ 0.26    $ 0.67    257.7 %

Diluted FFO

   $ 48,576    $ 38,158    $ 10,418    27.3 %

Diluted FFO Per Share

   $ 0.51    $ 0.48    $ 0.03    6.3 %

Six Months Ended June 30,

 

 

Revenues

   $ 156,705    $ 112,320    $ 44,385    39.5 %

Income from continuing operations

   $ 47,888    $ 30,520    $ 17,368    56.9 %

Net Income

   $ 113,480    $ 51,102    $ 62,378    122.1 %

Diluted Income from Continuing Operations Available to Common Stockholders Per Share

   $ 0.45    $ 0.32    $ 0.13    40.6 %

Diluted Income Available to Common Stockholders Per Share

   $ 1.18    $ 0.61    $ 0.57    93.4 %

Diluted FFO

   $ 95,287    $ 73,364    $ 21,923    29.9 %

Diluted FFO Per Share

   $ 1.01    $ 0.96    $ 0.05    5.2 %

Funds From Operations (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).

These results include gains on the sale of certain assets shown in the accompanying income statement that caused the net income results in 2007 to be significantly higher than in 2006. Income from continuing operations does not include the gains on sale or the operations of facilities sold that qualified as discontinued operations for any period presented in the accompanying income statement.

 

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NEW INVESTMENTS

The following tables summarize our second quarter and year-to-date investment activity, with a significant number of approved investments in all our asset types already in the third and fourth quarter closing queues:

SECOND QUARTER 2007 CLOSED INVESTMENTS

 

Type    Amount   

Unit

Price

   Cap
Rate
    Initial
Yield
    CPI
Ups
    DARM
Cover
     (millions)    (thousands)                       

Senior Housing

   $ 121    $ 80    7.7 %   8.3 %   2.8 %   1.2x

Long-Term Care

   $ 61    $ 49    14.5 %   9.9 %   2.0 %   2.0x

Medical Office

   $ 23    $ 156/sf    7.6 %   7.6 %    

Subtotal

   $ 205            

Loans

   $ 47         10.9 %    

Total

   $ 252            

 

2007 CLOSED INVESTMENTS

 

Type    Amount   

Unit

Price

   Cap
Rate
    Initial
Yield
    CPI
Ups
    DARM
Cover
     (millions)    (thousands)                       

Senior Housing

   $ 200    $ 95    8.7 %   8.3 %   2.8 %   1.3x

CCRC

   $ 39    $ 74    11.1 %   8.8 %   2.5 %   1.6x

Long-Term Care

   $ 226    $ 92    11.3 %   8.5 %   2.3 %   1.8x

Medical Office

   $ 23    $ 156/sf    7.6 %   7.6 %    

Subtotal

   $ 488            

Loans

   $ 47         10.9 %    

Total

   $ 535            

Included in these numbers are third party investments financed through our joint venture which are broken out in the accompanying analyst information (which exclude the four facilities acquired by the joint venture from us for $41 million during the second quarter of 2007). Approximately 75% of the acquired loans mature in 2007 and 2008.

 

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STRATEGIC ASSET SALE

On June 29, 2007, we sold 36 skilled nursing facilities, all but one of which was in Texas, and a related loan for $128 million. This portfolio represented our entire leased portfolio with Complete Care Services, Inc. The sales price represents a capitalization rate on our July 1, 2007 annualized rent of 8.5%. The portfolio had an average age of 35 years and resulted in a gain of $60 million and a $78 million reduction to our gross investments in skilled nursing facilities.

2007 FINANCING TRANSACTIONS

During the first six months of 2007, we issued approximately 4.3 million shares through our controlled equity offering program resulting in net proceeds of approximately $135 million.

2007 GUIDANCE

Notwithstanding the foregone rent associated with our strategic skilled nursing portfolio sale, we are maintaining the high end our full-year 2007 guidance range for FFO before impairments, acquisitions and capital transactions and are changing the range from between $2.02 and $2.07 per share to between $2.03 and $2.07 per share. A reconciliation between net income per share and FFO per share for the guidance range is included in the accompanying financial data.

Although we expect to continue making accretive acquisitions in 2007, this guidance incorporates no results from acquisitions other than those reported above, nor does it incorporate the impact of any future impairments that might arise. It also excludes any future capital transactions with the exception of approximately $13 million of expected stock issuances under our Dividend Reinvestment Plan during the remainder of

 

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2007. This guidance assumes asset sales, mortgage loan receivable prepayments and other leakage during 2007 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, August 2, 2007 at 8:30 a.m. Pacific time in order to present the Company’s performance and operating results for the quarter ended June 30, 2007. The conference call is accessible by dialing (877) 356-5705 and referencing conference ID number 7227772 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 10:00 a.m. Pacific time that day until 9:00 p.m. Pacific time on Thursday, August 16, 2007. Callers can access the replay by dialing (800) 642-1687 or (706) 645-9291 and entering conference ID number 7227772. Webcast replays will also be available on our website for at least 12 months following the conference call.

Nationwide Health Properties, Inc. is a real estate investment trust that invests in senior housing facilities, long-term care facilities and medical office buildings. The Company has investments in 524 facilities in 43 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

 

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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; non-payment or late payment of rent by our tenants; our reliance on two operators for a significant percentage of our revenues; occupancy levels at certain facilities; our level of indebtedness; 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 healthcare industry; increasing competition in our business sector; 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; 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; our ability to retain key personnel; potential liability under environmental laws; the possibility that we could be required to repurchase some of our medium-term notes; the rights and influence of holders of our outstanding preferred stock; 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 most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q filed with the SEC.

 

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NATIONWIDE HEALTH PROPERTIES, INC.

STATEMENTS OF OPERATIONS

JUNE 30, 2007

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2007     2006     2007     2006  

Revenues:

        

Rental income

        

Triple net lease rent

   $ 72,977     $ 53,978     $ 141,853     $ 102,091  

Operating rent

     2,810       2,506       5,573       4,423  
                                
     75,787       56,484       147,426       106,514  

Interest and other income

     5,008       2,844       9,279       5,806  
                                
     80,795       59,328       156,705       112,320  

Expenses:

        

Interest & amortization of deferred financing costs

     26,275       21,374       50,097       40,602  

Depreciation and amortization

     23,750       16,831       45,457       31,288  

General and administrative

     5,797       3,857       11,414       7,655  

Medical office building operating expenses

     1,785       1,383       3,206       2,382  
                                
     57,607       43,445       110,174       81,927  
                                

Income before minority interest and unconsolidated joint venture

     23,188       15,883       46,531       30,393  

Minority interest in net loss of consolidated joint ventures

     81       79       63       127  

Income from unconsolidated joint venture

     477       —         695       —    

Gain on sale of facilities to joint venture

     599       —         599       —    
                                

Income from continuing operations

     24,345       15,962       47,888       30,520  

Discontinued operations

        

Gain on sale of facilities, net

     61,180       1,616       61,246       8,826  

Income from discontinued operations

     1,908       5,451       4,346       11,756  
                                
     63,088       7,067       65,592       20,582  
                                

Net income

     87,433       23,029       113,480       51,102  

Preferred stock dividends

     (3,791 )     (3,790 )     (7,581 )     (7,581 )
                                

Income available to common stockholders

   $ 83,642     $ 19,239     $ 105,899     $ 43,521  
                                

Per share amounts available to common stockholders:

        

Basic

        

Income from continuing operations

   $ 0.23     $ 0.16     $ 0.45     $ 0.32  

Discontinued operations

     0.70       0.10       0.74       0.29  
                                

Income

   $ 0.93     $ 0.26     $ 1.19     $ 0.61  
                                

Weighted average shares outstanding

     89,761       74,719       88,979       71,543  
                                

Diluted

        

Income from continuing operations

   $ 0.23     $ 0.16     $ 0.45     $ 0.32  

Discontinued operations

     0.70       0.10       0.73       0.29  
                                

Income

   $ 0.93     $ 0.26     $ 1.18     $ 0.61  
                                

Weighted average shares outstanding

     90,222       75,108       89,454       71,873  
                                


NATIONWIDE HEALTH PROPERTIES, INC.

RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS

JUNE 30, 2007

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2007     2006     2007     2006  

Net income

   $ 87,433     $ 23,029     $ 113,480     $ 51,102  

Preferred stock dividends

     (3,791 )     (3,790 )     (7,581 )     (7,581 )

Real estate related depreciation and amortization

     24,283       18,473       46,576       34,545  

Depreciation in income from joint venture

     368       —         532       —    

Gains on sale of facilities

     (61,779 )     (1,616 )     (61,845 )     (8,826 )
                                

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

     46,514       36,096       91,162       69,240  

Series B preferred dividend add-back

     2,062       2,062       4,125       4,124  
                                

Diluted FFO

   $ 48,576     $ 38,158     $ 95,287     $ 73,364  
                                

Diluted weighted average shares outstanding

     90,222       75,108       89,454       71,873  

Series B preferred stock add-back

     4,704       4,685       4,701       4,684  
                                

Fully diluted weighted average shares outstanding

     94,926       79,793       94,155       76,557  
                                

Diluted per share amounts:

        

FFO

   $ 0.51     $ 0.48     $ 1.01     $ 0.96  
                                

Revenue in excess of cash rent

   $ 761     $ 102     $ 1,698     $ 5  
                                

Non-cash stock-based compensation expense

   $ 1,218     $ 651     $ 2,238     $ 1,194  
                                

Deferred finance cost amortization

   $ 695     $ 643     $ 1,382     $ 1,197  
                                

(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, 2007

(IN THOUSANDS)

 

    

June 30,

2007

    December 31,
2006
 

ASSETS

    

Investments in real estate:

    

Real estate properties

    

Land

   $ 292,338     $ 267,303  

Buildings and improvements

     2,744,528       2,581,484  
                
     3,036,866       2,848,787  

Less accumulated depreciation

     (401,295 )     (372,201 )
                
     2,635,571       2,476,586  

Mortgage loans receivable, net

     135,437       106,929  

Investment in unconsolidated joint venture

     26,189       —    
                
     2,797,197       2,583,515  

Cash and cash equivalents

     12,892       14,695  

Receivables, net

     9,081       7,787  

Assets held for sale

     194       9,484  

Other assets

     98,054       89,333  
                
   $ 2,917,418     $ 2,704,814  
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Credit facility

   $ 210,000     $ 139,000  

Senior notes due 2008 - 2038

     866,500       887,500  

Notes and bonds payable

     333,305       355,411  

Accounts payable and accrued liabilities

     81,457       77,829  
                

Total liabilities

     1,491,262       1,459,740  

Minority interest

     1,230       1,265  

Stockholders’ equity:

    

Series A preferred stock

     90,049       90,049  

Series B convertible preferred stock

     106,445       106,450  

Common stock

     9,096       8,624  

Capital in excess of par value

     1,447,225       1,298,703  

Cumulative net income

     1,177,773       1,064,293  

Accumulated other comprehensive income

     1,124       1,231  

Cumulative dividends

     (1,406,786 )     (1,325,541 )
                

Total stockholders’ equity

     1,424,926       1,243,809  
                
   $ 2,917,418     $ 2,704,814  
                


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

PORTFOLIO COMPOSITION

(EXCLUDING UNCONSOLIDATED JOINT VENTURE)

 

      Investment     Revenue  

EQUITY OWNERSHIP

   96 %   94 %

MORTGAGE LOANS RECEIVABLE

   4 %   6 %
            
   100 %   100 %
            

ASSISTED AND INDEPENDENT LIVING FACILITIES

   62 %   60 %

SKILLED NURSING FACILITIES

   29 %   28 %

CONTINUING CARE RETIREMENT COMMUNITIES

   5 %   6 %

SPECIALTY HOSPITALS

   2 %   2 %

MEDICAL OFFICE BUILDINGS

   2 %   4 %
            
   100 %   100 %
            

OWNED FACILITIES

 

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

NHP DIRECT OWNERSHIP

           

ASSISTED & IND LIVING FACILITIES

   269    $ 1,929,671,000    $ 96,000    20,070

SKILLED NURSING FACILITIES

   161      842,498,000    $ 46,000    18,297

CONTINUING CARE RETIREMENT

   10      132,632,000    $ 72,000    1,852

SPECIALTY HOSPITALS

   7      68,031,000    $ 225,000    303

MEDICAL OFFICE BUILDINGS*

   24      64,034,000    $ 85    906,369
                 

TOTAL

   471    $ 3,036,866,000      
                 

UNCONSOLIDATED JV OWNERSHIP

           

SKILLED NURSING FACILITIES

   7    $ 150,663,000    $ 147,000    1,028

ASSISTED & IND LIVING FACILITIES

   6      77,779,000    $ 112,000    697
                 

TOTAL

   13    $ 228,442,000      
                 

GRAND TOTAL

   484    $ 3,265,308,000      
                 

* 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

   19    $ 64,530,000    $ 29,000    2,223

ASSISTED & IND LIVING FACILITIES

   13      51,275,000    $ 56,000    908

CONTINUING CARE RETIREMENT

   1      19,632,000    $ 46,000    428
                 
   33    $ 135,437,000      
                 

ASSETS HELD FOR SALE

 

FACILITIES    INVESTMENT
2    $ 194,000


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

PORTFOLIO STATISTICS (excluding medical office buildings)

 

     NHP CONSOLIDATED PORTFOLIO     UNCONSOLIDATED
JV PORTFOLIO
 
     2007     2006     2007  

TOTAL PORTFOLIO

      

RENT COVERAGE

      

EBITDARM

      

AL & IL

   1.4x     1.4x     1.4x  

SNF

   1.9x     2.1x     1.7x  

EBITDAR

      

AL & IL

   1.2x     1.2x     1.2x  

SNF

   1.3x     1.5x     1.4x  

EBITDAR MINUS CAPEX

      

AL & IL

   1.1x     1.1x     1.1x  

SNF

   1.2x     1.4x     1.4x  

OCCUPANCY

      

AL & IL

   86 %   88 %   91 %

SNF

   83 %   82 %   91 %

TENANT PRIVATE PAY AND MEDICARE

      

AL & IL

   99 %   100 %   96 %

SNF

   46 %   41 %   59 %

TOTAL PORTFOLIO

   67 %   62 %   67 %

NHP RENT BY PAYMENT SOURCE

      

MEDICAID

   18 %   23 %   29 %

MEDICARE

   11 %   12 %   16 %

PRIVATE AND OTHER

   71 %   65 %   55 %

AVERAGE AGE OF FACILITY IN YEARS

      

AL & IL

   11     10     12  

SNF

   29     28     9  

AVERAGE REMAINING LEASE TERM

      

AL & IL

   12     14     13  

SNF

   7     9     15  


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

SAME STORE PORTFOLIO STATISTICS (excluding medical office buildings)

 

     NHP CONSOLIDATED PORTFOLIO  
     2007     2006  

RENT COVERAGE

    

EBITDARM

    

AL & IL

   1.5x     1.4x  

SNF

   2.0x     1.9x  

EBITDAR

    

AL & IL

   1.3x     1.2x  

SNF

   1.4x     1.3x  

EBITDAR MINUS CAPEX

    

AL & IL

   1.2x     1.1x  

SNF

   1.3x     1.2x  

OCCUPANCY

    

AL & IL

   89 %   88 %

SNF

   82 %   83 %

TENANT PRIVATE PAY AND MEDICARE

    

AL & IL

   99 %   99 %

SNF

   45 %   44 %

TOTAL PORTFOLIO

   65 %   64 %

NHP RENT BY PAYMENT SOURCE

    

MEDICAID

   22 %   23 %

MEDICARE

   13 %   13 %

PRIVATE AND OTHER

   65 %   64 %

AVERAGE AGE OF FACILITY IN YEARS

    

AL & IL

   12     11  

SNF

   29     28  

AVERAGE REMAINING LEASE TERM

    

AL & IL

   11     12  

SNF

   7     8  


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

INVESTMENT BY OPERATOR (excluding assets held for sale, medical office buildings and JV assets)

 

     NUMBER OF
FACILITIES
   INVESTMENT
AMOUNT
   PERCENT OF
INVESTMENT
    PERCENT OF
REVENUES
 

BROOKDALE SENIOR LIVING, INC.*

   102    $ 517,470,000    17 %   18 %

HEARTHSTONE SENIOR SERVICES, L.P.

   32      431,297,000    14 %   12 %

WINGATE HEALTHCARE, INC.

   19      235,963,000    8 %   6 %

EMERITUS CORPORATION*

   23      180,846,000    6 %   6 %

ATRIA SENIOR LIVING GROUP

   17      124,583,000    4 %   7 %

LAUREATE GROUP

   9      118,946,000    4 %   3 %

CARILLON ASSISTED LIVING

   9      105,847,000    3 %   3 %

BEVERLY ENTERPRISES, INC.

   28      100,113,000    3 %   5 %

EPOCH SENIOR LIVING, INC.

   8      81,067,000    3 %   3 %

SENIOR SERVICES OF AMERICA

   12      74,826,000    2 %   2 %

SUMMERVILLE SENIOR LIVING

   6      70,177,000    2 %   2 %

NEXION HEALTH MANAGEMENT, INC.

   18      55,496,000    2 %   2 %

PRIMROSE RETIREMENT ASSOCIATES

   8      55,016,000    2 %   1 %

TRANS HEALTHCARE

   7      46,676,000    1 %   1 %

HEALTHSOUTH CORPORATION*

   2      45,645,000    1 %   2 %

OTHER—PUBLIC COMPANIES

   14      56,975,000    2 %   2 %

OTHER

  

166

  

 

807,326,000

   26 %   25 %
                        
  

480

   $ 3,108,269,000    100 %   100 %
                        

* PUBLIC COMPANY

TOP FIVE STATES INVESTMENT AND REVENUE

(excluding held for sale, medical office building portfolio and JV portfolio)

 

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

TEXAS

   65    $ 455,489,000    15 %   14 %   4 %

MASSACHUSETTS

   31    $ 309,035,000    10 %   9 %   4 %

CALIFORNIA

   32    $ 232,296,000    7 %   10 %   2 %

FLORIDA

   30    $ 208,303,000    7 %   6 %   2 %

WISCONSIN

   36    $ 195,030,000    6 %   5 %   1 %

SECURITY DEPOSITS

 

  

BANK LETTERS OF CREDIT

   $ 57,605,000

CASH DEPOSITS

     21,464,000
      
   $ 79,069,000
      

CAPITALIZATION

(UNDEPRECIATED BOOK BASIS)

 

    

6/30/07

    12/31/06    

6/30/06

 
     AMOUNT    PERCENTAGE     PERCENTAGE     PERCENTAGE  

SECURED DEBT

   $ 333,305,000    11 %   12 %   12 %

UNSECURED DEBT

     1,076,500,000    33 %   34 %   39 %
                         

TOTAL DEBT

     1,409,805,000    44 %   46 %   51 %

EQUITY

     1,826,221,000    56 %   54 %   49 %
                         
   $ 3,236,026,000    100 %   100 %   100 %
                         

DEBT COMPOSITION

 

     AMOUNT    PERCENTAGE     WEIGHTED RATE  

FIXED RATE

   $ 1,138,811,000    81 %   6.6 %

FLOATING RATE SECURED

     60,994,000    4 %   5.8 %

FLOATING RATE CREDIT FACILITY

   $ 210,000,000    15 %   8.25% Prime/6.23% LIBOR  
               
   $ 1,409,805,000    100 %  
               


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

2007 INVESTMENTS

 

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

CURRENT QUARTER INVESTMENTS

           

NHP

           

ASSISTED & IND LIVING FACILITIES

   30    $ 104,000,000    $ 73,000    1,418

SKILLED NURSING FACILITIES

   14      61,000,000    $ 49,000    1,250

MEDICAL OFFICE BUILDINGS

   3      23,000,000    $ 156    147,086
                 

TOTAL ASSETS ACQUIRED

   47      188,000,000      

LOANS ACQUIRED/FUNDED

        47,000,000      
               

TOTAL ACQUISITIONS

        235,000,000      

CAPITAL EXPENDITURES

        5,000,000      
                 

TOTAL INVESTMENTS

   47    $ 240,000,000      
                 

UNCONSOLIDATED JOINT VENTURE

           

SKILLED NURSING FACILITIES

   —      $ —      $ —      —  

ASSISTED & IND LIVING FACILITIES*

   1      17,000,000    $ 163,000    104
                 

TOTAL ACQUISITIONS

   1    $ 17,000,000      
                 

TOTAL

           

TOTAL ASSETS ACQUIRED

   48    $ 205,000,000      

LOANS ACQUIRED/FUNDED

        47,000,000      
               

TOTAL ACQUISITIONS

        252,000,000      

CAPITAL EXPENDITURES

        5,000,000      
                 

TOTAL INVESTMENTS

   48    $ 257,000,000      
                 

CURRENT YEAR INVESTMENTS

           

NHP

           

ASSISTED & IND LIVING FACILITIES

   35    $ 163,000,000    $ 86,000    1,891

SKILLED NURSING FACILITIES

   16      75,000,000    $ 52,000    1,440

CONTINUING CARE RETIREMENT COM.

   3      39,000,000    $ 74,000    527

MEDICAL OFFICE BUILDINGS

   3      23,000,000    $ 156    147,086
                 

TOTAL ASSETS ACQUIRED

   57      300,000,000      

LOANS ACQUIRED/FUNDED

        47,000,000      
               

TOTAL ACQUISITIONS

        347,000,000      

CAPITAL EXPENDITURES

        10,000,000      
                 

TOTAL INVESTMENTS

   57    $ 357,000,000      
                 

UNCONSOLIDATED JOINT VENTURE

           

SKILLED NURSING FACILITIES

   7    $ 151,000,000    $ 147,000    1,028

ASSISTED & IND LIVING FACILITIES*

   2      37,000,000    $ 175,000    212
                 

TOTAL ACQUISITIONS

   9    $ 188,000,000      
                 

TOTAL

           

TOTAL ASSETS ACQUIRED

   66    $ 488,000,000      

LOANS ACQUIRED/FUNDED

        47,000,000      
               

TOTAL ACQUISITIONS

        535,000,000      

CAPITAL EXPENDITURES

        10,000,000      
                 

TOTAL INVESTMENTS

   66    $ 545,000,000      
                 

* The above totals exclude four assisted living facilities the joint venture acquired from NHP for $41 million


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

SENIOR NOTE MATURITIES

 

YEAR

   AMOUNT    

WEIGHTED

RATE

 

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

     96,000,000       8.3 %

2015

     250,000,000       6.0 %
              
   $ 866,500,000       6.7 %
              

(1) Notes putable October of 2007, ‘09, ‘12, ‘17, ‘27 with a final maturity in 2037.
(2) Notes putable July of 2008, ‘13, ‘18, ‘23, ‘28 with a final maturity in 2038.
(3) Notes putable November of 2008, ‘13, ‘18, ‘23 with a final maturity in 2028.

NOTES AND BONDS PAYABLE MATURITIES

 

YEAR

   AMOUNT   

WEIGHTED

RATE

 

2007

   $ 639,000    7.8 %

2008

     —      —    

2009

     38,969,000    6.9 %

2010

     74,489,000    6.0 %

2011

     5,459,000    7.7 %

2012

     33,152,000    7.6 %

2013

     75,692,000    6.3 %

2015

     11,339,000    6.4 %

THEREAFTER

     93,566,000    5.5 %
             
   $ 333,305,000    6.2 %
             

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

 

YEAR

  

MINIMUM

RENT

  

NUMBER OF

FACILITIES

2007

   $ 2,821,000    10

2008

     2,489,000    5

2009

     3,776,000    9

2010

     12,334,000    23

2011

     9,005,000    22

2012

     18,080,000    19

2013

     18,552,000    32

2014

     20,963,000    25

2015

     8,835,000    10

2016

     28,500,000    47

THEREAFTER

     156,322,000    246
           
   $ 281,677,000    448
           


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

MORTGAGE LOAN RECEIVABLE PRINCIPAL PAYMENTS

 

YEAR

  

PRINCIPAL

PAYMENTS

  

NUMBER

OF FACILITIES

2007

   $ 10,115,000    2

2008

     34,573,000    13

2009

     38,744,000    9

2010

     986,000    —  

2011

     1,072,000    —  

2012

     1,168,000    —  

2013

     9,775,000    —  

2014

     1,396,000    —  

2015

     3,650,000    1

2016

     10,439,000    2

THEREAFTER

     42,577,000    6
           
   $ 154,495,000    33
           

UNCONSOLIDATED JOINT VENTURE FINANCIAL STATEMENTS

BALANCE SHEET AT JUNE 30, 2007

 

ASSETS   

LAND

   $ 9,389,000  

BUILDINGS AND IMPROVEMENTS

     218,580,000  
        

GROSS REAL ESTATE

     227,969,000  

ACCUMULATED DEPRECIATION

     (2,126,000 )
        

NET REAL ESTATE

     225,843,000  

CASH

     2,543,000  

RECEIVABLES

     170,000  

OTHER ASSETS

     749,000  
        

TOTAL ASSETS

   $ 229,305,000  
        
LIABILITIES AND EQUITY   
NOTES AND BONDS PAYABLE    $ 122,295,000  
A/P AND ACCRUED LIABILITIES      2,260,000  
        

TOTAL LIABILITIES

     124,555,000  
EQUITY      104,750,000  
        
TOTAL LIABILITIES AND EQUITY    $ 229,305,000  
        

INCOME STATEMENT - SIX MONTHS ENDED JUNE 30, 2007

 

REVENUES

  

RENT

   $ 5,000,000

INTEREST AND OTHER INCOME

     12,000
      

TOTAL REVENUES

     5,012,000

EXPENSES

  

INTEREST AND DEFERRED FINANCE COSTS

     1,366,000

DEPRECIATION AND AMORTIZATION

     2,126,000

GENERAL AND ADMINISTRATIVE*

     564,000
      

TOTAL EXPENSES

     4,056,000
      

NET INCOME

   $ 956,000
      

NHP INCOME AND FFO FROM JV

  

25% SHARE OF NET INCOME

   $ 239,000

MANAGEMENT FEE*

     456,000
      

INCOME FROM JV

     695,000

25% SHARE OF DEPRECIATION

     532,000
      

FFO FROM JV

   $ 1,227,000
      

* the management fee is included in the joint venture’s general and administrative expense


NATIONWIDE HEALTH PROPERTIES, INC.

SUPPLEMENTAL ANALYST INFORMATION

JUNE 30, 2007

 

RECONCILIATION OF 2007 NET INCOME GUIDANCE TO 2007 DILUTED FFO GUIDANCE

 

     LOW     HIGH  

NET INCOME

   $ 2.47     $ 2.50  

LESS: PREFERRED DIVIDENDS

     (0.06 )     (0.06 )

REAL ESTATE RELATED DEPRECIATION AND AMORTIZATION

     1.05       1.05  

LESS: GAINS ON SALE

     (1.31 )     (1.31 )

DILUTION FROM CONVERTIBLE PREFERRED STOCK

     (0.12 )     (0.11 )
                

DILUTED FUNDS FROM OPERATIONS

   $ 2.03     $ 2.07  
                

2007 EXPECTED REVENUE LEAKAGE

 

First Half 2007

   2007
REVENUE
  

FULL YEAR

REVENUE

  

GROSS

PROCEEDS

   GAIN

Purchase Options

   $ 390,000    $ 524,000    $ 3,750,000    $ 1,048,000
                           
           

Projected Remaining 2007

           

Certain

           

Purchase Options

   $ 576,000    $ 4,586,000    $ 44,026,000    $ 10,600,000

High

           

Purchase Options

     145,000      1,041,000      9,650,000      723,000

Loan Payoffs*

     749,000      4,098,000      35,534,000      9,902,000

Asset Recycling

     527,000      1,264,000      15,823,000      4,314,000

Lease Restructurings/Renewals

     110,000      265,000      —        —  
                           

Total High

     1,531,000      6,668,000      61,007,000      14,939,000
                           

Total Projected Remaining 2007

   $ 2,107,000    $ 11,254,000    $ 105,033,000    $ 25,539,000
                           

Total Projected 2007

           

Total Certain

   $ 966,000    $ 5,110,000    $ 47,776,000    $ 11,648,000

Total High

     1,531,000      6,668,000      61,007,000      14,939,000
                           
   $ 2,497,000    $ 11,778,000    $ 108,783,000    $ 26,587,000
                           

* The gain on the loan payoff represents the gain deferred at the time we financed the sale of the facilities