Maryland
|
1-11316
|
38-3041398
|
(State of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
·
|
In January 2013, the Company increased its quarterly common stock dividend to $0.45 per share.
|
·
|
In Q4 2012, the Company completed $250 million of new investments.
|
·
|
In Q4 2012, the Company entered into a new $700 million unsecured credit facility.
|
·
|
In Q4 2012, the Company increased its quarterly common stock dividend to $0.44 per share.
|
·
|
In Q3 2012, the Company completed $214 million of new investments.
|
·
|
In Q3 2012, Fitch Ratings initiated a BBB- rating on the Company’s senior unsecured notes.
|
·
|
In Q2 2012, the Company completed $35 million of new investments.
|
·
|
In Q2 2012, the Company established a $245 million 2012 Equity Shelf Program for a continuous at-the-market offering of common stock.
|
·
|
In Q2 2012, the Company increased its quarterly common dividend per share to $0.42.
|
·
|
In Q1 2012, the Company completed $11 million of new investments.
|
·
|
In Q1 2012, the Company tendered and/or redeemed all of its $175 million of 7% Senior Notes due 2016.
|
·
|
In Q1 2012, the Company issued $400 million aggregate principal amount of its 5.875% Senior Notes due 2024.
|
Equity Shelf (At-The-Market) Program for 2012
|
||||||||||||||||||||
(in thousands, except price per share)
|
||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Year
|
||||||||||||||||
Total
|
Total
|
Total
|
Total
|
To Date
|
||||||||||||||||
Number of shares
|
249 | 510 | 2,639 | - | 3,398 | |||||||||||||||
Average price per share
|
$ | 21.38 | $ | 21.21 | $ | 24.10 | $ | - | $ | 23.47 | ||||||||||
Gross Proceeds
|
$ | 5,318 | $ | 10,818 | $ | 63,614 | $ | - | $ | 79,750 |
Dividend Reinvestment and Direct Common Stock Purchase Program for 2012
|
||||||||||||||||||||
(in thousands, except price per share)
|
||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Year
|
||||||||||||||||
Total
|
Total
|
Total
|
Total
|
To Date
|
||||||||||||||||
Number of shares
|
665 | 2,541 | 1,585 | 271 | 5,062 | |||||||||||||||
Average price per share
|
$ | 21.42 | $ | 21.54 | $ | 23.46 | $ | 21.31 | $ | 22.11 | ||||||||||
Gross Proceeds
|
$ | 14,242 | $ | 54,754 | $ | 37,161 | $ | 5,784 | $ | 111,941 |
December 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Real estate properties
|
||||||||
Land and buildings
|
$ | 3,038,553 | $ | 2,537,039 | ||||
Less accumulated depreciation
|
(580,373 | ) | (470,420 | ) | ||||
Real estate properties – net
|
2,458,180 | 2,066,619 | ||||||
Mortgage notes receivable – net
|
238,621 | 238,675 | ||||||
2,696,801 | 2,305,294 | |||||||
Other investments – net
|
47,339 | 52,957 | ||||||
2,744,140 | 2,358,251 | |||||||
Assets held for sale – net
|
1,020 | 2,461 | ||||||
Total investments
|
2,745,160 | 2,360,712 | ||||||
Cash and cash equivalents
|
1,711 | 351 | ||||||
Restricted cash
|
36,660 | 34,112 | ||||||
Accounts receivable – net
|
125,180 | 100,664 | ||||||
Other assets
|
73,294 | 61,473 | ||||||
Total assets
|
$ | 2,982,005 | $ | 2,557,312 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Revolving line of credit
|
$ | 258,000 | $ | 272,500 | ||||
Secured borrowings
|
366,538 | 303,610 | ||||||
Unsecured borrowings – net
|
1,200,394 | 975,290 | ||||||
Accrued expenses and other liabilities
|
145,744 | 127,428 | ||||||
Total liabilities
|
1,970,676 | 1,678,828 | ||||||
Stockholders’ equity:
|
||||||||
Common stock $.10 par value authorized – 200,000 shares issued and outstanding 112,393 shares as of December 31, 2012 and 103,410 as of December 31, 2011
|
11,239 | 10,341 | ||||||
Common stock – additional paid-in-capital
|
1,664,855 | 1,471,381 | ||||||
Cumulative net earnings
|
754,128 | 633,430 | ||||||
Cumulative dividends paid
|
(1,418,893 | ) | (1,236,668 | ) | ||||
Total stockholders’ equity
|
1,011,329 | 878,484 | ||||||
Total liabilities and stockholders’ equity
|
$ | 2,982,005 | $ | 2,557,312 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenue
|
||||||||||||||||
Rental income
|
$ | 85,219 | $ | 70,071 | $ | 314,592 | $ | 273,517 | ||||||||
Mortgage interest income
|
8,029 | 5,726 | 30,446 | 16,274 | ||||||||||||
Other investment income – net
|
1,227 | 429 | 4,760 | 2,070 | ||||||||||||
Miscellaneous
|
537 | 78 | 662 | 343 | ||||||||||||
Total operating revenues
|
95,012 | 76,304 | 350,460 | 292,204 | ||||||||||||
Expenses
|
||||||||||||||||
Depreciation and amortization
|
30,332 | 25,489 | 112,983 | 100,337 | ||||||||||||
General and administrative
|
4,191 | 3,364 | 15,388 | 13,395 | ||||||||||||
Stock-based compensation expense
|
1,486 | 1,519 | 5,942 | 6,037 | ||||||||||||
Acquisition costs
|
223 | 1,159 | 909 | 1,204 | ||||||||||||
Impairment loss on real estate properties
|
- | 1,373 | 272 | 26,344 | ||||||||||||
Provisions for uncollectible mortgages, notes and accounts receivable
|
- | 2,300 | - | 6,439 | ||||||||||||
Nursing home expenses of owned and operated assets
|
- | 50 | - | 653 | ||||||||||||
Total operating expenses
|
36,232 | 35,254 | 135,494 | 154,409 | ||||||||||||
Income before other income and expense
|
58,780 | 41,050 | 214,966 | 137,795 | ||||||||||||
Other income (expense)
|
||||||||||||||||
Interest income
|
7 | 5 | 29 | 40 | ||||||||||||
Interest expense
|
(24,501 | ) | (20,981 | ) | (95,527 | ) | (81,154 | ) | ||||||||
Interest – amortization of deferred financing costs
|
(679 | ) | (648 | ) | (2,649 | ) | (2,674 | ) | ||||||||
Interest – refinancing costs
|
(2,510 | ) | - | (7,920 | ) | (3,071 | ) | |||||||||
Total other expense
|
(27,683 | ) | (21,624 | ) | (106,067 | ) | (86,859 | ) | ||||||||
Income before gain on assets sold
|
31,097 | 19,426 | 108,899 | 50,936 | ||||||||||||
Gain (loss) on assets sold – net
|
2,826 | (133 | ) | 11,799 | 1,670 | |||||||||||
Net income
|
33,923 | 19,293 | 120,698 | 52,606 | ||||||||||||
Preferred stock dividends
|
- | - | - | (1,691 | ) | |||||||||||
Preferred stock redemption
|
- | - | - | (3,456 | ) | |||||||||||
Net income available to common stockholders
|
$ | 33,923 | $ | 19,293 | $ | 120,698 | $ | 47,459 | ||||||||
Income per common share available to common stockholders:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Net income
|
$ | 0.30 | $ | 0.19 | $ | 1.12 | $ | 0.46 | ||||||||
Diluted:
|
||||||||||||||||
Net income
|
$ | 0.30 | $ | 0.19 | $ | 1.12 | $ | 0.46 | ||||||||
Dividends declared and paid per common share
|
$ | 0.44 | $ | 0.40 | $ | 1.69 | $ | 1.55 | ||||||||
Weighted-average shares outstanding, basic
|
111,756 | 103,311 | 107,591 | 102,119 | ||||||||||||
Weighted-average shares outstanding, diluted
|
112,329 | 103,389 | 108,011 | 102,177 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income available to common stockholders
|
$ | 33,923 | $ | 19,293 | $ | 120,698 | $ | 47,459 | ||||||||
(Deduct gain) add back loss from real estate dispositions
|
(2,826 | ) | 133 | (11,799 | ) | (1,670 | ) | |||||||||
Sub-total
|
31,097 | 19,426 | 108,899 | 45,789 | ||||||||||||
Elimination of non-cash items included in net income:
|
||||||||||||||||
Depreciation and amortization
|
30,332 | 25,489 | 112,983 | 100,337 | ||||||||||||
Add back non-cash provision for impairments on real estate properties
|
— | 1,373 | 272 | 26,344 | ||||||||||||
Funds from operations available to common stockholders
|
$ | 61,429 | $ | 46,288 | $ | 222,154 | $ | 172,470 | ||||||||
Weighted-average common shares outstanding, basic
|
111,756 | 103,311 | 107,591 | 102,119 | ||||||||||||
Restricted stock and PRSUs
|
551 | 64 | 401 | 45 | ||||||||||||
Deferred stock
|
22 | 14 | 19 | 13 | ||||||||||||
Weighted-average common shares outstanding, diluted
|
112,329 | 103,389 | 108,011 | 102,177 | ||||||||||||
Funds from operations per share available to common stockholders
|
$ | 0.55 | $ | 0.45 | $ | 2.06 | $ | 1.69 | ||||||||
Adjusted funds from operations:
|
||||||||||||||||
Funds from operations available to common stockholders
|
$ | 61,429 | $ | 46,288 | $ | 222,154 | $ | 172,470 | ||||||||
Deduct one-time cash revenue
|
(536 | ) | — | (536 | ) | — | ||||||||||
Deduct one-time non-cash deferred mortgage interest income
|
(236 | ) | — | (236 | ) | — | ||||||||||
Add back non-cash preferred stock redemption charges
|
— | — | — | 3,456 | ||||||||||||
Add back non-cash provision for uncollectible accounts receivable
|
— | 2,300 | — | 6,439 | ||||||||||||
Add back nursing home expenses
|
— | 50 | — | 653 | ||||||||||||
Add back interest refinancing expense
|
2,510 | — | 7,920 | 3,071 | ||||||||||||
Add back acquisition costs
|
223 | 1,159 | 909 | 1,204 | ||||||||||||
Add back non-cash stock-based compensation expense
|
1,486 | 1,519 | 5,942 | 6,037 | ||||||||||||
Adjusted funds from operations available to common stockholders
|
$ | 64,876 | $ | 51,316 | $ | 236,153 | $ | 193,330 |
2013 Projected Adjusted FFO and FAD
|
||||||||||||
Per diluted share:
|
||||||||||||
Net income available to common stockholders
|
$ | 1.30 | − | $ | 1.35 | |||||||
Adjustments:
|
||||||||||||
Depreciation and amortization
|
1.10 | − | 1.10 | |||||||||
Provision for impairment on real estate assets
|
0.00 | − | 0.00 | |||||||||
Funds from operations available to common stockholders
|
$ | 2.40 | − | $ | 2.45 | |||||||
Adjustments:
|
||||||||||||
Acquisition costs
|
0.00 | − | 0.00 | |||||||||
Stock-based compensation expense
|
0.05 | − | 0.05 | |||||||||
Adjusted funds from operations available to common stockholders
|
$ | 2.45 | − | $ | 2.50 | |||||||
Adjustments:
|
||||||||||||
Non-cash interest expense
|
0.01 | − | 0.01 | |||||||||
Non-cash revenue
|
(0.26 | ) | − | (0.26 | ) | |||||||
Funds available for distributions
|
$ | 2.20 | − | $ | 2.25 |
As of December 31, 2012
|
||||||||||||||||||||
Balance Sheet Data
|
# of Properties
|
# of Operating Beds
|
Investment
($000’s)
|
% Investment
|
||||||||||||||||
Real Property(1)
|
445 | 49,612 | $ | 3,057,753 | 93 | % | ||||||||||||||
Loans Receivable
|
31 | 3,492 | 238,621 | 7 | % | |||||||||||||||
Total Investments
|
476 | 53,104 | $ | 3,296,374 | 100 | % | ||||||||||||||
Investment Data
|
# of Properties
|
# of Operating Beds
|
Investment
($000’s)
|
% Investment
|
Investment per Bed
|
|||||||||||||||
Skilled Nursing Facilities (1)
|
449 | 51,471 | $ | 3,141,941 | 95 | % | $ | 61 | ||||||||||||
Assisted Living Facilities
|
16 | 1,081 | 91,504 | 3 | % | 85 | ||||||||||||||
Specialty Hospitals and Other
|
11 | 552 | 62,929 | 2 | % | 114 | ||||||||||||||
476 | 53,104 | $ | 3,296,374 | 100 | % | $ | 62 | |||||||||||||
Note: table above excludes two facilities classified as held-for-sale.
(1) Includes $19.2 million for lease inducement.
|
Revenue Composition ($000's)
|
||||||||||||||||
Revenue by Investment Type
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
December 31, 2012
|
December 31, 2012
|
|||||||||||||||
Rental Property (1)
|
$ | 85,219 | 90 | % | $ | 314,592 | 90 | % | ||||||||
Mortgage Notes
|
8,029 | 9 | % | 30,446 | 9 | % | ||||||||||
Other Investment Income
|
1,227 | 1 | % | 4,760 | 1 | % | ||||||||||
$ | 94,475 | 100 | % | $ | 349,798 | 100 | % | |||||||||
Revenue by Facility Type
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
December 31, 2012
|
December 31, 2012
|
|||||||||||||||
Skilled Nursing Facilities (1)
|
$ | 89,554 | 95 | % | $ | 335,246 | 96 | % | ||||||||
Assisted Living Facilities
|
1,729 | 2 | % | 4,096 | 1 | % | ||||||||||
Specialty Hospitals
|
1,965 | 2 | % | 5,696 | 2 | % | ||||||||||
Other
|
1,227 | 1 | % | 4,760 | 1 | % | ||||||||||
$ | 94,475 | 100 | % | $ | 349,798 | 100 | % | |||||||||
(1) 4th quarter revenue includes $1.0 million reduction for lease inducement and $3.5 million year-to-date.
|
Operator Concentration by Investment ($000's)
|
As of December 31, 2012
|
|||||||||||
# of Properties
|
Investment
|
% Investment
|
||||||||||
Genesis Healthcare
|
53 | $ | 356,683 | 11 | % | |||||||
CommuniCare Health Services, Inc.
|
36 | 332,622 | 10 | % | ||||||||
Health & Hospital Corporation
|
40 | 279,475 | 8 | % | ||||||||
Airamid Health Management
|
38 | 263,560 | 8 | % | ||||||||
Signature Holdings II, LLC
|
31 | 226,062 | 7 | % | ||||||||
S&F Management Company, LLC
|
14 | 212,448 | 7 | % | ||||||||
Advocat Inc.
|
36 | 148,408 | 5 | % | ||||||||
Gulf Coast Master Tenant I, LLC
|
17 | 146,636 | 4 | % | ||||||||
Guardian LTC Management Inc. (1)
|
23 | 145,171 | 4 | % | ||||||||
Affiliates of Capital Funding Group, Inc.
|
17 | 129,697 | 4 | % | ||||||||
Remaining 36 Operators
|
171 | 1,055,612 | 32 | % | ||||||||
476 | $ | 3,296,374 | 100 | % | ||||||||
Note: table above excludes two facilities classified as held-for-sale.
(1) Investment amount includes a $19.2 million lease inducement.
|
Concentration by State
|
# of Properties
|
Investment
|
% Investment
|
|||||||||
Florida
|
85 | $ | 604,849 | 18 | % | |||||||
Ohio
|
50 | 365,536 | 11 | % | ||||||||
Indiana
|
50 | 318,570 | 10 | % | ||||||||
California
|
22 | 187,108 | 6 | % | ||||||||
Pennsylvania
|
25 | 175,728 | 5 | % | ||||||||
Maryland
|
16 | 174,076 | 5 | % | ||||||||
Texas
|
32 | 171,080 | 5 | % | ||||||||
Michigan
|
19 | 152,221 | 5 | % | ||||||||
Arkansas
|
23 | 125,912 | 4 | % | ||||||||
Tennessee
|
16 | 118,913 | 4 | % | ||||||||
Arizona
|
10 | 98,014 | 3 | % | ||||||||
West Virginia (1)
|
11 | 94,996 | 3 | % | ||||||||
Colorado
|
12 | 79,659 | 2 | % | ||||||||
Kentucky
|
15 | 67,252 | 2 | % | ||||||||
North Carolina
|
10 | 59,296 | 2 | % | ||||||||
Massachusetts
|
8 | 57,347 | 2 | % | ||||||||
Remaining 17 States
|
72 | 445,817 | 13 | % | ||||||||
476 | $ | 3,296,374 | 100 | % | ||||||||
Note: table above excludes two facilities classified as held-for-sale.
(1) Investment amount includes a $19.2 million lease inducement.
|
Revenue Maturities ($000's)
|
As of December 31, 2012
|
||||||||||||||||
Operating Lease Expirations & Loan Maturities
|
Year
|
Current Lease Revenue (1)
|
Current Interest Revenue (1)
|
Lease and Interest Revenue
|
%
|
||||||||||||
2013
|
3,454 | 550 | 4,004 | 1 | % | ||||||||||||
2014
|
1,323 | - | 1,323 | 1 | % | ||||||||||||
2015
|
3,216 | - | 3,216 | 1 | % | ||||||||||||
2016
|
30,014 | - | 30,014 | 8 | % | ||||||||||||
2017
|
7,192 | - | 7,192 | 2 | % | ||||||||||||
(1) Based on 2012 contractual rents and interest (without giving effect to annual escalators).
|
Operator Revenue Mix
|
% Revenue Mix
|
|||||||||||
Medicaid
|
Medicare / Insurance
|
Private / Other
|
||||||||||
Three-months ended September 30, 2012
|
53.3 | % | 38.3 | % | 8.4 | % | ||||||
Three-months ended June 30, 2012
|
52.6 | % | 39.1 | % | 8.3 | % | ||||||
Three-months ended March 31, 2012
|
52.2 | % | 39.6 | % | 8.2 | % | ||||||
Three-months ended December 31, 2011
|
52.9 | % | 38.4 | % | 8.7 | % | ||||||
Three-months ended September 30, 2011
|
50.5 | % | 40.9 | % | 8.6 | % |
Operator Census and Coverage
|
Coverage Data
|
|||||||||||
Census (1)
|
Before
Management Fees
|
After
Management Fees
|
||||||||||
Twelve-months ended September 30, 2012
|
83.6 | % | 2.0 | x | 1.5 | x | ||||||
Twelve-months ended June 30, 2012
|
83.7 | % | 2.0 | x | 1.6 | x | ||||||
Twelve-months ended March 31, 2012
|
83.7 | % | 2.1 | x | 1.7 | x | ||||||
Twelve-months ended December 31, 2011
|
84.0 | % | 2.2 | x | 1.8 | x | ||||||
Twelve-months ended September 30, 2011
|
84.0 | % | 2.3 | x | 1.8 | x | ||||||
(1)
|
Based on available beds.
|
Debt Maturities ($000’s)
|
Secured Debt
|
Unsecured Debt
|
||||||||||||||||||
Year
|
HUD Mortgages (1)
|
Line of Credit (2)(3)
|
Senior Notes (4)
|
Sub Notes (5)
|
Total Debt
|
|||||||||||||||
2013
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
2014
|
- | - | - | - | - | |||||||||||||||
2015
|
- | - | - | - | - | |||||||||||||||
2016
|
- | 500,000 | - | - | 500,000 | |||||||||||||||
2017
|
- | 200,000 | - | - | 200,000 | |||||||||||||||
Thereafter
|
335,711 | - | 1,175,000 | 20,000 | 1,530,711 | |||||||||||||||
$ | 335,711 | $ | 700,000 | $ | 1,175,000 | $ | 20,000 | $ | 2,230,711 | |||||||||||
(1) Excludes $30.8 million of fair market valuation (adjustments).
(2) Reflected at 100% borrowing capacity.
(3) Comprised of a $500 million revolver due 2016 and a $200 million term loan due 2017.
(4) Excludes net premium of $4.3 million
(5) Excludes $1.0 million of fair market valuation (adjustments).
|
Investment Activity ($000's)
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
December 31, 2012
|
December 31, 2012
|
|||||||||||||||
Funding by Investment Type:
|
$ Amount
|
%
|
$ Amount
|
%
|
||||||||||||
Real Property
|
$ | 235,492 | 94 | % | $ | 468,153 | 92 | % | ||||||||
Mortgages
|
4,843 | 2 | % | 11,969 | 2 | % | ||||||||||
Other
|
9,330 | 4 | % | 29,436 | 6 | % | ||||||||||
Total
|
$ | 249,665 | 100 | % | $ | 509,558 | 100 | % | ||||||||