Last week Nationwide Heatlh Properties (NHP) announced its results for the 4th quarter of 2008 and full fiscal year of 2008 showing an increase in revenue from 2007 to 2008 of 21% and an increase in net income by 19.5% year over year. NHP provided 2009 guidance of diluted FFO guidance per share range from $2.20 to $2.25 and our diluted FAD guidance per share range from $2.18 to $2.23. In order to complete some of its acquisitions, the company completed the sale of 23 assisted living facilities to Emeritus for $305 million at a 6.1% cap on 2008 in place rent, realizing a gain of $135 million. Given the state of the economy, NHP expects senior housing performance to be flat or deteriorate somewhat if unemployment continues to rise. While public company senior housing operators have generally reported fairly stable occupancy and rent growth, NHP’s view remains that it will be difficult for those operators to sustain current performance levels and we won’t be surprised to see moderate decreases in both occupancies and rates in 2009. For 2009, the company expects to focus on conserving capital and maximizing liquidity rather than acquisitive growth.
“In 2008, we continued our track record of growth, diversification and balance sheet strength, delivering a strong performance against commonly-used metrics,” commented Douglas M. Pasquale, NHP’s President and Chief Executive Officer. “Our disciplined approach to acquisitions and balance sheet management has resulted in conservative leverage, an excellent fixed charge coverage and ample liquidity. Given the strength of our balance sheet and modest capital commitments, we believe we have positioned ourselves well to capitalize on strategic opportunities as they arise. Our total shareholder return, diluted FAD dividend payout ratio and coverage remain among the strongest in the entire REIT universe,” Mr. Pasquale added.
For the 8-K, click here.
For the 10-K, click here.
For the conference call transcript, click here.
