Nationwide Health Properties, Inc.(NHP) reported results last week that showed an increase in revenues of 14% and an increase in diluted funds from operations (FFO) compared to first quarter of 2008. During the quarter NHP sold three buildings in the first quarter for approximately $35.0 million in gross proceeds and invested $8.0 million in revenue producing capital expenditures at a blended yield of 8.3% on the company’s existing triple net portfolio.
In February, NHP entered into an agreement with Brookdale Senior Living, Inc. whereby NHP became a lender with an original commitment of $8.8 million under their $230.0 million revolving loan facility with a maturity date of August 31, 2010. NHP stated that it had funded $7.4 million and as of the end of the quarter, has $5.9 still outstanding.
The company’s results were aided by the payoff of $27.0 million of senior notes that came due with a weighted average interest rate of 7.61% during the quarter and will see the results of the retirement of $30.0 million of senior notes with an interest rate of 6.25% due in February 2013 for $25.4 million as of April 1st.
"In the current economic environment, the balance sheet is center stage with premiums placed on low leverage and ample liquidity. As evidenced by recent credit rating upgrades from Moody’s and Fitch, NHP’s balance sheet is strong. On an enterprise value basis, our leverage is a conservative 40% and we have ample liquidity with about $80 million of cash and the full capacity of our $700 million credit facility," commented Douglas M. Pasquale, NHP’s Chairman and Chief Executive Officer. "We believe the investment environment favors patience and the difficult economy requires extra attention allocated to our existing assets and tenants. In time we believe that assets will be available at attractive prices, and we expect to make excellent investments as opportunities present themselves," Mr. Pasquale added.
