The REIT, which invests in health-related facilities since it was incorporated in Maryland in 1985, has investments in 324 facilities in 37 states. FFO, the measurement of a REIT's earnings, was $23.739 million for the quarter compared to $24.445 millionfor the first quarter of 2000. Additionally, revenues totaled $41.679 million during the quarter compared with $42.421 million last year.
"Earnings for the quarter were in line with management's and consensus expectations exclusive of the SAB 101 adjustment," says R. Bruce Andrews, president/CEO of NHP. "The decline from the prior year period is primarily the result of approximately $35 million in sales of assets to enhance the company's liquidity."
Diluted net income available to stockholders was $13.248 millin or $.29 per share compared to $15.619 million or $.34 a share for the first quarter 2000, which included the sale of four skilled-nursing facilities for $1.016 million or $.02 per share.
Of the REIT's total assets, $1.325 billion is in its real estate holdings. In addition to investing in facilities, the NHP also provides financing to healthcare providers. As of December 31, 2000 the REIT had direct ownership of 146 skilled-nursing facilities, 120 assisted-living facilities, 10 continuing-care retirement communities, two residential-care facilities for the elderly, two rehabilitation hospitals and one medical clinic.
Most of the NHP's owned facilities are under net leases, with initial terms ranging from five to 19 years, and two or more multiple-year renewal options. During the last year NHP completed construction on five-assisted living facilities, with a total aggregate investment of $44.384 million. The REIT also funded $2.35 million in capital improvements at some of its facilities.
At year-end 2000, NHP owned 35 mortgage loans secured by 36 skilled-nursing facilities, seven assisted-living facilities, four continuing-care retirement communities and four parcels of land. The loans had an outstanding principal balance of $191 million and a net book value of $185.6 million at the end of last year.
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