Reit Report

LTC sees drop in 1Q00 FFO

LTC Properties (Oxnard, CA) says it saw funds from operations (FFO) for 1Q00 ended March 31 of 41 cents per share. FFO for 1Q99 was 43 cents per share, the company says. Revenues for the quarter were $22.5 million, compared to 1Q99 revenues of $22.2 million. The company posted a 1Q00 net income available to common shareholders of $6.9 million, a drop from a 1Q99 net income of $8.8 million.

At the end of the quarter, the company had investments in 96 assisted living residences, as well as in 263 skilled nursing facilities, and six schools.

Omega re-elects three board members

Omega Healthcare Investors (Ann Arbor, MI) says it posted 1Q00 ended March 31 revenues of $26.1 million, a decrease of $3.9 million from 1Q99 revenues of $30 million. Funds from operations (FFO) from the period totaled 55 cents per share, compared to FFO in 1Q99 of 82 cents per share.

The company recorded a 1Q00 net income of $610,000, 3 cents per share, down from a 1Q99 net income of $10.4 million, 52 cents per share.

Omega says the reduction in revenues resulted from a $1.4 million provision for losses on restructuring of customer obligations, reduced revenue recognition from properties recovered from tenants during the quarter, and reduced investment caused by 1999 asset sales, and the prepayment and foreclosure of mortgages.

In other news, Omega has re-elected James Eden, Anil Gupta, and Bernard Korman to its board. Each has been elected for a three-year term.

HCPI reports increased quarterly dividend

Health Care Property Investors' (HCPI; Newport Beach, CA) board has increased the company's quarterly common stock cash dividend to 73 cents per share, representing an increase of 1 cent over the 72 cents per share paid in the previous quarter. This is HCPI's 58th consecutive quarterly increase in the payment of common stock dividends since the company's inception in 1985.

HCPI reported 1Q00 ended March 31 funds from operations (FFO) of 43.9 million, increasing $18.9 million, or 76%, from $25 million in 1Q99. FFO per share in 1Q00 was 84 cents per share, compared to 79 cents per share in 1Q99, HCPI says.

The company posted a net income in 1Q00 of $26.9 million, 52 cents per share, compared to 1Q99 net income of $15.3 million, 49 cents per share. HCPI says its revenues in 1Q00 were $82.3 million, up from 1Q99 revenues of $49.6 million.

Nationwide's outlook reduced

Nationwide Health Properties' (Newport Beach, CA) rating outlook has been reduced from stable to negative by Duff & Phelps Credit Rating Co. (DCR; New York). DCR says the reduction is based on declining interest coverage levels and financial stress affecting certain of the company's long term care operators. Nationwide's outstanding $648 million medium-term notes are reaffirmed at BBB, and its $100 million cumulative preferred stock is reaffirmed at BBB-, DCR says.

Health Care REIT sees jump in 1Q00 revs

Health Care REIT (Toledo, OH) says its funds from operations in 1Q00 ended March 31 totaled $19.9 million, 70 cents per share, compared to $19 million, 67 cents per share in 1Q99 – an increase of 4.5%.

Revenues for the quarter increased 21% to $35 million from $28.8 million in 1Q99, Health Care REIT says. Revenue growth was generated primarily by new investment activity in 1999 of $275 million, the company says.

In other news, Health Care REIT says its board of directors has declared a dividend for 1Q00 of 59 cents per share, compared to a dividend of 57 cents per share in 1Q99.

HRT's rating outlook revised

Healthcare Realty Trust's (HRT; Nashville, TN) rating outlook from Duff & Phelps Credit Rating Co. (DCR; New York) has been revised from stable to negative. DCR says the revision reflects the company's continued high reliance on bank borrowings under a $265 million unsecured credit facility. HRT's outstanding $124 million senior unsecured notes and $75 million preferred stock are reaffirmed at BBB-, DCR says.