Fiscal 1998 Highlights
-- Increased portfolio to $271 million; almost $100 million of new
investments
-- Reported 1998 FFO of $1.68 per share, reflecting 11 months of
operations; $1.83 on an annualized basis
-- Dividend payments of $0.973, or $1.46 per share annualized; 1998 payout
ratio of 80% annualized
-- Ended year with investments in 31 operating properties versus start-up
of 21
KENNETT SQUARE, Pa., March 11 /PRNewswire/ -- ElderTrust (NYSE: ETT), a
health care real estate investment trust, today announced the operating
results for the fourth quarter and year ended December 31, 1998. ElderTrust
began operations on January 30, 1998, upon the completion of its initial
public offering. Therefore, the operating results reported for 1998 include
the 11 month period beginning January 30, 1998 and ending December 31, 1998.
1998 funds from operations (FFO), the generally accepted measure of
operating performance for the real estate investment trust industry, was
$12,356,000 or $1.68 per basic and diluted share. This represents a full year
FFO equivalent of $1.83 per basic and diluted share. As calculated by NAREIT,
FFO is defined as net income excluding extraordinary and unusual items, gain
(or loss) on the sale of property, plus depreciation and amortization.
"This was our first year of operations and during the fourth quarter we
reached our goal of fully investing our available capital and meeting our FFO
goals for the quarter," said Edward Romanov, Jr., President and Chief
Executive Officer of ElderTrust. "During the year we made two important
acquisitions which were accretive to FFO."
Net income available to common shareholders for the year totaled
$3,973,000, or $0.54 per basic and diluted share, on revenue of $21,233,000.
Fourth quarter 1998 FFO available to common shareholders totaled $3,538,000,
or $0.48 per basic and diluted share. Fourth quarter 1998 net income
available to common shareholders totaled $967,000, or $0.13 per basic and
diluted share, on revenue of $6,336,000.
Dividend payments to common shareholders for the year ended December 31,
1998, totaled $0.973, or $1.46 per share on an annualized basis.
Correspondingly, the 1998 payout ratio on annualized and fourth quarter FFO
was approximately 79% and 76%, respectively.
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the
East Coast of the United States. Since commencing operations in January 1998,
the Company's has acquired direct and indirect interests in 31 buildings and
has loaned $48 million in construction and term financing on 9 additional
healthcare facilities.
Certain matters discussed within this press release may be deemed to be
forward looking statements within the meaning of the Private Securities Act of
1995. Although ElderTrust believes the expectations reflected in such forward
looking statements are reasonable assumptions, it can give no assurance that
its expectations will be attained. Factors that could cause actual results to
differ materially from ElderTrust's expectations include real estate
conditions, information determined in the course of due diligence review,
changes in the economic conditions and other risks detailed from time to time
in the Company's SEC reports and filings, including its registration
statement as well as quarterly reports on Form 10-Q and reports on Form 8-K.
The Company assumes no obligation to update or supplement forward looking
statements that become untrue because of subsequent events.
ELDERTRUST
Financial Supplement
CONSOLIDATED BALANCE SHEETS
(unaudited)
(Amounts in thousands)
December 31, 1998
Assets
Real estate properties, at cost: $163,783
Less-accumulated depreciation (4,444)
Land 16,790
Net real estate properties 176,129
Real estate loans receivable 47,899
Cash and cash equivalents 2,272
Restricted cash 3,549
Accounts receivable, net of allowances 4,412
Accounts receivable from unconsolidated entities 987
Prepaid expenses 986
Investments and advances to unconsolidated
entities 34,426
Other assets, net of accumulated amortization and
depreciation
657
Total assets $271,317
Liabilities and shareholders' equity
Bank credit facility borrowings $90,204
Accounts payable and accrued expenses 1,571
Accounts payable to unconsolidated entities 14
Mortgages payable and bonds payable 49,594
Notes payable 3,000
Notes payable to unconsolidated entities 1,134
Other liabilities 3,645
Total liabilities 149,162
Minority interest 8,859
Shareholders' equity:
Preferred Shares, $0.01 par value:
Authorized - 20,000,000 shares;
none outstanding
Common Shares, $0.01 par value:
Authorized - 100,000,000 shares
7,392,600 shares issued and 7,244,800
shares outstanding 74
Capital in excess of par value 118,170
Cumulative net income 3,973
Cumulative distributions (7,177)
Treasury shares, at cost (147,800 shares) (1,744)
Total shareholders' equity 113,296
Total liabilities and shareholders' equity $271,317
1997 not presented as company began operations January 30, 1998
ELDERTRUST
Financial Supplement
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Amounts in thousands except per share data)
Three months ended Period January 30, 1998
December 31, 1998 to December 31, 1998
Revenues:
Rental revenues $4,125 $14,198
Interest, net of amortization of
deferred loan costs 2,190 5,904
Financial services fee income 1,018
Other income 21 113
Total revenues 6,336 21,233
Expenses:
Property operating expenses 270 975
Interest expense, including
amortization of deferred finance
costs 2,312 6,256
Depreciation and amortization 1,436 4,471
General and administrative 407 1,610
Start-up expenses 283 3,027
4,708 16,339
Net income before equity in earnings
of unconsolidated entities and
minority interests 1,628 4,894
Equity in earnings (losses) of
unconsolidated entities (594) (648)
Minority interest (67) (273)
Net income $967 $3,973
Average number of shares
outstanding: Basic and diluted 7,314 7,369
Net income per share: $0.13 $0.54
Funds from operations $3,538 $12,356
Funds from operations per share:
Basic and diluted $0.48 $1.68
Dividends per share $0.365 $0.973
ELDERTRUST
Financial Supplement
December 31, 1998
Portfolio Composition
($000's)
No. % of
Balance Sheet Data Properties Beds/Units Investment(a) Total
Real Property 22 1,999 $180,573 68.7
Loans Receivable 9 769 47,899 18.2
Unconsolidated
subsidiaries(c) 20 2,603 34,426 13.1
Total Investments 51 5,371 $262,898 100.0
Property Type Properties Beds/Units Investment(b) Investment per
Bed
Skilled Nursing
Facilities 8 1,251 $81,159 65
Assisted Living
Facilities 15 1,298 129,368 99
Independent Living
Facilities 2 219 6,129 28
Medical Office
Buildings 6 n/a 16,365 n/a
Real Estate
Investments 31 2,768 $233,021
Notes: (a) Total investments include real estate properties at cost,
before considering depreciation.
(b) Real Estate Investments include gross real estate investments
and credit enhancements which amounted to $228,472 and $4,550
respectively.
(c) Includes 11 properties securing 1 second mortgage note.
ELDERTRUST
Financial Supplement
December 31, 1998
Revenue Composition
($000's)
For the period
January 30, 1998
to December 31, 1998
Revenue by Investment Type
Mortgage & Other Loans $3,941 21.5%
Real Property 14,198 78.5
Total $18,139 100.0%
Rental Revenue by Facility Type
Skilled Nursing Facilities $6,748 47.5%
Independent & Assisted Living Facilities 5,037 35.5
Medical Office Buildings 2,413 17.0
Total $14,198 100.0%
ELDERTRUST
Financial Supplement
December 31, 1998
Committed Investment Balances
($000's)
No. No. Committed Investment
Properties(a) Beds/Units Balance(b) per Bed/Unit
Skilled Nursing
Facilities 8 1,251 $81,159 65
Assisted Living
Facilities 15 1,298 132,622 102
Independent Living
Facilities 2 219 8,968 41
Medical Office
Buildings 6 n/a 16,365 n/a
Total 31 2,768 239,114
Funded 233,021
Unfunded $6,093
Notes: (a) Includes equity and loan interests in real property.
(b) Committed Balance includes real estate investments, credit
enhancements and unfunded commitments for which initial funding
had commenced.
ELDERTRUST
Financial Supplement
December 31, 1998
Operator Concentration
($000's)
No. %
Properties Investment(b) Investment
Concentration by
Investment
Genesis 17 $125,130 53.7%
Multicare 3 19,650 8.4
Crozer/Genesis 4 42,919 18.4
Other 7 45,322 19.5
Total 31 $233,021 100.0%
Revenue(a) % Revenue
Concentration by
Revenue
Genesis - Direct
Investment $8,249
Genesis -
Unconsolidated
Investments 759
Genesis Subtotal 9,008 42.4%
Multicare 1,831 8.6
Crozer/Genesis 3,807 17.9
Other 6,587 31.1
Total $21,233 100.0%
Note: (a) Year ended December 31, 1998.
(b) Real Estate Investments include gross real estate investments
and credit enhancements which amounted to $228,472 and $4,550
respectively.
(c) We suggest the reader refer to the Genesis Health Ventures,
Inc. and Multicare, Inc. filings with the Securities and
Exchange Commission and the Genesis Health Ventures, Inc.
investor relations web site at http://www.ghv.com for information
regarding these companies.
ELDERTRUST
Financial Supplement
December 31, 1998
Capitalization Data & Other Credit Support
($000's)
Current Capitalization
Balance Balance
Long-Term Debt Obligations $52,594 20.5%
Borrowings Under Bank Lines 90,204 35.2
Shareholders' Equity 113,296 44.3
Total Book Capitalization $256,094 100.0%
Equity Market Capitalization(a) $83,315
FFO Payout Ratio 76% 4th Qtr.
Notes: (a) Calculated on December 31, 1998 at $11.50 per share price and
7,244,800 shares then outstanding.
ELDERTRUST
Financial Supplement
December 31, 1998
Debt Maturities and Principal Payments
($000's)
Bank Line of
Year Credit Other Debt Total
1999 $90,204 $4,178 $94,382
2000 1,329 1,329
2001 1,452 1,452
2002 1,561 1,561
2003 1,682 1,682
Thereafter 42,392 42,392
Total $90,204 $52,594 $142,798
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
December 31, 1998
Selected Facility Data
Coverage Coverage
% % % Before After
Occupancy Medicare Private Pay Mgt. Fees Mgt. Fees(b)
Skilled Nursing
Facilities 90.4 6.8 24.8 1.57 1.39
Assisted Living
Facilities(a) 76.3 0.0 100.0 0.61 0.59
Independent Living
Facilities(a) 93.3 0.0 100.0 1.33 1.33
Notes: (a) Includes facilities in lease-up stage.
(b) Net operating income less non-subordinated management fee
divided by the lease payment.
General-Facility Data is the annualized YTD as of September 30,
1998.
ELDERTRUST
Financial Supplement
December 31, 1998
Geographic Concentration
Owned, Consolidated Properties
($000's)
No. Properties Investment % Investment
Investment by State
Pennsylvania 12 108,660 60.2
Massachusetts 3 42,372 23.5
New Jersey 3 22,310 12.3
New Hampshire 1 4,075 2.3
Maryland 1 1,347 0.7
Connecticut 2 1,809 1.0
Total 22 180,573 100.0
Revenue by State
Pennsylvania 12 10,460 73.7
Massachusetts 3 1,198 8.4
New Jersey 3 1,733 12.2
New Hampshire 1 427 3.0
Maryland 1 200 1.4
Connecticut 2 180 1.3
Total 22 14,198 100.0
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
BALANCE SHEETS
DECEMBER 31, 1998
(unaudited)
(Amounts in thousands)
ET Sub- ET Sub- ET Sub-
Meridian, Cleveland, Cabot Park, ET Capital
LLC LLC LLC Corp.
Assets:
Real estate
properties, at
cost: $13,217 $15,945
Leased property under
capital lease $111,194
Less-accumulated
depreciation (1,170) (39) (47)
Land 1,468 1,772
Net real estate
properties 110,024 14,646 17,670
Real estate loans
receivable 12,537
Cash and cash
equivalents 1,019
Accounts receivable 6 57
Other assets, net of
accumulated
amortization and
depreciation 602 474 504 127
Total assets $111,645 $15,126 $18,174 $12,721
Liabilities and
shareholders' equity
Accounts payable and
accrued expenses $641 $388 $379 $21
Deferred rental revenue 817
Notes payable-related
parties 17,576 2,521 $4,212 9,714
Mortgages payable 11,755 13,055
Capital lease obligation 64,466
Notes payable-unrelated
parties 25,358
Other liabilities 2,085 231 276
Total liabilities 110,943 14,895 17,922 9,735
Shareholders' equity: 702 231 252 2,986
Total liabilities
shareholders'
equity $111,645 $15,126 $18,174 $12,721
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
STATEMENTS OF INCOME
(unaudited)
(Amounts in thousands)
ET Sub- ET Sub- ET Sub-
Meridian, LLC Cleveland, LLC Cabot Park, LLC
Revenues:
Rental revenues $3,267 $121 $137
Other income 2
Total revenues 3,269 121 137
Expenses:
Interest expense 2,859 98 127
Depreciation and amortization 1,170 39 46
General and administrative
Start-up expenses
Total expenses 4,029 137 173
Net income (loss) $(760) $(16) $(36)
Note: ET Sub Meridian was acquired September 3, 1998.ET Sub-Cleveland
and ET Sub-Cabot Park were acquired December 1, 1998.
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
December 31, 1998
Selected Facility Data
Coverage Coverage
% % % Before After
Occupancy Medicare Private Pay Mgt. Fees Mgt. Fees(b)
Skilled Nursing
Facilities 92.6 12.4 24.2 1.45 1.45
Assisted Living
Facility(a) 90.8 0.0 100.0 0.98 0.92
Independent
Facility(a) 92.1 0.0 100.0 0.81 0.77
Notes: (a) Facility in lease-up.
(b) Excludes subordinated portion of management fees.
General-Facility Data is the annualized YTD as of
September 30, 1998.
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
December 31, 1998
Principal Payments
($000's)
Year Total
1999 $9,350
2000 5,966
2001 6,092
2002 6,230
2003 11,375
Thereafter 75,852
Total $114,865
SOURCE ElderTrust
 back to top
Related links:
http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., Senior Vice President &
Chief Financial Officer of ElderTrust, 610-925-4200
NOTE TO EDITORS: For more information on ElderTrust via fax at no
charge, please dial 1-800-PRO-INFO and enter ticker symbol ETT,
or visit ElderTrust's Web site at http://www.eldertrust.com
|
