First Quarter 1999 Highlights
-- Reported FFO of $0.47 per share, a 27% increase over 1Q'98
-- Authorized $0.365 per share distribution; 1Q payout ratio of 78%
-- Extended Bank Credit Facility to January 1, 2000
KENNETT SQUARE, Penn., April 16 /PRNewswire/ -- ElderTrust (NYSE: ETT), an
equity healthcare REIT, today reported results for the first quarter ended
March 31, 1999. ElderTrust began operations on January 30, 1998, upon the
completion of its initial public offering. Accordingly, first quarter 1998
results have been adjusted to reflect the full quarter equivalent results.
Funds from operations (FFO) for the first quarter ended March 31, 1999,
totaled $3.6 million, or $0.47 per share, on revenues of $7.0 million. In
comparison, FFO for the adjusted first quarter of 1998 totaled $2.92 million
or $0.37 per basic and diluted share. The 1999 results reflect a 27% increase
over the comparable adjusted period in 1998.
Net income available to common shareholders for the first quarter of 1999
totaled $959,000, or $0.13 per basic and diluted share. In comparison,
results from operations were a loss of $1.4 million, or a loss of $0.18 per
share, for the adjusted first quarter of 1998.
In addition, the Company announced that its Board of Trustees had
authorized the payment on or about May 14, 1999, to shareholders of record on
April 30, 1999, of a quarterly distribution, covering the first quarter ended
March 31, 1999, of $0.365 per share.
"This quarter's single most significant achievement was the negotiation of
the Bank Credit Facility extension in a difficult healthcare lending
environment," said Edward Romanov, Jr., President and Chief Executive Officer
of ElderTrust. "We are also pleased with the solid financial performance of
the skilled nursing facility portfolio managed by Genesis Health Ventures,
Inc. (NYSE: GHV), our largest tenant, since they became subject to Prospective
Payment System on October 1, 1998."
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 has acquired direct and indirect interests in 31 buildings and has
loaned $51 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. 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, except share data)
March 31, March 31,
1999 1998
Assets:
Real estate properties, at cost $180,929 $151,389
Less-accumulated depreciation (5,881) (738)
Net real estate properties 175,048 150,651
Real estate loans receivable 50,721 37,900
Cash and cash equivalents 2,060 2,079
Restricted cash 4,639 2,657
Accounts receivable 4,695 1,092
Accounts receivable from
unconsolidated entities 1,044 224
Prepaid expenses 1,124 258
Investments in and advances to
unconsolidated entities 33,800 7,402
Other assets, net of accumulated
amortization and depreciation 1,548 756
Total assets $274,679 $203,019
Liabilities and shareholders' equity:
Bank credit facility borrowings $95,822 $34,110
Accounts payable and accrued expenses 1,848 3,926
Accounts payable to unconsolidated
entities 84 127
Mortgages payable and bonds payable 49,282 36,874
Notes payable 3,000 -
Notes payable to unconsolidated entities 1,121 -
Other liabilities 3,601 2,544
Total liabilities 154,758 77,581
Minority interest 8,718 8,588
Shareholders' equity:
Preferred Shares, $0.01 par value;
20,000,000 shares authorized;
none outstanding - -
Common Shares, $0.01 par value;
100,000,000 shares authorized;
7,392,600 and 7,390,100 shares
issued, respectively and 7,201,100
and 7,390,100 shares outstanding,
respectively 74 74
Capital in excess of par value 118,170 118,130
Cumulative net income (loss) 4,932 (1,354)
Cumulative distributions (9,805) -
Common shares held in treasury at
cost, 191,500 shares in 1999 (2,168) -
Total shareholders' equity 111,203 116,850
Total liabilities and shareholders' equity $274,679 $203,019
ELDERTRUST
Financial Supplement
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(Amounts in thousands, except per share data)
Three months ended Period Jan. 30 through
March 31, 1999 March 31, 1998
Revenues:
Rental revenues $4,623 $2,420
Interest, net of amortization
of deferred loan costs 2,406 787
Other income 19 23
Total revenues 7,048 3,230
Expenses:
Property operating expenses 298 150
Interest expense, including
amortization of deferred
finance costs 2,935 779
Depreciation and amortization 1,440 743
General and administrative 753 379
Start-up expenses - 2,617
Total expenses 5,426 4,668
Net income (loss) before equity
in earnings (losses) of
unconsolidated entities and
minority interests 1,622 (1,438)
Equity in earnings (losses) of
unconsolidated entities (593) (4)
Minority interest (70) 88
Net income (loss) $959 ($1,354)
Average number of shares
outstanding: Basic and diluted 7,215 7,390
Net income (loss) per share: $0.13 ($0.18)
Funds from operations $3,620 $1,944
Funds from operations per share:
Basic and diluted $0.47 $0.25
Distributions per share $0.37 -
Funds from operations per share
(1998 adjusted to reflect a
full quarter) $0.47 $0.37
Exhibit 1
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
March 31, 1999
Funds From Operations
($000's)
Period January 30
Three months ended through
March 31, 1999 March 31, 1998
Net income (loss) before
minority interests $1,029 ($1,442)
Add: Real estate related
depreciation and amortization 2,591 769
Nonrecurring startup expenses - 2,617
Funds from operations $3,620 $1,944
Average number of shares and
units outstanding 7,728 7,872
Funds from operations per share/unit $0.47 $0.37
Bank Credit Facility Supplemental
information:
Interest expense without cost
amortization $1,583
Cost amortization 311
Total Bank Credit Facility
interest expense $1,894
Unamortized costs $1,260
Exhibit 2
ELDERTRUST
Financial Supplement
March 31, 1999
GENESIS HEALTH VENTURES, INC.
EBITDAR Coverage Ratio for Quarter Ended
December 31, 1998
($000's)
For the Quarter Ended
December 31, 1998
Total net revenues $479,204
Operating expenses 408,050
EBITDAR(A) 71,154
Lease and interest expense 33,690
EBITDAR coverage ratio 2.11 x
(A) EBITDAR is "Earnings Before Interest Taxes Depreciation Amortization
and Rent." This is a commonly used ratio to measure a company's
ability to meet its debt obligations.
All information derived from Form 10-Q filed by Genesis Health
Ventures, Inc. for the period ended December 31, 1998.
Exhibit 3
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
March 31, 1999
Estimated Dividend Taxability
Under federal income tax law, the annual distribution is treated as
ordinary income to the extent of the distributing company's previously
undistributed Earnings and Profits through the end of the distribution year.
Amounts distributed in excess of Earnings and Profits are treated as a return
of capital.
Assuming the year's results are comparable to the first quarter,
ElderTrust estimates its first quarter 1999 distribution to be taxed as
follows.
For the Quarter Ended
March 31, 1999
Net income before minority interests $1,029,000
Adjustments:
Depreciation 1,000,000
Other (150,000)
Earnings and profits $1,879,000
Average shares and units outstanding 7,728,000
First quarter distribution per share $0.365
Earnings and profits and ordinary
dividend income per share 0.243
Return of capital per share $0.122
Note: Earnings and Profits are the tax equivalent of retained earnings.
As Earnings and Profits includes non-taxable income and non-
deductible expenses, it generally differs from the REIT's Taxable
Income. The most significant difference between a REIT's Earnings
and Profits and Taxable Income is depreciation expense as, for
Earnings and Profits purposes, the assets are written-off over a
longer time period than that used in computing Taxable Income.
Exhibit 4
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
March 31, 1999
Portfolio Composition
($000's)
No. %
of
Balance Sheet Data Properties Beds/Units(D)Investment (A) Total
Real Property 22 1,999 $180,929 68.2%
Loans Receivable 9 744 50,721 19.1
Unconsolidated
subsidiaries (C) 20 2,603 33,800 12.7
Total Investments 51 5,346 $265,450 100.0%
Investment
Property Type (E) Properties Beds/Units Investment (B) per Bed
Skilled Nursing
Facilities 8 1,251 $81,520 $65
Assisted Living
Facilities 15 1,273 131,001 103
Independent Living
Facilities 2 219 7,376 34
Medical Office Buildings 6 n/a 16,360 n/a
Real Estate Investments 31 2,743 $236,257
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 $231,650 and $4,607,
respectively.
(C) Includes 11 properties securing 1 second mortgage note.
(D) Beds/units in service at the time of investment.
(E) Excludes investments in unconsolidated subsidiaries.
SOURCE ElderTrust
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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
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