Third Quarter 1999 Highlights
-- Authorized 3Q'99 Distribution of $0.365 per share
-- Reported FFO of $0.43 per share for 3Q'99
-- Reported revenue of $7.0 million for 3Q'99
-- Borrows $8.5 million of new mortgage money; reduces Bank Credit
Facility to approximately $68 million
KENNETT SQUARE, Pa., Oct. 14 /PRNewswire/ -- ElderTrust (NYSE: ETT), an
equity healthcare REIT, today reported results for the third quarter ended
September 30, 1999. ElderTrust began operations on January 30, 1998, upon
completion of its initial public offering. Accordingly, nine month 1998
results discussed below have been adjusted to reflect the full nine month
equivalent results.
Funds from operations (FFO) for the third quarter ended
September 30, 1999, totaled $3.3 million, or $0.43 per share, on revenues of
$7.0 million. In comparison, FFO for the third quarter of 1998, which
included $0.8 million in fee income for services no longer provided by the
Company, totaled $4.1 million, or $0.52 per share, on revenues of
$6.3 million.
Net income before extraordinary item for the third quarter of 1999 totaled
$0.6 million or $0.09 per basic and diluted share. A $1.2 million
extraordinary expense, net of minority interest, on debt restructuring was
recognized in the third quarter. The net loss for the third quarter of 1999
totaled $(0.6 million), or $(0.08) per basic and diluted share. In
comparison, net income was $2.4 million, or $0.32 per basic and diluted share,
for the comparable quarter of 1998.
For the nine months ended September 30, 1999, FFO totaled $10.4 million,
or $1.34 per share, on revenues of $21.2 million. Net loss before
extraordinary item for the nine months ended September 30, 1999 was
$(0.3 million) or $(0.04) per basic and diluted share. Adjusting for the
previously described extraordinary item, the net loss for the nine months
ended September 30, 1999 was $(1.5 million), or $(0.20) per basic and diluted
share. For the comparable period in 1998 adjusted FFO totaled $10.6 million,
or $1.34 per basic and diluted share, on adjusted revenues of $16.8 million
and adjusted net income before a $2.7 million charge for start-up expenses was
$6.5 million, or $0.88 per basic and diluted share.
The third quarter 1999 results of operations include debt restructuring
expense of $1.2 million, net of minority interest, a charge that includes a
$1.2 million prepayment penalty on an existing mortgage loan and a $138,000
charge relating to the immediate expensing of deferred loan costs associated
with the reduction of the Bank Credit Facility, net of a minority interest
benefit of $86,000.
In addition, the Company announced that its Board of Trustees had
authorized the payment on or about November 12, 1999, to shareholders of
record on October 29, 1999, of a quarterly distribution covering the first
quarter ended September 30, 1999 of $0.365 per share.
The Company also announced the successful completion of new mortgage
financing of approximately $8.5 million secured by two of the Company's
medical office buildings. The new mortgage debt, arranged by J.P. Morgan, has
a ten-year term and a fixed interest rate. Approximately $7.8 million of the
total debt has been used to reduce the Company's outstanding line of credit to
a current balance of approximately $68 million. The remainder was used to
fund transaction costs and escrow deposits required under the new debt
arrangements.
"Over the course of the past month, we have reduced the balance
outstanding on our Bank Credit Facility by approximately $27 million, or
approximately 30% of the balance outstanding at the beginning of the year,"
said D. Lee McCreary, Jr., President and Chief Executive Officer. "As stated
previously, refinancing the Bank Credit Facility, which matures January 1,
2000, remains management's top priority."
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
loans outstanding of $49 million in construction and term financing on eight
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, the Company's ability to refinance its existing bank
credit facility, 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.
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 .
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
For the nine
Period from
For the three months ended
months ended
Jan. 30 to
Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues:
Rental revenues $4,662 $3,869 $13,884 $10,114
Interest 2,309 1,552 7,218 3,658
Fee Income -- 793 -- 1,018
Other income 51 88 90 107
Total revenues 7,022 6,302 21,192 14,897
Expenses:
Property operating
expenses 277 288 848 704
Interest expense 3,422 1,694 9,578 3,944
Depreciation 1,439 1,146 4,332 3,035
General and
administrative 564 454 2,026 1,204
Separation agreement
expenses -- -- 2,800 --
Start-up expenses -- 100 -- 2,745
Total expenses 5,702 3,682 19,584 11,632
Net income (loss) before
equity in earnings
(losses) of
unconsolidated entities
and minority interest 1,320 2,620 1,608 3,265
Equity in earnings
(losses) of
unconsolidated entities (657) (105) (1,877) (54)
Minority interest (46) (163) 13 (205)
Net income (loss) before
extraordinary items $617 $2,352 ($256) $3,006
Extraordinary Items:
Loss on debt
restructuring (1,296) -- (1,296) --
Minority interest in
extraordinary items 86 -- 86 --
Net income (loss) ($593) $2,352 ($1,466) $3,006
Basic and diluted
weighted average number
of common shares
outstanding 7,201 7,388 7,206 7,390
Basic and diluted
net income (loss) per
share before
extraordinary items $0.09 $0.32 ($0.04) $0.41
Basic and diluted
net income
(loss) per share ($0.08) $0.32 ($0.20) $0.41
Funds from operations $3,302 $4,092 $10,375 $9,399
Basic and diluted
per share funds
from operations $0.43 $0.52 $1.34 $1.19
Distributions per share $0.365 $0.365 $1.095 $0.973
For the three For the nine
Period from
months ended months ended Jan. 30 to
September 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
Adjusted data (annualized to
reflect a full nine
months for 1998):
Revenues $7,022 $6,302 $21,192 $16,759
Net income (loss) ($593) $2,352 ($1,466) $3,382
Basic and diluted net
income (loss) per share ($0.08) $0.32 ($0.20) $0.46
Funds from operations $3,302 $4,092 $10,375 $10,574
Basic and diluted per share
funds from operations $0.43 $0.52 $1.34 $1.34
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
September 30, September 30,
1999 1998
(dollars in thousands)
Balance Sheet Data
Investments in Real Estate, net $173,323 $148,858
Investments in mortgages and loans 48,748 47,486
Total Real Estate Assets 222,071 196,344
Investments in and advances to
unconsolidated entities 31,829 27,208
Working capital (A) (71,873) (63,074)
Total assets 267,893 231,309
Long-term debt (B) 72,164 36,485
Shareholders' equity 106,121 116,476
(A) Working capital is reduced by borrowings outstanding under the Bank
Credit Facility of approximately $75.9 million and $65.4 million as of
September 30, 1999 and 1998, respectively, which mature within one
year from the respective balance sheet dates.
(B) Includes amounts due within the next 12 months on long term debt
excluding the Bank Credit Facility.
Exhibit 1
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Funds From Operations and
Bank Credit Facility Information
($000's)
For the three months For the nine months
ended ended
September 30, September 30,
1999 1998 1999 1998(A)
Funds From Operations:
Net income (loss) before
minority interests $(633) $2,515 $(1,565) $3,211
Add:
Real estate related depreciation
and amortization:
Consolidated entities 1,517 1,202 4,477 3,168
Unconsolidated entities 1,122 275 3,367 275
Nonrecurring start-up expenses -- 100 -- 2,745
Nonrecurring separation
agreement expenses -- -- 2,800 --
Loss on debt restructuring 1,296 -- 1,296 --
Funds from Operations $3,302 $4,092 $10,375 $9,399
Average number of shares and
units outstanding 7,715 7,869 7,719 7,872
Funds from operations per
share/unit $0.43 $0.52 $1.34 $1.19
Bank Credit Facility Supplemental
Information:
Interest expense without cost
amortization $1,870 $953
Cost amortization 445 29
Total Bank Credit Facility
interest expense $2,315 $982
Unamortized costs(B) $380 $203
(A) Represents the period from January 30, 1998 to September 30, 1998.
(B) Unamortized costs as of September 30, 1999 to be amortized by
December 31, 1999, prior to maturity of the Bank Credit Facility on
January 1, 2000.
Exhibit 2
ELDERTRUST
Financial Supplement
September 30, 1999
GENESIS HEALTH VENTURES, INC.
EBITDAR Coverage Ratio for Nine Months Ended
June 30, 1999
($000's)
For the Nine Months Ended
June 30, 1999
Total net revenues $1,408,911
Operating expenses 1,225,117
EBITDAR(A) 183,794
Lease and interest expense 104,936
EBITDAR coverage ratio 1.75x
(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.
Note: All information derived from Form 10-Q filed by Genesis Health
Ventures, Inc. for the period ended June 30, 1999.
Exhibit 3
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Portfolio Composition
($000's)
No. % of
Balance Sheet Data Properties Beds/Units(D) Investment(A) Total
Real Property 22 1,999 $182,075 69.3%
Loans Receivable 8 597 48,748 18.6
Unconsolidated
subsidiaries(C) 20 2,603 31,829 12.1
Total Investments 50 5,199 $262,652 100.0%
Property Type (E) Properties Beds/Units(D) Investment(B)Investment
per Bed
Skilled Nursing Facilities 8 1,251 $ 83,358 $67
Assisted Living Facilities 15 1,273 133,028 104
Independent Living
Facilities 1 72 4,209 58
Medical Office Buildings 6 n/a 16,387 n/a
Real Estate Investments 30 2,596 $236,982
(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 $230,823 and $6,159
respectively.
(C) Includes 11 properties securing 1 second mortgage note.
(D) Beds/units in service at time of investment.
(E) Excludes investments in unconsolidated subsidiaries.
Exhibit 4
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Revenue Composition
($000's)
Three months ended
September 30, 1999
Revenue by Investment Type
Mortgages & Other Loans $2,309 33%
Real Property 4,662 66%
Other 51 1%
Total $7,022 100%
Rental Revenue by Facility Type
Skilled Nursing Facilities $1,885 40%
Independent & Assisted Living Facilities 2,045 44%
Medical Office Buildings 732 16%
Total $4,662 100%
Interest Income by Source
From unrelated parties $1,198 52%
From related parties (A) 1,111 48%
Total $2,309 100%
(A) Includes Officer's note's
Exhibit 5
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Committed Investment Balances
($000's)
No. No. Committed Investment
Properties(A) Beds/Units Balance(B) per Bed/Unit
Skilled Nursing
Facilities 8 1,251 $83,358 $67
Assisted Living
Facilities 15 1,273 133,379 105
Independent Living
Facilities 1 72 4,209 58
Medical Office
Buildings 6 n/a 16,387 n/a
Total 30 2,596 237,333
Funded 236,982
Unfunded $351
(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.
Exhibit 6
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Operator Concentration
($000's)
Concentration by No. %
Investment Properties Investment(A) Investment
Genesis 17 $128,407 54.2%
Multicare 3 19,650 8.3
Crozer/Genesis 4 43,570 18.4
Other 6 45,355 19.1
Total 30 $236,982 100.0%
Concentration by
Revenue Revenue (B) % Revenue
Genesis $3,677 52.4%
Multicare 494 7.0
Crozer/Genesis 1,038 14.8
Other 1,813 25.8
Total $7,022 100.0%
(A) Real Estate Investments include gross real estate investments
($230,823) and credit enhancements ($6,159).
(B) Revenue is for the three month period ended September 30, 1999.
Note: 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.
Exhibit 7
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Capitalization Data & Other Credit Support
($000's)
Current Capitalization
Balance % Balance
Long-Term Debt Obligations $72,164 28.4%
Borrowings Under Bank Credit Facility 75,932 29.9%
Shareholders' Equity 106,121 41.7%
Total Book Capitalization $254,217 100.0%
Equity Market Capitalization(A) $55,809
FFO Payout Ratio ($0.365/$0.43) 85% 3rd Qtr.
(A) Calculated on September 30, 1999 at $7.75 per share price and
7,201,100 shares then outstanding.
Exhibit 8
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Debt Maturities and Principal Payments
($000's)
Year Bank Credit
Facility Other Debt Total
1999 $252 $252
2000 $75,932 1,011 76,943
2001 1,118 1,118
2002 1,208 1,208
2003 1,310 1,310
Thereafter 67,265 67,265
Total $75,932 $72,164 $148,096
Exhibit 9
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Selected Facility Data
% % %
Occupancy Medicare Private Pay Coverage
Skilled Nursing Facilities:
Census 90.1 9.4 26.9
Revenue 20.5 25.1 1.71(A)
Assisted Living Facilities 89.7 0.0 100.0 1.03
Independent Living Facilities 98.1 0.0 100.0 1.33
(A) Excludes one property undergoing extensive renovation.
Note: Facility Data is for the three month period ended June 30, 1999, the
third quarter the skilled nursing facilities were subject to PPS.
Exhibit 10
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
September 30, 1999
Geographic Concentration
Owned, Consolidated Properties
($000's)
No. Properties Investment % Investment
Investment by State
Pennsylvania 12 $110,199 60.5%
Massachusetts 3 42,325 23.3
New Jersey 3 22,320 12.3
New Hampshire 1 4,075 2.2
Maryland 1 1,347 0.7
Connecticut 2 1,809 1.0
Total 22 $182,075 100.0%
Revenue by State (A)
Pennsylvania 12 $ 3,029 65.0%
Massachusetts 3 966 20.7
New Jersey 3 472 10.1
New Hampshire 1 104 2.2
Maryland 1 41 0.9
Connecticut 2 50 1.1
Total 22 $4,662 100.0%
(A) Revenue is for the three month period ended September 30, 1999.
Exhibit 11
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
September 30, 1999
Selected Financial Data
(unaudited)
(000's)
ET Sub- ET Sub- ET Sub- ET
Meridian, Cleveland,
Cabot Park,Capital
LLP LLC LLC Corp.
Selected Operations Data:(A)
Rental revenue $2,450 $356 $404
Interest income:
Unrelated borrowers 5 9 8 $259
ElderTrust -- -- -- 165
Interest expense:
Unrelated lenders 1,661 186 207 --
ElderTrust 539 82 140 324
Depreciation and amortization 878 115 140 4
Net income (loss) (625) (20) (78) 62
Selected Balance Sheet Data:(A)
Current assets 1,946 885 782 485
Real estate properties 107,402 14,244 17,255 --
Notes receivable -- -- -- 12,405
Current liabilities(B) 1,869 1,322 1,235 400
Long-term debt 107,308 13,900 17,022 9,616
Total equity (1,538) 164 18 2,989
(A) Selected operations and balance sheet data are as of and for the three
month period ended September 30, 1999.
(B) Includes current portion of long-term debt.
Exhibit 12
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
September 30, 1999
Selected Facility Data
% % % Coverage
Before
Occupancy Medicare Private Pay Mgt. Fees
Skilled Nursing
Facilities(A)
Census 92.8 13.9 21.5 --
Revenue -- 28.7 26.1 1.16
Assisted Living
Facility(B) 99.0 0.0 100.0 1.14
Independent
Facility(C) 97.9 0.0 100.0 1.06
(A) ET Sub-Meridian, LLP
(B) ET Sub-Cleveland, LLC
(C) ET Sub-Cabot Park, LLC
Note: Facility Data is for the three month period ended June 30, 1999.
Exhibit 13
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
September 30, 1999
Principal Payments
($000's)
Year Total
1999 $1,538
2000 1,721
2001 1,847
2002 1,985
2003 10,630
Thereafter 96,780
Total $114,501(A)
(A) Excludes payments to related parties.
SOURCE ElderTrust
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Related links:
http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., President and Chief
Executive Officer of ElderTrust, 610-925-4200
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