Third Quarter 1998 Highlights
* Achieved FFO of $0.52 per share, compared to $0.43 per share in 2Q'98
* Authorized third quarter pro rata distribution of $0.365 per share,
based on an annual distribution of $1.46 per share
* Closed on acquisition of leasehold and purchase option rights on a
portfolio of seven skilled nursing facilities
KENNETT SQUARE, Pa., Oct. 19 /PRNewswire/ -- ElderTrust (NYSE: ETT), a
health care REIT, today reported results for the third quarter ended September
30, 1998. Funds from operations (FFO) for the third quarter ended September
30, 1998 totaled $4.1 million, or $0.52 per share, on revenues of $6.3
million. The quarter's results included FFO from the Company's investment on
September 3, 1998 in certain leasehold and purchase option rights on seven
skilled nursing facilities. Net income for the quarter totaled $2.5 million,
which included $793,000 in fee income. Of note, ElderTrust completed its
initial public offering on January 30, 1998. The Company had no operations
prior to that date.
For the period January 30 through September 30, 1998 FFO totaled $9.4
million, or $1.19 per share, on revenues of $14.9 million. Net income, before
a $2.7 million charge for start-up expenses, totaled $6.0 million including
$1.0 million in fee income.
During the quarter, the Company implemented a share repurchase program and
acquired 22,700 shares at an average price of $12.27. The weighted average
number of shares and units outstanding totaled 7,870,219 for the third quarter
and 7,872,234 for the period January 30 through September 30, 1998.
In addition, the Company announced that its Board of Trustees had
authorized the payment on or about November 13, 1998, to shareholders of
record on November 2, 1998, of a quarterly distribution, covering the third
quarter ended September 30, 1998, of $0.365 per share, which represents a pro
rata distribution based on an annual distribution of $1.46 per share.
"We are very pleased with the results of this quarter, including the FFO
impact of the investment we made on September 3, 1998 in leasehold and
purchase option rights relating to seven skilled nursing facilities," said
Edward B. Romanov, Jr., President and Chief Executive Officer of ElderTrust.
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 a portfolio of 27 buildings and has loaned $47.5
million in construction and term financing on 10 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.
FUNDS FROM OPERATIONS
(IN THOUSANDS EXCEPT FOR COMMON SHARE/UNIT INFORMATION)
(unaudited)
For the period
For the three January 30, 1998
months ended through
September 30, 1998 September 30, 1998
Income before income from investment
in unconsolidated entities, start-up
expenses and minority interest $2,720 $6,010
Add (deduct):
Loss from investments in unconsolidated
entities (105) (54)
Depreciation and amortization
(real estate related) 1,477 3,443
Funds from operations $4,092 $9,399
Company's share of Operating Partnership 94% 94%
Company's share of funds from operations $3,833 $8,814
Weighted average Common Shares
outstanding 7,388,189 7,390,204
Weighted average Common Shares and
Units outstanding 7,870,219 7,872,234
Funds from operations per Common Share/Unit $0.52 $1.19
SUMMARY BALANCE SHEET
(IN THOUSANDS)
(unaudited)
September 30, 1998
Investment in real estate net of
accumulated depreciation $148,858
Real estate loans $47,487
Investments in unconsolidated entities $27,208
Total assets $231,309
Mortgage debt $36,485
Line of credit $65,435
Total liabilities $106,244
Shareholders' equity and minority interest $125,065
Total liabilities and shareholders' equity $231,309
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, or e-mail,
http://www.eldertrust.com
NOTE TO EDITORS: For more information on ElderTrust via fax at no
charge, please dial 1-800-PRO-INFO and enter ticker symbol ETT
|
