SOURCE: Nationwide Health Properties, Inc.

Nationwide Health Properties, Inc.

January 07, 2011 19:12 ET

Nationwide Health Properties, Inc. Announces $924 Million of Investments in 2010 and First Quarter 2011 Investments Under Contract of $243 Million

NEWPORT BEACH, CA--(Marketwire - January 7, 2011) - Nationwide Health Properties, Inc. (NYSE: NHP) announced today that it completed $924 million of investments for the year ended December 31, 2010 at a blended initial yield of 8.7%. For the fourth quarter of 2010, the company completed $248 million of investments at a blended yield of 9.1%. The following is a summary of the company's 2010 investment activities:

             
Investment Activity 2010  
($ in thousands)  
             
             
    Q4     2010  
Investment   Total     Total  
Assisted and Independent Living Facilities                
  Investments   $ 59,000     $ 111,000  
  Initial Yield     8.1 %     8.2 %
Skilled Nursing Facilities                
  Investments   $ 108,000     $ 285,000  
  Initial Yield     10.1 %     9.5 %
Medical Office Buildings                
  Investments   $ 77,000     $ 503,000  
  Initial Yield     8.5 %     8.4 %
Unsecured Loans & Revenue Producing Capex  
  Investments   $ 4,000     $ 25,000  
  Initial Yield     9.0 %     8.8 %
Total                
  Investments   $ 248,000     $ 924,000  
  Initial Yield     9.1 %     8.7 %

NHP also announced that it has entered into acquisition agreements for an additional $243 million of investments at a blended initial yield of 8.5% which are expected to close by March 31, 2011. The following is a summary of the company's investments under contract:

Q1 2011 Investments Under Contract  
($ in thousands)  
       
       
       
Investment      
Assisted and Independent Living Facilities        
  Investments   $ 109,000  
  Initial Yield     8.3 %
Skilled Nursing Facilities        
  Investments   $ 94,000  
  Initial Yield     9.4 %
Medical Office Buildings        
  Investments   $ 40,000  
  Initial Yield     7.1 %
Total        
  Investments   $ 243,000  
  Initial Yield     8.5 %

"A strong fourth quarter concluded an excellent year of investments in 2010, and 2011 is off to an impressive start with over $240 million of transactions set to close by the end of the first quarter," commented Douglas M. Pasquale, NHP's Chairman and Chief Executive Officer.

ABOUT NATIONWIDE HEALTH PROPERTIES, INC.

Nationwide Health Properties, Inc. is a real estate investment trust (REIT) that invests primarily in healthcare real estate in the United States. As of September 30, 2010, the Company's portfolio of properties, including mortgage loans and properties owned by unconsolidated joint ventures, totaled 637 properties among the following segments: 287 senior housing facilities, 211 skilled nursing facilities, 120 medical office buildings, 11 continuing care retirement communities, 7 specialty hospitals and 1 asset in development. For more information on Nationwide Health Properties, Inc., visit our website at http://www.nhp-reit.com.

FORWARD LOOKING STATEMENTS

Certain information contained in this release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking terminology such as "may," "will," "anticipates," "expects," "believes," "intends," "should" or comparable terms or the negative thereof. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. Risks and uncertainties associated with our business include (without limitation) the following: deterioration in the operating results or financial condition, including bankruptcies, of our tenants; non-payment or late payment of rent, interest or loan principal amounts by our tenants; our reliance on one tenant for a significant percentage of our revenue; occupancy levels at certain facilities; our level of indebtedness; changes in the ratings of our debt securities; maintaining compliance with our debt covenants; access to the capital markets and the cost and availability of capital; the effect of healthcare reform legislation or government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; increasing competition in our business sector; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; risks associated with acquisitions, including our ability to identify and complete favorable transactions, delays or failures in obtaining third party consents or approvals, the failure to achieve perceived benefits, unexpected costs or liabilities and potential litigation; risks associated with development, including our ability to obtain financing, delays or failures in obtaining necessary permits and authorizations, the failure to achieve original project estimates and our limited history in conducting ground-up development projects; the ability of our tenants to pay contractual rent and/or interest escalations in future periods; the ability of our tenants to obtain and maintain adequate liability and other insurance; our ability to attract new tenants for certain facilities; our ability to sell certain facilities for their book value; our ability to retain key personnel; potential liability under environmental laws; the possibility that we could be required to repurchase some of our senior notes; changes in or inadvertent violations of tax laws and regulations and other factors that can affect our status as a real estate investment trust; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission, especially the "Risk Factors" sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking information is provided by us pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. We disclaim any intent or obligation to update these forward-looking statements.

Contact Information

  • CONTACT

    Danion Fielding
    Vice President Finance
    Nationwide Health Properties, Inc.
    (949) 718-4400