SOURCE: Nationwide Health Properties

Nationwide Health Properties

November 08, 2010 16:33 ET

Nationwide Health Properties, Inc. Reports 2010 Third Quarter Results

-- Adjusted Diluted FFO and FFO per Share Increased 17.9% and 5.4%, Respectively, Over Third Quarter 2009

-- Completed $98 Million of Investments in the Third Quarter of 2010 and $676 Million Year to Date

-- Commenced $53 Million Development Project With PMB

-- Increased Quarterly Dividend to $0.47 per Share

-- Raising FFO Guidance on the High End of the Range by $0.03 per Share to $2.28

NEWPORT BEACH, CA--(Marketwire - November 8, 2010) - Nationwide Health Properties, Inc. (NYSE: NHP) today announced results of operations for the third quarter ended September 30, 2010. Contemporaneously with this press release, the Company filed its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 with the Securities and Exchange Commission.

"Our third quarter results reflect year to date investments of $676 million, and our pipeline is robust. Compared to the third quarter of 2009, revenue is up 17.6%, adjusted diluted FFO per share is up 5.4% and adjusted diluted FAD per share is up 5.5%. As a result, and for the third consecutive quarter, NHP's Board of Directors increased our quarterly dividend by $0.01 to $0.47 per share," commented Douglas M. Pasquale, NHP's Chairman and Chief Executive Officer. "Our liquidity position remains strong with $116 million in cash and the full complement of our $700 million credit facility at our disposal. Our credit statistics are outstanding, and our diluted FAD payout ratio and FAD coverage are among the strongest in the sector at 79% and 1.26x, respectively," Mr. Pasquale added.

THIRD QUARTER 2010 RESULTS OF OPERATIONS

The following table presents selected unaudited financial information for the third quarter and nine months ended September 30, 2010 as compared to the same periods of 2009:

                          Selected Financial Data
                ($ in thousands, except per share amounts)

                                       Three Months Ended September 30,
                                    --------------------------------------
                                      2010      2009    $ Change  % Change
                                    --------- --------- --------  --------

Revenue                             $ 114,045 $  97,011 $ 17,034      17.6%
Income from Continuing Operations   $  36,309 $  30,924 $  5,385      17.4%
Net Income Attributable to NHP
 Common Stockholders                $  39,854 $  29,692 $ 10,162      34.2%
Net Income Attributable to NHP
 Common Stockholders Per Diluted
 Share                              $    0.31 $    0.27 $   0.04      14.8%
Diluted FFO                         $  74,219 $  63,337 $ 10,882      17.2%
Adjusted Diluted FFO                $  74,254 $  63,005 $ 11,249      17.9%
Diluted FFO Per Share               $    0.59 $    0.56 $   0.03       5.4%
Adjusted Diluted FFO Per Share      $    0.59 $    0.56 $   0.03       5.4%
Diluted FAD                         $  72,987 $  62,802 $ 10,185      16.2%
Adjusted Diluted FAD                $  73,022 $  62,470 $ 10,552      16.9%
Diluted FAD Per Share               $    0.58 $    0.56 $   0.02       3.6%
Adjusted Diluted FAD Per Share      $    0.58 $    0.55 $   0.03       5.5%


                                         Nine Months Ended September 30,
                                    --------------------------------------
                                      2010      2009    $ Change  % Change
                                    --------- --------- --------  --------

Revenue                             $ 324,951 $ 289,957 $ 34,994      12.1%
Income from Continuing Operations   $ 100,048 $  94,355 $  5,693       6.0%
Net Income Attributable to NHP
 Common Stockholders                $ 108,453 $ 112,145 $ (3,692)     -3.3%
Net Income Attributable to NHP
 Common Stockholders Per Diluted
 Share                              $    0.87 $    1.05 $  (0.18)    -17.1%
Diluted FFO                         $ 206,482 $ 191,833 $ 14,649       7.6%
Adjusted Diluted FFO                $ 208,891 $ 186,937 $ 21,954      11.7%
Diluted FFO Per Share               $    1.68 $    1.75 $  (0.07)     -4.0%
Adjusted Diluted FFO Per Share      $    1.70 $    1.70 $      -       0.0%
Diluted FAD                         $ 203,578 $ 190,770 $ 12,808       6.7%
Adjusted Diluted FAD                $ 205,987 $ 185,874 $ 20,113      10.8%
Diluted FAD Per Share               $    1.65 $    1.74 $  (0.09)     -5.2%
Adjusted Diluted FAD Per Share      $    1.67 $    1.69 $  (0.02)     -1.2%

NON-GAAP FINANCIAL MEASURES

Diluted Funds From Operations ("FFO") and Diluted Funds Available for Distribution ("FAD") are non-GAAP measures that we believe are important to understanding our operations. We believe diluted FFO is an important supplemental measure of operating performance because it excludes the effects of depreciation and amortization and gains (losses) from sales of facilities (both of which are based on historical costs and which may be of limited relevance in evaluating current performance). We believe diluted FAD is an important supplemental measure of operating performance because, like diluted FFO, it excludes the effects of depreciation and amortization and gains (losses) from sales of facilities (both of which are based on historical costs and which may be of limited relevance in evaluating current performance). It also excludes straight-lined rent and other non-cash items that have become more significant for us and our competitors over the last several years. We believe that net income is the most directly comparable GAAP measure to diluted FFO and diluted FAD. Reconciliations between net income and diluted FFO and net income and diluted FAD are included in the accompanying financial data. For guidance, we have also included in the accompanying financial data reconciliations between net income per share and diluted FFO and diluted FAD per share. We have also included adjusted diluted FFO and adjusted diluted FAD amounts which exclude acquisition costs and the recognition of a net gain on re-measurement of equity interest upon acquisition in 2010 and gains on debt extinguishments in 2010 and 2009.

THIRD QUARTER 2010 INVESTMENT ACTIVITY

                         Investment Activity 2010
                             ($ in thousands)

                               Q1        Q2       Q3       Q4       YTD
Investment                    Total     Total    Total   To Date    Total
                            --------  --------  -------  -------  --------
Assisted and Independent
 Living Facilities
   Investment                         $  6,000  $46,000           $ 52,000
   Initial Yield                           8.8%     8.2%               8.3%
                            --------  --------  -------  -------  --------
Skilled Nursing Facilities
   Investment                         $130,000  $47,000  $39,000  $216,000
   Initial Yield                           9.1%     9.6%    11.9%      9.7%
                            --------  --------  -------  -------  --------
Medical Office Buildings
   Investment               $380,000  $ 46,000                    $426,000
   Initial Yield                 8.2%      9.3%                        8.4%
                            --------  --------  -------  -------  --------
Total
   Investment               $380,000  $182,000  $93,000  $39,000  $694,000
   Initial Yield                 8.2%      9.1%     8.9%    11.9%      8.7%
                            --------  --------  -------  -------  --------

Additionally in the third quarter of 2010, we invested approximately $5.0 million in revenue producing capital expenditures at a blended yield of 8.4% for a total of $15.0 million at a blended yield of 8.4% in the first nine months of the year. Year to date, we funded two unsecured loans totaling $5.5 million at a blended rate of 9.3%. We also entered into a joint venture with PMB to develop a medical office building in Mission Hills, CA, our first development pursuant to the Amended and Restated Pipeline Property Agreement. We funded $14.7 million in the third quarter for a project with a budget of $53.0 million.

THIRD QUARTER 2010 FINANCING TRANSACTIONS

                At-The-Market Equity Offering Program 2010
                  (in thousands, except price per share)

                                  Q1       Q2       Q3       Q4       YTD
                                 Total    Total    Total   To Date   Total
                               -------- -------- -------- -------- --------

 Number of Shares                 1,269    3,789    2,793    1,290    9,141
 Average Price per Share       $  35.58 $  35.69 $  37.90 $  40.59 $  37.04
 Net Proceeds                  $ 44,673 $133,820 $104,750 $ 51,820 $335,063
                               -------- -------- -------- -------- --------

In the third quarter, we paid off $64.3 million of mortgage debt that matured and prepaid $12.4 million of mortgage debt. Subsequent to September 30, 2010, we paid off $70.8 million of mortgage debt that was scheduled to mature within the next 12 months.

Additionally during the third quarter, we entered into six 12-month forward-starting interest rate swap agreements for an aggregate notional amount of $250.0 million at a weighted average rate of 3.16%. We entered into these swap agreements in order to hedge the expected interest payments associated with fixed rate unsecured debt forecasted to be issued in 2011. The swap agreements each have an effective date of August 1, 2011 and a termination date of August 1, 2021. We expect to settle the swap agreements when the forecasted debt is issued. At September 30, 2010, the swap agreements had a negative fair value of $6.0 million.

2010 GUIDANCE

                Guidance for Year Ended December 31, 2010

                                   Guidance Dates
                         -----------------------------------  Change
                                    Q1       Q2                from
                         Initial   Results  Results  Current Previous
         Metric          Guidance  Update   Update   Update   Update
                         -------- -------- -------- -------- --------
Adjusted Diluted FFO
 Per Share
    High End             $   2.09 $   2.17 $   2.25 $   2.28 $   0.03
    Low End              $   2.05 $   2.14 $   2.23 $   2.27 $   0.04
                         -------- -------- -------- -------- --------
Adjusted Diluted FAD
 Per Share
    High End             $   2.05 $   2.13 $   2.19 $   2.24 $   0.05
    Low End              $   2.01 $   2.10 $   2.17 $   2.23 $   0.06
                         -------- -------- -------- -------- --------

Our guidance includes shares issued through our at-the-market equity offering program, mortgage debt payoffs and closed acquisitions and dispositions through November 8, 2010; it excludes any other acquisitions, investments, impairments or capital transactions that may occur in the remainder of 2010.

CONFERENCE CALL INFORMATION

We have scheduled a conference call and webcast on Tuesday, November 9, 2010 at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time) to discuss these results. The conference call is accessible by dialing (800) 259-0251 and referencing conference ID number 37726850 or by logging on to our website at http://www.nhp-reit.com. The international dial-in number is (617) 614-3671. The earnings release and any additional financial information that may be discussed on the conference call and webcast will also be available at the same location on our website. A digitized replay of the conference call will be available from 11:30 a.m. Pacific Time (2:30 p.m. Eastern Time) that day until 11:59 p.m. Pacific Time (2:59 a.m. Eastern Time), December 9, 2010. Callers can access the replay by dialing (888) 286-8010 or (617) 801-6888 and entering conference ID number 39698484. Webcast replays will also be available on our website for at least 12 months following the conference call. Our supplemental information package for the quarter ended September 30, 2010 is available on our website, free of charge, at http://www.nhp-reit.com by selecting "Investor Relations" followed by "Financial Information" and is included in our Current Report on Form 8-K filed November 8, 2010 with the SEC also containing this release. Shareholders may receive, free of charge, a complete set of our audited financial statements upon request.

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.

***Financial Tables to Follow***


                    NATIONWIDE HEALTH PROPERTIES, INC.
                      CONSOLIDATED INCOME STATEMENTS
                  (In thousands, except per share data)
                                (Unaudited)

                                    Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------- ------------------
                                       2010     2009       2010     2009
                                    --------- --------  --------- --------
Revenue:
  Triple-net lease rent             $  80,123 $ 72,675  $ 229,369 $218,105
  Medical office building operating
   rent                                26,868   17,588     75,677   52,111
                                    --------- --------  --------- --------
                                      106,991   90,263    305,046  270,216
  Interest and other income             7,054    6,748     19,905   19,741
                                    --------- --------  --------- --------
                                      114,045   97,011    324,951  289,957
Expenses:
  Interest expense                     23,782   23,221     71,824   70,540
  Depreciation and amortization        36,204   30,625    101,734   91,721
  General and administrative            7,902    6,514     22,262   20,404
  Acquisition costs                        35        -      3,104        -
  Medical office building operating
   expenses                            11,192    7,240     30,109   21,201
                                    --------- --------  --------- --------
                                       79,115   67,600    229,033  203,866
                                    --------- --------  --------- --------
Operating income                       34,930   29,411     95,918   86,091
  Income from unconsolidated joint
   ventures                             1,379    1,513      4,055    3,700
  Gain on debt extinguishment               -        -         75    4,564
                                    --------- --------  --------- --------
Income from continuing operations      36,309   30,924    100,048   94,355
Discontinued operations:
  Gains on sale of facilities, net      2,686        -      6,487   21,152
  Income from discontinued
   operations                             301      301      1,023    1,177
                                    --------- --------  --------- --------
                                        2,987      301      7,510   22,329
                                    --------- --------  --------- --------
Net income                             39,296   31,225    107,558  116,684
  Net loss (income) attributable to
   noncontrolling interests               558      (82)       895     (184)
                                    --------- --------  --------- --------
Net income attributable to NHP         39,854   31,143    108,453  116,500
  Preferred stock dividends                 -   (1,451)         -   (4,355)
                                    --------- --------  --------- --------
Income available to NHP common
 stockholders                       $  39,854 $ 29,692  $ 108,453 $112,145
                                    ========= ========  ========= ========

Basic earnings per share (EPS):
  Income from continuing operations
   attributable to NHP common
   stockholders                     $    0.30 $   0.27  $    0.83 $   0.86
  Discontinued operations
   attributable to NHP common
   stockholders                          0.02     0.01       0.06     0.21
                                    --------- --------  --------- --------
  Net income attributable to NHP
   common stockholders              $    0.32 $   0.28  $    0.89 $   1.07
                                    ========= ========  ========= ========

Diluted EPS:
  Income from continuing operations
   attributable to NHP common
   stockholders                     $    0.29 $   0.27  $    0.81 $   0.84
  Discontinued operations
   attributable to NHP common
   stockholders                          0.02        -       0.06     0.21
                                    --------- --------  --------- --------
  Net income attributable to NHP
   common stockholders              $    0.31 $   0.27  $    0.87 $   1.05
                                    ========= ========  ========= ========

Weighted average shares outstanding
 for EPS:
  Basic                               123,721  107,175    120,242  104,224
                                    ========= ========  ========= ========
  Diluted                             126,497  109,477    122,878  106,389
                                    ========= ========  ========= ========





                    NATIONWIDE HEALTH PROPERTIES, INC.
       RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
                  (In thousands, except per share data)
                                (Unaudited)

           Reconciliation of Net Income to Adjusted Diluted FFO

                                    Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2010      2009      2010      2009
                                    --------  --------  --------  --------

Net income                          $ 39,296  $ 31,225  $107,558  $116,684
  Preferred stock dividends                -    (1,451)        -    (4,355)
  Net loss (income) attributable to
   noncontrolling interests              558       (82)      895      (184)
  Real estate related depreciation
   and amortization                   35,863    30,875   100,908    92,548
  Depreciation in income from
   unconsolidated joint ventures       1,188     1,319     3,608     3,937
  Gains on sale of facilities, net    (2,686)        -    (6,487)  (21,152)
                                    --------  --------  --------  --------
FFO available to NHP common
 stockholders                         74,219    61,886   206,482   187,478
  Series B preferred dividend
   add-back                                -     1,451         -     4,355
                                    --------  --------  --------  --------
Diluted FFO                           74,219    63,337   206,482   191,833
  Acquisition costs                       35         -     3,104         -
  Gain on extinguishment of debt           -      (332)      (75)   (4,896)
  Gain on re-measurement of equity
   interest upon acquisition, net          -         -      (620)        -
                                    --------  --------  --------  --------
Adjusted diluted FFO                $ 74,254  $ 63,005  $208,891  $186,937
                                    ========  ========  ========  ========

Weighted average shares outstanding
 for diluted FFO:
  Diluted weighted average shares
   outstanding (1)                   126,586   109,568   122,980   106,433
  Series B preferred stock
   conversion add-back if not
   already converted                       -     3,375       102     3,367
                                    --------  --------  --------  --------
  Fully diluted weighted average
   shares outstanding                126,586   112,943   123,082   109,800
                                    ========  ========  ========  ========

Diluted FFO per share               $   0.59  $   0.56  $   1.68  $   1.75
                                    ========  ========  ========  ========
Adjusted diluted FFO per share      $   0.59  $   0.56  $   1.70  $   1.70
                                    ========  ========  ========  ========

Dividends declared per common share $   0.46  $   0.44  $   1.35  $   1.32
                                    ========  ========  ========  ========

Adjusted diluted FFO payout ratio         78%       79%       79%       78%
                                    ========  ========  ========  ========
Adjusted diluted FFO coverage           1.28      1.27      1.26      1.29
                                    ========  ========  ========  ========

    (1) Diluted weighted average shares outstanding includes the effect of
    all participating and non-participating share-based payment awards
    consists of stock options and other share-based payment awards if the
    effect is dilutive.  The dilutive effect of all share-based payment
    awards is calculated using the treasury stock method.  Additionally,
    our redeemable OP units are included as if converted to common stock
    on a one-for-one basis.





                    NATIONWIDE HEALTH PROPERTIES, INC.
       RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
                  (In thousands, except per share data)
                                (Unaudited)

           Reconciliation of Net Income to Adjusted Diluted FAD

                                    Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2010      2009      2010      2009
                                    --------  --------  --------  --------

Net income                          $ 39,296  $ 31,225  $107,558  $116,684
  Preferred stock dividends                -    (1,451)        -    (4,355)
  Net loss (income) attributable to
   noncontrolling interests              558       (82)      895      (184)
  Real estate related depreciation
   and amortization                   35,863    30,875   100,908    92,548
  Gains on sale of facilities, net    (2,686)        -    (6,487)  (21,152)
  Straight-lined rent                 (2,867)   (1,578)   (8,066)   (4,766)
  Amortization of intangible assets
   and liabilities                       116      (139)      207      (408)
  Non-cash stock-based compensation
   expense                             1,749     1,816     5,174     5,226
  Deferred financing cost
   amortization                        1,090       766     2,764     2,336
  Lease commissions and tenant and
   capital improvements               (1,354)   (1,407)   (3,057)   (3,476)
  Unconsolidated joint ventures:
    Real estate related
     depreciation and amortization     1,188     1,319     3,608     3,937
    Straight-lined rent                    9       (19)        6       (43)
    Amortization of intangible
     assets and liabilities                -         5         -         5
    Deferred finance cost
     amortization                         25        21        68        63
                                    --------  --------  --------  --------
FAD available to NHP common
 stockholders                         72,987    61,351   203,578   186,415
  Series B preferred dividends             -     1,451         -     4,355
                                    --------  --------  --------  --------
Diluted FAD                           72,987    62,802   203,578   190,770
  Acquisition costs                       35         -     3,104         -
  Gain on extinguishment of debt           -      (332)      (75)   (4,896)
  Gain on re-measurement of equity
   interest upon acquisition, net          -         -      (620)        -
                                    --------  --------  --------  --------
Adjusted diluted FAD                $ 73,022  $ 62,470  $205,987  $185,874
                                    ========  ========  ========  ========

Weighted average shares outstanding
 for diluted FAD:
  Diluted weighted average shares
   outstanding (1)                   126,586   109,568   122,980   106,433
  Series B preferred stock add-back
   if not already converted                -     3,375       102     3,367
                                    --------  --------  --------  --------
  Fully diluted weighted average
   shares outstanding                126,586   112,943   123,082   109,800
                                    ========  ========  ========  ========

Diluted FAD per share               $   0.58  $   0.56  $   1.65  $   1.74
                                    ========  ========  ========  ========
Adjusted diluted FAD per share      $   0.58  $   0.55  $   1.67  $   1.69
                                    ========  ========  ========  ========

Dividends declared per common share $   0.46  $   0.44  $   1.35  $   1.32
                                    ========  ========  ========  ========

Adjusted diluted FAD payout ratio         79%       80%       81%       78%
                                    ========  ========  ========  ========
Adjusted diluted FAD coverage           1.26      1.25      1.24      1.28
                                    ========  ========  ========  ========

    (1) Diluted weighted average shares outstanding includes the effect of
    all participating and non-participating share-based payment awards
    which for us consists of stock options and other share-based payment
    awards if the effect is dilutive.  The dilutive effect of all
    share-based payment awards is calculated using the treasury stock
    method.  Additionally, our redeemable OP units are included as if
    converted to common stock on a one-for-one basis.




                    NATIONWIDE HEALTH PROPERTIES, INC.
        RECONCILIATION OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
                  (In thousands, except per share data)

2010 Guidance Reconciliation of Net Income to Adjusted Diluted FFO and FAD
                                Per Share

                                                            Year Ended
                                                        December 31, 2010
                                                        ------------------
                                                             Guidance
                                                        ------------------
                                                          Low       High
                                                        --------  --------

Net income                                              $150,271  $151,521
  Preferred stock dividends                                    -         -
  Real estate related depreciation and amortization      132,194   132,194
  Depreciation in income from unconsolidated joint
   ventures                                                4,781     4,781
  Net loss attributable to noncontrolling interests        1,047     1,047
  Gains on sales of facilities, net                       (7,999)   (7,999)
                                                        --------  --------
FFO available to common stockholders                     280,294   281,544
  Series B preferred dividends                                 -         -
                                                        --------  --------
Diluted FFO                                              280,294   281,544
  Acquisition costs                                        3,105     3,105
  Gain on extinguishment of debt                             (75)      (75)
  Gain on re-measurement of equity interest upon
   acquisition, net                                         (620)     (620)
                                                        --------  --------
Adjusted Diluted FFO                                     282,704   283,954
  Straight-lined rent                                    (10,784)  (10,784)
  Amortization of intangible assets and liabilities          131       131
  Non-cash stock-based compensation expense                6,888     6,888
  Deferred financing cost amortization                     3,532     3,532
  Lease commissions and tenant and capital improvements   (4,968)   (4,968)
  Unconsolidated Joint Ventures:
    Straight-lined rent                                        8         8
    Deferred financing cost amortization                      89        89
                                                        --------  --------
Adjusted Diluted FAD                                    $277,600  $278,850
                                                        ========  ========

Diluted FFO per share                                   $   2.25  $   2.26
                                                        ========  ========
Adjusted Diluted FFO per share                          $   2.27  $   2.28
                                                        ========  ========
Adjusted Diluted FAD per share                          $   2.23  $   2.24
                                                        ========  ========

Weighted average shares outstanding:
  Diluted weighted average shares outstanding            122,268   122,268
  NHP/PMB OP units                                         2,134     2,134
                                                        --------  --------
  Total                                                  124,402   124,402
                                                        ========  ========




                    NATIONWIDE HEALTH PROPERTIES, INC.
                        CONSOLIDATED BALANCE SHEETS
                              (In thousands)

                                                September 30, December 31,
                                                    2010          2009
                                                ------------  ------------
                                                 (unaudited)
Assets
  Investments in real estate:
    Land                                        $    332,379  $    318,457
    Buildings and improvements                     3,553,712     3,088,183
    Development in progress                           16,195             -
                                                ------------  ------------
                                                   3,902,286     3,406,640
    Less accumulated depreciation                   (655,619)     (585,294)
                                                ------------  ------------
                                                   3,246,667     2,821,346
    Mortgage loans receivable, net                   238,926       110,613
    Mortgage loan receivable from related party            -        47,500
    Investments in unconsolidated joint
     ventures                                         42,824        51,924
                                                ------------  ------------
      Net real estate related investments          3,528,417     3,031,383
  Cash and cash equivalents                          116,173       382,278
  Receivables, net                                     6,497         6,605
  Intangible assets                                  146,572        93,657
  Other assets                                       149,034       133,152
                                                ------------  ------------
      Total assets                              $  3,946,693  $  3,647,075
                                                ============  ============

Liabilities and Equity
  Unsecured senior credit facility              $          -  $          -
  Senior notes                                       991,633       991,633
  Notes and bonds payable                            454,779       431,456
  Accounts payable and accrued liabilities           140,314       132,915
                                                ------------  ------------
    Total liabilities                              1,586,726     1,556,004

  Redeemable OP unitholder interests                  84,688        57,335

Equity:
  NHP stockholders' equity:
    Series B convertible preferred stock                   -        51,364
    Common stock                                      12,495        11,432
    Capital in excess of par value                 2,458,235     2,128,843
    Cumulative net income                          1,813,732     1,705,279
    Accumulated other comprehensive loss              (9,211)         (823)
    Cumulative dividends                          (2,027,078)   (1,862,996)
                                                ------------  ------------
    Total NHP stockholders' equity                 2,248,173     2,033,099
  Noncontrolling interests                            27,106           637
                                                ------------  ------------
    Total equity                                   2,275,279     2,033,736
                                                ------------  ------------
      Total liabilities and equity              $  3,946,693  $  3,647,075
                                                ============  ============

Contact Information

  • Contact:
    Abdo H. Khoury
    Chief Financial and Portfolio Officer
    Nationwide Health Properties, Inc.
    (949) 718-4400