LOUISVILLE, Ky. (Oct. 22, 1998) Ventas, Inc. (NYSE:VTR) announced today the results of its operations for the third quarter ending September 30, 1998. As a result of a corporate reorganization effective April 30, 1998, Ventas, Inc. is deemed to have commenced operations on May 1, 1998 and does not have comparable financial results for prior periods.
Funds from operations ("FFO") for the three months ended September 30, 1998 totaled $23.7 million, or $0.35 per diluted share. Pro forma FFO for the three-month period was $31.6 million, or $0.47 per diluted share. Pro forma results assume that the Company qualified to be taxed as a real estate investment trust on May 1, 1998, and the provision for income taxes was therefore excluded. Ventas defines FFO in accordance with the definition prescribed by the National Association of Real Estate Investment Trusts.
Rental income for the third quarter was $56.2 million and income from operations was $13.0 million, or $0.19 per diluted share. The Company incurred an extraordinary loss for the quarter of $81,000, net of income taxes, related to the extinguishment of debt during the period.
For the five months ended September 30, 1998, FFO totaled $39.0 million, or $0.58 per diluted share. Pro forma FFO for the five-month period was $52.0 million, or $0.77 per diluted share. Rental income for the five-month period was $93.5 million and income from operations was $21.2 million, or $0.31 per diluted share. The Company incurred an extraordinary loss for the five months of $8.1 million, or $0.12 per share, net of income taxes, related to the extinguishment of debt.
Ventas reported that it has invested $14.5 million through October 15, 1998 to acquire healthcare-related properties. The properties purchased include two skilled nursing centers and eight personal care facilities for individuals with acquired/traumatic brain injuries.
Ventas, Inc. is a real estate company whose properties include 219 nursing centers, 46 hospitals and eight personal care facilities in 36 states.
VENTAS, INC.
Financial Highlights
(Unaudited)
(In thousands, except per share amounts and statistics)
Three Months Ended Five Months Ended
September 30, 1998 September 30, 1998
Historical ProForma(a) Historical ProForma(a)
Rental income $ 56,168 $ 56,168 $ 93,524 $ 93,524
Income from operations 12,958 $ 20,901 $ 21,156 $ 34,124
Extraordinary loss on
extinguishment of debt ( 81 ) ( 131 ) ( 8,051 ) (12,986)
-----------------------------------------
Net income $ 12,877 $ 20,770 $ 13,105 $ 21,138
Earnings per common share:
Basic:
Income from operations $ 0.19 $ 0.31 $ 0.31 $ 0.50
Extraordinary loss on
extinguishment of debt - - ( 0.12 ) (0.19)
------------------------------------------
Net income $ 0.19 $ 0.31 $ 0.19 $ 0.31
Diluted:
Income from operations $ 0.19 $ 0.31 $ 0.31 $ 0.50
Extraordinary loss on
extinguishment of debt - - ( 0.12 ) (0.19)
-------------------------------------------
Net income $ 0.19 $ 0.31 $ 0.19 $ 0.31
Funds from operations $ 23,687 $ 31,630 $ 39,020 $ 51,988
Funds from operations per common share:
Basic $ 0.35 $ 0.47 $ 0.58 $ 0.77
Diluted 0.35 0.47 0.58 0.77
Shares used in computing earnings and funds from
operations per common share:
Basic 67,822 67,822 67,802 67,802
Diluted 67,853 67,853 67,848 67,848
Number of real estate properties (as of 10/15/98):
Hospitals 46 n/a
Nursing centers 219 n/a
Personal care facilities 8 n/a
------------------------------
273 n/a
(a) Assumes that the Company qualified to be taxed as a
real estate investment trust on May 1, 1998 and
therefore the provision for income taxes was excluded.
VENTAS, INC.
Condensed Consolidated Statement of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Five Months Ended
September 30, 1998 September 30, 1998
Rental income $ 56,168 $ 93,524
General and administrative 1,889 3,508
Depreciation 10,729 17,864
Interest expense 22,649 38,028
-------------- ---------
35,267 59,400
Income before income taxes 20,901 34,124
Provision for income taxes 7,943 12,968
-------------- ---------
Income from operations 12,958 21,156
Extraordinary loss on extinguishment of debt,
net of income tax benefit ( 81 ) ( 8,051)
--------------------------------------------------
Net income $ 12,877 $ 13,105
Earnings per common share:
Basic:
Income from operations $ 0.19 $ 0.31
Extraordinary loss on
extinguishment of debt - ( 0.12)
--------------------------------------------------
Net income $ 0.19 $ 0.19
Diluted:
Income from operations $ 0.19 $ 0.31
Extraordinary loss on
extinguishment of debt - ( 0.12)
--------------------------------------------------
Net income $ 0.19 $ 0.19
Funds from operations:
Historical $ 23,687 $ 39,020
Pro forma (a) 31,630 51,988
Funds from operations per common share:
Basic $ 0.35 $ 0.58
Diluted 0.35 0.58
Pro forma funds from operations per common share (a):
Basic $ 0.47 $ 0.77
Diluted 0.47 0.77
Shares used in computing earnings and funds from
operations per common share:
Basic 67,822 67,802
Diluted 67,853 67,848
(a) Assumes that the Company qualified to be taxed as a
real estate investment trust on May 1, 1998 and
therefore the provision for income taxes was excluded.
VENTAS, INC.
Condensed Consolidated Balance Sheet
(Unaudited)
(In thousands)
September 30, 1998
ASSETS
Real estate properties:
Land $ 120,890
Buildings and improvements 1,071,501
-------------------------
1,192,391
Accumulated depreciation ( 250,631 )
-------------------------
941,760
Cash and cash equivalents 2,373
Deferred financing costs 10,138
Advances to employees 3,890
Due from Vencor, Inc. 1,592
Other 250
-------------------------
$ 960,003
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Liabilities:
Bank credit facility and other debt $ 961,549
Accrued salaries, wages and other comp 355
Accrued interest 4,024
Income taxes payable 1,525
Other accrued liabilities 1,022
Deferred incomes taxes 15,700
--------------------------
984,175
Stockholders' equity (deficit):
Common stock, par value 18,402
Capital in excess of par value 140,078
Unearned compensation on restricted stock ( 2,101 )
Accumulated deficit ( 24,660 )
--------------------------
131,719
Treasury stock ( 155,891 )
( 24,172 )
--------------------------
$ 960,003
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