For the twelve-month period ended December 31, 2011, the Company reported net income of $52.6 million and net income available to common stockholders of $47.5 million, or $0.46 per diluted common share on operating revenues of $292.2 million. This compares to net income of $58.4 million and net income available to common stockholders of $49.4 million, or $0.52 per diluted common share on operating revenues of $258.3 million, for the same period in 2010.
The year-to-date decrease in net income was primarily due to: (i) impairment charges during the first quarter of 2011 primarily related to four Connecticut facilities; (ii) provisions for uncollectible accounts and notes receivables related to a former operator; and (iii) income during the first quarter of 2010 associated with cash received from a legal settlement. These decreases were partially offset by additional income associated with $975 million of new investments made throughout 2010 and 2011. Those investments include approximately $825 million in combined facility acquisitions and capital improvement spending on the Company’s existing portfolio and $150 million in new mortgage investments. In addition to the aforementioned items, net income available to common stockholders was also reduced by a non-cash charge related to the redemption of the Company’s 8.375% Series D Cumulative Redeemable Preferred Stock in the first quarter of 2011.
2011 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
- On March 7, 2011, the Company redeemed all of its outstanding shares of 8.375% Series D Redeemable Preferred Stock valued at $108.5 million.
- In April 2011, the Company increased its quarterly common dividend per share to $0.38 from $0.37.
- In July 2011, the Company increased its quarterly common dividend per share to $0.40 from $0.38.
- In August 2011, the Company entered into a new $475 million unsecured revolving credit facility.
- In August 2011, the Company’s Board of Directors authorized a $100 million Stock Repurchase Program.
- In October 2011, the Company completed $69 million of new investments.
- In November 2011, the Company completed $92 million of new investments.
- In December 2011, the Company completed $173 million of new investments in several unrelated transactions.
- In December 2011, Standard & Poor’s Rating Services raised its corporate credit rating to BB+ and senior unsecured rating to BBB-.
- In January 2012, the Company increased its quarterly common stock dividend per share to $0.41 from $0.40.
FOURTH QUARTER 2011 RESULTSOperating Revenues and Expenses – Operating revenues for the three-month period ended December 31, 2011 were $76.3 million. Operating expenses for the three-month period ended December 31, 2011, excluding nursing home expenses for owned and operated assets, totaled $35.2 million and were composed of $25.5 million of depreciation and amortization expense, $3.4 million of general and administrative expense, $2.3 million provision for uncollectible notes receivable, $1.5 million of stock-based compensation expense, $1.4 million provision for impairments on real estate properties and $1.2 million of expense associated with the 2011 acquisitions. A reconciliation of these amounts to revenues and expenses reported in accordance with GAAP is provided at the end of this release. Other Income and Expense – Other income and expense for the three-month period ended December 31, 2011 was a net expense of $21.6 million, which was composed of $21.0 million of interest expense and $0.6 million of amortized deferred financing costs. Funds From Operations – For the three-month period ended December 31, 2011, reportable FFO available to common stockholders was $46.3 million, or $0.45 per common share on 103 million weighted-average common shares outstanding, compared to $28.4 million, or $0.29 per common share on 99 million weighted-average common shares outstanding, for the same period in 2010. The $46.3 million of FFO for the three-month period ended December 31, 2011 includes the impact of $2.3 million of uncollectible notes receivable, $1.5 million of stock-based compensation expense, $1.2 million of expense associated with the 2011 acquisitions and a $50 thousand net loss associated with the run-off of owned and operated assets.
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