In December 2011, the Company entered into a loan agreement with Fannie Mae in the amount of $53.3 million to refinance seven of the 16 communities mentioned in the financing above. The Fannie Mae loan agreement has a ten-year term and interest accrues at a fixed rate of 4.93%. Monthly principal and interest payments are based on a 30-year amortization period, with the balance due in full on January 1, 2022.
In December 2011, the Company entered into a loan agreement with the Department of Housing and Urban Development (HUD) in the amount of $17.9 million to refinance debt on three communities. The HUD loan agreement has a 35-year term and interest accrues at a fixed rate of 3.70%. The balance is due in full on January 1, 2047.
2012 Guidance Update
The Company provides guidance in certain key categories. The guidance pertains to the Company’s existing portfolio and excludes future acquisitions.The Company’s guidance for 2012 is as follows:
- Consolidated revenue in the range of $1.3 billion to $1.325 billion.
- Routine capital expenditures in the range of $24.0 million to $26.0 million.
- General and administrative expenses as a percent of total operated revenue to be approximately 4.8%, excluding non-cash stock-based compensation expenses.
- CFFO, as adjusted, in the range of $1.60 to $1.70 per share.