Excluding this charge, FFO, as adjusted for the quarter, was $0.67 per share and FAD was $0.54 per share, representing year-over-year increases of 20% and 10%, respectively, primarily driven by last year's HCR ManorCare acquisition and strong 2012 cash, Same Property Performance.
During the quarter, we made investments of $40 million to fund development and other capital projects, and sold one medical office building for $7 million, recognizing a gain of $3 million.
Turning now to financing activities and balance sheet. On the capital markets front, we were active during the first quarter and raised $809 million consisting of: $450 million of 7-year senior unsecured notes with a coupon of 3.75%; and $359 million of common stock at a price of $39.93 per share. Proceeds from these offerings were primarily used to clear out the revolver balance at year end and redeem all outstanding preferred stock at par. On April 23, we retired our Series E and Series F preferred stock for a total of $296 million. Going forward, this equity for preferred swap will be accretive to FAD in 2012 and further strengthen our fixed charge coverage ratio.
In addition, during the quarter, we improved the terms of our revolving credit facility that included lowering the funded interest cost by 55 basis points and extending the maturity one additional year to March 2016. Our undrawn revolver provides up to $1.5 billion of immediate liquidity at a current rate of LIBOR plus 1.075%.Pro forma for the cash used to redeem the $296 million of preferred stock in April, we ended the quarter with $50 million of unrestricted cash. Our remaining 2012 debt maturities total $317 million, of which $250 million relates to the 6.45% senior unsecured notes maturing next month. Finally, updates to our 2012 guidance. Based on stronger-than-forecasted performance to date, we are raising our full year, cash same property growth to a range of 3.25% to 4.25%, up 25 basis points from our February guidance. We are updating our FFO guidance to range from $2.68 to $2.74 per share, which is $0.02 lower than our last guidance. This change is primarily due to the $0.03 first quarter preferred stock redemption charge mentioned earlier, less an additional $0.01 for several small items, offset by a positive $0.02 from an insurance recovery of $7 million received in the second quarter for past G&A expenses and increased Same Property Performance. Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV