The year-to-date increase in net income was primarily due to (i) additional operating revenue associated with approximately $515 million of new investments made since July of 2012 and (ii) an $11.1 million interest refinancing adjustment (gain) recorded in the second quarter of 2013. These increases to net income were partially offset by (i) increased expenses associated with the new investments, including: (a) $13.7 million in increased depreciation expense and (b) $4.1 million in increased interest expense and (ii) $5.4 million in interest refinancing costs relating to 2012 refinancing activities.
THIRD QUARTER 2013 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
THIRD QUARTER 2013 RESULTS
Operating Revenues and Expenses
- In October 2013, the Company completed $33 million of new investments.
- In October 2013, the Company increased its quarterly common stock dividend to $0.48 per share.
- In October 2013, the Company completed an underwritten public offering of 2.875 million shares of its common stock, generating net cash proceeds of approximately $84.5 million.
- In Q3 2013, the Company announced it committed to enter into a $525 million sale/leaseback transaction.
- In Q3 2013, the Company completed $6.8 million of capital renovation projects.
- In July 2013, the Company increased its quarterly common stock dividend to $0.47 per share.
– Operating revenues for the three-month period ended September 30, 2013 were $103.3 million. Operating expenses for the three-month period ended September 30, 2013 totaled $40.0 million and were comprised of $32.2 million of depreciation and amortization expense, $4.0 million of general and administrative expense, a $2.3 million provision for uncollectible straight-line accounts receivable and $1.5 million of stock-based compensation.
Other Income and Expense
– Other income and expense for the three-month period ended September 30, 2013 was a net expense of $25.2 million, which was comprised of $24.5 million of interest expense and $0.7 million of amortized deferred financing costs.
Funds From Operations
– For the three-month period ended September 30, 2013, reportable FFO available to common stockholders was $70.3 million, or $0.59 per common share on 118 million weighted-average common shares outstanding, compared to $56.7 million, or $0.52 per common share on 110 million weighted-average common shares outstanding, for the same period in 2012.
The $70.3 million of FFO for the three-month period ended September 30, 2013 includes the impact of $2.3 million in provision for uncollectible straight-line accounts receivable and $1.5 million of stock-based compensation expense.