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The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call other than through filings with the Securities and Exchange Commission regarding this reporting period.In addition, this call may contain non-GAAP numbers including normalized funds from operations or normalized FFO. A reconciliation of normalized FFO to net income and the components to calculate AFFO, CAD, or FAD are available in our Supplemental Operating and Financial Data package found on our website at www.snhreit.com. Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance on any forward-looking statements. And now, I would like to turn the call over to Dave Hegarty. David J. Hegarty Thank you, Tim, and good afternoon everyone. Thank you for joining us today on our second quarter earnings call. During the second quarter, we continue to make progress on our business plan of acquiring and maintaining high quality private pay properties, leased to strong credit tenants and our taxable REIT subsidiary, while maintaining our historically solid financial profile, 94% of our NOI, today is derived from private pay resources, and we maintain the lowest exposure to government reimbursement programs, I have all the power to trade at healthcare REITs. For the second quarter, we’ve reported normalized functional operations, our FFO of $0.45 per share, and our Board of Trustees declared a quarterly distribution of $0.38 per share, which represents 6.7% yield based on yesterday's closing stock price and a payout ratio of 84% of our FFO. Since April 1, we have closed on $227 million of acquisitions and in July we successfully raised $650 million of gross proceeds from equity and debt offerings. Both offerings were upsized due to significant investor interest and allowed us to maintain a healthy balance sheet, while positioning us for future growth with no additional capital needs for the foreseeable future.
On our last several earnings calls, I’ve discussed our pending acquisition activity and I'm happy to report that during the last 60 days most of this backlog has closed. Looking at our acquisition activity since April 1, we have completed $227 million of acquisitions, of which $45 million represents completion of the Bell portfolio we announced last year. The weighted average yield on these $227 million of acquisitions was 8%.We assume $64 million of mortgage debt along with these acquisitions at a weighted average interest rate of 5.6%. In fact, yesterday, we closed on the previously announced acquisition of a sale lease back of four private pay senior living communities with the new third-party private regional operator by the name of Stellar Senior Living for $37 million. The lease was underwritten at 1.2 times rental coverage based on historical results and the initial yield will be 8%. Today, we have a $142 million of pending activity, of which $99 million represents one remaining senior living community located in (inaudible) New York from the B portfolio we announced last year. We expect all the pending acquisitions to close during the third quarter. In addition to these acquisitions, we’re on pace to fund $30 million to $40 million of revenue producing capital improvements to our triple net lease tenants this year, which yields us 8% on amounts funded. Not including our 2011 pending activity so far in 2012, we’ve acquired our announced $225 million in new investments which put us on track to meet our expectations of acquiring $300 million to $400 million in 2012. Most of our investment opportunities continue to be small portfolios, and one-off private pay senior living communities in medical office properties. In the Senior Housing space most investment opportunities have been with private operators and investors looking to monetize their real estate or exit the operating businesses altogether. We've been successful in acquiring individual assets and small portfolios of high-quality private pay senior living communities. And we expect to continue our growth in the same manner. We also see positive signs for acquisition opportunities in the medical office space. The Supreme Court’s recent decision should positively impact acquisition opportunities, hospital systems by allowing them to accelerate their decision making. We continue to see an increasing demand for outpatient services. Read the rest of this transcript for free on seekingalpha.com