NEWPORT BEACH, Calif., May 7 /PRNewswire-FirstCall/ -- Nationwide Health Properties, Inc. announced that this week it closed $34 million of investments with two new customers. The first is a $31 million sale/leaseback transaction with Hearth Management LLC of two six-year old, high-end, predominantly independent living facilities in Vestal, New York and Madison, Connecticut. The investment has an initial cash yield of 9.1% with 2% annual CPI increases. The second is a $3 million investment in a 19-year old skilled nursing facility operated by Southwest LTC in San Antonio, Texas. The investment has an initial cash yield of 10.5% expanding 0.5% per year to 12% by year four, with 2% annual CPI increases thereafter.
Nationwide Health Properties, Inc. is a real estate investment trust that invests in health care facilities. The Company has investments in 402 facilities in 38 states. For further information go to http://www.nhp-reit.com/.
Certain information contained in this news release, especially that related to the proposed investment described above, includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward looking terminology such as “may,” “will,” “anticipates,” “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. All forward-looking statements included in this news release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and we assume no obligation to update such forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include (without limitation) the following: failure to negotiate acceptable definitive documentation or consummate one or more of the expected closings due to the inability to obtain third party consents or otherwise; continued deterioration of the operating results or financial condition, including bankruptcies, of our tenants; occupancy levels at certain facilities; changes in the ratings of our debt securities; access to the capital markets and the cost of capital; government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; the ability of our operators to repay deferred rent or loans in future periods; the ability of our operators to obtain and maintain adequate liability and other insurance; our ability to attract new operators for certain facilities; our ability to sell certain facilities for their book value; changes in tax laws and regulations affecting real estate investment trusts; and the risk factors described in our annual report on Form 10-K filed with the SEC on March 9, 2004.
Nationwide Health Properties, Inc. -- May 7, 2004 Supplemental Information Operator: Hearth Management, LLC Investment Amount: $31 million Cash Yield: 9.1% with annual 2% CPI bumps Rent Coverages: Before management fee: 1.2x; after management fee and CapEx: 1.0x Properties: Two independent living facilities * 234 total units * Locations: Vestal, New York and Madison, Connecticut * Occupancy: 93% * 100% private pay * Average building age: 6 years Operator: Southwest LTC Investment Amount: $3 million Cash Yield: 10.5%, expanding 0.5% per year to 12% in year 4 with 2% CPI annual bumps thereafter Rent Coverages: Turnaround with underwritten 2005 pro forma coverages of over 2x before management fee and over 1.2x after management fee and CapEx Property: Skilled nursing facility * 152 beds * Location: San Antonio, Texas * Occupancy: 62% * Pay source: 36% private pay; 13% Medicare; and 51% Medicaid * Building age: 19 years
For further information please contact Douglas M. Pasquale, President & CEO, Mark L. Desmond, SVP & CFO, or Donald D. Bradley, SVP, all of Nationwide Health Properties, Inc., +1-949-718-4400.
Nationwide Health Properties, Inc.
CONTACT: Douglas M. Pasquale, President & CEO, Mark L. Desmond, SVP &CFO, or Donald D. Bradley, SVP, all of Nationwide Health Properties, Inc.,+1-949-718-4400
Web site: http://www.nhp-reit.com/
