Reit Report
June 1, 2000
Reit Report
CPL pays two distributions
CPL Long Term Care Real Estate Investment Trust (Toronto) has filed in Canada for an offering of about $50 million of convertible unsecured subordinated debentures, the terms of which will protect the distributable income to unitholders.
The debentures have a term of five years. The interest and conversion rate will be determined based on market conditions, CPL says. Proceeds of the offering will be used to help finance the development of 15 long term care facilities in Ontario and one in Calgary, reports the National Post.
In addition, CPL says it paid a distribution of 13.5 cents per unit on May 31. The distribution was payable to unitholders of record as of May 23, CPL says. Also, a June distribution of 13.5 cents per unit was declared on June 8, payable June 30, to the unitholders of record as of June 20, CPL reports.
The company reported revenues for 1Q00 ended March 31 of $113.8 million, an increase from 1Q99 revenues of $72.7 million. The increase reflects the contribution of an additional 16 properties acquired in 1999, CPL says, and a one-month ownership of an additional seven properties in the quarter. Net income for the quarter was $2.5 million, 13 cents per unit, compared to a 1Q99 net income of $3.2 million, 17 cents per unit.
Omega to hold second annual meeting
Omega Healthcare Investors (Ann Arbor, MI) today announced that its 1999 annual meeting, previously adjourned, is scheduled to be held on Thursday, June 1, at 11:00 a.m. at the corporate office in Ann Arbor. The company also announced that a special shareholders' meeting to consider the proposed investment by Explorer Holdings will be held in early July. Shareholders of record as of the close of business on June 2 will be entitled to vote at this special meeting, Omega says.
G&L Realty records $1.7M reserve in 1Q00
G&L Realty Corp. (Beverly Hills, CA) reported 1Q00 ended March 31 negative funds from operations (FFO) of $2.2 million, 69 cents per share, compared to positive FFO of $1 million, 23 cents per share, in 1Q99. Included in G&L's 1Q00 results is an increase to reserves of $2.3 million, 73 cents per share, reflecting the impairment of assets associated with the bankruptcies of two nursing home operators.
G&L says it recorded a reserve in 1Q00 of $1.7 million against a delinquent note receivable secured by a first mortgage on two skilled nursing facilities in Chico and Paso Robles, CA. Since February 1998, the company has held a $3.9 million note receivable from Aspen Paso Robles, secured by these two facilities. In December 1998, G&L reserved $1 million with respect to the note because of the borrower's financial instability. In April 1999, the borrower filed for bankruptcy, G&L says, and in March, it obtained the title to the two facilities from the bankruptcy court and an additional reserve of $1.7 million was established. The company is pursuing legal action against the borrower and other parties involved in the transaction and is in the process of re-opening the facilities.
NHR sees 1Q00 revenue decline
National Health Realty (NHR; Murfreesboro, TN) reported a net income in 1Q00 ended March 31 of $2 million, 21 cents per share, compared to a net income in 1Q99 of $2.3 million, 24 cents per share.
NHR says its 1Q00 revenues totaled 6.1 million, down slightly from 1Q99 revenues of $6.2 million. The company's funds from operations were 37 cents, compared to 41 cents in 1Q99.
NHR's revenues declined in 1Q00 because of foreclosure proceedings on one loan, the prepayment of one loan in the prior year, and the regular amortization of mortgage notes receivable, NHR says. NHR believes it has sufficient collateral to recover its receivables related to the loan foreclosure. The company's expenses increased as a result of increased interest rates on debt and increased state franchise and excise tax expense.
NHR is a guarantor on a loan that has been declared in default as a result of other guarantors violating their financial covenants. The company is negotiating with the lender to waive these defaults. But until negotiations are complete, NHR is unable to finalize the classification of its debt and complete other portions of its financial statements and quarterly filing.
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