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EX-99.2 - EX-99.2 - AVIV REIT, INC.d624464dex992.htm

Exhibit 99.1

 

LOGO

AVIV REIT ANNOUNCES

THIRD QUARTER 2013 EARNINGS RESULTS

CHICAGO – November 7, 2013 – Aviv REIT, Inc. (“Aviv” or the “Company”) (NYSE: AVIV) released its earnings for the third quarter ended September 30, 2013.

Recent Highlights

 

    $250 million of 6% Senior Notes due 2021 issued in October

 

    $12.5 million of acquisitions closed during the third quarter, at an initial cash yield of 10.7%

 

    $5.9 million invested for property reinvestment and new construction during the third quarter, at yields consistent with the Company’s acquisitions

 

    $91.1 million of acquisitions closed during the fourth quarter to date at an initial cash yield of 10.0%

 

    AFFO of $21.6 million, or $0.43 per diluted share; net income of $10.1 million, or $0.20 per diluted share

 

    Adjusted EBITDA of $32.2 million

“We could not be more pleased with our performance since our successful IPO in March, including our third quarter performance, which was once again consistent with our expectations. In the third quarter, our portfolio performed well, we executed $12 million of accretive, strategic and attractive investments, in high-quality properties with sophisticated and experienced operators, and our management team continued to perform at a best-in-class level,” said Craig M. Bernfield, Chairman and Chief Executive Officer of Aviv. “In October, we successfully raised $250 million in the unsecured bond market, with our lowest yield yet. Our pipeline is stronger than ever, which enabled us to execute $91 million of acquisitions early in the fourth quarter, and we have additional investments we expect to close before the year is over and we have a pipeline of identified investments for 2014. All of our investments are being made in a disciplined manner, with an emphasis on thoughtful, diligent underwriting, and with very attractive yields consistent with our historical investments. We have maintained a very low leverage profile, with net debt to EBITDA of 3.9x, and we plan to use our increased access to capital, and declining cost of capital, to achieve growing and long term stable cash flow and to provide an increasing and well covered dividend over the long term. We are extremely well positioned to continue to be one of the premiere consolidators of post-acute and long-term care SNFs and other healthcare properties, taking advantage of our unique business strategy which is tailored to the evolving healthcare policy environment, and which we have successfully executed for over 30 years. We remain committed to transparency, disclosure, communication and performance.”

AFFO for the quarter ended September 30, 2013 was $21.6 million, or $0.43 per diluted share. Adjusted EBITDA for the quarter ended September 30, 2013 was $32.2 million, compared to $28.0 million for the corresponding period in 2012. Net income for the quarter ended September 30, 2013 was $10.1 million, or $0.20 per diluted share, compared to $1.8 million, or $0.05 per diluted share, for the corresponding period in 2012. As of September 30, 2013, net debt to Adjusted EBITDA was 3.9x.

 

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Please refer to the “Reconciliation of Financial Measures” section of this press release for additional information on these financial measures. The Company is also making available certain supplemental information regarding its properties for the third quarter at www.avivreit.com under the Investor Relations tab.

Financing Activities

In October, the Company issued $250 million of 6.0% Senior Notes. $135 million of the proceeds were used to entirely pay down the Company’s revolving credit facility, with the remaining proceeds available for general corporate purposes, including for acquisitions and other investments. As of today, the Company has $87 million of cash on hand and an undrawn $400 million revolver.

Dividends

On August 16, 2013, the Company’s Board of Directors declared a dividend for the third quarter of $0.36 per share. The dividend was paid in cash on September 16, 2013 to stockholders of record on August 30, 2013.

2013 AFFO Guidance

The Company has revised its guidance for 2013 AFFO per share to $1.66 – $1.68 from $1.73 - $1.77. Substantially all of the difference is due to the bond offering and the timing of investment activity. The Company is maintaining its target of $220 million of investment activity in 2013, which includes acquisitions, property reinvestment and new construction. A reconciliation of the AFFO guidance to the Company’s projected GAAP earnings is provided on a schedule attached to this press release. The Company’s guidance is based on a number of other assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results. The Company may from time to time update its publicly announced guidance, but it is not obligated to do so.

Conference Call

A conference call to discuss the third quarter 2013 earnings will take place today at 11:00 a.m. central time / 12:00 p.m. eastern time. The dial-in number for the conference call is (877) 941-8631 (U.S.) or (480) 629-9773 (International). The conference call can also be accessed via webcast at www.avivreit.com under the Investor Relations tab. A replay of the call will be available through December 7, 2013 on the Company’s website or by calling (800) 406-7325, access code 4646016.

About Aviv

Aviv REIT, Inc., based in Chicago, is a real estate investment trust that specializes in owning post-acute and long-term care skilled nursing facilities and other healthcare properties. Aviv is one of the largest owners of SNFs in the United States and has been in the business for over 30 years. The Company currently owns 274 properties that are triple-net leased to 37 operators in 29 states.

For more information about the Company, please visit our website at www.avivreit.com or contact: David J. Smith, Managing Director, Investor Relations & Capital Markets at 312-855-0930.

Forward-Looking Statements

This press release may include forward-looking statements. Forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “continue” or similar terminology. These forward-looking statements are made based on our current expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. These uncertainties

 

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include, but are not limited to, uncertainties relating to the operations of our tenants, including those relating to reimbursement by government and other third-party payors, compliance with regulatory requirements and occupancy levels, regulatory, reimbursement and other changes in the healthcare industry, the performance and reputation of our tenants, our ability to successfully engage in strategic acquisitions and investments, the effect of general market, economic and political conditions, the availability and cost of capital, changes in tax laws and regulations affecting REITs and our ability to maintain our status as a REIT. Important factors that could cause actual results to differ materially from our expectations include those disclosed under “Risk Factors” and elsewhere in filings made by Aviv REIT, Inc. and Aviv Healthcare Properties Limited Partnership with the Securities and Exchange Commission.

 

3


Aviv REIT, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited)

 

     September 30,     December 31,  
     2013     2012  

Assets

    

Real estate investments

    

Land

   $ 126,164,813      $ 119,224,819   

Buildings and improvements

     1,003,196,438        968,074,506   

Construction in progress

     16,984,072        4,483,684   

Assets under direct financing leases

     11,143,290        11,049,120   
  

 

 

   

 

 

 
     1,157,488,613        1,102,832,129   

Less accumulated depreciation

     (140,837,563     (119,371,113
  

 

 

   

 

 

 

Net real estate investments

     1,016,651,050        983,461,016   

Cash and cash equivalents

     12,232,409        17,876,319   

Straight-line rent receivable, net

     39,099,641        36,101,861   

Tenant receivables, net

     5,567,256        3,483,534   

Deferred finance costs, net

     12,264,331        14,651,265   

Secured loan receivables, net

     31,216,884        32,638,780   

Other assets

     9,474,485        11,315,865   
  

 

 

   

 

 

 

Total assets

   $ 1,126,506,056      $ 1,099,528,640   
  

 

 

   

 

 

 

Liabilities and equity

    

Senior notes payable and other debt

   $ 511,573,921      $ 705,153,415   

Accounts payable and accrued expenses

     12,165,861        24,207,814   

Tenant security and escrow deposits

     19,258,814        18,278,172   

Other liabilities

     8,893,277        31,386,742   
  

 

 

   

 

 

 

Total liabilities

     551,891,873        779,026,143   

Equity:

    

Stockholders’ equity

    

Common stock (par value $0.01; 37,273,877 and 21,653,813 shares issued and outstanding, respectively)

     372,739        216,538   

Additional paid-in-capital

     519,115,062        375,029,917   

Accumulated deficit

     (84,504,865     (46,526,886

Accumulated other comprehensive loss

     —          (2,151,670
  

 

 

   

 

 

 

Total stockholders’ equity

     434,982,936        326,567,899   

Noncontrolling interests

     139,631,247        (6,065,402
  

 

 

   

 

 

 

Total equity

     574,614,183        320,502,497   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,126,506,056      $ 1,099,528,640   
  

 

 

   

 

 

 

 

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Aviv REIT, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(unaudited)

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
     2013     2012     2013     2012  

Revenues

        

Rental income

   $ 31,692,655      $ 30,354,273      $ 99,206,301      $ 89,683,858   

Interest on secured loans and financing lease

     1,131,228        860,328        3,272,341        3,543,642   

Interest and other income

     49,114        1,058,580        128,027        1,126,890   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     32,872,997        32,273,181        102,606,669        94,354,390   

Expenses

        

Interest expense

     9,387,086        12,905,768        32,115,139        37,693,597   

Depreciation and amortization

     8,301,870        6,894,012        24,399,334        19,671,033   

General and administrative

     4,040,535        3,947,939        21,472,935        11,406,114   

Transaction costs

     1,036,461        1,286,425        1,583,184        3,507,057   

Loss on impairment of assets

     —          1,766,873        —          6,145,731   

Reserve for uncollectible secured loans and other receivables

     26,740        3,604,630        56,521        8,820,937   

Loss (gain) on sale of assets, net

     13,378        —          (25,799     —     

Loss on extinguishment of debt

     —          —          10,974,196        —     

Other expenses

     —          100,088        —          300,265   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     22,806,070        30,505,735        90,575,510        87,544,734   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     10,066,927        1,767,446        12,031,159        6,809,656   

Discontinued operations

     —          —          —          4,586,692   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     10,066,927        1,767,446        12,031,159        11,396,348   

Net income allocable to noncontrolling interests

     (2,446,263     (637,162     (3,236,382     (4,451,239
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income allocable to stockholders

   $ 7,620,664      $ 1,130,284      $ 8,794,777      $ 6,945,109   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 10,066,927      $ 1,767,446      $ 12,031,159      $ 11,396,348   

Unrealized loss on derivative instruments

     —          (39,482     —          (820,974
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

   $ 10,066,927      $ 1,727,964      $ 12,031,159      $ 10,575,374   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income allocable to stockholders

   $ 7,620,664      $ 1,130,284      $ 8,794,777      $ 6,945,109   

Unrealized loss on derivative instruments, net of noncontrolling interest portion of $0, $14,233, $0, and $314,686, respectively

     —          (25,249     —          (506,288
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income allocable to stockholders

   $ 7,620,664      $ 1,105,035      $ 8,794,777      $ 6,438,821   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share:

        

Basic:

        

Income from continuing operations allocable to stockholders

   $ 0.20      $ 0.05      $ 0.27      $ 0.21   

Discontinued operations, net of noncontrolling interests

     —          —          —          0.14   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income allocable to stockholders

   $ 0.20      $ 0.05      $ 0.27      $ 0.35   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

        

Income from continuing operations allocable to stockholders

   $ 0.20      $ 0.05      $ 0.26      $ 0.21   

Discontinued operations, net of noncontrolling interests

     —          —          —          0.14   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income allocable to stockholders

   $ 0.20      $ 0.05      $ 0.26      $ 0.35   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing earnings per common share:

        

Basic

     37,271,714        21,178,250        32,408,843        19,453,438   

Diluted

     50,838,556        21,307,401        42,101,101        19,582,589   

Dividends declared per common share

   $ 0.36      $ 0.33      $ 0.744      $ 1.03   

 

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Aviv REIT, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
     2013     2012     2013     2012  

Operating activities

        

Net income

   $ 10,066,927      $ 1,767,446      $ 12,031,159      $ 11,396,348   

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     8,301,870        6,894,011        24,399,334        19,705,142   

Amortization of deferred financing costs

     809,996        931,253        2,516,150        2,626,446   

Accretion of debt premium

     (128,662     (123,991     (376,918     (292,423

Straight-line rental income, net

     1,226,518        (1,802,440     (2,997,780     (5,922,684

Rental income from intangible amortization, net

     (365,111     (411,916     (1,096,816     (1,149,423

Non-cash stock-based compensation

     537,314        513,261        10,929,569        1,229,957   

Gain on sale of assets, net

     13,378        —          (25,799     (4,425,246

Non-cash loss on extinguishment of debt

     —          —          5,160,614        13,264   

Loss on impairment of assets

     —          1,766,873        —          6,145,731   

Reserve for uncollectible loans and other receivables

     26,740        3,604,630        56,521        8,820,937   

Accretion of earn-out provision for previously acquired real estate investments

     —          100,088        —          300,265   

Changes in assets and liabilities:

        

Tenant receivables

     (1,512,196     151,053        (3,785,413     (5,424,432

Other assets

     433,615        (693,064     1,058,131        (3,560,710

Accounts payable and accrued expenses

     (6,553,129     (7,552,474     (9,468,421     (4,676,099

Tenant security deposits and other liabilities

     2,038,298        156,501        1,600,122        (856,750
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     14,895,559        5,301,233        40,000,453        23,930,323   

Investing activities

        

Purchase of real estate investments

     (12,450,000     (25,486,831     (40,476,000     (133,998,037

Proceeds from sales of real estate investments

     2,236,622        —          4,842,219        30,542,644   

Capital improvements

     (1,992,871     (4,133,241     (9,908,987     (10,458,200

Development projects

     (3,882,108     (6,838,866     (11,979,968     (21,238,457

Secured loan receivables received from others

     861,181        3,419,750        3,221,706        14,797,338   

Secured loan receivables funded to others

     —          (5,537,185     (2,707,383     (17,146,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (15,227,176     (38,576,373     (57,008,413     (137,500,798

 

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Aviv REIT, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (continued)

(unaudited)

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
     2013     2012     2013     2012  

Financing activities

        

Borrowings of debt

   $ 15,000,000      $ 33,720,000      $ 160,000,000      $ 224,761,094   

Repayment of debt

     (37,619     (20,986,871     (353,202,576     (172,211,473

Payment of financing costs

     (6,898     (23,107     (5,289,831     (5,143,395

Payment for swap termination

     —          —          (3,606,000     —     

Capital contributions

     26        34,000,000        425,175        109,000,000   

Deferred contribution

     —          —          —          (35,000,000

Initial public offering proceeds

     —          —          303,600,000        —     

Cost of raising capital

     7,854        —          (25,379,370     —     

Cash distributions to partners

     (4,324,721     (4,003,546     (16,275,919     (12,523,881

Cash dividends to stockholders

     (13,340,824     (7,531,520     (48,907,429     (21,231,417
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     (2,702,182     35,174,956        11,364,050        87,650,928   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (3,033,799     1,899,816        (5,643,910     (25,919,547

Cash and cash equivalents:

        

Beginning of period

     15,266,208        13,042,659        17,876,319        40,862,023   
  

 

 

   

 

 

   

 

 

   

 

 

 

End of period

   $ 12,232,409      $ 14,942,476      $ 12,232,409      $ 14,942,476   
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental cash flow information

        

Cash paid for interest

   $ 16,595,058      $ 20,172,054      $ 39,644,968      $ 41,967,088   

Supplemental disclosure of noncash activity

        

Accrued dividends payable to stockholders

   $ —        $ 489,832      $ —        $ 10,097,872   

Accrued distributions payable to partners

   $ (26,890   $ 49,426      $ —        $ 4,052,974   

Write-off of straight-line rent receivable, net

   $ 2,887,207      $ —        $ 2,887,207      $ 567,745   

Write-off of in-place lease intangibles, net

   $ —        $ 48,554      $ —        $ 48,554   

Write-off of deferred financing costs, net

   $ —        $ —        $ 5,160,614      $ 13,264   

Assumed debt

   $ —        $ —        $ —        $ 11,459,794   

 

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Reconciliation of Financial Measures

We use financial measures in this release that are derived on the basis of methodologies other than in accordance with GAAP. We derive these measures as follows:

 

    The National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as net income (computed in accordance with GAAP), excluding gains and losses from sales of property (net) and impairments of depreciated real estate, plus real estate depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Applying the NAREIT definition to our financial statements results in FFO representing net income before depreciation and amortization, impairment of assets and gain (loss) on sale of assets.

 

    Normalized FFO represents FFO before loss on extinguishment of debt, reserves for uncollectible loan receivables, transaction costs and change in fair value of derivatives.

 

    AFFO represents Normalized FFO before amortization of deferred financing costs, non-cash stock-based compensation, straight-line rent and rental income from intangible amortization.

 

    EBITDA represents net income before interest expense (net) and depreciation and amortization.

 

    Adjusted EBITDA represents EBITDA before impairment of assets, gain (loss) on sale of assets, transaction costs, write-off of straight-line rents, non-cash stock-based compensation, loss on extinguishment of debt, reserves for uncollectible loan receivables and change in fair value of derivatives.

Our management uses FFO, Normalized FFO, AFFO, EBITDA and Adjusted EBITDA as important supplemental measures of our operating performance and liquidity. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. The term FFO was designed by the real estate industry to address this issue and as an indicator of our ability to incur and service debt. Because FFO, Normalized FFO and AFFO exclude depreciation and amortization unique to real estate, impairment, gains and losses from property dispositions and extraordinary items and because EBITDA and Adjusted EBITDA exclude certain non-cash charges and adjustments and amounts spent on interest and taxes, they provide our management with performance measures that, when compared year over year or with other real estate investment trusts, or REITs, reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and, with respect to FFO, Normalized FFO and AFFO, interest costs, in each case providing perspective not immediately apparent from net income. In addition, we believe that FFO, Normalized FFO, AFFO, EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs.

We offer these measures to assist the users of our financial statements in assessing our financial performance and liquidity under GAAP, but these measures are non-GAAP measures and should not be considered measures of liquidity, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP, nor are they indicative of funds available to fund our cash needs, including our ability to make payments on our indebtedness. In addition, our calculations of these measures are not necessarily comparable to similar measures as calculated by other companies that do not use the same definition or implementation guidelines or interpret the standards differently from us. Investors should not rely on these measures as a substitute for any GAAP measure, including net income, cash flows provided by operating activities or revenues.

 

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     Three Months Ended September 30,  

EBITDA

   2013     2012  

Net income

   $ 10,066,927      $ 1,767,446   

Adjusted for:

    

Interest expense, net

     9,386,769        12,905,526   

Depreciation and amortization

     8,301,870        6,894,012   
  

 

 

   

 

 

 

EBITDA

   $ 27,755,566      $ 21,566,984   
  

 

 

   

 

 

 

Adjusted EBITDA

            

EBITDA

   $ 27,755,566      $ 21,566,984   

Adjusted for:

    

Loss on impairment of assets

     —          1,766,873   

Loss (gain) on sale of assets, net

     13,378        —     

Transaction costs

     1,036,461        1,286,425   

Write-off of straight-line rents

     2,887,207        —     

Non-cash stock-based compensation

     534,814        513,260   

Loss on extinguishment of debt

     —          —     

Reserve for uncollectible loan receivables

     —          2,833,419   

Change in fair value of derivatives

     —          —     
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 32,227,426      $ 27,966,961   
  

 

 

   

 

 

 

FFO

            

Net income

   $ 10,066,927      $ 1,767,446   

Adjusted for:

    

Depreciation and amortization

     8,301,870        6,894,012   

Loss on impairment of assets

     —          1,766,873   

Loss (gain) on sale of assets, net

     13,378        —     
  

 

 

   

 

 

 

FFO

   $ 18,382,175      $ 10,428,331   
  

 

 

   

 

 

 

Normalized FFO

            

FFO

   $ 18,382,175      $ 10,428,331   

Adjusted for:

    

Loss on extinguishment of debt

     —          —     

Reserve for uncollectible loan receivables

     —          2,833,419   

Transaction costs

     1,036,461        1,286,425   

Change in fair value of derivatives

     —          —     
  

 

 

   

 

 

 

Normalized FFO

   $ 19,418,636      $ 14,548,175   
  

 

 

   

 

 

 

AFFO

            

Normalized FFO

   $ 19,418,636      $ 14,548,175   

Adjusted For:

    

Amortization of deferred financing costs

     809,996        931,253   

Non-cash stock-based compensation

     534,814        513,260   

Straight-line rental income, net

     1,226,519        (1,802,440

Rental income from intangible amortization, net

     (365,111     (411,916
  

 

 

   

 

 

 

AFFO

   $ 21,624,854      $ 13,778,334   
  

 

 

   

 

 

 

Weighted average common shares and units outstanding, basic1

     49,210,134     
  

 

 

   

Weighted average common shares and units outstanding, diluted2

     50,838,556     
  

 

 

   

AFFO per share and unit, basic

   $ 0.44     
  

 

 

   

AFFO per share and unit, diluted

   $ 0.43     
  

 

 

   

 

1) Includes 37,271,714 common shares and 11,938,420 units.
2) Includes dilution of 29,093 from restricted stock units and 5,870,258 options outstanding with a weighted average exercise price of $17.47. Using the average stock price of $24.02 for the third quarter results in dilution of 1,599,329 shares.

 

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The following table illustrates the Company’s AFFO guidance for the year ending December 31, 2013:

 

     Updated Guidance     Previously Issued
Guidance
 

Per diluted common share:

              

Net income

   $ 0.45        —         $ 0.47      $ 0.57        —         $ 0.61   

Adjusted for:

              

Depreciation and amortization

     0.71        —           0.71        0.71        —           0.71   

Gain on sale of assets, net

     (0.00     —           (0.00     (0.01     —           (0.01
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

FFO

   $ 1.16        —         $ 1.18      $ 1.28        —         $ 1.32   

Adjusted for:

              

Loss on extinguishment of debt

     0.23        —           0.23        0.23        —           0.23   

Reserve for uncollectible loan receivables

     0.00        —           0.00        0.00        —           0.00   

Transaction costs

     0.09        —           0.09        0.08        —           0.08   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Normalized FFO

   $ 1.49        —         $ 1.51      $ 1.59        —         $ 1.63   

Adjusted for:

              

Amortization of deferred financing costs

     0.07        —           0.07        0.06        —           0.06   

Non-cash stock-based compensation

     0.25        —           0.25        0.26        —           0.26   

Straight-line rental income, net

     (0.12     —           (0.12     (0.15     —           (0.15

Rental income from intangible amortization, net

     (0.03     —           (0.03     (0.03     —           (0.03
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

AFFO

   $ 1.66        —         $ 1.68      $ 1.73        —         $ 1.77   

 

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