Real estate investment trust Nationwide Health Properties, Inc. (NHP) on Thursday reported a 39% year-over-year surge in profit for the first quarter, as quarterly revenues increased 14.1%. Funds from operations or FAD also increased 9.4%. Funds available for distribution or FAD per share rose 5.6% and came in above analysts' expectations by a penny. The company also raised its earnings guidance for fiscal 2009.
The Newport Beach, California-based company reported net income of $49.15 million or $0.47 per share for the first quarter, up from $35.39 million or $0.37 per share in the year-ago quarter. Income form continuing operations increased to $29.40 million or $0.27 per from $22.94 million or $0.22 per share in the corresponding quarter last year.
Funds from operations or FFO for the quarter increased to $61.57 million or $0.57 per share from $56.29 million or $0.56 per share in the prior-year quarter. Funds available for Distribution or FAD rose to $61.43 million or $0.57 per share from $54.57 million or $0.54 per share in the comparable quarter a year ago.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 14.1% to $97.25 million from $85.27 million in the same quarter last year. Four Wall Street analysts had a consensus revenue estimate of $92.37 million for the quarter.
Revenues for triple-net lease rent for the first quarter increased to $74.26 million from $69.07 million in the year-ago quarter, and revenues for medical office building operating rent totaled $16.65 million, up from $10.93 million in the prior-year quarter. Interest and other income for the quarter rose to $6.34 million from $5.27 million in the comparable quarter year ago.
Operating income for the first quarter rose to $28.39 million from $21.89 million in the prior-year quarter. Total expenses were $68.87 million, higher than $63.38 million in the year-ago quarter.
Looking ahead to fiscal 2009, Nationwide Health raised its recurring FFO guidance to a range of $2.22 to $2.26 per share from the prior forecast in the range of $2.20 to $2.25 per share. The company also currently anticipates recurring FAD of between $2.20 and $2.24 per share, up from the prior guidance $2.18 to $2.23 per share. The Street is looking for full-year 2009 earnings of $2.22 per share.
NHP closed Thursday's regular trading session at $24.25, down $1.28 or 5.01% on a volume of 2.47 million shares, lower than the three-month average volume of 3.02 million shares.
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