Wednesday, Nationwide Health Properties, Inc. (NHP), a real estate investment trust, reported a 11.3% increase in fourth quarter recurring funds from operations helped by a 15.4% increase in revenues. The company also provided guidance for fiscal 2009 that came below the Street view.
Recurring Funds from Operations or FFO for the quarter advanced 11.3% to $59.36 million from $53.3 million in the corresponding period last year. Recurring FFO per share increased 3.7% to $0.56 from $0.54 in the prior year quarter and was in line with the $0.56 per share projected by thirteen analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
FFO increased to $64 million or $0.60 per share from $55 million or $0.56 per share in the same period last year. Recurring Funds available for Distribution or FAD increased to $58.55 million or $0.55 per share from $52.25 million or $0.53 per share in the prior year period.
Net income declined to $33.4 million, down 37.2% from $53.24 million in the prior year period. Net income available to common stockholders declined to $31.96 million or $0.31 per share from $51.17 million or $0.54 per share in the year-ago period.
Quarterly revenues increased 15.4% to $96.47 million from $83.6 million in the corresponding period last year and exceeded the consensus estimate of 94.09 million projected by Street analysts.
For all of 2008, FFO rose to $236.5 million or 2.29 per share from $203.2 million or $2.12 per share in the previous year. Net income grew by 19.5% to $268.14 million from $224.46 million last year. Income available to common stockholders increased 13.8% to $2.64 per share from $2.32 per share in the previous year. Revenue advanced 21% to $370.6 million from $306.2 million last year.
Looking ahead, for 2009 the company expects FFO to be between $2.20 and $2.25 per share compared with Street analysts' current estimate of $2.31 per share. FAD is expected to be between $2.18 and $2.23 per share.
Beginning in 2009, certain costs associated with acquisitions, which were previously capitalized, are required to be expensed. The company said it might incur certain costs that will be expensed and those costs could be material.
NHP declined $0.03 or 0.14% and closed Wednesday's regular trading session at $21.70.
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