ElderTrust Announces Controlling Interest Acquisition; Will Consolidate Nine Off Balance Sheet Properties.Business Editors KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Sept. 25, 2002 ElderTrust (NYSE NYSE See: New York Stock Exchange :ETT ETT Empresa de Trabajo Temporal (Spain) ETT European Transactions on Telecommunications ETT Exercise Treadmill Test ETT Embedded Training Team ETT Exercise Tolerance Test (cardiology) ; the "Company"), an equity healthcare REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , announced today that it has acquired, or has obtained options to acquire (collectively the "Acquisition"), from D. Lee McCreary, Jr., ElderTrust's President and Chief Executive Officer, the controlling 1% ownership interests in seven skilled nursing and two assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. facilities. The Company has owned a non-controlling 99% interest in these properties since 1998. Under the Acquisition terms, the Company has acquired Mr. McCreary's interest in the seven skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. , and options to acquire his interests in the two assisted living facilities, for approximately $85,000. The options, which the Company intends to exercise upon receipt of lender approval, are exercisable for a combined additional price of approximately $17,000. The purchase prices for Mr. McCreary's interests in the skilled nursing facilities and the assisted living facilities were determined based upon estimated fair market value of the interests acquired. Prior to this transaction, the Company accounted for its investment in these properties under the equity method of accounting. Beginning with the quarter ending September 30, 2002, these entities will be consolidated with the Company's other operations. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis giving effect to the Acquisition, the Company's total assets will increase from approximately $201 million to approximately $309 million at June 30, 2002. The Acquisition will have no material impact on reported shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. or earnings. "We are very pleased to make this announcement," said D. Lee McCreary, Jr., ElderTrust's President and Chief Executive Officer. "Although we have historically provided detailed information regarding theses properties one of our long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. has been to provide more clarity to our financial statements. The consolidation of these interests will further that goal." After giving effect to the Acquisition, the Company has one remaining unconsolidated investment in ET Capital Corp., which totals $3 million at June 30, 2002. The Company has a nonvoting 95% equity interest in ET Capital Corp. Mr. McCreary owns the voting 5% equity interest. ElderTrust is a real estate investment trust that invests in real estate properties used in the healthcare services industry, principally along the East Coast of the United States The "Eastern Seaboard," or "Atlantic Seaboard" are terms referring to the easternmost coastal states in the United States. They touch the Atlantic Ocean and stretch up to Canada. . Since commencing operations in January 1998, the Company has acquired 32 properties. Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although ElderTrust believes the expectations reflected in such forward-looking statements are reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from ElderTrust's expectations include the extent to which Genesis Health Ventures, Inc., the Company's principal tenant, continues to make lease payments to the Company, the Company's ability to extend or refinance mortgage loans totaling approximately $30 million that mature on December 1, 2002, real estate conditions, changes in the economic conditions and other risks detailed from time to time in the Company's SEC reports and filings. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. For more information on ElderTrust visit ElderTrust's Web site at www.eldertrust.com |
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