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HEALTH EQUITY ANNOUNCES CONTINUED INCREASES IN INCOME AND FUNDS FROM OPERATIONS FOR THE FIRST NINE MONTHS OF 1993

 WINSTON-SALEM, N.C., Oct. 18 /PRNewswire/ -- Health Equity Properties (NYSE: EQP) announced operating results today for the third quarter and nine months ended Sept. 30, 1993. Funds from operations equalled $3,819,508 ($0.26 per share) for the quarter ended Sept. 30, 1993, and $11,263,636 ($0.78 per share) for the nine months ended Sept. 30, 1993. The company defines funds from operations as net income (computed in accordance with generally accepted accounting principles), less gains or plus losses from debt restructuring and sales of property, plus depreciation and amortization expense.
 On Sept. 14, 1993, the company's board of directors declared a dividend of $0.245 per share. The dividend is payable on Oct. 29, 1993, to shareholders of record as of Sept. 30, 1993. The dividend is the 28th consecutive quarterly distribution since the company's inception in 1986.
 The company reported net income of $2,168,827 ($0.15 per share) for the quarter ended Sept. 30, 1993, up from $1,944,784 ($0.13 per share) for the same period of 1992, bringing net income for the nine months ended Sept. 30, 1993, to $6,400,749 ($0.44 per share), compared to $4,450,542 ($0.35 per share) for the same period of 1992.
 The increase in net income for the third quarter of 1993 as compared to the same period of 1992 reflects the continuing effect of the company's dramatic paydown of the debt during 1992. Debt was reduced by $25.2 million during 1992 through the conversion of the company's senior debentures and retirement of debt with the proceeds of the company's $29.3 million stock offering in April 1992. As a result of the paydowns, interest expense decreased from $3.3 million for the first nine months of 1992 to $2.1 million for the first nine months of 1993.
 Other factors contributing to the increase in net income during the first nine months were an increase in additional rent of approximately $267,000, as well as a base rent increase of approximately $367,000. The increase in base rent reflects revenue from the company's Kansas facility acquired in late 1992 and Florida facility acquired in June 1993. In addition, the company further reduced high constant debt in the second and third quarters of 1993 by approximately $3.0 million with a portion of the proceeds from refinancing two of its facilities. The company's secured debt to equity ratio is currently less than .4 to 1.
 Based in Winston-Salem, N.C., Health Equity Properties is an equity real estate investment trust which owns 77 long-term health care facilities in seven states. The company is managed by a nine-member board of directors, five of whom are independent from the company.
 SELECTED OPERATING DATA (UNAUDITED)
 Three Months Three Months Nine Months Nine Months
 Ended Ended Ended Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Income:
 Base rent $4,436,535 $4,218,868 $13,029,342 $12,661,928
 Additional rent 408,868 388,162 l,175,676 908,102
 Interest and
 other 117,092 224, 309 345,432 565,439
 $4,962,495 $4,831,339 $14,550,450 $14,135,469
 Income before
 extraordinary
 item $2,168,827 $2,065,733 $6,400,749 $4,780,017
 Extraordinary
 item --- (120,949) --- (329,475)
 Net income $2,168,827 $1,944,784 $6,400,749 $4,450,542
 Income per share
 before extra-
 ordinary item $0.15 $0.14 $0.44 $0.37
 Extraordinary item --- (0.01) --- (0.02)
 Net income
 per share $0.15 $0.13 $0.44 $0.35
 Average shares
 outstanding 14,583,086 14,475,108 14,540,657 12,828,993
 Funds from
 operations $3,819,508 $3,669,224 $11,263,636 $9,631,057
 Funds from
 operations
 per share $0.26 $0.25 $0.78 $0.75
 Dividends
 declared $3,572,856 $3,480,519 $10,699,432 $9,385,771
 Dividends
 declared per
 share $0.245 $0.240 $0.735 $0.705
 CONDENSED CONSOLIDATED SELECTED BALANCE SHEETS
 Sept. 30, Dec. 31,
 1993 1992
 (unaudited)
 Nursing home properties $129,897,070 $124,510,394
 Accumulated depreciation (29,059,785) (25,613,823)
 100,837,285 98,896,571
 Cash and cash equivalents 6,279,733 6,271,821
 All other 10,528,642 12,092,631
 Total assets $117,645,660 $117,261,023
 Debt:
 Notes and mortgages $29,074,378 $24,698,794
 Convertible debentures 1,355,000 1,355,000
 30,429,378 26,053,794
 Dividends payable 3,572,856 3,553,721
 Other 1,106,135 1,510,791
 Liabilities 35,108,369 31,118,306
 Shareholders' equity 82,537,291 86,142,717
 Total liabilities and
 shareholders' equity $117,645,660 $117,261,023
 -0- 10/18/93
 /CONTACT: William G. Benton or Jody Ragan of Health Equity Properties, 919-723-7580/
 (EQP)


CO: Health Equity Properties ST: North Carolina IN: HEA SU: ERN

SB-CM -- CH009 -- 3473 10/18/93 14:45 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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