Printer Friendly

HEALTH EQUITY REPORTS INCREASES IN NET INCOME AND FUNDS FROM OPERATIONS FOR FIRST SIX MONTHS OF 1992

 HEALTH EQUITY REPORTS INCREASES IN NET INCOME AND
 FUNDS FROM OPERATIONS FOR FIRST SIX MONTHS OF 1992
 WINSTON-SALEM, N.C., July 17 /PRNewswire/ -- Health Equity Properties (NYSE: EQP) announced operating results today for the second quarter ended June 30, 1992. The Company reported net income of $1,236,354 ($0.09 per share) for the second quarter ended June 30, 1992, compared to a net loss of $340,787 ($0.07) per share for the same period of 1991. The second quarter's operations brings net income for the six months ended June 30, 1992 to $2,505,758 ($0.21 per share), compared to a loss of $671,967 ($0.15 per share) for the same period of 1991.
 For the six months ended June 30, 1992, funds from operations equalled $5,961,833 ($0.50 per share). Funds from operations, as defined by the National Association of Real Estate Investment Trusts, is 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.
 As previously reported, the Company declared dividends for the first two quarters of 1992 of $0.465 per share up from 1991's total of $0.425 for the first six month period. The second quarter of 1992 dividend increase is consistent with the Company's practice of raising the dividend by $0.005 per quarter, and is the seventh consecutive quarterly increase.
 The dramatic increase in net income for the first six months of 1992 versus 1991 came from changes in several items. The largest change was a $2.4 million decrease in interest expense which is a result of the decrease in debt over the last twelve months. Debt was reduced from $92.9 million on June 30, 1991 to $35.6 million on June 30, 1992 through the conversion of the senior debentures and retirement of debt with the proceeds of three stock offerings. The latest stock offering of $29 million closed in April 1992, and the Company used the proceeds to reduce debt during May and June. The full effect on interest expense of the recent paydowns will be felt beginning in the third quarter of 1992. The debt paydowns have lowered the secured debt to equity ratio of 0.4 to 1 and removed all debt that matured before 1997. Also as a result of the recent paydowns, the Company experienced a one-time, noncash, extraordinary loss during the second quarter of $208,256 due to the write-off of unamortized loan costs.
 Other items affecting increases in net income in 1992 as compared to 1991 were increases in additional rent of approximately $94,000 (22 percent), increases in interest income of approximately $195,000 (133 percent), reductions in amortization expense of approximately $355,000 (25 percent) and reductions in administrative and other expense of $346,000 (31 percent).
 The Company now has cash reserves of $16.7 million resulting from the April stock offering. Uses for the remaining offering proceeds include the possible acquisition of properties, the retirement of additional debt and general corporate purposes.
 Based in Winston-Salem, N.C., Health Equity Properties is an equity real estate investment trust which owns 75 long-term healthcare facilities in five states. The Company is managed by a nine member board of directors, five of whom are independent from the Company.
 HEALTH EQUITY PROPERTIES
 SELECTED OPERATING DATA
 (Unaudited)
 Three Months Three Months Six Months Six Months
 Ended 6/30/92 Ended 6/30/91 Ended 6/30/92 Ended 6/30/91
 Rent $4,494,779 $4,384,335 $8,963,000 $8,889,753
 Interest and
 other income $217,749 $69,481 $341,130 $145,960
 Net income
 (loss) before
 extraordinary
 item $1,444,880 ($340,787) $2,714,284 ($671,967)
 Net income
 (loss) $1,236,354 ($340,787) $2,505,758 ($671,967)
 Net income
 (loss) before
 extraordinary
 item per share $0.11 ($0.07) $0.23 ($0.15)
 Net income
 (loss) per share $0.09 ($0.07) $0.21 ($0.15)
 Funds from
 operations $3,088,657 $1,481,669 $5,961,833 $2,970,803
 Net cash
 provided from
 operations $3,062,544 $2,214,072 $5,419,264 $3,017,075
 Cash dividends
 declared per
 share $0.235 $0.215 $0.465 $0.425
 Average shares
 outstanding 13,380,977 4,973,923 11,996,891 4,588,225
 SELECTED BALANCE SHEET DATA:
 June 30, 1992 December 31, 1991
 (unaudited)
 Nursing home properties, gross $122,550,156 $122,380,130
 Cash and cash equivalents $16,674,893 $2,293,818
 Total assets $129,287,416 $117,657,029
 Mortgage debt $33,810,533 $47,173,115
 Senior debentures $1,825,000 $4,140,000
 Shareholders' equity $88,686,109 $62,406,766
 -0- 7/17/92
 /CONTACT: William G. Benton or Deborah S. Kecseti, Health Equity Properties, 919-723-7580/
 (EQP) CO: Health Equity Properties ST: North Carolina IN: HEA SU: ERN


CM -- CH006 -- 0205 07/17/92 11:24 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 17, 1992
Words:834
Previous Article:AMAX REPORTS SECOND QUARTER RESULTS
Next Article:LIMBACH CONSTRUCTORS, INC. NAMED FIFTH LARGEST MECHANICAL CONTRACTOR IN UNITED STATES
Topics:


Related Articles
FIRST UNION ANNOUNCES SECOND QUARTER RESULTS
UNITED DOMINION REALTY TRUST REPORTS SECOND QUARTER 1992 RESULTS
TRAMMELL CROW REAL ESTATE INVESTORS REPORTS SECOND QUARTER 1992 RESULTS
HEALTH EQUITY REPORTS CONTINUED INCREASES IN NET INCOME AND FUNDS FROM OPERATIONS FOR THIRD QUARTER
HEALTH EQUITY ANNOUNCES RESULTS FOR THE YEAR AND THE QUARTER ENDED DEC. 31, 1992
HEALTH EQUITY ANNOUNCES RESULTS FOR THE QUARTER ENDED MARCH 31, 1993
MGI PROPERTIES REPORTS SECOND QUARTER RESULTS, DECLARES DIVIDEND
HEALTH EQUITY ANNOUNCES CONTINUED INCREASES IN INCOME AND FUNDS FROM OPERATIONS FOR THE FIRST SIX MONTHS OF 1993
UNITED DOMINION REALTY TRUST REPORTSHIGHER SECOND QUARTER RESULTS
HEALTH EQUITY ANNOUNCES CONTINUED INCREASES IN INCOME AND FUNDS FROM OPERATIONS FOR THE FIRST NINE MONTHS OF 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters