The Company expects torecognize a loss on extinguishment of debt of approximately $7 million in thesecond quarter of 2009
The Company expects torecognize a loss on extinguishment of debt of approximately $7 million in thesecond quarter of 2009.* At March 31, 2009, the Company had $212.4 million outstanding under its CreditFacilities; $650.9 million of undrawn availability; and $95.8 million of cashand short-term cash investments. As a result of the tender offers, the Company repurchased $100.7million principal amount of 2010 senior notes, $104.4 million principal amountof 2012 senior notes, $98.1 million principal amount of 2014 senior notes and$2.9 million principal amount of 2015 senior notes. * On May 4, 2009, the Company completed its cash tender offers for $310.0million aggregate purchase price of the outstanding senior notes due 2010, 2012,2014 and 2015. * On April 13, 2009, the Company issued unsecured Senior Notes due June 1, 2016,receiving total proceeds of $168.5 million before the underwriting discount andexpenses, with a yield to maturity of 9.6 percent.* Proceeds from the Senior Notes and common stock offerings were used to fundthe Company`s cash tender offers with respect to certain of its outstandingsenior notes, other debt repayments and for general corporate purposes.
* In April 2009, the Company issued and sold 13.1 million shares of common stockfor gross proceeds of $312 million, before the underwriting discount andexpenses. The second portion of the Credit Facilities, whichmatures on April 26, 2010, has $277.0 million of borrowing capacity and remainspriced at LIBOR plus 75 basis points. The first portion of the Credit Facilities, maturing April 26,2012, contains $590.0 million of borrowing capacity and is currently priced atLIBOR plus 280 basis points. Borrowingcapacity under the Credit Facilities increased to $867.0 million and consists oftwo portions. FIRST QUARTER HIGHLIGHTS AND OTHER RECENT DEVELOPMENTSPortfolio, Performance and Balance Sheet HighlightsLiquidity & Balance Sheet* On March 31, 2009, the Company extended and amended its unsecured revolvingcredit facilities (the “Credit Facilities”) from 2010 until 2012. GAAP NET INCOMENet income attributable to common stockholders for the quarter ended March 31,2009 was $74.2 million, or $0.52 per diluted common share, after discontinuedoperations of $28.3 million, compared with net income attributable to commonstockholders for the quarter ended March 31, 2008 of $31.2 million, or $0.23 perdiluted common share, after discontinued operations of $1.5 million. Movements in the Canadian dollarexchange rate had an unfavorable impact on NOI of $1.1 million for the firstquarter of 2009, compared to the first quarter of 2008.
73 Same-Store Stabilized Community ResultsFor the 73 Sunrise communities that were stabilized in the first quarters ofboth 2009 and 2008, total community NOI was $28.3 million in 2009, versus $32.7million for the comparable 2008 period. The decrease,which was consistent with the Company’s NOI guidance, relates principally to themovements in the Canadian dollar exchange rate, which had an unfavorable impacton NOI of $1.2 million in 2009, and lower revenue in the stabilized portfolioversus the comparable 2008 period. NOI for those 79 communities was $30.5 million for the quarter ended March 31,2009, compared to $33.4 million for the comparable 2008 period. Ventas owns 100 percent of 19 of these communities and has apartnership share of between 75 percent and 85 percent in the remaining 60communities, with Sunrise owning the noncontrolling interest in those 60communities. SUNRISE PORTFOLIOTotal PortfolioThe Company`s operating portfolio contains 79 seniors housing communities inNorth America that are managed by Sunrise Senior Living, Inc (NYSE: SRZ)(“Sunrise”). First quarter 2009 NAREIT FFOper diluted common share decreased eleven percent to $0.66, from $0.74 a yearearlier due to the above stated factors.
FFO, as defined by the National Association of Real Estate Investment Trusts(“NAREIT”), for the first quarter of 2009 decreased seven percent to $94.5million, from $101.3 million in the prior year. Normalized FFO forthe quarter ended March 31, 2009 excludes the net expense (totaling $1.2million, or $0.01 per share) from merger-related expenses and deal costs andloss on extinguishment of debt, offset by income tax benefit. Weighted average diluted shares outstanding in the first quarter of2009 were 143.1 million, compared to 136.7 million in 2008. “In addition, our recent agreement with our valued tenant KindredHealthcare to renew its leases for 109 healthcare assets until 2015 enhances thereliability of our future cash flows and continues our increasinglycollaborative relationship with Kindred.” First quarter normalized FFO per share benefited from rental increases from theCompany`s triple-net lease portfolio, higher revenues at the Company`s medicaloffice building (“MOB”) operating portfolio, additional investments and lowerinterest expense, offset in part by lower Net Operating Income after managementfees (“NOI”) at the Company`s senior living operating portfolio, the movementsin foreign exchange rates and higher weighted average diluted sharesoutstanding. “We had an excellent first quarter, with seven percent growth in our cash flowfrom operations, and our capital raising activities are building strength onstrength,” Ventas Chairman, President and Chief Executive Officer Debra A.Cafaro said. Normalized FFOper diluted common share was $0.67 in the first quarter of 2009, even with thecomparable 2008 period. (NYSE: VTR) (“Ventas” or the “Company”) said today that firstquarter 2009 normalized Funds From Operations (“FFO”) increased five percent to$95.7 million, from $91.5 million for the comparable 2008 period.