2009 Second Quarter Highlights - Received $29.3 million from the
prepayment of a mortgage investment in April 2009 at par - Received
$8.2 million from the prepayment of a mortgage investment in June
2009 at par NEW YORK, Aug. 10 /PRNewswire-FirstCall/ -- Care
Investment Trust Inc. (NYSE:CRE) ("Care" or the "Company"), a real
estate investment and finance company formed to invest in
healthcare-related real estate and commercial mortgage debt, today
reported financial results for the second quarter ended June 30,
2009. The Company reported a net loss as calculated in accordance
with GAAP of $0.5 million, or $0.03 per basic and diluted share.
Net income was impacted by a non-cash depreciation charge from the
Company's real estate investments of $3.3 million. Funds From
Operations (FFO) for the second quarter of 2009 were $2.7 million,
or $0.14 per basic and diluted share. Adjusted Funds From
Operations (AFFO) amounted to $0.8 million, or $0.04 per basic and
diluted share. FFO is the result of adding back to net income the
Company's share of depreciation and amortization of real estate
related to Care's investment in the Cambridge properties and its
acquisition of the Bickford properties. AFFO reflects additional
adjustments for other non-cash income and expense items including
stock-based compensation, straight-lining of lease revenue, the
unrealized gain or loss on the revaluation of partnership units in
relation to the Company's investment in the Cambridge properties
and the unrealized gain or loss recognized on loans carried at the
lower of cost or market. These adjustments are detailed on the
Reconciliation of Non-GAAP Financial Measures attached hereto.
Portfolio Activity Wholly-owned and Partially-owned Real Estate
Wholly-owned real estate totaled $103.1 million at June 30, 2009,
consisting of investments in 14 assisted and independent living and
alzheimers' facilities, all of which were net leased. In addition,
Care had real estate investments in partially-owned entities of
$60.8 million at the end of the second quarter 2009, consisting of
investments in equity interests in limited liability entities
owning nine medical office buildings as well as a joint venture
acquisition of four assisted and independent living facilities.
Loan Portfolio Net investments in loans were $101.2 million as of
June 30, 2009, all of which were floating rate. The weighted
average spread on the portfolio at June 30, 2009 was 5.64 percent
over one-month LIBOR and the average maturity of the portfolio was
approximately two years. The effective yield on the portfolio was
5.95 percent for the quarter ended June 30, 2009. Operating
Activities Care generated total revenue of $5.1 million during the
2009 second quarter which included interest income from investments
in loans of $1.8 million, rental revenue of $3.2 million and other
income of $0.1 million. Other income included interest earned on
cash balances and extension and other fee income. The Company
incurred $3.1 million in operating expenses during the three months
ended June 30, 2009, including $0.5 million in management fees and
$3.0 million in marketing, general and administrative expenses.
Care also incurred $0.9 million of depreciation and amortization
expense relating to its investment in the Bickford properties as
well as a favorable adjustment of $1.2 million recognized on its
loans carried at the lower of cost or market. Care's net loss from
investments in partially-owned entities amounted to $1.3 million
for the three months ended June 30, 2009 and consisted of a $1.6
million loss, after depreciation charges of $2.4 million, related
to the Company's investment in the Cambridge properties as well as
equity income of $0.3 million from Care's investment in the Senior
Management Concepts properties. Interest expense totaled $1.5
million for the three months ended June 30, 2009, which related
primarily to the mortgage debt incurred to finance the acquisition
of the Bickford properties. The effective interest rate for the
quarter on the Company's mortgage debt borrowings incurred to
finance the acquisition of the Bickford properties was 6.88
percent. Liquidity and Funding At June 30, 2009, Care had $53.8
million in cash and cash equivalents. During the second quarter
2009 Care received $29.3 million from the prepayment of a mortgage
investment in April 2009 at par and $8.2 million from the
prepayment of a mortgage investment in June 2009 at par. F. Scott
Kellman, Chief Executive Officer, stated, "Balance sheet strength
improved significantly during the second quarter as we received
$37.5 million from the prepayment of two mortgage investments. Care
now holds approximately $53 million in cash and cash equivalents
and has no debt maturities prior to 2015." Conference Call Details
The Company will host a conference call on Monday, August 10, 2009,
at 11:00 a.m. Eastern Time to discuss the second quarter results.
The call may be accessed live by dialing (888) 549-7880 or by
visiting the Company's website at http://www.carereit.com/.
Investors may access a replay by dialing (800) 406-7325, passcode
4133239, which will be available through August 17, 2009. The
webcast replay will also be archived in the "Investor Relations"
section of the Company's website. About Care Investment Trust Care
Investment Trust Inc. is a real estate investment and finance
company investing in healthcare-related real estate and commercial
mortgage debt. It is externally managed and advised by CIT
Healthcare LLC, a wholly-owned subsidiary of CIT Group Inc. For
more information on Care Investment Trust, please visit the
Company's website at http://www.carereit.com/. Safe Harbor
Statement This release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. All forward-looking statements (including statements
regarding future financial and operating results) involve risks,
uncertainties and contingencies, many of which are beyond Care
Investment Trust Inc.'s control, which may cause actual results,
performance, or achievements to differ materially from anticipated
results, performance, or achievements. All statements contained in
this release that are not clearly historical in nature are
forward-looking, and the words "anticipate," "believe," "estimate,"
"expect," "plan," "target," and similar expressions are generally
intended to identify forward-looking statements. Economic,
business, funding market, competitive and/or regulatory factors,
among others, affecting Care Investment Trust Inc.'s businesses are
examples of factors that could cause actual results to differ
materially from those described in the forward-looking statements
in addition to those factors specified in Care Investment Trust
Inc.'s Annual Report on Form 10-K for the year ended December 31,
2008, as well as Care Investment Trust Inc.'s Quarterly Reports on
Form 10-Q. Care Investment Trust Inc. is under no obligation to
(and expressly disclaims any such obligation to) update or alter
its forward-looking statements, whether as a result of new
information, future events or otherwise. Funds from Operations and
Adjusted Funds from Operations Funds From Operations, or FFO, which
is a non-GAAP financial measure, is a widely recognized measure of
REIT performance. We compute FFO in accordance with standards
established by the National Association of Real Estate Investment
Trusts, or NAREIT, which may not be comparable to FFO reported by
other REITs that do not compute FFO in accordance with the NAREIT
definition, or that interpret the NAREIT definition differently
than we do. The revised White Paper on FFO, approved by the Board
of Governors of NAREIT in April 2002 defines FFO as net income
(loss) (computed in accordance with GAAP), excluding gains (or
losses) from debt restructuring and sales of properties, plus real
estate related depreciation and amortization and after adjustments
for unconsolidated partnerships and joint ventures. Adjusted Funds
from Operations Adjusted Funds From Operations, or AFFO, is a
non-GAAP financial measure. We calculate AFFO as net income (loss)
(computed in accordance with GAAP), excluding gains (losses) from
debt restructuring and gains (losses) from sales of property, plus
the expenses associated with depreciation and amortization on real
estate assets and non-cash equity compensation expenses and the
effects of straight lining lease revenue, one-time events pursuant
to changes in GAAP and other non-cash charges. Proportionate
adjustments for unconsolidated partnerships and joint ventures will
also be taken when calculating the Company's AFFO. We believe that
FFO and AFFO provide additional measures of our core operating
performance by eliminating the impact of certain non-cash expenses
and facilitating a comparison of our financial results to those of
other comparable REITs with fewer or no non-cash charges and
comparison of our own operating results from period to period. The
Company uses FFO and AFFO in this way, and also uses AFFO as one
performance metric in the Company's executive compensation program.
The Company also believes that its investors also use FFO and AFFO
to evaluate and compare the performance of the Company and its
peers, and as such, the Company believes that the disclosure of FFO
and AFFO is useful to (and expected of) its investors. However, the
Company cautions that neither FFO nor AFFO represent cash generated
from operating activities in accordance with GAAP and they should
not be considered as an alternative to net income (determined in
accordance with GAAP), or an indication of our cash flow from
operating activities (determined in accordance with GAAP), a
measure of our liquidity, or an indication of funds available to
fund our cash needs, including our ability to make cash
distributions. In addition, our methodology for calculating FFO and
/ or AFFO may differ from the methodologies employed by other REITs
to calculate the same or similar supplemental performance measures,
and accordingly, our reported FFO and / or AFFO may not be
comparable to the FFO and AFFO reported by other REITs. For more
information on the Company, please visit the Company's website at
http://www.carereit.com/ -Financial Tables to Follow- Care
Investment Trust Inc. and Subsidiaries Condensed Consolidated
Statement of Operations (Unaudited) (dollars in thousands -- except
share and per share data) Three Three Six Six Months Months Months
Months Ended Ended Ended Ended June 30, June 30, June 30, June 30,
2009 2008 2009 2008 Revenue Rental revenue $3,170 $115 $6,342 $115
Income from investments in loans 1,820 3,468 4,654 8,155 Other
income 84 208 180 356 Total revenue 5,074 3,791 11,176 8,626
Expenses Management fees to related party 507 1,273 1,152 2,567
Marketing, general and administrative (including stock-based
compensation of $190 and ($424) and $120 and ($237), respectively)
3,031 497 5,305 1,543 Depreciation and amortization 855 46 1,692 46
Loss on loan prepayment - - - 317 Adjustment to valuation allowance
on loans held at LOCOM (1,247) - (3,167) - Operating expenses 3,146
1,816 4,982 4,473 Loss from investments in partially-owned entities
1,269 1,090 2,210 2,198 Net unrealized (gain)/loss on derivative
instruments (259) (240) (1,525) (45) Realized gain on sale of loan
to Manager - - (22) - Interest expense including amortization and
write-off of deferred financing costs 1,458 466 3,569 882 Net
income $(540) $659 $1,962 $1,118 Income per share of common stock
Net income, basic and diluted $(0.03) $0.03 $0.10 $0.05 Basic and
diluted weighted average common shares outstanding 20,052,583
20,880,990 20,041,683 20,877,998 Care Investment Trust Inc. and
Subsidiaries Reconciliation of Non-GAAP Financial Measures
(Unaudited) (dollars in thousands -- except share and per share
data) For the three months ended June 30, 2009 FFO AFFO Net Loss
$(540) $(540) Add: Depreciation and amortization from
partially-owned entities 2,396 2,396 Depreciation and amortization
on owned properties 855 855 Adjustment to valuation allowance for
loans carried at LOCOM - (1,247) Stock-based compensation - 265
Straight-line effect of lease revenue - (637) Obligation to issue
OP Units - (259) Funds From Operations and Adjusted Funds From
Operations $2,711 $833 FFO and Adjusted FFO per share basic and
diluted $0.14 $0.04 Weighted average shares outstanding - basic and
diluted 20,052,583 20,052,583 For the six months ended June 30,
2009 FFO AFFO Net Income $1,962 $1,962 Add: Depreciation and
amortization from partially-owned entities 4,779 4,779 Depreciation
and amortization on owned properties 1,692 1,692 Adjustment to
valuation allowance for loans carried at LOCOM - (3,167)
Stock-based compensation - 270 Straight-line effect of lease
revenue - (1,273) Obligation to issue OP Units - (1,527) Write-off
of deferred financing costs - 512 Funds From Operations and
Adjusted Funds From Operations $8,433 $3,248 FFO and Adjusted FFO
per share basic and diluted $0.42 $0.16 Weighted average shares
outstanding - basic and diluted 20,041,683 20,041,683 DATASOURCE:
Care Investment Trust Inc. CONTACT: Scott Kellman, President &
Chief Executive Officer of Care Investment Trust, +1-212-771-9360,
; or Analysts Web Site: http://www.carereit.com/
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