Nationwide Health Properties Continues To Source New Investments

Deutsche Bank has published a research report on Nationwide Health Properties NHP with adjusted 3Q estimates and raised 2010 guidance. In the report, Deutsche Bank writes "NHP reported adjusted 3Q FFO of $0.59, in-line with our comparable est and 2c ahead of the consensus. Adjusted FFO excludes $35k of acquisitions costs recorded during the Q. Revs were 1c better-than-our expectations, offset by higher avg shares due to $104.8m of 3Q equity issuance through the company's ATM program. Rent coverage in NHP's consolidated portfolio rose to 1.68x in 3Q from 1.67x in 2Q, driven by an increase in coverage in its owned independent and assisted living assets to 1.30x in 3Q from 1.28x in 2Q as occupancy was up 50bps to 82.9%. Rent coverage in the owned SNF segment was flat from 2Q at 2.04x. Occupancy in the MOB portfolio was down 30 bps from 2Q to 90.3%. NHP remained active on the investment front, completing $93m of investments (8.9% avg yield) in 3Q and another $39m (11.9% avg yield) subsequent to Q's end." Deutsche Bank maintains its Hold rating and $36 price target. Nationwide Health Properties closed yesterday at $40.42.