08.19
Q2/09 FD FFO was $0.19 (excl. straight-line lease expense) vs. $0.18 in
Q2/08. reflecting largely stable operating performance
overall and a higher US$. Same-property NOI: Cdn retirement: +0.2%,
U.S. retirement: +14.6% in Cdn$ or -1.0% in US$; Cdn LT care: +0.2%.
CSH has written down its mezz loans to development partners Spectrum
and Melior and indicated that these entities, which contributed interest and
fees of nearly $0.04 to FFO in Q2/09, will contribute significantly less in the
future. Distributions have been cut to $0.54 from $0.74.
Our 2009E FFO & AFFO are reduced by close to $0.04 per quarter mainly to
reflect a conservative assumption of minimal income from mezz loans and
related management fees and a lower US$. Our NAV is reduced to $5.20 to
conservatively ascribe no value to mezz loans to Spectrum and Melior.
CSH is trading at 7.5x our 2009E FD FFO and yields 9.7% (estimated to be
well-covered by 2009E AFFO of $0.63).
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