Nationwide Health Properties Inc. on Monday said that its third-quarter profit slid 42% because of debt-related losses and charges.
The Newport Beach healthcare real estate investment trust posted a profit of $12.7 million, down from $21.9 million a year ago. Revenue jumped 20% to $56.8 million in the period,higher than Wall Street’s expectations for $55.4 million in revenue.
Nationwide said its results were affected by an $8.6 million loss related to paying off debt and a $795,000 charge for a preferred stock redemption.
Nationwide’s funds from operations, which are considered a good indicator of the real estate investment trust’s operations, fell to $22.6 million from $28.3 million a year ago.
But the owner of nursing homes raised its expectations for funds from operations for 2005. Nationwide now expects funds from operations to be at 3% higher than a previous forecast, and slightly higher than Wall Street expectations.
The company recently said it plans to buy 13 facilities in Massachusetts and New York for about $171 million. Some analysts questioned the buy, saying the price tag was too high.
Nationwide’s shares were up 1.05% to $23.19 on Monday.