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Care Investment Trust Inc. Announces Fourth Quarter and Partial Year 2007 Results
Date:3/11/2008

Fourth Quarter and Year-end Highlights - Transitioned investment focus to an equity REIT strategy and closed on two ventures owning more than $320 million of quality healthcare-related

real estate. - Generated net income in the 2007 fourth quarter of $3.6 million, or $0.17

per basic and diluted share. - Secured a line of credit with Column Financial Inc., an affiliate of Credit Suisse Securities LLC, and borrowed $25 million under the facility

for new investments. - Declared and paid an inaugural dividend of $0.17 per share for the 2007 third quarter and declared a 2007 fourth quarter dividend of $0.17 per

share.

NEW YORK, March 11 /PRNewswire-FirstCall/ -- Care Investment Trust Inc. (NYSE: CRE), a real estate investment and finance company investing in healthcare-related real estate and commercial mortgage debt, today reported financial results for the quarter ended December 31, 2007, and for the period from June 22, 2007 (commencement of operations) to December 31, 2007. Both net income and Funds from Operations (FFO) for the fourth quarter of 2007 were $3.6 million, or $0.17 per basic and diluted share. Adjusted Funds from Operation (AFFO) amounted to $3.8 million, or $0.18 per basic and diluted share. For the period from June 22, 2007 to December 31, 2007, the Company reported a net loss of $1.6 million, or a loss of $0.07 per basic and diluted share. FFO for the partial annual period was a loss of $1.6 million, and AFFO was $7.9 million. AFFO is the result of adding back to net income or loss non-cash stock-based compensation, which amounted to $9.5 million for the partial annres outstanding 20,869,255 20,864,040 20,866,526

Care Investment Trust Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures -- Unaudited

(dollars in thousands -- except share and per share data)

Period from

June 22, 2007

(Commencement

Three Months Three Months of

Ended Ended Operations) to

December 31, September 30, December 31,

2007 2007 2007

Funds from Operations (FFO)

Net income (loss) (GAAP) $3,626 $3,714 $(1,557)

Add:

Stock-based compensation to

Manager - - -

Stock-based non-employee

compensation - - -

Funds From Operations $3,626 $3,714 $(1,557)

FFO per share, basic and diluted $0.17 $0.18 $(0.07)

Adjusted Funds from Operations (AFFO)

Net income (loss) (GAAP) $3,626 $3,714 $(1,557)

Add:

Stock-based compensation to

Manager - - 9,115

Stock-based non-employee

compensation 183 142 344

Adjusted Funds From Operations $3,809 $3,856 $7,902

AFFO per share, basic and diluted $0.18 $0.18 $0.38

Weighted average shares

outstanding -- basic

and diluted 20,869,255 20,864,040 20,866,526

ual period, and resulted largely from the issuance of unrestricted shares of Care's common stock granted to CIT Healthcare, our Manager, upon our initial public offering in June, 2007.

The Company initiated investment activities on June 22, 2007 upon the completion of its initial public offering. Therefore, there are no comparable financial results for the prior year.

F. Scott Kellman, Chief Executive Officer, stated, "Care closed 2007 with a high quality portfolio, low balance sheet leverage, and strong momentum in building our equity assets. We enter 2008 with a solid foundation with which to face these turbulent markets."

Portfolio Activity

Investments in Partially-owned Entities

At December 31, 2007, the Company invested $73.4 million in two previously announced joint ventures to own healthcare-related real estate assets with a total value of $324 million. Care acquired equity interests in limited liability entities owning nine medical office buildings with a value of $263.0 million from Cambridge Holdings Incorporated ("Cambridge") and formed a joint venture with Senior Management Concepts LLC (SMC) to acquire four independent and assisted living facilities with a value of $61 million. As both transactions closed on December 31, there was no impact on earnings in 2007.

Care acquired the equity interests in Cambridge through a "DownREIT" operating partnership subsidiary, for an aggregate purchase price of $72.4 million, consisting of $61.9 million in cash and 700,000 operating partnership units with an agreed value of $10.5 million ($15 per share). Our investment in Cambridge was carried at $66.6 million as of December 31, 2007, reflecting holdbacks for future tenant improvements ($2.8 million), as well as recording the operating partnership units at a fair value of $7.5 million at December 31, 2007, based on the market value of Care's shares ($10.74) into which the operating partnership units were redeemable (market value of $7.5 million). Care's acquired interests represent approximately 85 percent of the portfolio value. The Company will receive an initial 8 percent priority return on invested equity which will escalate by at least 2 percent per annum. Care's priority return will be supported by 100 percent of the cash flows from the properties, as well as the 700,000 shares of operating partnership units held in escrow, until 85 percent of the cash generated by the properties is sufficient to fund Care's priority return for a required period of time.

The Company's joint venture with SMC is in the form of a holding company to acquire four independent and assisted living facilities. Care owns 100 percent of the preferred interests in the joint venture and 10% of the common shares. The Company is entitled to a 15 percent return on invested capital, plus an additional payment on the common equity portion of the investment.

Loan Portfolio

During the 2007 fourth quarter, the Company funded approximately $1.9 million to existing portfolio clients and realized an early loan payoff from one borrower of $34.5 million. Proceeds from the payoff were deployed in short term liquid assets in anticipation of transitioning to an equity investment strategy. During the period from June 22, 2007 to December 31, 2007, Care received partial or full payments on loans of $60.6 million and extended approximately $18.5 million in loans to new and existing portfolio clients. Net investments in loans were $236.8 million as of December 31, 2007, all of which were floating rate. The weighted average spread on the portfolio at December 31, 2007 was 3.27 percent over one-month LIBOR and the average maturity of the portfolio was approximately three years. The effective yield on the portfolio was 7.56 percent for the quarter ended December 31, 2007, and 8.22 percent for the period from June 22, 2007 (commencement of operations) to December 31, 2007.

Operating Activities

The Company generated total revenues of $6.2 million during the fourth quarter which included interest income on investments from loans of $4.8 million and other income of $1.4 million. Other income resulted primarily from an early termination fee on a loan prepayment and interest earned on cash balances. Interest expense for the fourth quarter was $0.1 million and resulted from a $25 million draw on the warehouse line from Column Financial in mid-December. Total expenses incurred during the quarter included $1.3 million in management fees, $0.2 million of non-employee stock based compensation and $1.0 million in marketing, general and administrative expenses.

For the period from June 22, 2007 to December 31, 2007, Care's total revenue amounted to $12.9 million and consisted of $11.2 million from income on investments in loans and $1.7 million in other income, principally from early termination fees on prepaid loans and interest earned on cash balances. Interest expense for the period was $0.1 million. Total expenses for the period included $2.6 million in management fees, $9.1 million in stock-based compensation to our manager related to shares granted at our initial public offering in June 2007, $0.3 million in non-employee stock based compensation, and $2.3 million in marketing, general and administrative expenses.

Net income and FFO for the quarter ended December 31, 2007 were each $3.6 million, or $0.17 per basic and diluted share. AFFO was $3.8 million or $0.18 per basic and diluted share for the fourth quarter.

Net loss and FFO for the period from June 22, 2007 to December 31, 2007 were each a loss of $1.6 million, or a loss of $0.07 per share. AFFO was $7.9 million or $0.38 per basic and fully diluted share.

Liquidity and Funding

At December 31, 2007, the Company had $15.3 million in cash and cash equivalents. The Company pledged collateral to its warehouse line with Column Financial Inc. and on December 17, 2007 borrowed $25 million under the line to partially fund our investments in Cambridge and SMC at December 31, 2007. In January 2008, Care pledged additional assets providing increased availability under the line. On February 19, 2008, the Company utilized $10.2 million from the warehouse line to fund a new mortgage investment. Pledging existing eligible assets into the warehouse line may provide additional funding availability up to approximately $34 million, subject to the sole discretion and current underwriting requirements of our lender. With widespread dislocation in the debt markets persisting, we cannot be assured with any certainty that additional funds from the warehouse line will be advanced.

Dividends

The Company's Board of Directors declared a dividend of $0.17 per share of common stock for the fourth quarter 2007. The dividend is payable on March 11, 2008 to common shareholders of record on February 26, 2008.

Conference Call Details

The Company will host a conference call on Tuesday, March 11, 2008, at 11:00 a.m. Eastern Time to discuss the fourth quarter and year-end results. The call may be accessed live by dialing 800-366-3908 or by visiting the Company's website at http://www.carereit.com.

Investors may access a replay by dialing 800-405-2236, passcode 11107327, which will be available through March 18, 2008. 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.

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'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," "expect," "estimate," "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'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's Registration Statement on Form S-11 relating to its initial public offering and its Quarterly Report of Form 10-Q for the period ended September 30, 2007. Care Investment Trust 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. The Company computes 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.

NAREIT currently 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. The Company computes AFFO in accordance with our management agreement's definition of FFO and as such it may not be comparable to AFFO reported by other REITs that do not compute AFFO on the same basis. The Company's management agreement defines FFO, for purposes of the agreement, to mean net income (loss) (computed in accordance with GAAP), excluding gains (losses) from debt restructuring and gains (losses) from sales of property, plus depreciation and amortization on real estate assets and non-cash equity compensation expense, and after adjustments for unconsolidated partnerships and joint ventures; provided, that the foregoing calculation of Funds From Operations shall be adjusted to exclude one-time events pursuant to changes in GAAP and may be adjusted to exclude other non-cash charges after discussion between the Manager and the independent directors, and approval by the majority of the independent directors in the case of non-cash charges.

The Company believes that FFO and AFFO are helpful to investors as measures of the performance of a REIT because, along with cash flow from operating activities, financing activities and investing activities, FFO and AFFO provide investors with an indication of our ability to incur and service debt, to make investments and to fund other cash needs. AFFO, as defined in our agreement with our Manager, also provides the basis for the computation of the amount of the Management Incentive Fee payable to our Manager.

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), as an indication of our financial performance or cash flow from operating activities (determined in accordance with GAAP), as a measure of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions.
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

Consolidated Balance Sheet -- Unaudited

(dollars in thousands -- except share and per share data)

December 31, 2007

Assets:

Cash and cash equivalents $15,319

Investments in loans 236,833

Investments in partially-owned entities 73,400

Accrued interest receivable 1,768

Accounts receivable 2,183

Other assets 3,431

Total Assets $332,934

Liabilities and Stockholders' Equity

Liabilities:

Borrowing under warehouse line of credit $25,000

Accounts payable and accrued expenses 1,509

Accrued expenses payable to related party 2,988

Other liabilities 2,584

Total Liabilities 32,081

Minority Interest 7,518

Stockholders' Equity:

Common stock: $0.001 par value, 250,000,000 shares

authorized, issued and outstanding: 21,017,588 21

Additional paid-in-capital 298,444

Accumulated deficit (5,130)

Total Stockholders' Equity 293,335

Total Liabilities and Stockholders' Equity $332,934

Care Investment Trust Inc. and Subsidiaries

Consolidated Statements of Operations -- Unaudited

(dollars in thousands -- except share and per share data)

Period from

June 22, 2007

(Commencement

Three Months Three Months of

Ended Ended Operations)

December 31, September 30, to December

2007 2007 31, 2007

Revenues

Income from investments in loans $4,793 $5,842 $11,209

Other income 1,422 282 1,707

Total Revenues 6,215 6,124 12,916

Expenses

Interest Expense 134 - 134

Management fees paid to

related party 1,290 1,279 2,625

Stock-based compensation

to Manager - - 9,115

Stock-based compensation - other 183 142 344

Marketing, general and

administrative 982 989 2,255

Total Expenses 2,589 2,410 14,473

Net income (loss) $3,626 $3,714 $(1,557)

Earnings per share

Net income (loss), basic and

diluted $0.17 $0.18 $(0.07)

Basic and diluted weighted

average common

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SOURCE Care Investment Trust Inc.
Copyright©2008 PR Newswire.
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