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Wachovia Downgrades Nationwide Health Properties (NHP) to Market Perform

February 20, 2009 8:47 AM EST
NHP Hot Sheet
Rating Summary:
    1 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wachovia downgrades Nationwide Health Properties (NYSE: NHP) to Market Perform. Valuation Range: $19 to $22

Wachovia analyst says, "NHP's portfolio of senior housing assets should benefit from improving demographic trends, but recent move into MOBs to bring investment yields and ROA lower. Concerns regarding deteriorating lessee/operator fundamentals warrant caution...NHP offered ‘09 FFO guidance of $2.20-$2.25, which was below the then-existing 'street' forecast of $2.31. Our adj. FFO/FAD ests are $2.19/$2.16, below company range, as we believe dilutive assets sales and their C-E-O program will likely further weigh on flat core-growth. Given the more defensive stance taken by NHP, we expect few if any acquisitions in '09. Yet, with select debt trading at ~11%+ yields, we suspect mgmt addt’l debt buy-in will occur thru ’09 to swap w/ planned asset sales."

Nationwide Health Properties, Inc. (NHP) is a real estate investment trust (REIT) that invests primarily in healthcare-related senior housing, long-term care properties and medical office buildings.

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