Morgan Keegan Gives Nationwide Health Properties Earnings Preview

Nationwide Health Properties

will report fourth quarter earnings before the market open next Monday, February 28. Morgan Keegan's FFO/share estimate of $0.59 is in line with the First Call consensus. Its FAD/share estimate of $0.57 is $0.01 above the SNL consensus. Last week, the three largest healthcare REITs reported earnings generally at or above expectations and issued guidance calling for more rapid FFO and FAD growth than the sector's typical 3%-4% pace. A similar announcement from NHP, we believe, would be well-received by investors. Morgan Keegan believes that NHP can sustain long-term FFO and FAD growth through rent increases, operating leverage, and accretive acquisitions. At current valuations, Morgan Keegan believes healthcare REITs can generate share price appreciation by completing accretive acquisitions that boost earnings. NHP has been one of the most aggressive acquirors in its coverage, driving earnings growth. Morgan Keegan has as an Outperform rating and $45 PT on NHP NHP closed Friday at $38.31