Health and Retirement Properties Trust has adopted a shareholder rights plan, more popularly known as a "poison pill." Under the plan, shareholders will receive one preferred-share purchase right for each common share held if a raider acquires 10% or more of the real estate investment trust's outstanding shares. Shareholders would be able to purchase common shares at about half the market value. The Newton, Mass.-based REIT adopted the plan to ensure that a potential raider negotiates with the board before making a takeover move. David J. Hegarty, HRPT's executive vice president, said the company's fluctuating stock price, moving interest rates and the quality of the REIT's properties make it potentially vulnerable to a takeover.
Capstone Capital Corp., the newest publicly traded healthcare real estate investment trust, announced results for its first three months of operation. Net income for the period ended Sept. 30 topped $2.3 million, or 39 cents per share, on revenues of $3.7 million. Funds from operations totaled $2.7 million, or 45 cents per share. The Birmingham, Ala.-based REIT went public June 23 with 5.8 million shares of common stock, raising $104 million (Sept. 26, p. 68). It began operations June 30. During the quarter, Capstone closed additional investments totaling $22.6 million. Since Sept. 30, it has invested another $27.5 million. The REIT invests in 26 healthcare properties in 10 states.
Universal Health Services, King of Prussia, Pa., reported a 13% increase in net income to $5.8 million, or 41 cents per share, for the third quarter ended Sept. 30, compared with $5.2 million, or 37 cents per share, in the year-ago period. Revenues were up 3% to $191.5 million. For the nine months, the 26-hospital chain reported a 20% rise in net income to $24.3 million, or $1.70 per share, compared with $20.2 million, or $1.43 per share, in the year-ago period. Revenues edged up 2% to $578.1 million. The company said it expects to complete its acquisition of Edinburg (Texas) Hospital for $14 million on Nov. 7.