American Health Properties reported a 13% increase in net income on a consolidated basis for the third quarter ended Sept. 30. The Englewood, Colo.-based real estate investment trust recorded $11.1 million in net income on revenues of $22.1 million. Funds from operations, a key measure of REIT performance, grew 10% to $14.9 million.
In a press release on AHP's performance, Joseph P. Sullivan, president and chief executive officer, said the company, as of the end of the third quarter, is in its strongest position in several years.
AHP's troubled psychiatric investment portfolio had $1.3 million in net income, or 61 cents per share, compared with net income of $1.6 million, or 79 cents per share, in the year-ago period. Revenues dipped 12% to $2.2 million. Funds from operations dropped 20% to $1.5 million, or 70 cents per share. AHP's $64 million in psychiatric facility investments are represented by shares traded on the NASDAQ system.
AHP said it remains committed to optimizing investment values in its psychiatric portfolio and continues to monitor changes in the industry that may affect facility performance.
The company's "core group," which represents $600 million of investments in acute-care and rehabilitation hospitals, long-term-care facilities and a medical office building, posted a 20% gain in net income, to $9.9 million, or 42 cents per share, from $8.2 million, or 39 cents per share, in the year-ago quarter. Revenues rose 2% to $16.9 million. Funds from operations increased nearly 15% in the third quarter to $13.4 million, or 57 cents a share. The company's common stock, which is traded on the New York Stock Exchange, represents those investments.