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Friday Housekeeping February 27, 2009

Posted by shaferfinancial in Finance.
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Berkshire Hathaway’s annual report comes out tomorrow morning.  Should be a very interesting read.

HCN issued its last quarters report and it really didn’t tell us anything new.  2008 was a good year with the FFO (Funds  from Operations) rising to $3.38 from $3.12 in 2007.  FAD (Funds Available for Distribution) went from $2.91 to $3.16 a rise of 9%.  The REIT bought $1Billion in additional facilities in 2008.  Gross Revenues went from $453M to $551M.  There was a small derivative loss in 2008, bought to counter risk for an impending purchase that didn’t happen.  Finally, they offered conservative guidance of FAD between $3.08 and $3.18.  Current yield is around 8.6%.  All this good news in the middle of a real estate hurricane.  Future plans are to sell a couple of properties that doesn’t fit the current strategy of buying health care facilities tied into larger planned campuses.  If you don’t know, the future strategy for most health care facilities is to create large campuses that include hospitals and/or nursing homes, POBs (Professional Office Buildings), assisted living, and retirement homes/apartments.  It is a system that I have seen works very well for folks.  Planned dividends (151 straight dividend quarters) is to maintain dividends at $.68 quarter.

I was very pleased with that report, although the market continues to be unimpressed!  Currently, at my buy-in cost over the last 8 years, it is paying me a 12% dividend.  Only wish I had more of it!

Overall, my wealth building plan is progressing.  There are a couple of sticking points that is creating stress right now, but that is only to be expected in this environment.

Several clients have had a great 2008, with rapidly increasing net worths.  This is to be expected in the first couple years of the plan as bad debt and poor investments are replaced with good debt and/or better investments.  As the plans mature you generally become more tied to the overall economy’s ups and downs but with much less overall risk. 

Have a great weekend.

Yours in wealth creation,

David Shafer

**********David Shafer and Shafer Financial is not a registered investment advisor and gives out NO investment advice.  This blog is for amusement purposes only.  Before putting money in any investment, do your own analysis.  Always get a second opinion. ***********************************************************

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Comments»

1. Mike - March 1, 2009

Just passing by.Btw, you website have great content!

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Making Money $150 An Hour


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