Care Capital Properties, Inc. (CCP) SEC Filing 10-Q Quarterly report for the period ending Friday, March 31, 2017

Exhibit 99.1

Care Capital Properties Reports First Quarter 2017 Results

First Quarter 2017 Net Income of $0.77 Per Diluted Share and Normalized FFO of $0.68 Per Diluted Share

CHICAGO--(BUSINESS WIRE)--May 9, 2017--Care Capital Properties, Inc. (NYSE: CCP) (“CCP” or the “Company”), a company with a diversified portfolio of triple-net leased healthcare properties, focused on the post-acute sector, today announced operating results for the first quarter ended March 31, 2017.

First Quarter 2017 Financial Results

• Net income attributable to common stockholders for the quarter ended March 31, 2017 was $65 million, or $0.77 per diluted common share, excluding dividends on unvested restricted shares, compared with $30 million, or $0.35 per diluted common share, excluding dividends on unvested restricted shares, for the quarter ended March 31, 2016.
• Normalized Funds from Operations (“FFO”) for the quarter ended March 31, 2017 was $57 million, or $0.68 per diluted common share. FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), for the same time period was $57 million, or $0.68 per diluted common share. Normalized FFO and NAREIT FFO for the quarter ended March 31, 2016 were $67 million, or $0.80 per diluted common share, and $64 million, or $0.76 per diluted common share, respectively. The decreases in the first quarter of 2017 compared to the prior year period are attributable primarily to an increase in interest expense resulting from the refinancing of short-term floating rate debt with longer term fixed rate debt during 2016, the impact of dispositions and transitions, restructures and new leases completed during 2016 and the first quarter of 2017, partially offset by acquisitions and contractual rent increases.

Operating Results

• During the quarter ended March 31, 2017, CCP invested a total of $8 million through acquisitions and redevelopment, at an average yield of 8.1%. In addition, the Company committed $23 million in new loans for redevelopment and working capital.
• During the quarter, the Company disposed of nine properties for gross proceeds of $65 million, representing a weighted average cap rate on cash rent of approximately 9.25%. In addition, the Company entered into definitive agreements to sell an additional 29 properties for gross proceeds of approximately $180 million at an average cap rate on cash rent of 9.6%.

Subsequent to Quarter End

• In April, CCP completed its previously announced acquisition of six behavioral health hospitals for $379 million at an initial GAAP yield of 8.7%. The Company has an option, exercisable beginning in the fourth quarter of 2018, to purchase one additional building for an amount expected to be approximately $20 million. In addition, the Company is providing the tenant with a line of $50 million to fund future expansions and revenue-generating improvements in the portfolio.