I think the Reuters headline touting FVE�s rising income was very deceptive. This was brought out by the Stifel Nicolaus analyst�s question, and confirmed by Evrett Benton. Income from continuing operations was in truth $.09 per share, a substantial drop from the $.15 reported for the same quarter last year, and the $.17 estimated amount..
I looked at the numbers in the quarterly report early in the day, and am ashamed to admit I did not catch the fact that $3,557,000 ($.08 per share) of the $.17 per share income from continuing operations was a gain on the extinguishment of debt. Mortgages had been written up (liabilities increased) in 2004 by about that same $.08 per share.
Talk about your smoke and mirrors game.
Rising expenses and a decreased occupancy rate were also noted. Benton�s argument that this was the result of an abnormal amount of deaths and the weak housing market seemed weak.