Healthcare REIT Revises Guidance Higher As Part Of 2nd Quarter Earnings Release

healthcare_reit Health Care REIT, Inc. (NYSE:HCN) announced operating results for the company’s second quarter ended June 30, 2009 that reflected the company earning $.80 per share from normalized Funds From Operations (FFO).  Additional highlights from the second quarter include:

Some highlights from the 2nd Quarter

  • Reported 2Q09 normalized FAD of $0.76 per share
  • Completed 2Q09 net new investments totaling $98.9 million
  • Completed year-to-date net investments totaling $228.4 million
  • Received $154.2 million in proceeds on property sales and loan payoffs year-to-date, generating $27.7 million of gains

“In today’s difficult environment, we continue to execute and meet earnings expectations,” commented George L. Chapman, chairman, chief executive officer and president of Health Care REIT, Inc. “We have now raised in excess of $1.7 billion of opportunistic, attractively priced capital since January 2008 through a combination of equity, secured debt and asset sales. This capital has de-levered our balance sheet and provided critical liquidity, while only modestly impacting year over year FFO and FAD growth. In addition, we are further strengthening our portfolio quality through targeted asset sales and the accelerated conversion of our state-of-the-art, customer-centric development projects.”


The company revised its outlook for the remainder of 2009 to include:

  • raising an additional $300 million of secured debt, up from the prior expectation of $200 to $300 million, at approximately 6.5% during the third quarter of 2009.
  • FFO revision to a range of $3.11 to $3.18 per diluted share from$3.10 to $3.20 per diluted share.
  • Normalized FAD revision to a range of $2.95 to $3.02 per diluted share from $2.96 to $3.06 per diluted share.
  • Net income attributable to common stockholders has been increased to a range of $1.81 to $1.88 per diluted share from $1.70 to $1.80 per diluted share. The increase in net income guidance is primarily due to the $10.7 million of additional gains on sales of real estate partially offset by the incremental secured debt assumptions.
  • reaffirming investment guidance comprised of funded new development of $600 million offset by dispositions of $200 to $300 million for net investments of $300 to $400 million.

For the full 10-Q, click here.

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