Health Care REIT Releases Corporate Presentation & Announces Updated Financial Guidance

Health Care REIT (NYSE: HCN) released a 29 page investor presentation that provides an overview of its business operations and structure for 2009.  The presentation focuses on the unique investment strategy, its diverse portfolio, outlines its financial position and provides details on opportunities for growth.  One of the most interesting areas of the presentation is the focus on growth areas with specific focus on ‘annual rent increase’ as the company is clearly looking at ways to grow its revenue and overall operations in the challenging economic environment. 

Separately, HCN announced that it expects to report net income available to common stockholders in a range of $1.75 to $1.82 per diluted share from $1.81 to $1.88, normalized funds from operations in a range of $3.07 to $3.14 per diluted share which were reduced from $3.09 to $3.16 per share for normalized funds from operations. This updated guidance is based on the following items:

  • The final terms of the company’s recent public offering of 8,000,000 shares of common stock, including the assumption that the underwriters fully exercise the option to purchase 1,200,000 additional shares of common stock
  • Issuance of 1,552,600 shares of common stock in August under the company’s equity distribution program resulting in net proceeds of approximately $64.1 million
  • Anticipated repurchase in September of $53.1 million in mortgage notes (at an average rate of 7.4%) that mature through 2011
  • Recognition of debt extinguishment costs associated with the anticipated mortgage repurchase of approximately $5.5 million that will be included in net income but excluded from normalized FFO and FAD guidance
  • Reduction in anticipated incurrence of secured debt in the second half of the year from $300 million to $175 million (at a rate of approximately 6.5%)

For the investor presentation, click here.

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