Health Care REIT, Inc. (NYSE:HCN) announced its operating results for the company’s fourth quarter and year ended December 31, 2009 last week that showed earnings of $1.49 per share for full year 2009 and earnings of $0.26 per share for Q4 2009. HCN announced its 2010 guidance and expects to report net income attributable to common stockholders in a range of $1.43 to $1.58 per diluted share; normalized FFO in a range of $3.10 to $3.25 per diluted share; and normalized FAD in a range of $2.87 to $3.02 per diluted share.
HCN announced the following non-recurring Fourth Quarter 2009 items that impacted its earnings:
- $2.4 million of prepayment fees ($0.02 per diluted share) were recognized in connection with the repayment of a mortgage loan on two skilled nursing facilities prior to maturity.
- $16.5 million of net gains on sales of real estate ($0.13 per diluted share) were recognized in connection with the sale of six skilled nursing facilities, two assisted living facilities and three medical office buildings.
- $8.1 million of non-recurring income ($0.07 per diluted share) was recognized in connection with the termination of a hospital lease included in discontinued operations.
- $23.3 million of impairment charges ($0.19 per diluted share) were recognized in connection with a portfolio of five medical office buildings and one hospital that the company intends to sell in 2010. These properties, in addition to two remaining properties previously impaired, have been classified as held-for-sale and historical results have been reclassified to discontinued operations.
- $23.1 million provision for loan losses ($0.19 per diluted share) were recognized primarily in connection with the write-off of certain loans relating primarily to early stage senior housing operators.
"This was an unprecedented year for repositioning the company as a whole," commented George L. Chapman, chairman, CEO and president of Health Care REIT, Inc. "During a difficult economic and capital market environment, we enhanced the portfolio, further strengthened our balance sheet and broadened our team. We delivered over $700 million of high quality development projects while at the same time disposed of non-core assets. The $328 million in disposition proceeds, together with nearly $1 billion of incremental capital raised, funded our investments and allowed us to reduce debt. Throughout 2009, we remained focused on maintaining our operator relationships while exploring new opportunities to prepare the company for its next phase of growth.
For the company’s conference call transcript: http://seekingalpha.com/article/190757-health-care-reit-inc-q4-2009-earnings-call-transcript
For the 8-K, click here.
