HCN Q1 2010 Net Down on Increased Revenue But Higher Expenses

Health Care REIT, Inc. (NYSE:HCN) announced operating results for the company’s first quarter ended March 31, 2010 that showed revenues of $152 million vs. $138 million in Q1 2009.  HCN’s profit for Q1 2010 was $31.7 million down from $66 million from the same period in 2009.  Health Care REIT showed increases in expenses for interest cost, depreciation and took a loss of $18 million on the extinguishment of debt.  Some of the other highlights from the quarter include:

  • Completed 1Q10 gross new investments totaling $585 million
  • Announced second quarter investments to-date of $113 million
  • Increased 2010 net investment guidance to a range of $700 million to $1.1 billion from $700 million to $900 million
  • Delivered $164 million of development projects during 1Q10 and reduced unfunded commitments to under $200 million at quarter-end
  • Received $40 million in proceeds on property sales and loan payoffs, generating $7 million of gains during 1Q10
  • Issued $342 million of 3.00% convertible senior notes due 2029 and repurchased $302 million of 4.75% convertible senior notes due 2026 and 2027
  • Issued $300 million of 6.125% senior unsecured notes due 2020 priced to yield 6.22%, generating $295 million of net proceeds
  • "We are off to a strong start to 2010," commented George L. Chapman, chief executive officer of Health Care REIT, Inc. "We completed $700 million of gross investments year-to-date, including a joint venture investment in one of the country’s leading life science campuses in Cambridge, Massachusetts and an acquisition of a medical office building portfolio in Wisconsin master leased to investment grade-rated Aurora Health Care, Inc. As a result, we have increased the high-end of our 2010 acquisition guidance by $200 million. In addition, during the quarter we commenced the development of two MOB projects affiliated with leading health systems, completed the construction of six existing development projects, and stabilized eight properties. On the capital raising front, we recently completed two debt offerings at attractive rates, which extended the duration of our debt while providing additional capacity for new investments."

    Technorati Tags: