Health Care REIT, Inc. (NYSE:HCN) announced operating results for the first quarter of 2011 that showed HCN’s revenues increased to $255 million versus $145 million in Q1 2010. The higher revenues were offset by higher expenses, including $36 million in integration costs. The company’s Q1 earnings were $31.8 million, or 15 cents a share, up from $31.7 million, or 21 cents a share, a year earlier. HCN’s Funds From Operations (FFO) fell to 46 cents a share from 51 cents a share.
Health Care REIT completed the previously announced $298 million partnership with Silverado Senior Living during the first quarter of 2011 where it acquired a 95% interest to own and operate 18 senior housing facilities with 1,454 beds located primarily in California and Texas. The company also completed the previously announced $890 million partnership with Benchmark Senior Living. The transaction called for HCN to acquire a 95% interest to own and operate 34 senior housing facilities with 3,009 units located primarily in New England. Benchmark will continue to manage the facilities and own the remaining 5% interest.
“Health Care REIT remains on target to deliver strong 2011 earnings growth of 8-11%,” commented George L. Chapman, Health Care REIT’s Chairman, Chief Executive Officer and President. “We recently closed the Genesis HealthCare and Benchmark Senior Living transactions on or ahead of schedule. These closings allowed us to recently raise our 2011 FFO guidance by seven cents as these transactions will be immediately accretive to earnings. The $7 billion of new partnerships formed in 2010 and 2011-to-date demonstrates the successful execution of our relationship investment strategy and positions the company for a strong period of earnings and dividend growth over the next several years.”