Investment Growth Propels Health Care REIT’s 2Q Earnings up 68.8%

Health Care REIT, Inc. (NYSE:HCN) experienced a 68.8% jump in net income in the second quarter, compared to the previous year, due to earnings from substantial investment growth.

The REIT’s net income rose to $86.2 million in the quarter ending on June 30, 2011, up from last year’s $51.1 million. Net income attributable to common shareholders was lower, at $69.8 million, and $0.39 per diluted share, compared to last year’s $0.37 per diluted share.

Gross revenues for the quarter were reported at $381.1 million, nearly 150% greater than 2Q 2010 revenues of $153.7 million. Much of this revenue came from rental income, which is 69% higher than last year. HCN also saw growth in revenue for resident fees and service and interest income.

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During the second quarter, HCN closed acquisition on all of Genesis HealthCare’s real estate assets for $2.4 billion, and also completed a transaction on four combination senior housing facilities located in New York and Chicago for an investment of $141.5 million. Year-to-date, the REIT has closed acquisitions and joint investment ventures of $4.0 billion, an increase from the previously announced $3.8 billion, and has 868 properties in 45 states.

Second quarter funds from operation (FFO) rose 13% to $0.90 per share, and the company’s 2011 earnings forecast expects FFO to range between $3.34 and $3.40 per diluted share. Net income attributable to shareholders is expected to range between $1.04 to $1.10 per diluted share, an increase from May 2011’s outlook.

Written by Alyssa Gerace

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