HCN Profits Triple in Q4, $1.6 Billion of Investments Include Sunrise Deals

Health Care REIT, Inc. (NYSE: HCN) today announced a net income of $90.6 million, or $0.35 per diluted share, for the fourth quarter ended December 31, 2012, more than tripling last year’s $27.3 million fourth quarter net income.

For the full year, HCN reported a net income attributable to common stockholders of $221.9 million, up more than 40% from 2011. 

Fourth quarter FFO of $0.85 beat expectations by a cent.

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During the fourth quarter, HCN completed $1.6 billion in senior housing investments, including 11 properties with Belmont Village for $530 million, 11 properties with Brookdale Senior Living for $271 million, and five properties with Sunrise Senior Living for $265 million. 

In January, the REIT completed the acquisition of Sunrise Senior Living. Investments in Sunrise currently total $3.5 billion but are expected to reach $4.3 billion by July 2013 as the company continues to exercise rights to buy out joint venture partner interests. 

“Rapid and efficient execution of a complex acquisition, accelerated joint venture buy-outs at accretive prices, and the favorable sale of the management company has positioned us with the premier seniors housing portfolio in the market place at a price that generates very attractive risk adjusted returns for our shareholders,” said George L. Chapman, Chairman and CEO of Health Care REIT Inc.

 

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The REIT reported gross fourth quarter revenues of $500.7 million, up from $384.6 reported for the same period in 2011, and full-year 2012 gross revenues of more than $1.8 billion. 

Outlook for 2013 includes net income attributable to common stockholders in a range of $1.39 to $1.40 per diluted share.

HCN introduced normalized FFO guidance in a range of $3.70 to $3.80 per diluted share, representing a 5%-8% increase. 

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In preparing its guidance, the company said it anticipates funding additional development of $178 million in 2013 relating to projects underway at the end of the fourth quarter 2012. 

Written by Jason Oliva