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.


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.



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. 

Recommended SHN+ Exclusives

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