TOLEDO, Ohio--(BUSINESS WIRE)--May 24, 2007--Health Care REIT, Inc. (NYSE:HCN) announced today the acquisition of 17 medical office buildings (MOBs) and Paramount Real Estate Services from affiliates of Rendina Companies for an aggregate purchase price of $287.7 million. In connection with the transaction, Health Care REIT will assume approximately $146.3 million in secured debt at an average rate of 5.8%.
"This transaction enhances both the size and quality of our MOB portfolio, while increasing the company's percentage of private pay revenues," commented George L. Chapman, Chairman and CEO of Health Care REIT. "In addition, the acquisition of Paramount strengthens our property management platform and capabilities. We are excited to welcome the Paramount group to our company and look forward to building on our strong relationship with Rendina Companies in the future."
The 17 MOBs contain approximately 900,000 square feet and are located in ten states, including Alaska (1), Arizona (2), California (2), Florida (4), Missouri (1), Nevada (1), Oklahoma (1), South Carolina (1), Tennessee (1), and Texas (3). Twelve of the 17 MOBs are located on a hospital campus, while 16 of the MOBs are on property ground leased from a hospital. The buildings serve, among others, established hospital systems including Catholic Healthcare West, IASIS Healthcare, Tenet Healthcare, Triad Hospitals and Universal Health Services.
The transaction is expected to be immediately accretive to the company's fully diluted net income, FFO and FAD per share during the remainder of 2007 exclusive of transaction cost. This accretion is reflected in the company's previously issued 2007 guidance. The average age of the buildings in this portfolio is four years. The average occupancy of the buildings is currently 95%, with the leases in this portfolio having an average remaining term of six years. On a pro-forma basis as of March 31, 2007, this acquisition will boost the private pay percentage of operators/tenants within the Health Care REIT portfolio to 64% and increase MOB assets to approximately 26%.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a self-administered, equity real estate investment trust that invests across the full spectrum of senior housing and health care real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals and medical office buildings. Founded in 1970, the company was the first real estate investment trust to invest exclusively in health care facilities. As of March 31, 2007, the company's broadly diversified portfolio consisted of 597 properties in 37 states. The company also offers property management and development services. More information is available on the Internet at www.hcreit.com.
This document may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions, it is making forward-looking statements. Forward-looking statements reflect current plans and expectations and are based on information currently available. They are not guarantees of future performance and involve risks and uncertainties. The company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.
CONTACT: Health Care REIT, Inc.
Mike Crabtree - 419-247-2800
Scott Estes - 419-247-2800
SOURCE: Health Care REIT, Inc.