TOLEDO, Ohio--(BUSINESS WIRE)--May 4, 2006--Health Care REIT, Inc. (NYSE:HCN) announced today operating results for its first quarter ended March 31, 2006.
"The company's asset base and tenant credit quality have improved significantly," commented George L. Chapman, chief executive officer of Health Care REIT, Inc. "Driven by these recent portfolio improvements, our strong acquisition pipeline and new development initiative, we expect continued dividend growth and solid portfolio payment coverages."
Key Performance Indicators.
---------------------------
Quarter Quarter
Ended Ended Percentage
3/31/06 3/31/05 Change
----------------------------------------------------------------------
Net Income Available to Common
Stockholders per Diluted Share $0.34 $0.33 3%
----------------------------------------------------------------------
FFO per Diluted Share $0.71 $0.72 -1%
----------------------------------------------------------------------
FAD per Diluted Share $0.84 $0.66 27%
----------------------------------------------------------------------
Common Dividends per Share $0.62 $0.60 3%
----------------------------------------------------------------------
FFO Payout Ratio 87% 83%
----------------------------------------------------------------------
FAD Payout Ratio 74% 91%
----------------------------------------------------------------------
1Q06 Earnings Discussion. The first quarter 2006 reported net income available to common stockholders of $0.34 per diluted share includes $1.6 million, or $0.03 per diluted share, of non-cash expenses for required accelerated vesting of options and restricted stock grants pursuant to Statement of Financial Accounting Standards No. 123(R), which was adopted on January 1, 2006. In addition, net income was positively impacted by $1.6 million, or $0.03 per diluted share, of gains on sales of real property. FAD for first quarter 2006 was higher than FFO by $7.9 million ($0.14 per diluted share) due to non-recurring cash rental receipts of $10.3 million ($0.18 per diluted share) offset by gross straight-line rental income of $2.4 million ($0.04 per diluted share). Non-recurring cash receipts are primarily attributable to cash received in connection with prepaid rent receipts and real property sales resulting in the payoff of existing straight-line receivable balances. Please see Exhibits 13 and 14 for reconciliations of net income available to common stockholders to FAD and FFO. The following table summarizes the items impacting FFO and FAD:
1Q06 FFO and FAD.
-----------------
-----------------------------------------------------
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
3/31/06 3/31/05 Percentage 3/31/06 3/31/05 Percentage
FFO FFO Change FAD FAD Change
----------------------------------------------------------------------
Per Diluted Share $0.71 $0.72 -1% $0.84 $0.66 27%
----------------------------------------------------------------------
Included items:
----------------------------------------------------------------------
Non-recurring
cash payments $0.18 $0.02
----------------------------------------------------------------------
SFAS 123(R)
accelerated
vesting
impact ($0.03) ($0.03)
----------------------------------------------------------------------
Dividends for First Quarter 2006. As previously announced, the Board of Directors declared a dividend for the quarter ended March 31, 2006 of $0.64 per share as compared to $0.62 per share for the same period in 2005. The dividend represents the 140th consecutive dividend payment. The dividend will be payable May 19, 2006 to stockholders of record on April 28, 2006.
Development Initiative. As previously announced, the company has undertaken a new development initiative and expects to fund $150 to $250 million for development during 2006. The company completed a successful start to its development program during the first quarter and has provided details of existing projects in Exhibit 8. The company expects to fund $130.6 million for development during 2006 on projects which are already underway, with an additional $20 to $120 million anticipated from projects which have yet to commence. The $130.6 million of anticipated funding from existing projects is comprised of $32.2 million which was funded during the three months ended March 31, 2006 and $98.4 million projected to be funded over the remainder of 2006. The information contained in Exhibit 8 relates only to development projects for which initial funding has commenced as of March 31, 2006 and does not include any additional development projects which may commence later in 2006.
Outlook for 2006. The company affirms its investment guidance of $450 to $550 million for 2006, which is comprised of $300 million of acquisitions and $150 to $250 million of funded new development. In addition, the company expects $100 to $150 million of dispositions, resulting in net investments of $300 to $450 million. Due in part to the first quarter gains on sales of properties of $1.6 million, the company is increasing its 2006 guidance for net income available to common stockholders from a range of $1.28 to $1.36 per diluted share to $1.33 to $1.41 per diluted share. The company is reaffirming its 2006 FFO guidance in the range of $2.88 to $2.96 per diluted share. The company is increasing its 2006 FAD guidance from a range of $2.77 to $2.85 per diluted share to $2.91 to $2.99 per diluted share primarily due to the non-recurring cash receipts of $10.3 million offset by a $1.3 million increase in our gross straight-line rental income estimate and a 1.0 million share increase in our estimate of average diluted common shares outstanding.
The company's guidance excludes any impairments, unanticipated additions to the loan loss reserve or other additional one-time items, including any additional cash payments outside the normal monthly rental payments. Please see Exhibit 15 for a reconciliation of the outlook for net income available to common stockholders to FFO and FAD.
Supplemental Reporting Measures. The company believes that net income, as defined by U.S. generally accepted accounting principles (U.S. GAAP), is the most appropriate earnings measurement. However, the company considers funds from operations (FFO) and funds available for distribution (FAD) to be useful supplemental measures of its operating performance. Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In response, the National Association of Real Estate Investment Trusts (NAREIT) created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO, as defined by NAREIT, means net income, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FAD represents FFO excluding the non-cash straight-line rental adjustments.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. The company believes that EBITDA, along with net income and cash flow provided from operating activities, is an important supplemental measure because it provides additional information to assess and evaluate the performance of its operations. Additionally, restrictive covenants in the company's long-term debt arrangements contain financial ratios based on EBITDA. The company primarily utilizes EBITDA to measure its interest coverage ratio, which represents EBITDA divided by interest expense and its fixed charge coverage ratio, which represents EBITDA divided by fixed charges. Fixed charges include interest expense and preferred stock dividends.
FFO, FAD and EBITDA are financial measures that are widely used by investors, equity and debt analysts and rating agencies in the valuation, comparison, rating and investment recommendations of companies. The company's management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, FFO and FAD are utilized by the Board of Directors to evaluate management. FFO, FAD and EBITDA do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, FFO, FAD and EBITDA, as defined by the company, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see Exhibits 12, 13 and 14 for reconciliations of EBITDA, FAD and FFO to net income.
Conference Call Information. The company has scheduled a conference call on May 5, 2006 at 9:00 a.m. Eastern time to discuss its first quarter results, industry trends, portfolio performance and outlook for 2006. Telephone access will be available by dialing 800-811-0667 or 913-981-4901 (international). For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through May 12, 2006. To access the rebroadcast, dial 888-203-1112 or 719-457-0820 (international). The conference ID number is 3585420. To participate in the webcast, log on to www.hcreit.com or www.earnings.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days through the same Web sites. This earnings release is posted on the company's Web site under the heading Press Releases.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a real estate investment trust that invests in health care and senior housing properties. At March 31, 2006, the company had investments in 457 facilities in 37 states with 55 operators and had total assets of approximately $3.0 billion. The portfolio included 32 independent living/continuing care retirement communities, 201 assisted living facilities, 211 skilled nursing facilities and 13 specialty care facilities. 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. These forward-looking statements concern and are based upon, among other things, the possible expansion of the company's portfolio; the sale of properties; the performance of its operators and properties; its ability to enter into agreements with new viable tenants for properties that the company takes back from financially troubled tenants, if any; its ability to make distributions; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; and its ability to meet its earnings guidance. 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 are not guarantees of future performance and involve risks and uncertainties. The company's expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including prevailing interest rates; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies and operators' difficulty in obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and senior housing industries; negative developments in the operating results or financial condition of operators, including, but not limited to, their ability to pay rent and repay loans; the company's ability to transition or sell facilities with a profitable result; the failure of closings to occur as and when anticipated; acts of God affecting the company's properties; the company's ability to reinvest sale proceeds at similar rates to assets sold; operator bankruptcies or insolvencies; government regulations affecting Medicare and Medicaid reimbursement rates; liability claims and insurance costs for operators; unanticipated difficulties and/or expenditures relating to future acquisitions; environmental laws affecting the company's properties; delays in reinvestment of sale proceeds; changes in rules or practices governing the company's financial reporting; and structure related factors, including real estate investment trust qualification, anti-takeover provisions and key management personnel. Finally, 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.
FINANCIAL SCHEDULES FOLLOW
HEALTH CARE REIT, INC.
Financial Supplement
CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands)
March 31
------------------------
2006 2005
------------------------
Assets
Real estate investments:
Real property owned
Land $ 267,824 $ 210,014
Buildings & improvements 2,712,511 2,217,871
Real property held for sale, net of
accumulated depreciation 15,898 0
Construction in progress 36,115 26,699
------------ -----------
3,032,348 2,454,584
Less accumulated depreciation (293,738) (236,950)
------------ -----------
Total real property owned 2,738,610 2,217,634
Loans receivable 177,704 241,510
Less allowance for losses on loans
receivable (6,711) (5,561)
------------ -----------
170,993 235,949
------------ -----------
Net real estate investments 2,909,603 2,453,583
Other assets:
Equity investments 2,970 3,298
Deferred loan expenses 12,042 6,419
Cash and cash equivalents 25,758 17,429
Receivables and other assets 62,267 79,633
------------ -----------
103,037 106,779
------------ -----------
Total assets $ 3,012,640 $2,560,362
============ ===========
Liabilities and stockholders' equity
Liabilities:
Borrowings under unsecured lines of
credit arrangements $ 201,000 $ 163,500
Senior unsecured notes 1,195,378 875,000
Secured debt 131,946 169,506
Accrued expenses and other liabilities 49,399 17,951
------------ -----------
Total liabilities 1,577,723 1,225,957
Stockholders' equity:
Preferred stock 276,875 283,751
Common stock 58,685 53,314
Capital in excess of par value 1,326,341 1,152,670
Treasury stock (2,714) (1,766)
Cumulative net income 855,081 769,056
Cumulative dividends (1,080,688) (922,241)
Accumulated other
comprehensive income 0 1
Other equity 1,337 (380)
------------ -----------
Total stockholders' equity 1,434,917 1,334,405
------------ -----------
Total liabilities and stockholders' equity $ 3,012,640 $2,560,362
============ ===========
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)
Three Months Ended
March 31
--------------------
2006 2005
--------------------
Revenues:
Rental income $ 72,785 $ 58,793
Interest income 4,262 4,983
Transaction fees and other income 366 1,422
--------- ----------
Gross revenues 77,413 65,198
Expenses:
Interest expense 24,043 18,697
Provision for depreciation 23,053 18,580
General and administrative 6,201 4,017
Loan expense 711 863
Provision for loan losses 250 300
--------- ----------
Total expenses 54,258 42,457
--------- ----------
Income from continuing operations 23,155 22,741
Discontinued operations:
Gain (loss) on sales of properties 1,553 (110)
Income from discontinued
operations, net 270 608
--------- ----------
1,823 498
--------- ----------
Net income 24,978 23,239
Preferred dividends 5,333 5,436
--------- ----------
Net income available to
common stockholders $ 19,645 $ 17,803
========= ==========
Average number of common shares
outstanding:
Basic 58,178 52,963
Diluted 58,535 53,454
Net income available to
common stockholders per share:
Basic $ 0.34 $ 0.34
Diluted 0.34 0.33
Common dividends per share $ 0.62 $ 0.60
HEALTH CARE REIT, INC.
Financial Supplement - March 31, 2006
Portfolio Composition Exhibit 1
---------------------
($000's except Investment per Bed/Unit)
Balance Sheet
Data # Properties # Beds/Units Balance % Balance
-----------------------------------------------------
Real Property 440 44,573 $2,738,610 94%
Loans
Receivable (1) 17 2,208 177,704 6%
-----------------------------------------------------
Totals 457 46,781 $2,916,314 100%
Investment
Balances # Properties # Beds/Units Investment (2) % Investment
-----------------------------------------------------
Independent/
CCRCs 32 4,494 $ 426,653 15%
Assisted Living
Facilities 201 12,343 974,154 33%
Skilled Nursing
Facilities 211 28,632 1,323,447 45%
Specialty Care
Facilities 13 1,312 194,510 7%
-----------------------------------------------------
Totals 457 46,781 $2,918,764 100%
Committed Committed Investment
Investments # Properties # Beds/Units Balance (3) per Bed/Unit
-----------------------------------------------------
Independent/
CCRCs 32 4,494 $ 471,220 $ 104,855
Assisted Living
Facilities 201 12,343 1,088,434 88,182
Skilled Nursing
Facilities 211 28,632 1,332,054 46,523
Specialty Care
Facilities 13 1,312 194,510 148,255
-----------------------------------------------------
Totals 457 46,781 $3,086,218 -na-
Notes: (1)Includes $15,659,000 of loans on non-accrual.
(2)Real Estate Investments include gross real estate
investments and credit enhancements which amounted to
$2,916,314,000 and $2,450,000, respectively.
(3)Committed Balance includes gross real estate investments,
credit enhancements and unfunded construction commitments
for which initial funding had commenced.
Selected Facility Data Exhibit 2
----------------------
Coverage Data
-------------------
% Payor Mix Before After
--------------------------
Census Private Medicare Medicaid Mgt. Fees Mgt. Fees
-------------------------------------------------------
Independent/
CCRCs 92% 97% 1% 2% 1.45x 1.23x
Assisted Living
Facilities 88% 83% 0% 17% 1.52x 1.30x
Skilled Nursing
Facilities 86% 17% 15% 68% 2.21x 1.63x
Specialty Care
Facilities 67% 19% 60% 21% 3.19x 2.60x
-------------------
Weighted Averages 1.94x 1.54x
Notes: Data as of December 31, 2005.
Investment Concentrations ($000's) Exhibit 3
----------------------------------
Concentration by Operator # Properties Investment % Investment
------------ ------------ ------------
Emeritus Corporation 50 $ 360,717 12%
Brookdale Living
Communities, Inc. 88 291,266 10%
Merrill Gardens L.L.C. 13 203,670 7%
Life Care Centers of
America, Inc. 24 197,960 7%
Delta Health Group, Inc. 25 171,764 6%
Remaining operators (50) 257 1,693,387 58%
------------ ------------ ------------
Totals 457 $ 2,918,764 100%
Concentration by Region # Properties Investment % Investment
------------ ------------ ------------
South 274 $ 1,479,265 51%
Northeast 62 497,585 17%
West 64 494,902 17%
Midwest 57 447,012 15%
------------ ------------ ------------
Totals 457 $ 2,918,764 100%
Concentration by State # Properties Investment % Investment
------------ ------------ ------------
Florida 62 $ 405,992 14%
Massachusetts 36 336,547 12%
Ohio 29 251,053 9%
Texas 52 222,462 8%
North Carolina 43 202,088 7%
Remaining States (32) 235 1,500,622 50%
------------ ------------ ------------
Totals 457 $ 2,918,764 100%
Revenue Composition ($000's) Exhibit 4
----------------------------
Three Months Ended
March 31, 2006
-------------------
Revenue by Investment Type (1)
Real Property $ 73,759 94%
Loans Receivable 4,328 6%
-------------------
Totals $ 78,087 100%
Revenue by Facility Type (1)
Independent/CCRCs $ 9,300 12%
Assisted Living Facilities 28,483 36%
Skilled Nursing Facilities 35,613 46%
Specialty Care Facilities 4,691 6%
-------------------
Totals $ 78,087 100%
Notes: (1) Revenues include gross revenues and revenues from
discontinued operations.
Revenue Maturities ($000's) Exhibit 5
---------------------------
Operating Lease Expirations & Loan Maturities
Current Lease Current Interest Lease and %
Year Revenue (1) Revenue (1) Interest Revenue of Total
----------------------------------------------------------------------
2006 $ 1,843 $ 1,380 $ 3,223 1%
2007 0 336 336 0%
2008 0 2,890 2,890 1%
2009 906 2,009 2,915 1%
2010 1,726 2,263 3,989 1%
Thereafter 287,366 5,763 293,129 96%
------------------------------------------------------------
Totals $ 291,841 $ 14,641 $ 306,482 100%
Notes: (1) Revenue impact by year, annualized.
Debt Maturities and Principal Payments ($000's) Exhibit 6
-----------------------------------------------
Lines of Senior Secured
Year Credit (1) Notes (2) Debt Total
----------------------------------------------------------------------
2006 $ 40,000 $ 0 $ 2,329 $ 42,329
2007 0 52,500 15,074 67,574
2008 500,000 42,330 10,289 552,619
2009 0 0 33,807 33,807
2010 0 0 8,733 8,733
2011 0 0 20,472 20,472
2012 0 250,000 14,851 264,851
Thereafter 0 850,000 26,391 876,391
------------------------------------------------------
Totals $ 540,000 $1,194,830 $ 131,946 $1,866,776
Notes: (1) Reflected at 100% capacity.
(2) Amounts above represent principal amounts due and do not
reflect unamortized premiums/discounts or the fair value of
interest-rate swap agreements as reflected on the balance
sheet.
Investment Activity ($000's) Exhibit 7
----------------------------
Three Months Ended
March 31, 2006
----------------------
Funding by Investment Type
Real Property $ 115,340 94%
Loans Receivable 7,743 6%
----------------------
Total $ 123,083 100%
Funding by Facility Type
Independent/CCRCs $ 4,788 4%
Assisted Living Facilities 33,564 27%
Skilled Nursing Facilities 84,303 68%
Specialty Care Facilities 428 1%
----------------------
Total $ 123,083 100%
Development Activity ($000's) Exhibit 8
-----------------------------
Balance
at Balance at
Dec. 31, 2006 YTD March 31, Committed Unfunded
Facility Type 2005 Fundings 2006 Balances Commitments
------------- --------- ----------- ---------- ---------- -----------
Independent/
CCRCs $ 0 $ 3,018 $ 3,018 $ 29,621 $ 26,603
Assisted
Living
Facilities 2,995 24,292 27,287 159,531 132,244
Skilled
Nursing
Facilities 911 4,899 5,810 14,417 8,607
--------- ----------- ---------- ---------- -----------
Totals $ 3,906 $ 32,209 $ 36,115 $ 203,569 $ 167,454
Development Funding Projections ($000's)
----------------------------------------
Projected Future
Fundings
---------------------
2006 Fundings Unfunded
Facility Type Projects # Beds/Units Fundings Thereafter Commitments
------------- --------- ------------ ---------- ---------- -----------
Independent/
CCRCs 1 178 $ 19,782 $ 6,821 $ 26,603
Assisted
Living
Facilities 15 1,043 72,460 59,784 132,244
Skilled
Nursing
Facilities 2 163 6,153 2,454 8,607
--------- ------------ ---------- ---------- -----------
Totals 18 1,384 $ 98,395 $ 69,059 $ 167,454
Project Conversion Projections ($000's)
---------------------------------------
2006 Quarterly Projections Annual Projections
--------------------------------- ---------------------------------
Projected Projected
Average Average
Initial Initial
Quarter Amount Yields(1) Year Amount Yields(1)
----------- --------- ---------------------- ---------- -----------
1Q06 2006
actual $ 0 n/a projected $ 9,231 9.00%
2Q06 2007
projected 0 n/a projected 75,350 8.92%
3Q06 2008
projected 6,363 9.00% projected 40,020 8.50%
4Q06
projected 2,868 9.00% Thereafter 78,968 8.86%
--------- ----------- ---------- -----------
Totals $ 9,231 9.00% Totals $ 203,569 8.82%
Notes: All amounts include both cash advances and non-cash additions
such as capitalized interest.
(1) Represent minimum projected average initial yields. Actual
initial yields may be higher if the underlying market rates
increase.
Disposition Activity ($000's) Exhibit 9
-----------------------------
Three Months Ended
March 31, 2006
----------------------
Dispositions by Investment Type
Real Property $ 15,393 42%
Loans Receivable 21,240 58%
----------------------
Totals $ 36,633 100%
Dispositions by Facility Type
Assisted Living Facilities $ 12,162 33%
Skilled Nursing Facilities 17,513 48%
Specialty Care Facilities 6,958 19%
----------------------
Totals $ 36,633 100%
Discontinued Operations ($000's) Exhibit 10
--------------------------------
Three Months Ended
March 31
---------------------
2006 2005
---------- ----------
Revenues
Rental income $ 674 $ 3,372
Expenses
Interest expense 195 948
Provision for depreciation 209 1,816
---------- ----------
Income (loss) from discontinued
operations, net $ 270 $ 608
Exhibit 11
Current Capitalization
($000's except share price) Leverage & Performance Ratios
---------------------------------------- -----------------------------
%
Balance Balance
-------------------
Borrowings Under
Bank Lines $ 201,000 7% Debt/Total Book Cap 52%
Long-Term Debt Debt/Undepreciated
Obligations 1,327,324 45% Book Cap 47%
Stockholders' Equity 1,434,917 48% Debt/Total Market Cap 38%
-------------------
Total Book
Capitalization $2,963,241 100%
Interest
Coverage 3.10x 1st Qtr.
Common Shares
Outstanding (000's) 58,780
Period-End Share
Price $ 38.10
-----------
Common Stock
Market Value $2,239,518 55%
Fixed Charge
Preferred Stock 276,875 7% Coverage 2.54x 1st Qtr.
Borrowings Under
Bank Lines 201,000 5%
Long-Term Debt
Obligations 1,327,324 33%
-------------------
Total Market
Capitalization $4,044,717 100%
EBITDA Reconciliation ($000's) Exhibit 12
------------------------------
Three Months Ended
March 31
---------------------
2006 2005
---------- ----------
Net income $ 24,978 $ 23,239
Provision for depreciation (1) 23,262 20,396
Interest expense (1) 24,238 19,645
Amortization (2) 3,207 1,042
---------- ----------
EBITDA $ 75,685 $ 64,322
Interest Coverage Ratio
Interest expense (1) $ 24,238 $ 19,645
Capitalized interest 202 265
---------- ----------
Total interest 24,440 19,910
EBITDA $ 75,685 $ 64,322
---------- ----------
Interest coverage ratio 3.10x 3.23x
Fixed Charge Coverage Ratio
Total interest (1) $ 24,440 $ 19,910
Preferred dividends 5,333 5,436
---------- ----------
Total fixed charges 29,773 25,346
EBITDA $ 75,685 $ 64,322
---------- ----------
Fixed charge coverage ratio 2.54x 2.54x
Notes: (1) Provision for depreciation and interest expense include
provision for depreciation and interest expense from
discontinued operations.
(2) Amortization includes amortization of stock-based
compensation, deferred loan expenses and other items.
Funds Available For Distribution Reconciliation Exhibit 13
-----------------------------------------------
(Amounts in 000's except per share data)
Three Months Ended
March 31
---------------------
2006 2005
---------- ----------
Net income available to
common stockholders $ 19,645 $ 17,803
Provision for depreciation (1) 23,262 20,396
Loss (gain) on sales of
properties (1,553) 110
Gross straight-line rental income (2,400) (3,708)
Prepaid/straight-line rent
receipts 10,310 853
---------- ----------
Funds available for distribution $ 49,264 $ 35,454
Average common shares
outstanding:
Basic 58,178 52,963
Diluted 58,535 53,454
Per share data:
Net income available to common
stockholders
Basic $ 0.34 $ 0.34
Diluted 0.34 0.33
Funds available for distribution
Basic $ 0.85 $ 0.67
Diluted 0.84 0.66
FAD Payout Ratio
Dividends per share $ 0.62 $ 0.60
FAD per diluted share $ 0.84 $ 0.66
---------- ----------
FAD payout ratio 74% 91%
Notes: (1) Provision for depreciation includes provision for
depreciation from discontinued operations.
Funds From Operations Reconciliation Exhibit 14
------------------------------------
(Amounts in 000's except per share data)
Three Months Ended
March 31
---------------------
2006 2005
---------- ----------
Net income available to
common stockholders $ 19,645 $ 17,803
Provision for depreciation (1) 23,262 20,396
Loss (gain) on sales of
properties (1,553) 110
---------- ----------
Funds from operations $ 41,354 $ 38,309
Average common shares
outstanding:
Basic 58,178 52,963
Diluted 58,535 53,454
Per share data:
Net income available to common
stockholders
Basic $ 0.34 $ 0.34
Diluted 0.34 0.33
Funds from operations
Basic $ 0.71 $ 0.72
Diluted 0.71 0.72
FFO Payout Ratio
Dividends per share $ 0.62 $ 0.60
FFO per diluted share $ 0.71 $ 0.72
---------- ----------
FFO payout ratio 87% 83%
Notes: (1) Provision for depreciation includes provision for
depreciation from discontinued operations.
Outlook Reconciliation Exhibit 15
----------------------
(Amounts in 000's except per share data)
Current Outlook Prior Outlook
Year Ended Year Ended
December 31, 2006 December 31, 2006
---------------------------------------
Low High Low High
--------- --------- --------- ---------
Net income available to
common stockholders $ 82,363 $ 87,263 $ 78,200 $ 83,100
Loss (gain) on sales
of properties (1,553) (1,553)
Provision for
depreciation (1) 97,500 97,500 97,500 97,500
--------- --------- --------- ---------
Funds from operations 178,310 183,210 175,700 180,600
Rental income less than (in
excess of) cash received 2,000 2,000 (7,000) (7,000)
--------- --------- --------- ---------
Funds available for
distribution $180,310 $185,210 $168,700 $173,600
Average common shares
outstanding (diluted) 62,000 62,000 61,000 61,000
Per share data (diluted):
Net income available to
common stockholders $ 1.33 $ 1.41 $ 1.28 $ 1.36
Funds from operations 2.88 2.96 2.88 2.96
Funds available for
distribution 2.91 2.99 2.77 2.85
Notes: (1) Provision for depreciation includes provision for
depreciation from discontinued operations.
CONTACT: Health Care REIT, Inc.
Scott Estes, 419-247-2800
Mike Crabtree, 419-247-2800
SOURCE: Health Care REIT, Inc.