TOLEDO, Ohio, Jul 11, 2005 (BUSINESS WIRE) -- Health Care REIT, Inc. (NYSE:HCN) announced today that it completed $187.1 million of gross investments during the second quarter of 2005.
The investment activity during the quarter consisted of approximately 96% real property investments and 4% loans. New facility investments for the quarter included one mortgage loan for $4.5 million and acquisitions that totaled $172 million and included 25 skilled nursing facilities with 3,490 beds for $121 million and five specialty care facilities with 156 beds for $51 million. The balance of the gross investment amount consisted primarily of construction and other advances for existing operators. During the quarter, the company had asset sales and loan payoffs of $4.8 million. Net new investments for the quarter totaled $182.3 million. For the six months ended June 30, 2005, the company completed gross investments of $250.6 million, offset by $33.5 million of asset sales and loan payoffs, which generated a total of $217.1 million of net new investments. The company also revised 2005 net investment guidance to a range of $100 to $200 million from the previous guidance of $200 million. The revision in net investment guidance is due to an increase in anticipated dispositions to a range of approximately $50 to $200 million during the remainder of the year.
"We are pleased with our recent success on the new investment front during the first half of 2005 while remaining disciplined in our approach to investing," commented George L. Chapman, chief executive officer of Health Care REIT, Inc. "As active portfolio managers, we are capitalizing on the favorable long-term care financing environment to enhance the quality of our portfolio through the disposition of non-core assets. As a result of this activity, we anticipate eliminating the majority of our subdebt loans and materially reducing loans including loans on non-accrual."
The majority of these payoffs could potentially occur during the final four months of the year, at average current book yields in an approximate range of 10.5-11.0%. Initial yields on new investments during the second half of the year are projected at approximately 9.0-9.5%.
The company also confirmed that it will release its 2005 second quarter earnings results after the market closes on July 19, 2005. A conference call is scheduled for 9:00 a.m. Eastern time on July 20, 2005 to discuss these results. The information to be discussed on the call will be contained in the company's earnings release, which will be available on the press releases page of the company's Web site at www.hcreit.com.
The conference call will be accessible by telephone and through the Internet. Telephone access will be available by dialing 800-565-5442 or 913-312-1298. Callers to this number will be able to listen to the company's business update. For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the live call on July 20, 2005 through July 27, 2005. To access the rebroadcast, dial 888-203-1112 or 719-457-0820. The conference ID number is 2789249. To participate on the webcast, log on to www.hcreit.com or www.earnings.com 15 minutes before the call to download the necessary software. A replay will be available on these Web sites for 90 days.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a real estate investment trust that invests primarily in skilled nursing and assisted living facilities. At June 30, 2005, the company had investments in 234 assisted living facilities, 179 skilled nursing facilities and 13 specialty care facilities located in 37 states and managed by 51 different operators. 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 performance of its operators and properties; its ability to make distributions; its policies and plans regarding investments, financings and other matters; 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," 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; serious 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; changes in federal, state and local legislation; 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; inaccuracies in any of the company's assumptions; and changes in rules or practices governing the company's financial reporting. 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.
SOURCE: Health Care REIT, Inc.
Health Care REIT, Inc., Toledo Ray Braun, 419-247-2800 Mike Crabtree, 419-247-2800 Scott Estes, 419-247-2800