TOLEDO, Ohio--(BUSINESS WIRE)--Oct. 8, 2003--Health Care REIT, Inc. (NYSE:HCN) announced today that it had completed $340.2 million of gross investments during the third quarter of 2003.
The investment activity during the quarter was approximately 91 percent real property investments and nine percent loans. Facility-based investments include 95 percent assisted living facilities, three percent skilled nursing facilities and two percent specialty care facilities. Aggregate funding was provided to 18 operators in 22 states. Also during the quarter, the company had $54.6 million of asset sales and loan payoffs relating to seven assisted living and two skilled nursing facilities. Net investments for the quarter totaled $285.6 million.
"We are very pleased with the third quarter investment activity that included portfolio transactions with Emeritus Corporation ("Emeritus") and Southern Assisted Living, Inc. ("SALI") that closed at the end of the quarter. These transactions dramatically expand our portfolio with excellent facilities operated by companies and management teams with whom we have had a long and productive track record," commented George L. Chapman, chief executive officer of Health Care REIT, Inc.
Investments for the quarter involved the acquisitions of 56 assisted living facilities with 3,695 units, one skilled nursing facility with 132 beds and two parcels of land for $320.4 million with four operators. Additionally, we funded $19.8 million on existing investments at 29 facilities with 17 operators. Investments were comprised of $304.1 million of leases, $6.7 million of construction advances and $29.4 million of real property loans. On a weighted average basis, these investments have GAAP yields of 10.88 percent, with some leases including revenue participations, and are projected to have initial coverages of 1.30 times before management fees.
In the Emeritus transactions, the company acquired 23 assisted living facilities with 1,853 units for a total investment of $163.6 million ($88,289 per unit), including the assumption of indebtedness of $24.3 million with a 7.43 percent weighted average interest rate. At September 30, 2003, the total Emeritus portfolio is fully stabilized and is comprised of 30 facilities with 2,529 units and an investment balance of $233.3 million in 16 states.
The SALI transaction involved the acquisition of 32 assisted living facilities with 1,453 units and two parcels of land for a total investment of $138.9 million ($96,646 per unit). The transaction included the assumption of $59.5 million of indebtedness with a 7.27 percent average interest rate as well as the issuance of $26.5 million of the company's 6 percent convertible preferred shares. At September 30, 2003, the total SALI portfolio is comprised of 44 assisted living facilities with 2,130 units and two parcels of land and an investment balance of $212.7 million in North Carolina, South Carolina and Virginia. Four facilities remain in fill-up.
Through September 30, 2003, the company has completed gross investments of $523.9 million, offset by $75.4 million of asset sales and loan payoffs, generating $448.5 million in net new investments.
The company also confirmed that it will release its 2003 third quarter earnings results on October 22, 2003, after the market closes, and will provide updated guidance on investments, net income and FFO. A conference call is scheduled for 11:00 a.m. EDST on October 23, 2003, to discuss these results. The information to be discussed on the call will be contained in the company's earnings release, which will also be available on the press releases page of the company's Web site (http://www.hcreit.com).
The conference call will be accessible by telephone and through the Internet. Telephone access will be available by dialing 973-935-8504 or 800-231-5571. 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 October 23, 2003 through October 30, 2003. To access the rebroadcast, dial 973-341-3080 or 877-519-4471. The conference ID number is 4222106. To participate on the webcast, log on to www.hcreit.com or www.ccbn.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 in health care facilities, primarily skilled nursing and assisted living facilities. For more information on Health Care REIT, Inc., via facsimile at no cost, dial 1-800-PRO-INFO and enter the company code - HCN. More information is available on the Internet at http://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 the possible expansion of our portfolio; the performance of our operators and properties; our ability to enter into agreements with new viable tenants for properties which we take back from financially troubled tenants, if any; our ability to make distributions; our policies and plans regarding investments, financings and other matters; our tax status as a real estate investment trust; our ability to appropriately balance the use of debt and equity; and our ability to access capital markets or other sources of funds. When we use words such as "believe," "expect," "anticipate," or similar expressions, we are making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Our expected results may not be achieved, and actual results may differ materially from our 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; compliance with and changes to regulations and payment policies within the health care industry; changes in financing terms; competition within the health care and senior housing industries; and changes in federal, state and local legislation. Finally, we assume 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.
Ray Braun, Mike Crabtree or Scott Estes, 419-247-2800
SOURCE: Health Care REIT, Inc.