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Health Care REIT, Inc. Reports Second Quarter Results

07/15/2003

TOLEDO, Ohio--(BUSINESS WIRE)--July 15, 2003--Health Care REIT, Inc. (NYSE:HCN) today announced operating results for its second quarter ended June 30, 2003. We continue to meet our financial and operational expectations.

"We are pleased to report the fourth consecutive quarter of strong quarter over prior year quarter FFO growth," commented George L. Chapman, chief executive officer of Health Care REIT, Inc. "We believe that this growth, coupled with our strong investment pipeline, should enable us to reach our goal of driving our FFO payout ratio to the low 80 percent level within the next several quarters. During the second quarter, we completed $132.1 million of solid investments that further strengthen and diversify our portfolio. Our continued access to the capital markets, combined with our strong relationships with operators, enables us to successfully close new investments."

The Board of Directors declared a dividend for the quarter ended June 30, 2003 of $0.585 per share. The dividend represents the 129th consecutive dividend payment. The dividend will be payable August 20, 2003 to stockholders of record on July 31, 2003.

Summary of Second Quarter Results
---------------------------------
(In thousands, except per share data)
---------------------------------------------------------------------
                               Three Months Ended  Three Months Ended
                                  June 30, 2003 June 30, 2002
------------------------------ ------------------ -------------------
Revenues                             $47,856 $39,384
------------------------------ ------------------ -------------------
Net Income Available to
 Common Stockholders                 $16,744 $13,490
------------------------------ ------------------ -------------------
Funds From Operations                $28,600 $23,942
------------------------------ ------------------ -------------------
Net Income Per Diluted Share         $  0.41 $  0.37
------------------------------ ------------------ -------------------
FFO Per Diluted Share                $  0.70 $  0.66
------------------------------ ------------------ -------------------
Dividend Per Share                   $ 0.585            $ 0.585
------------------------------ ------------------ -------------------
FFO Payout Ratio                          84%                89%
------------------------------ ------------------ -------------------

Net income available to common stockholders totaled $16.7 million, or $0.41 per diluted share for the second quarter of 2003, compared with $13.5 million, or $0.37 per diluted share, for the same period in 2002. Funds from operations totaled $28.6 million, or $0.70 per diluted share, for the second quarter of 2003, compared with $23.9 million, or $0.66 per diluted share, for the same period in 2002.

Summary of Year to Date Results
---------------------------------
(In thousands, except per share data)
---------------------------------------------------------------------
                                   Six Months Ended  Six Months Ended
                                     June 30, 2003 June 30, 2002
--------------------------------- ------------------ ----------------
Revenues                                $94,148 $75,467
--------------------------------- ------------------ ----------------
Net Income Available to
 Common Stockholders                    $33,195 $26,002
--------------------------------- ------------------ ----------------
Funds From Operations                   $56,674 $45,131
--------------------------------- ------------------ ----------------
Net Income Per Diluted Share            $  0.81 $  0.74
--------------------------------- ------------------ ----------------
FFO Per Diluted Share                   $  1.39 $  1.29
--------------------------------- ------------------ ----------------
Dividend Per Share                      $  1.17 $  1.17
--------------------------------- ------------------ ----------------
FFO Payout Ratio                             84%               91%
--------------------------------- ------------------ ----------------

Net income available to common stockholders totaled $33.2 million, or $0.81 per diluted share for the six months ended June 30, 2003, compared with $26.0 million, or $0.74 per diluted share, for the same period in 2002. Funds from operations totaled $56.7 million, or $1.39 per diluted share, for the six months ended June 30, 2003, compared with $45.1 million, or $1.29 per diluted share, for the same period in 2002.

We had a total outstanding debt balance of $833.5 million at June 30, 2003, as compared with $576.0 million at June 30, 2002, and stockholders' equity of $895.3 million, which represents a debt to total book capitalization ratio of 48 percent. The debt to total market capitalization at June 30, 2003 was 38 percent. Our coverage ratio of EBITDA to interest was 3.50 to 1.00 for the six months ended June 30, 2003.

Portfolio Update. Two assisted living facilities stabilized during the quarter and no assisted living facilities in fill-up were acquired. We ended the quarter with 18 assisted living facilities remaining in fill-up, representing eight percent of revenues. None of these facilities has occupancy of less than 50 percent.

Previously we reported on the impact of the bankruptcy filings of Doctors Community Health Care Corporation and Alterra Healthcare Corporation. At this time, there is no additional information to report.

Supplemental Reporting Measures. FFO stands for funds from operations, the generally accepted measure of operating performance for the real estate investment trust industry. EBITDA stands for earnings before interest, taxes, depreciation and amortization. We believe that FFO and EBITDA, along with net income and cash flow provided from operating activities, are important supplemental measures because they provide investors an indication of our ability to service debt, to make dividend payments and to fund other cash needs. We primarily utilize FFO to measure our payout ratio which represents dividends paid per share divided by FFO per diluted share. We primarily utilize EBITDA to measure our interest coverage ratio which represents EBITDA divided by interest expense.

FFO and EBITDA do not represent net income or cash flow provided from operating activities as determined in accordance with generally accepted accounting principles and should not be considered as alternative measures of profitability or liquidity. Additionally, FFO and EBITDA, as defined by us, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see Exhibits 14 and 16 for reconciliations of FFO and EBITDA to net income.

Outlook for 2003. We expect to report net income available to common stockholders in the range of $1.69 to $1.74 per diluted share and FFO in the range of $2.78 to $2.83 per diluted share for the year 2003. The guidance assumes gross investments of $325-350 million, net investments of $250 million and non-recognition of interest income on the mortgage loan with Doctors Community Health Care Corporation. Please see Exhibit 15 for a reconciliation of the outlook for net income and FFO.

Dividend Reinvestment Plan. As previously announced, we have implemented our new, enhanced dividend reinvestment and stock purchase plan. Existing stockholders are now able to purchase up to $5,000 of common stock per month at a discount, currently set at four percent. Additionally, investors who are not stockholders of the company may use this plan to make an initial investment in the company. We have the discretion to grant waivers for purchases in excess of $5,000 per month.

Conference Call Information. We have scheduled a conference call on July 16, 2003, at 11:00 A.M. EDST to discuss our second quarter 2003 results, industry trends, portfolio performance and outlook for the remainder of 2003. 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. Replays will be available for 90 days through the same Web sites. This earnings release is posted on our 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 facilities, primarily skilled nursing and assisted living facilities. At June 30, 2003, we had investments in 270 health care facilities in 33 states with 47 operators and had total assets of approximately $1.7 billion. 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.

FINANCIAL SCHEDULES FOLLOW

 HEALTH CARE REIT, INC.
                         Financial Supplement

CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands)
                                                       June 30
                                               -----------------------
                                                  2003        2002
                                               -----------------------
Assets
Real estate investments:
 Real property owned
  Land                                         $  131,905 $  106,299
  Buildings & improvements                      1,431,662   1,155,541
  Construction in progress                         35,151           0
                                               ----------- -----------
                                                1,598,718   1,261,840
  Less accumulated depreciation                  (137,029)    (98,637)
                                               ----------- -----------
  Total real property owned                     1,461,689   1,163,203

 Loans receivable
  Real property loans                             202,287     226,158
  Subdebt investments                              15,965      24,132
                                               ----------- -----------
                                                  218,252     250,290
 Less allowance for losses on loans receivable     (5,455)     (7,361)
                                               ----------- -----------
                                                  212,797     242,929
                                               ----------- -----------
  Net real estate investments                   1,674,486   1,406,132

Other assets:
  Equity investments                                7,492       6,891
  Deferred loan expenses                            6,187       6,358
  Cash and cash equivalents                         7,953       9,256
  Receivables and other assets                     49,982      37,667
                                               ----------- -----------
                                                   71,614      60,172
                                               ----------- -----------

Total assets                                   $1,746,100 $1,466,304
                                               =========== ===========

Liabilities and stockholders' equity
Liabilities:
  Borrowings under unsecured lines of
   credit obligations                          $  156,900 $   99,000
  Senior unsecured notes                          615,000     365,000
  Secured debt                                     61,608     112,033
  Accrued expenses and other liabilities           17,282      19,114
                                               ----------- -----------
Total liabilities                                 850,790     595,147

Stockholders' equity:
  Preferred stock                                 106,150     135,000
  Common stock                                     41,360      38,116
  Capital in excess of par value                  821,897     743,875
  Cumulative net income                           618,855     545,557
  Cumulative dividends                           (690,366)   (586,669)
  Accumulated other comprehensive income               79        (558)
  Other equity                                     (2,665)     (4,164)
                                               ----------- -----------
Total stockholders' equity                        895,310     871,157
                                               ----------- -----------

Total liabilities and stockholders' equity     $1,746,100 $1,466,304
                                               =========== ===========


                        HEALTH CARE REIT, INC.
                         Financial Supplement

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)

                                  Three Months Ended Six Months Ended
                                       June 30 June 30
                                  ------------------ -----------------
                                    2003      2002     2003     2002
                                  ------------------ -----------------
Revenues:
  Rental income                    $42,023 $31,528 $82,783 $60,267
  Interest income                    5,190    7,107   10,130   13,894
  Commitment fees and other income     643      749    1,235    1,306
                                   -------- -------- -------- --------
Gross revenues                      47,856   39,384   94,148   75,467

Expenses:
  Interest expense                  13,161   10,026   25,037   19,505
  Provision for depreciation        11,856    9,261   23,508   17,554
  General and administrative         2,847    2,285    5,457    4,546
  Loan expense                         680      580    1,315    1,157
  Impairment of assets                   0      550        0      550
  Loss on extinguishment of debt         0      403        0      403
  Provision for loan losses            250      250      500      500
                                   -------- -------- -------- --------
Total expenses                      28,794   23,355   55,817   44,215
                                   -------- -------- -------- --------

Income from continuing operations   19,062   16,029   38,331   31,252

Discontinued operations:
  Gain (loss) on sales of
   properties                            0      145       34      145
  Income (loss) from discontinued
   operations, net                       0      657       (6)   1,323
                                   -------- -------- -------- --------
                                         0      802       28    1,468
                                   -------- -------- -------- --------

Net income                          19,062   16,831   38,359   32,720

Preferred dividends                  2,318    3,341    5,164    6,718
                                   -------- -------- -------- --------

Net income available to
 common stockholders               $16,744 $13,490 $33,195 $26,002
                                   ======== ======== ======== ========

Average number of common shares
 outstanding:
  Basic                             40,546   35,446   40,269   34,196
  Diluted                           41,136   36,223   40,822   34,954

Net income available to
 common stockholders per share:
  Basic                            $  0.41 $  0.38 $  0.82 $  0.76
  Diluted                             0.41     0.37     0.81     0.74

Funds from operations              $28,600 $23,942 $56,674 $45,131

Funds from operations per share:
  Basic                            $  0.71 $  0.68 $  1.41 $  1.32
  Diluted                             0.70     0.66     1.39     1.29

Dividends per share                $ 0.585  $ 0.585  $ 1.170  $ 1.170



Health Care REIT, Inc.
Financial Supplement - June 30, 2003
----------------------------------------------------------------------

Portfolio Composition ($000's)                               Exhibit 1
--------------------------------

Balance Sheet
 Data             # Properties # Beds/Units    Balance     % Balance
                  ----------------------------------------------------
 Real Property          249       23,402     $1,461,689        87%
 Loans Receivable        21        2,562        202,287        12%
 Subdebt Investments      0            0         15,965         1%
                    --------------------------------------------------
 Total Investments      270       25,964     $1,679,941       100%

Investment Data   # Properties # Beds/Units Investment(1) % Investment
                  ----------------------------------------------------
 Assisted Living
  Facilities            166       11,043     $  914,724        54%
 Skilled Nursing
  Facilities             96       13,617        634,505        38%
 Specialty Care
  Facilities              8        1,304        138,557         8%
                    --------------------------------------------------
 Real Estate
  Investments           270       25,964     $1,687,786       100%

Notes: (1) Real Estate Investments include gross real estate
 investments and credit enhancements which amounted to $1,679,941,000
 and $7,845,000, respectively.
----------------------------------------------------------------------

Revenue Composition ($000's)                                 Exhibit 2
----------------------------

                                Three Months Ended   Six Months Ended
                                   June 30, 2003 June 30, 2003
                                ------------------ -------------------
Revenue by Investment Type (1)
  Real Property                    $42,556     89%   $83,756      89%
  Loans Receivable                   4,890     10%     9,723      10%
  Subdebt Investments                  410      1%       669       1%
                                ----------- ------ ---------- --------
  Total                            $47,856    100%   $94,148     100%

Revenue by Facility Type (1)
  Assisted Living Facilities       $27,570     58%   $53,405      57%
  Skilled Nursing Facilities        17,580     37%    35,085      37%
  Specialty Care Facilities          2,706      5%     5,658       6%
                                ----------- ------ ---------- --------
  Total                            $47,856    100%   $94,148     100%

Notes: (1) Revenues include gross revenues and revenues from
 discontinued operations.

----------------------------------------------------------------------

Operator Concentration ($000's)                              Exhibit 3
---------------------------------

Concentration by Investment       # Properties Investment % Investment
                                 -------------------------------------
  Commonwealth Communities L.L.C.       14     $  198,309       12%
  Merrill Gardens L.L.C.                14        120,443        7%
  Life Care Centers of America,
   Inc.                                 17        118,529        7%
  Home Quality Management, Inc.         19        114,747        7%
  Alterra Healthcare Corporation        45        104,806        6%
  Remaining Operators (42)             161      1,030,952       61%
                                 -------------------------------------
  Total                                270     $1,687,786      100%

Concentration by Revenue          # Properties  Revenue(1)  % Revenue
                                 -------------------------------------
  Commonwealth Communities L.L.C.       14     $   13,345       14%
  Home Quality Management, Inc.         19          7,771        8%
  Merrill Gardens L.L.C.                14          7,150        8%
  Life Care Centers of America,
   Inc.                                 17          7,056        7%
  Alterra Healthcare Corporation        45          6,904        7%
  Remaining Operators (42)             161         51,922       56%
                                 -------------------------------------
  Total                                270     $   94,148      100%

Notes: (1)Six months ended June 30, 2003.

----------------------------------------------------------------------

Geographic Concentration ($000's)                            Exhibit 4
---------------------------------

Concentration by Region        # Properties   Investment  % Investment
                              -------------- ------------ ------------
  South                             156       $  777,779        46%
  Northeast                          43          398,540        24%
  Midwest                            37          260,420        15%
  West                               34          251,047        15%
                              -------------- ------------ ------------
  Total                             270       $1,687,786       100%

Concentration by State         # Properties   Investment  % Investment
                              -------------- ------------ ------------
  Massachusetts                      22       $  247,233        15%
  Florida                            29          151,639         9%
  Texas                              31          115,738         7%
  Ohio                               13          115,503         7%
  Tennessee                          18           98,253         6%
  Remaining States (28)             157          959,420        56%
                              -------------- ------------- -----------
  Total                             270       $1,687,786       100%

Revenue by State               # Properties   Revenue(1)    % Revenue
                              -------------- ------------- -----------
  Massachusetts                      22       $   15,961        17%
  Florida                            29            9,752        10%
  Texas                              31            7,877         8%
  Ohio                               13            5,980         6%
  Tennessee                          18            5,132         5%
  Remaining States (28)             157           49,446        54%
                              -------------- ------------- -----------
  Total                             270       $   94,148       100%

Notes: (1) Six months ended June 30, 2003.

----------------------------------------------------------------------

Committed Investment Balances                                Exhibit 5
------------------------------
($000's except Investment per Bed/Unit)

                                               Committed   Investment
                   # Properties  # Beds/Units Balance (1) per Bed/Unit
                  ----------------------------------------------------
Assisted Living
 Facilities             166         11,043    $  933,807 $ 84,561
Skilled Nursing
 Facilities              96         13,617       634,505      46,597
Specialty Care
 Facilities               8          1,304       147,023     112,748
                  ----------------------------------------------------
Total                   270         25,964    $1,715,335       -na-

Notes: (1)Committed Balance includes gross real estate investments,
 credit enhancements and unfunded commitments for which initial
 funding had commenced.

----------------------------------------------------------------------

Lease Up Statistics on Assisted Living Facilities ($000's)   Exhibit 6
----------------------------------------------------------

                             Average Months
Occupancy      # Properties   in Operation   Revenue (1)  % of Revenue
             ---------------------------------------------------------
   0% - 50%           0           -na-        $    0            0%
   50% - 70%          8            28          4,890            5%
   70% +             10            20          3,104            3%
             ---------------------------------------------------------
                     18           -na-        $7,994            8%

Notes: (1) Interest and rental income for the six months ended
 June 30, 2003.

----------------------------------------------------------------------

Selected Facility Data                                       Exhibit 7
----------------------

                                                      Coverage Data
                                % Payor Mix      ---------------------
                            --------------------   Before     After
                    Census   Private   Medicare  Mgt. Fees  Mgt. Fees
                   ---------------------------------------------------
Assisted Living
 Facilities           85%       96%        0%      1.31x      1.11x
Skilled Nursing
 Facilities           85%       20%       16%      1.73x      1.31x
Specialty Care
 Facilities           68%       16%       37%      2.23x      1.71x
                                                 ---------------------
                               Weighted Averages   1.53x      1.25x

Notes: Data as of March 31, 2003.

----------------------------------------------------------------------

Credit Support ($000's)                                      Exhibit 8
-----------------------

                       Balance    % Investment
                     ---------------------------
Cross Defaulted      $1,586,174  94% of gross real estate investments
Cross Collateralized    163,065  81% of real property loans receivable
Master Leases         1,211,150  83% of real property owned


Current Capitalization ($000's)         Leverage & Performance Ratios
-------------------------------        -------------------------------
                  Balance   % Balance
                ---------------------
Borrowings Under
 Bank Lines     $  156,900       9%   Debt/Total Book Cap       48%
Long-Term Debt
 Obligations       676,608      39%   Debt/Total Market Cap     38%
Stockholders'
 Equity            895,310      52%   Interest Coverage 3.36x 2nd Qtr.
                ---------------------                   3.50x YTD
Total Book                            FFO Payout Ratio  84% 2nd Qtr.
 Capitalization $1,728,818     100%                     84% YTD

----------------------------------------------------------------------

Revenue Maturities ($000's)                                  Exhibit 9
---------------------------

Operating Lease Expirations & Loan Maturities

             Current Lease  Current Interest  Interest and
   Year       Revenue (1)     Revenue (1)    Lease Revenue  % of Total
----------------------------------------------------------------------
   2003        $  3,670 $   624 $  4,294          2%
   2004             410           1,430           1,840          1%
   2005               0           5,500           5,500          3%
   2006             942           3,914           4,856          2%
   2007               0               0               0          0%
Thereafter      169,592          10,098         179,690         92%
           -----------------------------------------------------------
   Total       $174,614 $21,566 $196,180        100%

Notes: (1)  Revenue impact by year, annualized.

----------------------------------------------------------------------

Debt Maturities and Principal Payments ($000's)             Exhibit 10
-----------------------------------------------

   Year     Lines of Credit(1)  Senior Notes  Secured Debt(1)  Total
----------------------------------------------------------------------
   2003         $      0 $      0 $    418 $    418
   2004           30,000            40,000         60,888     130,888
   2005                0                 0            966         966
   2006          225,000            50,000          1,032     276,032
   2007                0           175,000         12,910     187,910
   2008                0           100,000            601     100,601
   2009                0                 0            641         641
Thereafter             0           250,000         44,152     294,152
           -----------------------------------------------------------
   Total        $255,000 $615,000 $121,608 $991,608

Notes: (1) Reflected at 100% capacity.

----------------------------------------------------------------------

Investment Activity ($000's)                                Exhibit 11
----------------------------

                              Three Months Ended    Six Months Ended
                                 June 30, 2003 June 30, 2003
                             -------------------- --------------------
Funding by Investment Type
  Real Property                  $127,418    96%    $166,216     90%
  Loans Receivable                  3,729     3%      13,382      8%
  Subdebt Investments                 946     1%       4,133      2%
                             -------------------- --------------------
  Total                          $132,093   100%    $183,731    100%

Funding by Facility Type
  Assisted Living Facilities     $ 30,976    24%    $ 62,954     34%
  Skilled Nursing Facilities       90,047    68%     104,109     57%
  Specialty Care Facilities        11,070     8%      16,668      9%
                             -------------------- --------------------
  Total                          $132,093   100%    $183,731    100%

----------------------------------------------------------------------

Disposition Activity ($000's)                               Exhibit 12
--------------------------------

                                 Three Months Ended  Six Months Ended
                                   June 30, 2003 June 30, 2003
                               ---------------------------------------
Dispositions by Investment Type
  Real Property                    $  145       3%    $   255      1%
  Loans Receivable                  4,952      97%     20,558     99%
                                ----------- -------  --------- -------
  Total                            $5,097     100%    $20,813    100%

Dispositions by Facility Type
  Assisted Living Facilities       $5,097     100%    $20,813    100%
  Skilled Nursing Facilities            0       0%          0      0%
  Specialty Care Facilities             0       0%          0      0%
                                ----------- -------  --------- -------
  Total                            $5,097     100%    $20,813    100%

----------------------------------------------------------------------

 Discontinued Operations ($000's)                           Exhibit 13
---------------------------------

                                  Three Months Ended  Six Months Ended
                                     June 30, 2003 June 30, 2003
                                 -------------------------------------
 Revenues
 Rental income                            $0 $ 0

 Expenses
 Interest expense                          0                  1
 Provision for depreciation                0                  5
                                 -------------------------------------

 Income (loss) from discontinued
  operations, net                         $0                $(6)

----------------------------------------------------------------------

Funds From Operations Reconciliation                        Exhibit 14
-------------------------------------
(Amounts in 000's except per share data)

                                  Three Months Ended  Six Months Ended
                                        June 30 June 30
                                  ------------------ -----------------
                                    2003      2002     2003     2002
                                  --------- -------- -------- --------

 Net income available to common
  stockholders                     $16,744 $13,490 $33,195 $26,002
 Provision for depreciation (1)     11,856    9,644   23,513   18,321
 Loss on extinguishment of debt          0      403        0      403
 Impairment of assets                    0      550        0      550
 Loss (gain) on sales of
  properties                             0     (145)     (34)    (145)
                                  --------- -------- -------- --------
 Funds from operations             $28,600 $23,942 $56,674 $45,131

 Average common shares
  outstanding:
    Basic                           40,546   35,446   40,269   34,196
    Diluted                         41,136   36,223   40,822   34,954

 Per share data:
 Net income available to common
  stockholders
    Basic                          $  0.41 $  0.38 $  0.82 $  0.76
    Diluted                           0.41     0.37     0.81     0.74

 Funds from operations
    Basic                          $  0.71 $  0.68 $  1.41 $  1.32
    Diluted                           0.70     0.66     1.39     1.29

 FFO Payout Ratio
 Dividends per share               $ 0.585  $ 0.585  $ 1.170  $ 1.170
 FFO per diluted share             $  0.70 $  0.66 $  1.39 $  1.29
                                  --------- -------- -------- --------
    FFO payout ratio                    84%      89%      84%      91%

Notes: (1) Provision for depreciation includes provision for
 depreciation from discontinued operations.

----------------------------------------------------------------------

FFO Outlook Reconciliation                                  Exhibit 15
---------------------------
(Amounts in 000's except per share data)
                                                   Year Ended
                                               December 31, 2003
                                          ---------------------------
                                               Low           High
                                          ------------  -------------

Net income available to common
 stockholders                               $ 73,601 $ 75,699
Provision for depreciation                    47,382         47,382
                                           ----------     ----------
Funds from operations                       $120,983 $123,081

Average common shares outstanding
 (diluted)                                    43,505         43,505

Per share data (diluted):
Net income available to common
 stockholders                               $   1.69 $   1.74
Funds from operations                           2.78           2.83

----------------------------------------------------------------------

EBITDA Reconciliation ($000's)                              Exhibit 16
------------------------------

                                Three Months Ended   Six Months Ended
                                      June 30 June 30
                               --------------------- -----------------
                                  2003        2002     2003     2002
                               ----------- --------- -------- --------

 Net income                      $19,062 $16,831 $38,359 $32,720
 Provision for depreciation (1)   11,856      9,644   23,513   18,321
 Interest expense (1)             13,161     10,290   25,038   20,031
 Capitalized interest                380          0      638        0
 Amortization (2)                    736        980    1,924    1,961
 Provision for loan losses           250        250      500      500
                               ----------- --------- -------- --------
 EBITDA                          $45,445 $37,995 $89,972 $73,533

 Interest Coverage Ratio
 Interest expense (1)            $13,161 $10,290 $25,038 $20,031
 Capitalized interest                380          0      638        0
                               ----------- --------- -------- --------
    Total interest                13,541     10,290   25,676   20,031
 EBITDA                           45,445     37,995   89,972   73,533
                               ----------- --------- -------- --------
    Interest coverage ratio         3.36x      3.69x    3.50x    3.67x

Notes:
(1) Provision for depreciation and interest expense include provision
 for depreciation and interest expense from discontinued operations.
(2) Amortization includes amortization of deferred loan expenses,
 restricted stock and stock options.

CONTACT:
Health Care REIT, Inc. Ray Braun, 419-247-2800
Mike Crabtree, 419-247-2800
Scott Estes, 419-247-2800

SOURCE: Health Care REIT, Inc.