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Published: Tuesday, 2/26/2013 - Updated: 1 year ago

Investments power leap in profits for Toledo firm

BY JON CHAVEZ
BLADE BUSINESS WRITER

Health Care REIT Inc. said Monday that its profits in 2012 rose 39 percent on the strength of new investments that totaled $4.9 billion during the year.

For the year, the Toledo-based real estate investment trust had a profit of $294.8 million, or 98 cents a share, on revenues of $1.8 billion. In 2011, the trust had a profit of $212.7 million, or 90 cents a share, on revenues of $1.4 billion.

For the fourth quarter, Health Care REIT said it had a profit of $107 million, or 35 cents a share, a 152 percent increase from the same period in 2011, when its fourth-quarter profit was $42.3 million, or 15 cents a share.

The company’s funds from operations, which is commonly used by real estate investment trusts to measure cash flow from their operations, rose 33 percent to $794.3 million, or $3.52 per share, up from $594 million, or $3.41 per share in 2011. Analysts were predicting $3.51 per share.

“Calendar 2012 was a year of significant accomplishment,” said George Chapman, Health Care REIT’s chairman and chief executive officer. “Our platform continues to distinguish itself through consistent and resilient internal and external growth, including 4 percent same-store [net operating income] growth and a sector-leading net new investments of $4.4 billion.”

The company raised more than $6 billion of equity and debt capital in 2012, including more than $1.2 billion in the fourth quarter. It used the capital to fund its 2012 acquisitions.

The investment trust completed new investments of $2 billion in the fourth quarter alone, including $846 million in Sunrise Senior Living, $530 million with Belmont Village, and $271 million with Brookdale Senior Living.

Health Care REIT’s stake in Sunrise stands at $3.5 billion, and continued investments in 2013 will bring its stake in Sunrise’s operations to $4.3 billion by July.

For all of 2013, the company said it expects its net income to be in the $1.30 to $1.40-per-share range and its funds from operations to fall in the $3.70 to $3.80-a-share range. On Feb. 20, Health Care REIT paid out a fourth-quarter dividend of 77 cents a share, its 167th consecutive cash dividend.



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