Investments power leap in profits for Toledo firm

2/26/2013

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.