Toledo’s Health Care REIT Inc. on Thursday reported first-quarter funds from operations of $289.7 million, or $1 per share, up 21 percent from a year ago when the figure was $238.8 million, or 91 cents a share.
Funds from operations is considered the most important metric for a real estate investment trust because unlike a manufacturing plant, a REIT’s assets appreciate in value rather than depreciate. Health Care REIT, which owns and manages senior living housing and health-care properties, had quarterly revenues of $801.8 million, up 27 percent from $629.7 million a year ago. Its net income fell to $50 million from $55 million a year ago.
The firm’s quarterly funds available for distribution, which includes capital expenditures, rose to $260.5 million, or 90 cents a share, from $213.6 million, or 81 cents per share, a year ago. Funds available for distribution include capital expenditure funds that pay the upkeep on a REIT’s properties.
Health Care REIT’s stock rose $1.47 a share, or 2.3 percent, to close at $64.31.