Toledo-based real estate investment trust Health Care REIT Inc. on Wednesday reported that its funds from operations for 2013 were $1.1 billion, compared to $794.3 million a year earlier. That translated to $3.81 a share, up 8 percent from 2012 when funds from operations were $3.52 a share.
The company, which owns and manages a real estate portfolio of senior housing and health-care properties, had annual revenues of $2.88 billion, compared to $1.8 billion in 2012.
Funds From Operations is a commonly used metric for real estate investment trusts because, unlike a manufacturing plant, their assets — real estate properties — tend to appreciate in value rather than depreciate.
Funds From Operations excludes depreciation. However, it does not include capital expenditures — the upkeep of the real estate — which is a key cost that REITs must pay before they can distribute dividends.
Funds Available for Distribution includes capital expenditure costs, and in 2013 Health Care REIT’s funds available for distribution were $936.5 million, compared with $703.3 million in 2012. That equated to $3.36 per share, up 8 percent from $3.11 a share in 2012.
For the year, its net income was $138.3 million, or 28 cents a share, compared with $294.8 million, or 98 cents a share in 2012.
For the fourth quarter, Health Care REIT had record funds from operations of $286.2 million, or 99 cents per share, compared to the same period a year earlier when it had $222.4 million, or 85 cents per share. Its quarterly funds available for distribution also were a record $249.5 million, or 86 cents a share, compared to the fourth quarter of 2012 when it had $189.8 million, or 74 cents a share.
The company attributed its results to $5.7 billion in investments it made in 2013, including spending $4.3 billion to acquire the assets of Sunrise Senior Living Inc., a senior living firm with 125 high-quality properties in key metro areas of the United States, Canada, and the United Kingdom.
“The outstanding … increase in [funds from operations] and [funds available for distribution] this quarter demonstrates the power of our platform and its earnings potential,” Health Care REIT Chairman and CEO George Chapman said. “We generated another quarter of excellent [net operating income] growth, and invested a sector-leading $5.7 billion last year in high-quality properties occupied by the best systems and operators in health-care and seniors housing. Entering 2014, our relationships, immersion in health care, asset quality mix of short and long-duration leases, and international reach uniquely position us to deliver superior, consistent growth,” he added.
In trading on the New York Stock Exchange, Health Care REIT shares rose 37 cents to close at $57.33 a share.
Contact Jon Chavez at: firstname.lastname@example.org or 419-724-6128.
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