Health Care REIT profit leapt 65% last year

Toledo's Health Care REIT Inc. on Thursday said its profits last year rose 65 percent based on the strength of investments in 2011 that totaled $6 billion.

For the year, the real estate investment trust said it had a profit of $212.7 million, or 90 cents a share, on revenues of $1.4 billion. That compared with its 2010 profit of $128.9 million, or 83 cents a share, on revenues of $657 million.

In the fourth quarter of 2011, Health Care REIT said it had a profit of $42.3 million, or 15 cents a share, down from $46 million, or 29 cents a share, for the same period a year earlier.

The company's funds from operations, a figure commonly used by real estate investment trusts to measure cash flow from their operations, rose 50 percent to $594 million, or $3.41 per share, up from $395.1 million, or $3.08 per share in 2010.

"The transformation of our company and portfolio over the last several years has been extraordinary, capped by exceptional fourth-quarter [funds from operations] per share growth of 21 percent and [funds available for distribution] per share growth of 18 percent," said George Chapman, the company's chairman, president, and chief executive officer.

"The continued success of our relationship investment program was demonstrated by an additional $1.2 billion in gross investments for the [fourth] quarter and $6 billion for the year," Mr. Chapman said.

The company, he said, invested in high-quality properties that gave it attractive returns and helped bring the company a 21 percent total return on investment in 2011 -- the best return among its industry peers.

In March, Health Care REIT announced a $2.4 billion acquisition of the real estate assets of privately held Genesis HealthCare, an operator of more than 200 rehabilitation facilities, nursing homes, and assisted-living complexes in the Northeast and Mid-Atlantic states.

In the fourth quarter, the real estate investment trust completed $627 million in seniors housing acquisitions that included properties in California and Seattle, and another $263 million acquisition of 12 medical office buildings in various states.

On Wednesday, Health Care REIT announced a $503.3 million investment in 42 senior housing and care communities in Canada in a partnering venture with Chartwell Seniors Housing Real Estate Investment Trust, a Canadian firm.

In a conference call with Wall Street analysts, Mr. Chapman said the Toledo company was "very excited" about its deal with Chartwell and was glad to extend its proven business model into the Canadian market.

"We think this is a natural extension of our relationship-driven strategy. These guys are terrific. They provide care we like to see provided and we're very comfortable with the relationship between the two companies," Mr. Chapman said.

The chairman said he saw the venture as less of an international investment and more of an attempt by Health Care REIT to build more relationships with quality health- care housing operators.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.