Shares of Health Care REIT Inc. plunged nearly 11 percent yesterday, as the firm issued a revised earnings guidance, announced the departure of a key executive, and said it would issue additional stock.
The stock of the Toledo company, which is a landlord to nursing homes and assisted living facilities nationwide, fell by $4.65 each to $37 in trading on the New York Stock Exchange.
The drop came as the real estate investment trust said it plans to sell 5.5 million shares of stock to raise money to invest in more health-care facilities and housing for the elderly.
Executives linked the stock sale to the firm's planned addition to the Standard & Poor's 500 index yesterday after stock markets closed.
Among a number of management changes announced as the company's board of directors met in Mexico yesterday, officials said Raymond Braun will "no longer serve as president" and will resign his board seat. His annual salary was $908,000 two years ago, the most current figure available.
George Chapman, chairman and chief executive, will assume the duties of president, company officials said in a statement. Mr. Braun, who has been with the company for 15 years, will provide consulting services through December.
Also, the company said it expects net income available to common shareholders in the range of $2.82 to $2.84 in 2008 and funds from operations in the range of $2.78 to $2.80.
Executives couldn't be reached for comment.
The firm also declared a quarterly dividend of 68 cents a share, payable Feb. 20 to holders of record on Feb. 9.