Health Care REIT, Inc. (NYSE:HCN)
today announced operating results for the company’s fourth quarter ended December 31, 2012.
“Calendar 2012 was a year of significant accomplishment. Our platform continues to distinguish itself through consistent and resilient internal and external growth, including 4% same store NOI growth and a sector leading net new investments of $4.4 billion,” commented George L. Chapman, Chairman and CEO of Health Care REIT. “As we enter 2013, we have positioned the company as a clear sector leader by accelerating the closing of the Sunrise Senior Living transaction, including $2.5 billion since January 1, 2013. Our portfolio is comprised of premier quality assets located largely in affluent, high barrier to entry markets and operated by an unparalleled network of best-in-class companies in the United States, Canada and the United Kingdom. Our management team with state of the art, scalable infrastructure is proficiently managing our dynamic operating and transactional platforms positioning the company to continue to deliver excellent returns for our shareholders.”
2013 Highlights and Outlook
- Completed acquisition of Sunrise Senior Living in January
- Increased unsecured credit facility to $2.75 billion, extended term and reduced borrowing rate
- Introduced 2013 normalized FFO guidance of $3.70 to $3.80 per diluted share, up 5%-8%
- Introduced 2013 normalized FAD guidance of $3.25 to $3.35 per diluted share, up 5%-8%
- Announced 2013 dividend payment rate of $3.06 per share, representing a 3.4% increase above 2012 payments
Dividends for Fourth Quarter 2012
- Reported 4Q12 normalized FFO and FAD of $0.85 and $0.74 per share
- Reported 2012 normalized FFO and FAD of $3.52 and $3.11 per share
- Increased 4Q12 same-store cash NOI by 4.0%, including 8.6% growth in our seniors housing operating portfolio
- Generated 2012 total shareholder return of 18%
- Increased private pay mix to 79% in 2012 from 71% in 2011
- Expanded internationally with investments in Canada and the United Kingdom
- Completed gross new investments of $2.0 billion in 4Q12, including $846 million with Sunrise and $530 million with Belmont Village
- Completed gross new investments of $4.9 billion in 2012, including $3.7 billion from existing relationships
- Received $635 million in proceeds on dispositions in 2012, generating $101 million in gains
- Raised over $6 billion of equity and debt capital in 2012, including over $1.2 billion in 4Q12
As previously announced, the Board of Directors declared a cash dividend for the quarter ended December 31, 2012 of $0.765 per share, as compared to $0.74 per share for the same period in 2011, representing a 3.4% increase. The cash dividend was paid on February 20, 2013 and was the company’s 167
consecutive quarterly dividend payment. The declaration and payment of quarterly dividends remains subject to review by and approval of the Board of Directors.
Fourth Quarter Investment Highlights
During the quarter, the company completed $1.6 billion in seniors housing operating investments, including $1.1 billion of acquisitions at a blended yield of 6.5% and $581 million of loans. The acquisitions include 11 properties with Belmont Village for $530 million, 11 properties with Brookdale Senior Living (NYSE:BKD) for $271 million, and five properties with Sunrise Senior Living for $265 million. The loans were all made to Sunrise in conjunction with the buy-out of certain joint venture partners. The company has subsequently converted the loans to real property with the merger consummation on January 9, 2013.
During the quarter, the company completed $115 million in seniors housing triple-net lease investments at a blended yield of 8.0%. The investments include two acquisitions totaling $52 million at a blended yield of 7.3%. In addition, the company completed five development projects totaling $63 million at a blended yield of 8.5% during the quarter.