Health Care REIT Inc. ( HCN ), a real estate investment trust (REIT), reported first-quarter 2014 normalized funds from operations (FFO) of $1.00 per share, 2 cents ahead of the Zacks Consensus Estimate and up 9 cents year over year.

The 10% year-over-year increase in normalized FFO per share is primarily driven by same-store net operating income (NOI) growth and notable portfolio investments in premium assets. Based on these factors, the company has increased its 2014 outlook.

Moreover, normalized funds available for distribution (FAD) stood at 90 cents per share, up from 81 cents per share in the year-ago period.

Total revenue escalated 27.3% year over year to $801.8 million and marginally exceeded the Zacks Consensus Estimate of $801 million.

Inside the Headlines

In the first quarter, same-store NOI increased 4.4% from the year-ago period, driven by 8.1% year-over-year rise in the seniors housing operating portfolio.

Health Care REIT concluded gross investments worth $542 million in the quarter under review. This included a joint venture investment worth $386 million, $64 million in development financing and $57 million of acquisitions.

Early in the second quarter, Health Care REIT completed the recapitalization of the Sunrise Senior Living management company, upon which, the company now owns 24% interest in Sunrise Senior Living while Revera holds the rest.

Health Care REIT exited the first quarter with cash and cash equivalents of $185.9 million, up from $158.8 million as of Dec 31, 2013.

2014 Outlook Raised

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Health Care REIT Beats FFO Ests, Ups View - Analyst Blog