Shares of Health Care REIT Inc. (HCN) touched a new 52-week high of $71.76 on Monday, Apr 15, 2013, as it gained momentum following an upgrade of the companys rating by Standard & Poors Ratings Services. The closing price of this healthcare real estate investment trust (:REIT) on Apr 15, 2013 was $70.31, representing asolid year-to-date return of 16.4%. The average trading volume over the last 3 months was 1.91 million shares. <\/p>\n
Factors Driving Momentum <\/p>\n
On Apr 4, Health Care REIT received a rating upgrade from Standard & Poors Ratings Services. Consequently, the company now enjoys a corporate credit rating to BBB from BBB- with a stable outlook. The rating upgrade came on the back of Health Care REITs diversified and quality portfolio. Moreover, the rating agency acknowledged the companys capacity to produce a stable cash flow as well as improve its credit metrics. This plays a major role in preserving investor confidence in the stock and helps boost its creditworthiness in the market. <\/p>\n
Being one of the largest and oldest healthcare REITs in the U.S., the company boasts a strong portfolio of senior housing, long-term care and medical office facilities. Moreover, the completion of the acquisition of Sunrise Senior Living facility during the fourth quarter of 2012 boosted the companys high-quality senior housing portfolio and extended its reach in the high-barriers-to-entry affluent markets. <\/p>\n
However, Health Care REITs fourth-quarter results were not very encouraging. On Feb 25, the company reported fourth-quarter results with normalized FFO (funds from operations) of 85 cents per share, in line with the Zacks Consensus Estimate. However, this was lower than the year-ago FFO of 91 cents. The decrease in year-over-year FFO per share was primarily attributable to increased number of outstanding shares in the reported quarter. For full-year 2012, the companys normalized FFO came in at $3.52 per share, exceeding the Zacks Consensus Estimate by 3 cents and was significantly ahead of the year-ago figure of $3.41. <\/p>\n
Health Care REIT is scheduled to report its first-quarter 2013 earnings on May 7. The company currently carries a Zacks Rank #4 (Sell) and has an earnings ESP (Read: Zacks Earnings ESP: A Better Method) of 0.00%. Thus we are not sure about an earnings beat when it reports its first-quarter results. <\/p>\n
Estimate Revisions <\/p>\n
Over the last 30 days, the Zacks Consensus Estimate for full-year 2013 has remained unchanged at $3.81 per share. On the other hand, the Zacks Consensus Estimate for full-year 2014 has marginally moved down to $4.02 per share. <\/p>\n
Of late, a number of REITs crafted 52-week highs. They include DCT Industrial Trust Inc. (DCT), Federal Realty Investment Trust (FRT) and CBRE Group Inc. (CBG). <\/p>\n
Note: Funds from operations, a widely accepted and reported measure of REITs performance, are derived by adding depreciation, amortization and other non-cash expenses to net income. <\/p>\n
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Health Care REIT Hits 52-Week High<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Shares of Health Care REIT Inc. (HCN) touched a new 52-week high of $71.76 on Monday, Apr 15, 2013, as it gained momentum following an upgrade of the companys rating by Standard & Poors Ratings Services. The closing price of this healthcare real estate investment trust (:REIT) on Apr 15, 2013 was $70.31, representing asolid year-to-date return of 16.4% Continue reading