Health Care REIT Inc. (HCN), a real estate investment trust (:REIT), which operates senior housing and health care real estate, reported third-quarter 2013 normalized funds from operations (:FFO) of 97 cents per share, a cent ahead of the Zacks Consensus Estimate and up 6 cents year over year. <\/p>\n
The improved results were primarily attributable to robust revenue growth. Alongside, the company registered decent same-store NOI. <\/p>\n
Normalized Funds available for distribution (FAD) in the reported quarter stood at 86 cents per share, up from 82 cents per share in the year-ago period. <\/p>\n
Behind the Headlines <\/p>\n
Total revenue reached $786.9 million, escalating 70.4% year over year. The figure also substantially exceeded the Zacks Consensus Estimate of $728 million. Total same-store (cash NOI (net operating income) increased 3.7% from the year-ago period. This included a 9.4% rise in the seniors housing operating portfolio. <\/p>\n
Notable Quarterly Activities <\/p>\n
During the quarter, Health Care REIT accomplished the sale\/leaseback transaction with Avery Healthcare for $212 million (140 million) in the UK. The portfolio comprises 14 seniors housing communities with 940 beds. <\/p>\n
Also, the company closed the triple net lease deal with Emeritus Senior Living (ESC) for a portfolio of 38 senior housing communities. Notably, the properties were previously owned by Health Care REIT in an 80%\/20% joint venture with Merrill Gardens. As per the deal, Health Care REIT acquired Merrill Gardens 20% interest in the JV for $173 million, which includes pro rata mortgage debt of $74 million. <\/p>\n
In addition, Health Care REIT sealed the buyout of $95 million worth of hospital acquisitions (at a blended yield of 9.5%) and medical office building worth $50 million (at a blended yield of 6.9%). Moreover, the company finished the development of 2 seniors housing triple-net assets for $38 million (at a blended initial yield of 8.1%) and 1 medical office building for $9 million (at an initial yield of 8.3%). <\/p>\n
Year-to-date, as of Nov 5, Health Care REIT has garnered $412 million from asset divestitures and $66 million from loan payoffs. <\/p>\n
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Health Care REIT Q3 FFO & Revs Top<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Health Care REIT Inc. Continue reading