10-KPeriod: FY2003

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2003

Filed March 12, 2004For Securities:WELL

Summary

Health Care REIT, Inc. (WELL) reported a robust performance in its 2003 10-K filing, showcasing significant growth in its real estate portfolio. The company's primary objective remains the protection of stockholder capital and enhancement of stockholder value through consistent cash dividends and portfolio expansion. As of December 31, 2003, WELL held $2.003 billion in net real estate investments across 328 facilities in 33 states, with 92% of its portfolio concentrated in long-term care facilities, primarily skilled nursing and assisted living. The company's strategy focuses on investing in experienced operators and diversifying its portfolio geographically and by operator. WELL reported increased rental income and a growing property portfolio, driven by strategic acquisitions. While facing some headwinds such as increased interest expenses and the need for additional provisions for loan losses, the company demonstrated strong revenue growth and managed its leverage effectively, ending the year with a debt-to-capitalization ratio of 0.47 to 1.0.

Key Highlights

  • 1As of December 31, 2003, Health Care REIT, Inc. had $2.003 billion in net real estate investments across 328 facilities in 33 states.
  • 2Long-term care facilities, primarily skilled nursing and assisted living, constituted 92% of the investment portfolio.
  • 3Total revenues increased by 30% year-over-year to $201.031 million.
  • 4Net income available to common stockholders increased by 28% to $70.732 million in 2003.
  • 5The company's debt-to-capitalization ratio was 0.47 to 1.0 as of December 31, 2003.
  • 6Moody's Investors Service upgraded its rating on the company's senior unsecured notes from Ba1 to Baa3.
  • 7The company successfully managed its liquidity, with an expanded unsecured revolving line of credit totaling $310 million by early 2004.

Frequently Asked Questions

Health Care REIT, Inc. is a self-administered equity real estate investment trust that invests primarily in long-term care facilities, including skilled nursing and assisted living facilities. The company also invests in specialty care facilities.

As of December 31, 2003, WELL's portfolio was diversified across 328 facilities in 33 states, managed by 47 different operators. The top five operators accounted for 45% of total investments.

For the year ended December 31, 2003, WELL reported a 30% increase in total revenues to $201.031 million and a 28% increase in net income available to common stockholders to $70.732 million. The company also saw its debt-to-capitalization ratio remain healthy at 0.47 to 1.0.

Key risks identified include operator financial stability and potential bankruptcies, government regulatory changes impacting reimbursement rates, increased liability claims and insurance costs for operators, and the successful integration of future acquisitions. The company also notes risks associated with failing to qualify or remain qualified as a REIT.