What is the primary business of Health Care REIT, Inc.?

Health Care REIT, Inc. is a self-administered, equity real estate investment trust that invests in health care facilities, with a primary focus on long-term care facilities, including skilled nursing and assisted living facilities. They also invest in specialty care facilities.

How diversified is Health Care REIT's portfolio by facility type?

As of December 31, 2004, the company's portfolio was diversified as follows: Assisted Living Facilities (54% of investments), Skilled Nursing Facilities (39% of investments), and Specialty Care Facilities (7% of investments).

What is the company's strategy for managing investment risk?

The company's strategy involves investing in experienced operators and diversifying its portfolio by operator and geographic location. They also monitor investments closely through financial statement reviews, operator creditworthiness assessments, and facility inspections to mitigate payment risk.

How did the company fund its investments and operations?

The company utilizes a combination of debt and equity to fund its activities. This includes borrowings under unsecured lines of credit, public and private offerings of debt and equity securities, and internally generated cash flow.

What is the company's dividend policy?

The company's primary objectives include paying consistent cash dividends to stockholders and creating opportunities to increase dividend payments. They review their dividend policy annually and had increased their quarterly dividend to $0.60 per share, with a plan to raise it to $0.62 per share.

WELL 10-K FY2004 Annual Report — Revenue, Net Income, EPS

Summary

Health Care REIT, Inc. (WELLTOWER INC.) reported a robust financial year ending December 31, 2004, with total investments reaching $2.45 billion across 394 facilities. The company's portfolio is heavily weighted towards long-term care facilities, with assisted living and skilled nursing facilities comprising 93% of its investments. Welltower's primary objective is to protect and enhance stockholder capital through consistent cash dividends and portfolio growth. The company focuses on investing in experienced operators and diversifying its portfolio geographically and by operator to mitigate risk. Financially, the company experienced significant growth in revenues, driven by acquisitions and an expanding portfolio. Management highlighted an increase in net income available to common stockholders and a healthy growth in Funds From Operations (FFO) and Funds Available for Distribution (FAD). To support growth and operations, Welltower actively managed its capital structure, issuing preferred stock and senior unsecured notes while maintaining a conservative debt-to-book capitalization ratio. The company also demonstrated a commitment to its shareholders through consistent dividend payments.

Key Highlights

1Total investments reached $2.45 billion across 394 facilities as of December 31, 2004.
293% of the investment portfolio consists of long-term care facilities (skilled nursing and assisted living).
3Net income available to common stockholders increased to $72.6 million in 2004.
4Funds From Operations (FFO) grew to $146.7 million in 2004.
5The company maintained strong credit metrics, with a debt-to-book capitalization ratio of 47% and an interest coverage ratio of 3.24x.
6Welltower increased its quarterly dividend to $0.60 per share, marking its 135th consecutive dividend payment.
7The company expanded its credit facilities and issued new preferred stock and senior unsecured notes to fund growth.

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2004

Summary

Key Highlights

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