What was the company's primary investment strategy and portfolio composition as of December 31, 2005?

Welltower Inc. is a REIT focused on healthcare and senior housing properties. As of December 31, 2005, its portfolio consisted of 442 facilities and 45,206 beds/units across 36 states. A notable strategic shift occurred in 2005, with a significant increase in investments in Independent Living/CCRCs, which grew from 15% to 34% of the total investment portfolio, while Assisted Living Facilities decreased from 54% to 34%.

How did the company perform financially in 2005 compared to 2004?

In 2005, Welltower Inc. reported total revenues of $281.8 million, an increase of 18% from $239.1 million in 2004. However, Net Income Available to Common Stockholders decreased to $62.7 million ($1.15 per diluted share) from $72.6 million ($1.39 per diluted share) in 2004. This decrease was largely attributed to a $21.5 million loss on extinguishment of debt and increased interest and depreciation expenses, despite the revenue growth.

What were the key financing and capital structure activities undertaken in 2005?

In 2005, Welltower Inc. was active in managing its capital structure. Key activities included closing a new $500 million unsecured revolving credit facility, issuing $550 million in senior unsecured notes (split between $250 million in April and $300 million in December), and using proceeds to redeem or tender for existing senior unsecured notes. These actions aimed to extend debt maturities, increase financial flexibility, and reduce borrowing costs. The company's total debt increased significantly, leading to a Debt to Book Capitalization ratio of 51% and Debt to Market Capitalization of 40% by year-end.

What is the company's dividend policy and recent dividend history?

Welltower Inc. has a consistent dividend policy. The company's Board of Directors increased the quarterly common dividend to $0.62 per share during 2005 and subsequently approved a new rate of $0.64 per share, commencing with the May 2006 dividend. This reflects a commitment to returning value to shareholders and marks the 139th consecutive dividend payment.

WELL 10-K FY2005 Annual Report — Revenue, Net Income, EPS

Summary

Welltower Inc.'s (WELL) 2005 10-K filing reveals a robust portfolio focused on healthcare and senior housing properties, with a significant expansion in independent living/CCRCs during the year. The company demonstrated consistent revenue growth, primarily driven by rental income, and maintained its track record of consecutive dividend payments to common stockholders. Despite increased interest and depreciation expenses, partly due to strategic acquisitions and debt financing, WELL managed its leverage effectively. The company's strategy centers on protecting stockholder capital and enhancing value through investments in well-managed properties and geographic diversification. Significant debt financing activities were undertaken to support growth and refinance existing obligations, positioning the company for continued investment in the healthcare real estate sector.

Key Highlights

1Welltower Inc. reported total revenues of $281.8 million for the year ended December 31, 2005, a 18% increase from the prior year, driven by rental income from an expanding portfolio.
2The company's portfolio comprised 442 facilities with 45,206 beds/units across 36 states, with a strategic shift showing a significant increase in Independent Living/CCRCs from 15% to 34% of investments by year-end.
3Net income available to common stockholders was $62.7 million, or $1.15 per diluted share, a decrease from $72.6 million ($1.39 per diluted share) in 2004, impacted by losses on debt extinguishment and increased expenses.
4The company continued its dividend policy, increasing the quarterly common dividend to $0.62 per share and approving a new rate of $0.64 per share starting May 2006.
5Total debt increased to $1.5 billion, reflecting significant activity in issuing senior unsecured notes ($550 million in 2005) to fund acquisitions and refinance existing debt.
6Leverage ratios increased, with Debt to book capitalization at 51% and Debt to market capitalization at 40% as of December 31, 2005.
7The company proactively managed its capital structure, refinancing its credit facilities and issuing new long-term debt, while maintaining investment-grade ratings from major credit agencies.

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2005

Summary

Key Highlights

Frequently Asked Questions