10-KPeriod: FY2013

WELLTOWER INC. Annual Report, Year Ended Dec 31, 2013

Filed February 21, 2014For Securities:WELL

Summary

Health Care REIT, Inc. (WELL) reported strong revenue growth driven by significant investments and acquisitions in 2013, primarily in seniors housing and medical facilities. The company successfully raised substantial capital through equity and debt offerings to fund its expansion strategy, which included acquiring the Sunrise Senior Living portfolio. Despite a net income decrease in 2013 compared to 2012, largely due to discontinued operations and higher interest expenses, key performance indicators like Funds from Operations (FFO) and Net Operating Income (NOI) showed robust growth, reflecting the operational strength of its core segments. WELL maintained compliance with debt covenants and demonstrated a solid capital structure, positioning itself for continued growth in the healthcare real estate sector.

Financial Highlights

36 data points
Beta

Revenue

$2.88B

Net Income

$138.28M

4.8% Net Margin

EPS (Diluted)

$0.28

Total Assets

$23.08B

Cash & Equivalents

$158.78M

Free Cash Flow

$988.50M

Financial Statements
Beta
Revenue$2.88B
SG&A Expenses$108.32M
Operating Expenses$2.78B
Interest Expense$458.36M
Net Income$138.28M
EPS (Basic)$0.28
EPS (Diluted)$0.28
Shares Outstanding (Basic)276.93M
Shares Outstanding (Diluted)278.76M

Key Highlights

  • 1Total revenues increased by approximately 59.6% from $1.8 billion in 2012 to $2.9 billion in 2013, driven by significant investments and acquisitions.
  • 2Funds from Operations (FFO) grew by 33.3% from $697.6 million in 2012 to $924.9 million in 2013.
  • 3Net Operating Income (NOI) from continuing operations increased by 35.1% from $1.2 billion in 2012 to $1.7 billion in 2013.
  • 4The company raised over $3.7 billion in capital in 2013 through common stock and unsecured debt issuances.
  • 5Investments in 2013 totaled $5.7 billion, with 73% coming from existing relationships, indicating strong partner trust and collaboration.
  • 6The company declared a quarterly dividend of $0.795 per share, an increase from the previous rate, demonstrating a commitment to returning capital to shareholders.
  • 7The portfolio as of December 31, 2013, comprised 1,142 properties with a total investment of $21.7 billion, diversified across seniors housing triple-net, seniors housing operating, and medical facilities.

Frequently Asked Questions

In 2013, Health Care REIT (WELL) experienced significant growth in revenues, FFO, and NOI, driven by strategic acquisitions and investments, most notably the Sunrise Senior Living portfolio. While net income attributable to common stockholders decreased compared to 2012, this was influenced by discontinued operations and increased interest expenses. The company successfully raised substantial capital to support its growth strategy and continued its track record of dividend payments.

The Seniors Housing Triple-net segment saw a 13% increase in NOI to $803.7 million. The Seniors Housing Operating segment experienced substantial growth, with NOI increasing by 128% to $528.2 million, largely due to acquisitions. The Medical Facilities segment also showed growth, with NOI increasing by 16% to $341.6 million.

WELL's strategy focuses on protecting stockholder capital and enhancing value through consistent cash dividends and portfolio growth. They invest across the seniors housing and health care real estate spectrum, diversifying by property type, customer, and geography. Capital is managed through a combination of equity, unsecured debt, and secured debt, with a focus on maintaining compliance with debt covenants and a conservative credit profile. They actively monitor investments and seek to mitigate risks through comprehensive asset management.

Key transactions included closing a $2.75 billion unsecured line of credit, completing public offerings of common stock raising approximately $1.7 billion, issuing $400 million in senior unsecured notes, and issuing £550 million in senior unsecured notes. The company also completed $5.7 billion in gross investments, including significant acquisitions in the seniors housing operating segment, and $519 million in property dispositions.