Summary
Health Care REIT, Inc. (WELL) reported its financial results for the quarter ended June 30, 2004. The company experienced growth in rental and interest income, contributing to an overall increase in net income available to common stockholders. This growth was driven by strategic acquisitions of healthcare facilities, particularly in the assisted living and skilled nursing sectors, which represented the majority of the company's investment portfolio. Despite an increase in total expenses, primarily due to higher interest expenses and depreciation charges stemming from increased borrowings and property investments, the company maintained solid financial health. WELL also highlighted its proactive risk management strategies, including robust operator monitoring and diversified investments, to mitigate potential payment risks. The company continues to focus on enhancing shareholder value through consistent dividend payments and portfolio expansion.
Key Highlights
- 1Total assets remained stable at approximately $2.19 billion, with real estate investments forming the largest portion.
- 2Rental income increased by 39% year-over-year to $106.5 million for the six months ended June 30, 2004, indicating strong portfolio performance.
- 3Net income available to common stockholders grew to $37.9 million for the six months ended June 30, 2004, from $33.2 million in the prior year.
- 4The company expanded its primary unsecured line of credit from $225 million to $310 million, increasing its financial flexibility.
- 5WELL completed $161.5 million in new investments and sold $33.8 million in real property during the first six months of 2004.
- 6The company declared a quarterly dividend of $0.60 per share, marking the 133rd consecutive dividend payment.
- 7Interest rate swaps were entered into for a notional amount of $100 million to hedge against changes in LIBOR swap rates.