What were the primary drivers of the increase in rental income?

The significant increase in rental income, up 48.4% to $105.9 million, was primarily driven by new property acquisitions and the integration of operations from the merger with Windrose Medical Properties Trust, completed in December 2006. These transactions expanded the company's real estate portfolio.

How did the company's debt levels change during the quarter, and what is its leverage position?

Total liabilities increased to $2.45 billion from $2.30 billion. Borrowings under unsecured lines of credit saw a substantial increase to $381 million from $225 million. The debt to book capitalization ratio stood at 54% and debt to market capitalization was 40% as of March 31, 2007, indicating a controlled leverage position.

What is the company's outlook for investments and capital expenditures for the remainder of 2007?

Health Care REIT, Inc. anticipates significant investment activity. They expect to complete $1.0 billion to $1.2 billion in gross new investments, including acquisitions and funded development. They also anticipate $100 million to $200 million in property sales and loan repayments, leading to net new investments projected between $800 million and $1.1 billion for the year.

What impact did the Windrose Medical Properties Trust merger have on the financial results?

The merger with Windrose Medical Properties Trust was a principal component of the operating property segment and significantly contributed to the increase in revenues, particularly rental income. The integration of Windrose's operations impacted the company's asset mix and operational expenses.

WELL 10-Q Quarterly Report Q1 FY2007 — Revenue, Net Income, EPS

Summary

Health Care REIT, Inc. (WELL) reported its first quarter results for the period ending March 31, 2007. The company experienced significant growth in rental income, driven by acquisitions, including the merger with Windrose Medical Properties Trust, and an expansion of its loan portfolio. Net income available to common stockholders increased to $23.4 million from $19.6 million in the prior year's first quarter. The company also saw a substantial increase in Funds From Operations (FFO) to $56.2 million, indicating strong operational performance beyond traditional accounting measures. WELL demonstrated a proactive approach to capital management, increasing its quarterly dividend and securing extended credit facilities. The company continues to invest in its portfolio, with significant planned investments for the remainder of 2007. Despite the growth, investors should note the increase in interest expenses and general administrative costs, partly due to new investments and operational integration. The company maintains a strong liquidity position and a commitment to managing its leverage ratios to preserve its investment-grade credit ratings.

Key Highlights

1Net income available to common stockholders increased by 18.9% to $23.4 million for the three months ended March 31, 2007, compared to $19.6 million in the prior year.
2Funds From Operations (FFO) rose significantly by 35.9% to $56.2 million for the quarter, demonstrating robust operational cash flow generation.
3Rental income grew by 48.4% to $105.9 million, largely due to new property acquisitions and the integration of Windrose Medical Properties Trust.
4The company increased its quarterly common stock dividend to $0.66 per share, marking the 144th consecutive dividend payment.
5WELL raised approximately $265.3 million in net proceeds from a public offering of common stock in April 2007, bolstering its capital resources.
6The company successfully extended a $40 million unsecured line of credit, enhancing its financial flexibility.
7Investments in real property and loans receivable totaled $161.7 million and $80.4 million, respectively, during the quarter, signaling continued portfolio expansion.

WELLTOWER INC. Quarterly Report for Q1 Ended Mar 31, 2007

Summary

Key Highlights

Frequently Asked Questions