What was the company's overall financial performance in the first quarter of 2008?

Health Care REIT, Inc. (WELL) reported strong financial performance in the first quarter of 2008. Total revenues increased by 23% year-over-year to $135.9 million, driven by higher rental and interest income. Net income available to common stockholders rose by 30% to $30.5 million, resulting in diluted EPS of $0.35, up from $0.32 in the prior year's first quarter. The company also experienced growth in its asset base and continued its investment strategy.

How did the company's investment and financing activities evolve during the quarter?

The company actively engaged in investments, completing $181.3 million in gross new investments during the first quarter of 2008. This growth in assets was financed partly through an increase in borrowings under its unsecured line of credit, which rose to $432.5 million by the end of the quarter. The company also declared an increased quarterly dividend of $0.68 per share.

What is the company's outlook for the health care real estate market?

Health Care REIT, Inc. views the health care real estate market favorably, citing strong demand projections driven by demographic trends, particularly the growing elderly population. The company believes the sector is less susceptible to economic downturns compared to other real estate sectors and anticipates continued investor interest. Management expects to invest between $1.1 billion and $1.4 billion in new investments for the full year 2008.

How has the company's debt structure changed, and what is its credit strength?

While the company's total assets grew, its total liabilities also increased, with borrowings under the unsecured line of credit seeing a notable rise. However, the company maintained a relatively stable debt-to-book capitalization ratio of 52% and an interest coverage ratio of 2.87x, indicating solid credit strength. The company's senior unsecured notes maintained investment-grade ratings from major credit agencies.

WELL 10-Q Quarterly Report Q1 FY2008 — Revenue, Net Income, EPS

Summary

Health Care REIT, Inc. (WELL) reported its first quarter results for the period ending March 31, 2008. The company demonstrated solid revenue growth, with total revenues increasing to $135.9 million compared to $110.2 million in the same period of the prior year. This growth was primarily driven by a significant rise in rental income and interest income, reflecting the company's ongoing investments in its portfolio. Net income available to common stockholders saw a substantial increase to $30.5 million, or $0.35 per diluted share, up from $23.4 million, or $0.32 per diluted share, in the first quarter of 2007. This performance indicates a strengthening operational and financial position for the REIT. The company also showed increased activity in its investment and financing strategies. The balance sheet reflects growth in real estate investments, with net real property owned increasing to $4.77 billion. However, this growth was accompanied by an increase in borrowings, particularly under the unsecured line of credit, which rose to $432.5 million from $307.0 million at year-end 2007. Despite increased leverage, the company maintained its credit strength with a debt-to-book capitalization ratio of 52% and an interest coverage ratio of 2.87x. Management remains optimistic about the health care real estate market due to demographic trends and expects continued investment opportunities.

Key Highlights

1Total revenues increased by approximately 23% year-over-year to $135.9 million for the first quarter of 2008.
2Net income available to common stockholders grew by approximately 30% to $30.5 million in Q1 2008.
3Diluted Earnings Per Share (EPS) increased to $0.35 in Q1 2008 from $0.32 in Q1 2007.
4Total assets grew to $5.39 billion as of March 31, 2008, with net real estate investments comprising the majority.
5Borrowings under the unsecured line of credit increased significantly to $432.5 million at the end of Q1 2008.
6The company completed $181.3 million in gross new investments during the first quarter of 2008.
7The quarterly dividend per common share was increased to $0.68, marking the 148th consecutive quarterly dividend payment.

WELLTOWER INC. Quarterly Report for Q1 Ended Mar 31, 2008

Summary

Key Highlights

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