10-QPeriod: Q2 FY2008

WELLTOWER INC. Quarterly Report for Q2 Ended Jun 30, 2008

Filed August 6, 2008For Securities:WELL

Summary

Health Care REIT, Inc. (WELL) reported solid financial performance for the six months ended June 30, 2008, demonstrating growth in its core real estate investment trust operations. The company experienced a significant increase in net income available to common stockholders, driven by strong rental and interest income, coupled with strategic property acquisitions. The company's diversified portfolio, comprising senior housing and health care facilities, continues to benefit from favorable demographic trends and an increasing demand for healthcare services. Financially, WELL saw substantial year-over-year growth in both revenues and net income. The balance sheet reflects a growing real estate investment portfolio, supported by prudent debt management and access to capital through credit facilities and equity issuances. Management remains focused on enhancing stockholder value through consistent dividend payments and strategic portfolio expansion, while actively managing risks related to interest rates and tenant concentrations.

Key Highlights

  • 1Net income available to common stockholders increased significantly by 282% to $187.1 million for the six months ended June 30, 2008, compared to $49.0 million in the prior year.
  • 2Total revenues grew by 19% to $276.8 million for the six months ended June 30, 2008, compared to $232.9 million in the prior year.
  • 3The company's real estate investments increased to $5.47 billion as of June 30, 2008, up from $5.01 billion at December 31, 2007.
  • 4Borrowings under the unsecured line of credit increased substantially to $744 million at June 30, 2008, compared to $307 million at December 31, 2007, indicating increased utilization for funding operations and investments.
  • 5The company successfully completed public offerings of common stock in March and July 2008, raising net proceeds of approximately $118.6 million and $193.0 million, respectively, to support its growth strategy.
  • 6WELL maintained its quarterly dividend payments, increasing it to $0.68 per share for the quarter ended June 30, 2008, marking the 149th consecutive quarterly dividend payment.

Frequently Asked Questions

For the six months ended June 30, 2008, Health Care REIT, Inc. demonstrated strong financial performance. Net income available to common stockholders increased significantly to $187.1 million from $49.0 million in the same period of 2007. Total revenues also grew to $276.8 million, up 19% year-over-year. This growth was supported by increases in rental and interest income, alongside strategic property acquisitions.

The company's real estate portfolio expanded, with total net real estate investments growing to $5.47 billion as of June 30, 2008, from $5.01 billion at the end of 2007. This growth reflects ongoing investments in property acquisitions and development, particularly in independent living/CCRCs, assisted living facilities, and specialty care facilities.

Health Care REIT, Inc. maintained access to capital during the period. They utilized their unsecured line of credit, with borrowings increasing to $744 million as of June 30, 2008. The company also successfully raised capital through public offerings of common stock in March and July 2008, generating substantial net proceeds. These sources of capital are used to fund operations, investments, and dividend payments.

Health Care REIT, Inc. has a consistent track record of dividend payments. For the quarter ended June 30, 2008, the quarterly dividend was increased to $0.68 per share, marking the 149th consecutive quarterly dividend. The company aims to pay consistent cash dividends and increase them over time through portfolio growth and rental income increases.