WELLTOWER INC. Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Health Care REIT, Inc. (WELL) reported its third-quarter and nine-month results for the period ending September 30, 2009. The company, a REIT focused on senior housing and health care real estate, navigated a challenging economic environment characterized by limited capital availability and increased costs. For the nine months ended September 30, 2009, net income attributable to common stockholders decreased significantly to $139.5 million from $238.2 million in the prior year. This decline was influenced by a decrease in gains from property sales and an increase in debt extinguishment losses. Despite the decrease in net income, the company demonstrated resilience in its core operations, with Funds From Operations (FFO) showing a slight increase, and Net Operating Income (NOI) growing by 3%. Management highlighted efforts to strengthen liquidity and manage the portfolio effectively amidst economic uncertainty. The company also successfully raised substantial capital through equity offerings and maintained compliance with debt covenants.

Key Highlights

• 1Net income attributable to common stockholders decreased by 41% to $139.5 million for the nine months ended September 30, 2009, compared to $238.2 million in the prior year.
• 2Funds From Operations (FFO) saw a modest increase of 3% to $235.5 million for the nine-month period.
• 3Net Operating Income (NOI) grew by 3% to $402.0 million for the nine months ended September 30, 2009.
• 4The company raised approximately $683.9 million in net proceeds from common stock issuances during the first nine months of 2009.
• 5Total liabilities decreased by approximately $409 million from $2,954.8 million at December 31, 2008, to $2,545.3 million at September 30, 2009.
• 6The company maintained compliance with all debt covenants as of September 30, 2009.
• 7Significant debt extinguishment losses were recognized: $24.7 million for the nine months ended September 30, 2009.

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