Summary
Health Care REIT, Inc. (WELL) reported its first quarter 2010 financial results, highlighting a substantial increase in total assets to $6.77 billion from $6.37 billion at the end of 2009, driven by significant investments in real estate and a notable rise in equity investments. The company's revenue grew to $152.8 million from $138.8 million in the prior year's comparable period, primarily due to an increase in rental income. However, net income attributable to common stockholders saw a significant decrease to $25.8 million ($0.21 per share) compared to $61.1 million ($0.56 per share) in the first quarter of 2009. This decline was influenced by higher interest expenses, increased transaction costs related to acquisitions, and a loss on the extinguishment of debt. Despite the decrease in net income, the company maintained its quarterly common stock dividend at $0.68 per share and demonstrated a solid liquidity position with $36.6 million in cash and cash equivalents and significant available borrowing capacity.
Financial Highlights
25 data points| Revenue | $145.38M |
| SG&A Expenses | $16.82M |
| Operating Expenses | $124.16M |
| Interest Expense | $28.43M |
| Net Income | $31.69M |
| EPS (Basic) | $0.21 |
| EPS (Diluted) | $0.21 |
| Shares Outstanding (Basic) | 123.27M |
| Shares Outstanding (Diluted) | 123.79M |
Key Highlights
- 1Total assets increased to $6.77 billion as of March 31, 2010, up from $6.37 billion at December 31, 2009, reflecting continued investment in the real estate portfolio.
- 2Total revenues grew by 10.7% to $152.8 million for the three months ended March 31, 2010, compared to $138.8 million in the same period of 2009, primarily driven by higher rental income.
- 3Net income attributable to common stockholders decreased significantly by 57.8% to $25.8 million ($0.21 per diluted share) from $61.1 million ($0.56 per diluted share) in the prior year's first quarter.
- 4The company experienced higher interest expense ($29.8 million vs. $26.7 million) and transaction costs ($7.7 million vs. $0) during the quarter, impacting profitability.
- 5A substantial increase in borrowings under unsecured lines of credit was observed, with outstanding balances rising to $425 million from $140 million at year-end 2009.
- 6The company repurchased a significant amount of its convertible senior unsecured notes ($302.1 million) during the quarter while also issuing new convertible notes.
- 7Cash provided by operating activities was $92.5 million, slightly down from $94.4 million in the prior year, while net cash used in investing activities was substantial at $(291.9) million due to real estate investments.