Summary
Welltower Inc. (WELL) filed an 8-K report on June 27, 2008, to update its previously filed 2007 Form 10-K in response to SEC comments and to reflect internal accounting adjustments. The primary adjustments include the reclassification of a skilled nursing facility as held for sale and discontinued operations due to its sale in April 2008, with a book value of approximately $2.15 million. This necessitated the restatement of prior period financial information related to this asset. Additionally, the company renamed its operating properties segment to "medical office buildings" and reclassified four specialty care facilities from operating properties to investment properties. These changes, along with clarifications regarding customer financial measures, the removal of "funds available for distribution" (FAD) as a disclosed metric, and modifications to disclosures about appraiser reliance, are intended to improve clarity and compliance. Notably, the company states that neither the asset reclassification under SFAS 144 nor these other changes had a material impact on net income available to common stockholders for any period presented.
Key Highlights
- 1Reclassification of a $2.15 million skilled nursing facility to discontinued operations following its sale in April 2008.
- 2Updated prior period financial information to reflect the disposition of the skilled nursing facility.
- 3Renamed the "operating properties" segment to "medical office buildings" for improved clarity.
- 4Reclassified four specialty care facilities from operating properties to investment properties.
- 5Addressed SEC comments on the 2007 Form 10-K, including clarifying customer financial measures and removing references to Funds Available for Distribution (FAD).
- 6Modified disclosures regarding reliance on appraisers for the allocation of acquisition costs.
- 7Company asserts that these changes did not materially affect net income available to common stockholders for any period presented.