FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Health Care REIT, Inc.
(Exact name of registrant as specified in its charter)
Delaware 34-1096634
(State or jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One SeaGate, Suite 1950, Toledo, Ohio 43604
(Address of principal executive office) (Zip Code)
(Registrant's telephone number, including area code) (419) 247-2800
- - -------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X No.
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes _____. No _____.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
Class: Shares of Common Stock, $1.00 par value
Outstanding 11,494,229 shares
<PAGE>
HEALTH CARE REIT, INC.
INDEX
Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Unaudited Consolidated Balance Sheet as of
March 31, 1994 and Audited Consolidated Balance
Sheet as of December 31, 1993. 3
Unaudited Consolidated Statements of Income
for the three months ended March 31, 1994
and 1993. 4
Unaudited Consolidated Statements of Cash Flows for
the three months ended March 31, 1994 and 1993. 5
Unaudited Consolidated Statements of Shareholders'
Equity for the three months ended March 31, 1994
and 1993. 6
Consolidated Notes to Financial Statements. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 7
Part II. OTHER INFORMATION
Item 5. Other Information. 10
Item 6. Exhibits and Reports on Form 8-K. 10
SIGNATURES 11
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
March 31 December 31
1994 1993
(Unaudited) (Audited)
------------ ------------
<C> <C>
<S>
ASSETS
Real Estate Related Investments:
Loans receivable:
Mortgage loans $193,045,645 $165,147,444
Construction and other short-term loans 17,596,023 12,899,830
Working capital loans to related parties 6,897,424 7,234,327
------------ ------------
217,539,092 185,281,601
Investment in direct financing leases 48,855,222 52,950,188
Investment in operating-lease properties 49,737,777 42,776,361
------------ ------------
316,132,091 281,008,150
Less allowance for losses 4,150,000 4,150,000
------------ ------------
NET REAL ESTATE RELATED INVESTMENTS 311,982,091 276,858,150
Other Assets:
Deferred loan expenses 1,555,091 1,579,134
Cash and cash equivalents 322,690 4,896,314
Receivables and other assets 2,022,702 1,690,783
------------ ------------
3,900,483 8,166,231
------------ ------------
$315,882,574 $285,024,381
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Borrowings under line of credit arrangements $ 64,300,000 $ 35,000,000
Other long-term obligations 61,139,109 61,311,115
Accrued expenses and other liabilities 5,884,947 4,581,438
------------ ------------
TOTAL LIABILITIES 131,324,056 100,892,553
Shareholders' Equity:
Common Stock, $1.00 par value:
Authorized - 15,000,000 shares
Issued and outstanding - 11,494,229
in 1994 and 11,446,249 in 1993 11,494,229 11,446,249
Capital in excess of par value 159,074,314 158,013,957
Undistributed net income 13,989,975 14,671,622
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 184,558,518 184,131,828
------------ ------------
$315,882,574 $285,024,381
============ ============
</TABLE>
See notes to financial statements
<PAGE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
Three Months Ended
March 31
1994 1993
--------------------------
<C> <C>
<S>
Gross Income:
Interest and other income $ 5,236,096 $4,605,023
Direct financing leases:
Lease income 1,816,677 2,216,886
Gain on exercise of options 192,275 1,331,353
Operating leases:
Rents 1,018,818 300,424
Loan and commitment fees 177,373 149,183
----------- ----------
8,441,239 8,602,869
Expenses:
Interest:
Senior notes and other long-
term obligations 1,545,209 1,077,203
Line of credit arrangements 528,954 1,182,437
Loan expense 74,243 64,140
Management fees 643,054 615,323
Provision for depreciation 301,937 82,591
Provision for losses 150,000
Other operating expenses 363,592 290,566
----------- ----------
3,456,989 3,462,260
----------- ----------
NET INCOME $ 4,984,250 $5,140,609
=========== ==========
Average number of shares
outstanding 11,467,040 8,771,137
Net income per share $ .43 $ .59
Dividends per share $ .495 $ .475
</TABLE>
See notes to financial statements
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
Three Months Ended
March 31
1994 1993
-----------------------------
<C> <C>
<S>
OPERATING ACTIVITIES:
Net income $ 4,984,250 $ 5,140,609
Adjustments to reconcile net income to
cash provided by operating activities:
Amortization of loan and organization
expenses 74,782 64,140
Provision for losses 148,502
Provision for depreciation 301,937 82,591
Loan and commitment fees earned less
than cash received 368,187 313,922
Direct financing lease income less than
cash received 460,254 8,145
Interest income less than (in excess of)
cash received 103,012 (193,518)
Increase in accrued expenses and other
liabilities 935,322 554,815
Increase in other receivables and
prepaid items (332,458) (419,688)
------------ ------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 6,895,286 5,699,518
INVESTING ACTIVITIES:
Proceeds from exercise of lease purchase
options 1,610,393 5,077,139
Decrease in funds held in escrow--net 135,000
Investment in loans receivable (33,390,720) (34,957,732)
Investment in operating-lease properties (7,263,353)
Investment in direct financing leases (1,300,000)
Principal collected on loans 4,354,536 1,029,482
------------ ------------
NET CASH USED IN INVESTING ACTIVITIES (35,984,144) (28,716,111)
FINANCING ACTIVITIES:
Long-term borrowings under line of credit
arrangements 42,100,000 85,100,000
Principal payments on long-term borrowings
under line of credit arrangements (12,800,000) (56,100,000)
Net proceeds from the issuance of shares 1,108,337 923,857
Principal payments on other long-term
obligations (172,006) (2,711,669)
Increase in deferred loan expense (50,200) (11,615)
Cash distributions to shareholders (5,665,897) (4,157,190)
------------ ------------
NET CASH PROVIDED FROM FINANCING ACTIVITIES 24,520,234 23,043,383
------------ ------------
(Decrease) increase in cash and cash
equivalents (4,573,624) 26,790
Cash and cash equivalents at beginning
of period 4,896,314 265,868
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 322,690 $ 292,658
============ ============
Supplemental Cash Flow Information --
Interest Paid $ 1,023,582 $ 1,871,721
============ ============
</TABLE>
See notes to financial statements
<PAGE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
Three Months Ended
March 31
1994 1993
----------------------------
<C> <C>
<S>
Balances at beginning of period $184,131,828 $118,947,994
Net income 4,984,250 5,140,609
Proceeds from issuance of shares
under the dividend reinvestment
plan - 47,980 in 1994 and 42,070
in 1993 1,108,337 923,857
Cash dividend paid (5,665,897) (4,157,190)
------------ ------------
Balances at end of period $184,558,518 $120,855,270
============ ============
</TABLE>
( ) Denotes deduction
See notes to financial statements
<PAGE>
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
HEALTH CARE REIT, INC. AND SUBSIDIARY
Note A - Basis of Presentation
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with instructions
to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they
do not include all the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered for a fair
presentation have been included. Operating results for the three
months ended March 31, 1994 are not necessarily an indication of
the results that may be expected for the year ended December 31,
1994. For further information, refer to the financial statements
and footnotes thereto included in the Company's annual report on
Form 10-K for the year ended December 31, 1993.
Net income per share has been computed by dividing net
income by the average number of shares outstanding.
Note B - Contingencies
As disclosed in the financial statements for the year ended
December 31, 1993, the Company was contingently liable for certain
obligations amounting to approximately $21,255,000. No significant
change in these contingencies has occurred as of March 31, 1994.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
In the first quarter of 1994, the Company financed four
mortgage loans (including a loan to finance an option exercise
discussed below) for a total of approximately $24,748,000. In
addition, the Company advanced approximately $7,896,000 on 13
construction loans. The above loan activity, plus changes in
working capital loans and pay offs of three mortgage loans, were
the reasons total loans receivable increased $32,257,000 in the
first quarter of 1994.
One lessee exercised its option to purchase which provided
gross proceeds of $1,610,000. The Company also provided mortgage
loan financing for an amount greater than the option purchase price
to a lessee who exercised its option to purchase. The Company also
financed one new direct financing lease for $1,300,000. The above
activity was primarily the cause for the $4,095,000 decrease in
investment in direct financing leases.
The Company invested in four new operating lease properties
and increased its investment in several other operating lease
properties for a total of approximately $7,263,000.
Since December 31, 1993, borrowings under lines of credit
arrangements increased $29,300,000 due to the investment activity
discussed above. As of March 31, 1994, the Company had $53,637,000
in unfunded commitments and total available funding sources of
approximately $60,700,000.
During the first quarter of 1994, the Company received
approximately $1,108,000 from the sale of its shares under the
dividend reinvestment plan.
Results of Operations
Gross income for the first quarter of 1994 was $8,441,239 or
1.9% less than the first quarter of 1993. Interest income on loans
receivable, operating lease rents and loan and commitment fees
increased while direct financing lease income and gain on exercise
of options declined. The increase in interest income on loans
receivable and operating lease rents is attributable to the growth
in the loan portfolio, a long-term trend which the Company
anticipates will continue. The decrease in direct financing lease
income is a reflection of another long-term trend which should also
continue due to the greater market acceptance of mortgage loans and
operating leases.
In the first quarter of 1993, gross income included
$1,331,353 in gains on exercise of options. However, in the first
quarter of 1994, gain on exercise of options was $192,275. The
decline in the gain is due to a combination of three exercises in
the first quarter of 1993 versus one exercise in the same period in
1994 and the relative sizes of each of the original investments.
Net income totalled $4,984,250 in the first quarter of 1994
versus $5,140,609 for the comparable period in 1993. The decrease
in net income is reflected in the $.43 per share earned in the
first quarter of 1994 versus $.59 per share earned in the first
quarter of 1993. The decline in net income per share was
primarily affected by the sale of 2,500,000 additional shares in
the fourth quarter of 1993.
The 1994 net income was also affected by several trends.
First, average earnings on assets declined 68 basis points
(excluding gains) in the first quarter of 1994 versus the first
quarter of 1993. This trend was heightened by an increase of 71
basis points (1994 versus 1993) in the average cost of borrowing.
The decline in average earnings on assets is a reflection of long-
term general economic trends which may have bottomed out with the
recent rise in interest rates. The increase in the average cost of
borrowing is primarily the result of lower than normal borrowings
on the lines of credit, which is the Company's lowest cost of debt
financing. Since late March, the Company has substantially
increased its borrowings on its lines of credit which should reduce
the Company's average cost of debt financing for the second quarter
of 1994.
As the Company continues to fulfill its financing
commitments, its borrowings on the lines of credit will increase
even more, which should favorably affect the average cost of debt.
Lastly, the Company's net income was affected by the average
quarter-end debt to equity ratio of .63 to 1 in 1994 versus 1.01 to
1 in the first quarter of 1993. The decrease is solely due to the
fourth quarter of 1993 equity offering, which was initially used to
pay down debt. The decrease in debt had the effect of decreasing
the Company's interest related expense and increasing net income.
PART II. OTHER INFORMATION
Item 5. Other Information
On January 18, 1994, the Company issued a press release in
which it announced that the Board of Directors voted to pay a
quarterly dividend of $.495 per share payable to shareholders of
record on February 4, 1994.
On February 10, 1994, the Company issued a press release in
which it announced, among other things, that the 1993 net income
per share for the year was up $.24 or 12.6% more than 1992.
On February 11, 1994, the Company issued a press release in
which it announced, among other things, that it had provided $14.7
million first mortgage financings for one nursing home and three
primary care facilities.
On February 23, 1994, the Company issued a press release in
which it announced, among other things, that it had provided $2.7
million in financings for two facilities.
On March 22, 1994, the Company issued a press release in
which it announced, among other things, that it had provided $26.8
million in financings for six facilities.
On March 25, 1994, the Company issued a press release in
which it announced, among other things, that it had signed an
agreement to purchase a $10 million participation in an $86 million
first mortgage loan for a combination health care facility in
Austin, Texas.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
99 Press release dated January 18, 1994
99 Press release dated February 10, 1994
99 Press release dated February 11, 1994
99 Press release dated February 23, 1994
99 Press release dated March 22, 1994
99 Press release dated March 25, 1994
(b) Reports on Form 8-K
None
Pursuant to the requirement of the Securities and Exchange
Act of 1934, the Registrant had duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
HEALTH CARE REIT, INC.
Date: April 29, 1994 By: BRUCE G. THOMPSON
Bruce G. Thompson, Chairman and
Chief Executive Officer
Date: April 29, 1994 By: ROBERT J. PRUGER
Robert J. Pruger, Chief
Financial Officer
Date: April 29, 1994 By: KATHLEEN S. PREPHAN
Kathleen S. Prephan, Chief
Accounting Officer
<PAGE>
EXHIBIT INDEX
The following documents are included in this Form 10-Q as Exhibits:
Designation
Number Under
Exhibit Item 601 of Page
Number Regulation S-K Exhibit Description Number
1 99 Press release dated
January 18, 1994 13
2 99 Press release dated
February 10, 1994 14
3 99 Press release dated
February 11, 1994 16
4 99 Press release dated
February 23, 1994 17
5 99 Press release dated
March 22, 1994 18
6 99 Press release dated
March 25, 1994 19
F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
January 18, 1994
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. INCREASES DIVIDEND
Toledo, Ohio, January 18, 1994....The Directors of Health
Care REIT, Inc. (NYSE/HCN) voted to pay a quarterly cash dividend
of $.495 per share, an increase of $.005 per share from the
previous dividend. The dividend will be payable February 21, 1994
to shareholders of record on February 4, 1994. This will be the
REIT's 91st consecutive dividend distribution.
AMP\PRESS\36
F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
February 10, 1994
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES 1993 RESULTS
Toledo, Ohio, February 10, 1994 (NYSE/HCN)....For the
quarter ended December 31, 1993, net income was $5.1 million
compared to $4.4 million in the fourth quarter of 1992, an increase
of 13.9%. For the fourth quarter of 1993, net income per share of
$.45 was down $.06 or 11.8% under the fourth quarter of 1992. For
the year ended December 31, 1993, net income per share was $2.15
compared to $1.91 for the year ended December 31, 1992, an increase
of 12.6%.
Total assets of $285 million at December 31, 1993 were up
26% from a year ago, while shareholders' equity climbed 54.8% to
$184 million. The increase in 1993 shareholders' equity was
primarily attributable to an equity offering which raised
approximately $59.1 million.
Funds from operations for the three months ended
December 31, 1993 was $6.1 million ($.54 per share) compared with
$4.7 million ($.54 per share) for the three months ended
December 31, 1992. For the year ended December 31, 1993, funds
from operations was $22.8 million ($2.44 per share) compared to
$18.7 million ($2.16 per share) for the year ended December 31,
1992.
The following tables highlight the information presented
above.
SUMMARY FINANCIAL DATA
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
December 31 Year Ended
(Unaudited) December 31
------------------ -------------------
1993 1992 1993 1992
------- ------ ------- -------
<C> <C> <C> <C>
<S>
STATEMENTS OF INCOME
Gross Income:
Interest and other income $ 5,285 $4,090 $21,734 $15,331
Direct financing leases 1,865 2,410 8,094 9,697
Operating-lease rents 994 298 2,812 1,459
Loan and commitment fees 262 246 1,203 669
Gain on exercise of options 314 391 2,175 1,752
------- ------ ------- -------
$ 8,720 $7,435 $36,018 $28,908
======= ====== ======= =======
OTHER FINANCIAL INFORMATION
Gross income $ 8,720 $7,435 $36,018 $28,908
Net income 5,052 4,437 20,055 16,515
Funds from operations 6,072 4,713 22,780 18,654
Net income per share .45 .51 2.15 1.91
Funds from operations per share .54 .54 2.44 2.16
Distributions per share .49 .47 1.93 1.85
Average number of shares
outstanding 10,901 8,718 9,339 8,629
</TABLE>
<TABLE>
<CAPTION>
December 31
------------------------
1993 1992
-------- --------
<C> <C>
<S>
Assets:
Real Estate Related Investments:
Loans receivable $185,282 $151,414
Investment in direct financing leases 52,950 65,411
Investment in operating-lease properties 42,776 10,301
-------- --------
281,008 227,126
Less allowance for losses 4,150 4,000
-------- --------
276,858 223,126
Other assets 8,166 3,081
-------- --------
Total assets $285,024 $226,207
======== ========
Total liabilities $100,892 $107,259
Shareholders' Equity 184,132 118,948
-------- --------
$285,024 $226,207
======== ========
</TABLE>
Health Care REIT, Inc. is the first real estate investment
trust to specialize in financing health care facilities, primarily
nursing homes. The Company also invests in assisted living and
retirement facilities, psychiatric hospitals, rehabilitation
facilities and primary care facilities.
ADB\PRESS\37
F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
February 11, 1994
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES FINANCINGS
Toledo, Ohio, February 11, 1994....Health Care REIT, Inc.
(NYSE/HCN) announced that it has closed three operating leases
relating to primary care facilities located in the Chicago,
Illinois and Dayton, Ohio areas. The Company has advanced $2.3
million for the three facilities with a commitment to fund up to a
total of $8.9 million. The facilities are owned by HealthSpring,
Inc., formerly known as American Health Care Groups, Inc., based in
Reston, Virginia. HCN has a commitment to invest up to a total of
$20 million in health care facilities owned or operated by
HealthSpring, Inc.
Additionally, the Company converted its lease to first
mortgage financing for a 90-bed nursing home in Connecticut owned
by Brian J. Foley and operated by Fowler Nursing Center, Inc. The
net additional financing amounted to $2.2 million for a total new
investment of $5.8 million.
Health Care REIT, Inc. is a real estate investment trust
which invests in health care properties, primarily nursing homes.
The Company also invests in assisted living and retirement
facilities, rehabilitation centers, primary care facilities and
psychiatric hospitals.
ADB\PRESS\38
F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
February 23, 1994
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES FINANCINGS
Toledo, Ohio, February 23, 1994....Health Care REIT, Inc.
(NYSE/HCN) announced that it has provided construction loan
financing for a 70-unit assisted living addition to a facility
located in Stow, Ohio. The Company currently owns the 90-bed
nursing facility and leases it to The Briarwood Limited
Partnership. The Company has advanced $135,300 against a
commitment to fund up to $1.4 million.
Additionally, the Company has provided lease financing of
$1.3 million for an 84-unit Alzheimer's treatment/assisted living
facility located in Tampa, Florida. The lessee is a Florida
limited partnership, and the facility is managed by The Standish
Care Company based in Boston, Massachusetts.
Health Care REIT, Inc. is a real estate investment trust
which invests in health care properties, primarily nursing homes.
The Company also invests in assisted living and retirement
facilities, rehabilitation centers, primary care facilities and
psychiatric hospitals.
ADB\PRESS\39
F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
March 22, 1994
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES FINANCINGS
OF UP TO $26.8 MILLION
Toledo, Ohio, March 22, 1994 . . . Health Care REIT, Inc.
(NYSE/HCN) announced that it has provided mortgage financing in the
amount of $14.1 million for a 180-bed skilled nursing and 60-bed
assisted living facility located in Norwood, New Jersey. The
borrower is Senior Care Foundation, Inc. and the facility is
managed by Continental of Norwood, Inc.
Additionally, the Company has provided mortgage financing in
the amount of $2.85 million for a 161-bed long-term care facility
located in Westland, Michigan. The borrowers and managers are
Tamarack Associates Limited Partnership and Chaplains, Inc.
The Company has also provided operating lease financing in
the amount of $3.5 million for three assisted living facilities
located in North Carolina. The facilities with a total of 142
units are managed by The Standish Care Company.
Construction loan financing has been provided for a "to-be-
built," 100-bed skilled nursing facility to be located in St.
Louis, Missouri. The Company has advanced $1.4 million against a
commitment to fund up to $6.4 million. The borrower and manager
are affiliates of Life Care Centers of America, Inc.
Health Care REIT, Inc. is a real estate investment trust
which invests in health care properties, primarily nursing homes.
The Company also invests in assisted living and retirement
facilities, rehabilitation centers, primary care facilities and
psychiatric hospitals.
laj\press\40
F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
March 25, 1994
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES
$10 MILLION INVESTMENT
Toledo, Ohio, March 25, 1994 . . . Health Care REIT, Inc.
(NYSE/HCN) announced that it has signed an agreement to purchase a
$10 million participation in an $86 million first mortgage loan for
a combination acute care hospital, diagnostic clinic, long-term
care unit, and medical office building presently under construction
in Austin, Texas. The loan was originated by National Health
Investors, Inc. ("NHI") of Murfreesboro, Tennessee. HCN has funded
approximately $3.6 million of its $10 million commitment to NHI and
will fund the balance over the remainder of the construction
period. Completion is expected in June, 1995.
The facility will be owned by a joint venture between
HealthTrust, Inc. - The Hospital Company, a Nashville, Tennessee
based and publicly-owned hospital operator, and the Austin
Diagnostic Clinic, P.C., a multi-specialty physician group in
Austin, Texas.
Health Care REIT, Inc. is a real estate investment trust
which invests in health care properties, primarily nursing homes.
The Company also invests in assisted living and retirement
facilities, rehabilitation centers, primary care facilities and
psychiatric hospitals.
adb\press\41
