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 June 30, 1996
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 1500, 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 June 30, 1996.
Class: Shares of Common Stock, $1.00 par value
Outstanding 14,457,086 shares
<PAGE>
HEALTH CARE REIT, INC.
INDEX
Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1996
and December 31, 1995 3
Consolidated Statements of Income - Three
months ended June 30, 1996 and 1995; and
Six months ended June 30, 1996 and 1995 4
Consolidated Statements of Cash Flows -
Six months ended June 30, 1996 and 1995 5
Consolidated Statements of Shareholders'
Equity - Six months ended June 30, 1996
and 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
Part II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
June 30 December 31
1996 1995
(Unaudited) (Note)
------------ ------------
<C> <C>
<S>
ASSETS
Real Estate Related Investments:
Loans receivable:
Mortgage loans $294,809,291 $267,483,683
Construction and other short-term loans 43,100,130 17,735,699
Working capital loans to related parties 5,511,943 6,779,340
------------ ------------
343,421,364 291,998,722
Investment in operating-lease properties 82,359,482 58,628,509
Investment in direct financing leases 10,901,980 11,246,492
------------ ------------
436,682,826 361,873,723
Less allowance for losses 9,967,652 9,950,000
------------ ------------
NET REAL ESTATE RELATED INVESTMENTS 426,715,174 351,923,723
Other Assets:
Deferred loan expenses 1,765,085 1,747,537
Investment securities available for sale 1,668,637 845,297
Cash and cash equivalents 678,768 860,350
Receivables and other assets 3,650,273 2,715,146
------------ ------------
7,762,763 6,168,330
------------ ------------
$434,477,937 $358,092,053
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Borrowings under line of credit arrangements $ 98,900,000 $106,700,000
Other long-term obligations 85,770,824 56,059,639
Accrued expenses and other liabilities 9,509,855 7,734,618
------------ ------------
TOTAL LIABILITIES 194,180,679 170,494,257
Shareholders' Equity:
Preferred Stock, $1.00 par value:
Authorized - 10,000,000 shares
Issued and outstanding - none
Common Stock, $1.00 par value:
Authorized - 40,000,000 shares
Issued and outstanding - 14,457,086
in 1996 and 12,034,196 in 1995 14,457,086 12,034,196
Capital in excess of par value 216,553,339 168,800,194
Undistributed net income 7,618,196 5,918,109
Unrealized gains on investment securities
available for sale 1,668,637 845,297
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 240,297,258 187,597,796
------------ ------------
$434,477,937 $358,092,053
============ ============
NOTE: The balance sheet at December 31, 1995 has been derived from
the audited financial statements at that date but does not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
See notes to consolidated financial statements
</TABLE>
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
------------------------ ------------------------
<C> <C> <C> <C>
<S>
Gross Income:
Interest and other income $10,573,509 $ 7,510,558 $18,715,749 $15,036,808
Operating leases:
Rents 2,264,869 1,582,870 4,225,382 3,124,479
Gain on exercise of
options 155,270 155,270
Direct financing leases:
Lease income 365,503 382,164 733,085 764,328
Gain on exercise of
options 421,167 421,167
Loan and commitment fees 845,260 201,934 1,265,306 376,904
----------- ----------- ----------- -----------
14,625,578 9,677,526 25,515,959 19,302,519
Expenses:
Interest:
Senior notes and other
long-term obligations 1,592,062 1,301,758 2,806,650 2,757,734
Line of credit arrange-
ments 2,457,027 1,855,710 4,753,370 3,524,083
Loan expense 202,148 186,779 389,471 372,468
Management fees 615,076 1,260,734
Provision for deprecia-
tion 555,184 390,337 1,030,112 780,075
Provision for losses 150,000 300,000
Other operating expenses 1,100,286 690,676 1,990,377 1,105,270
----------- ----------- ----------- -----------
6,056,707 5,040,336 11,269,980 9,800,364
----------- ----------- ----------- -----------
NET INCOME $ 8,568,871 $ 4,637,190 $14,245,979 $ 9,502,155
=========== =========== =========== ===========
Average number of shares
outstanding 13,058,270 11,673,998 12,555,311 11,646,843
Net income per share $ .66 $ .40 $ 1.13 $ .82
Dividends per share $ .52 $ .52 $ 1.04 $ 1.035
See notes to consolidated financial statements
</TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
Six Months Ended
June 30
1996 1995
----------------------------
<C> <C>
<S>
OPERATING ACTIVITIES
Net income $ 14,245,979 $ 9,502,155
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of loan and organization
expenses 390,549 373,546
Provision for losses-net of charge-offs 17,652
Provision for depreciation 1,030,112 780,075
Capitalized interest (35,620)
Loan and commitment fees earned less
than cash received 1,023,013 649,041
Direct financing lease income less
than cash received 64,512 95,381
Interest income in excess of cash
received (198,457) (104,670)
Increase in accrued expenses and
other liabilities 752,223 31,078
Increase in other receivables and
prepaid items (862,007) (338,084)
------------ ------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES 16,427,956 10,988,522
INVESTING ACTIVITIES
Proceeds from exercise of lease
purchase options 9,507,988
Increase in investments (532,000)
Investment in operating-lease
properties (20,182,775) (1,326,000)
Investment in loans receivable (83,349,024) (51,227,784)
Principal collected on loans 18,364,839 4,496,441
Other (84,876)
------------ ------------
NET CASH USED IN INVESTING ACTIVITIES (75,743,848) (48,589,343)
FINANCING ACTIVITIES
Long-term borrowings under line of
credit arrangements 173,400,000 112,900,000
Principal payments on long-term
borrowings under line of credit
arrangements (181,200,000) (64,700,000)
Net proceeds from the issuance of shares 50,263,312 2,042,530
Borrowings under Senior Notes 30,000,000
Principal payments on other long-term
obligations (288,815) (322,091)
Increase in deferred loan expense (494,295) (559,652)
Cash distributions to shareholders (12,545,892) (12,036,698)
------------ ------------
NET CASH PROVIDED FROM FINANCING ACTIVITIES 59,134,310 37,324,089
------------ ------------
Decrease in cash and cash equivalents (181,582) (276,732)
Cash and cash equivalents at beginning
of period 860,350 935,449
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 678,768 $ 658,717
============ ============
Supplemental Cash Flow Information--
Interest Paid $ 6,875,552 $ 6,439,192
============ ============
See notes to consolidated financial statements
</TABLE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
HEALTH CARE REIT, INC. AND SUBSIDIARY
<TABLE>
Six Months Ended
June 30
1996 1995
-----------------------------
<C> <C>
<S>
Balances at beginning of period $187,597,796 $189,179,775
Net income 14,245,979 9,502,155
Proceeds from issuance of shares under the
dividend reinvestment plan - 60,690 in
1996 and 86,577 in 1995 1,278,429 1,833,141
Proceeds from issuance of shares under the
employee stock incentive plan - 40,000
in 1996 and 14,140 in 1995 713,938 209,389
Proceeds from sale of 2,322,200 shares 51,088,400
Expenses related to sale of 2,322,200 shares (2,904,732)
Change in net unrecognized gain on
investment security available for sale 823,340
Cash dividends paid (12,545,892) (12,036,698)
------------ ------------
Balances at end of period $240,297,258 $188,687,762
============ ============
See notes to consolidated financial statements
</TABLE>
NOTES TO CONSOLIDATED 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 six
months ended June 30, 1996 are not necessarily an indication of the
results that may be expected for the year ended December 31, 1996.
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, 1995.
Net income per share has been computed by dividing net
income by the average number of shares outstanding.
Note B - Investments
Investment securities available for sale are stated at fair
value with unrealized gains and losses reported in a separate
component of shareholders' equity. At June 30, 1996, available-
for-sale securities are the common stock of a corporation, which
were obtained by the Company at no cost.
Note C - Contingencies
As disclosed in the financial statements for the year ended
December 31, 1995, the Company was contingently liable for certain
obligations amounting to approximately $19,530,000. No significant
change in these contingencies has occurred as of June 30, 1996.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
In the first six months of 1996, the Company made
$43,413,000 of new mortgage loans, $18,366,000 of new investments
in operating leases and continued to finance 30 construction loans,
which construction advances totalled $39,124,000. The Company
received $1,267,000 working capital loan repayments. The above-
mentioned investment activity contributed to increases in total
loans receivable and investments in operating leases of $51,423,000
and $23,731,000, respectively, in the first half of 1996.
With respect to the above-mentioned construction loans,
eight of the loans completed the construction phase of the
Company's investment process and were converted to investments in
operating leases, with an aggregate investment of $13,760,000.
The Company's working capital loans, all to related parties,
are expected to slowly decline as the underlying projects continue
to improve their financial performance and thereby pay down these
loans.
Since December 31, 1995, borrowings under line of credit
arrangements decreased $7,800,000, which reflects the capital
activity discussed below and the investment activity discussed
above. As of June 30, 1996, the Company had approximately
$216,691,000 in unfunded commitments and total available funding
sources of approximately $86,100,000. The Company believes that
funds provided from operating activities, together with funds from
new equity and debt issuances, present credit lines, scheduled loan
repayments and equity issuances under Company stock plans, will be
sufficient to meet current operating requirements and existing
commitments.
During the second quarter of 1996, the Company issued Senior
Notes in the aggregate principal amount of $30,000,000 which mature
in 2001 and 2003, and have a weighted average interest rate of
7.18%. The Notes are secured by $40,000,000 of assets.
During the second quarter of 1996, the Company issued
2,322,200 Shares of Common Stock, $1.00 par value per share, at the
price of $22.00 per share, which generated net proceeds of
$48,184,000 to the Company.
Results of Operations
Gross income for the first six months of 1996 totalled
$25,516,000, an increase of 32.19% from the first half of 1995.
Interest income on loans receivable and operating lease rents
increased while direct financing lease income declined. The
increase in interest income on loans receivable and operating lease
rents is attributable to the growth in the loan and operating lease
portfolios, two long-term trends which the Company anticipates will
continue.
Contributing to the increase in gross income in the first
six months of 1996 over the comparable period in 1995 was the gain
on the exercise of lease purchase options, which totalled $576,000
for the first half of 1996. During the first six months of 1995,
the Company did not receive income from gains on the exercise of
options.
Net income totalled $14,246,000 in the first six months of
1996 versus $9,502,000 for the comparable period in 1995. The
increase in net income was reflected in the $1.13 per share earned
in the first half of 1996 versus $.82 per share earned in the first
half of 1995. Contributing factors were improved earnings on
assets, a reduction to the Company's average cost of borrowing and
increased investment activity (as discussed above).
Average earnings on assets increased 23 basis points in the
first half of 1996 versus the first half of 1995. The increase in
average earnings on assets was a reflection of the increased
investment activity during the last six months of 1995 and the
first half of 1996. Loan and commitment fees earned during the
first six months of 1996 increased 235.71% as compared to the first
half of 1995. Interest on loans and rents from operating leases
increased 24.47% and 35.23%, respectively, during the first six
months of 1996 as compared to the comparable period in 1995.
Net income was affected by the average quarter-end, debt-to-
equity ratio of .94 to 1.00 in 1996 versus .77 to 1.00 in the first
half of 1995. The increase is due to the issuance of Senior Notes,
as discussed above, and borrowings on the lines of credit, which
have been utilized to fulfill the Company's investment commitments.
At June 30, 1996, long-term obligations and outstanding balances
under the lines of credit totalled $184,671,000 as compared to
$176,151,000 at June 30, 1995. The increase in debt had the effect
of increasing the Company's interest related expenses.
During the first six months of 1996, the Company experienced
a decrease of 123 basis points in its average cost of borrowing, as
compared to the comparable period in 1995. This was primarily due
to a general decline in interest rates and the expiration of a
variable interest rate swap that was utilized by the Company during
the first half of 1995, which had the effect of increasing the
average cost of borrowing, as a percentage of outstanding debt,
during that period.
The Company's operating expenses decreased 15.88% in the
first six months of 1996 versus the first half of 1995. The 1995
operating expenses included management fees. The reduction in
operating expenses was primarily due to cost savings realized as a
result of the merger of the Company's advisor into the Company and
the achievement of self-administered status.
In addition, net income was affected by the Company's
decision to increase its unallocated allowance for losses by
$300,000 during the first six months of 1996.
Under the Company's By-Laws, stockholders must be notified
when total operating expenses (for the twelve-month period then
ended) exceed 2% of average invested assets or 25% of adjusted net
income, whichever is greater. For the twelve-month period ended
June 30, 1996, total operating expenses, which totalled $9,893,000,
exceeded 2% of average invested assets and exceeded 25% of adjusted
net income. This was primarily due to costs incurred by the
Company relating to the merger with the Company's former advisor.
When the subject compliance test was adjusted for the expense
associated with the contract settlement, the Company was in
compliance.
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of shareholders of Health Care REIT, Inc.
was duly called and held on May 21, 1996 in Toledo, Ohio. Proxies
for the meeting were solicited on behalf of the Company's
management and Board of Directors pursuant to Regulation 14A of the
General Rules and Regulations of the Commission. There was no
solicitation in opposition to the management's nominees for
election as directors as listed in the Proxy Statement, and all
such nominees were elected.
Votes were cast at the meeting upon the proposals described
in the Proxy Statement for the meeting (filed with the Commission
pursuant to Regulation 14A and incorporated herein by reference) as
follows:
Proposal #1 - The election of three directors:
Nominee For Against
William C. Ballard, Jr. 10,873,767 109,439
Bruce Douglas 10,873,068 110,138
Frederic D. Wolfe 10,871,448 111,758
Proposal #2 - to ratify the appointment of Ernst & Young as
independent auditors for 1996:
For 10,775,981
Against 59,598
Abstain 147,627
Item 5. Other Information
On April 15, 1996, the Company issued a press release in
which it announced that during the first quarter of 1996, it had
closed $62 million of new investments.
On April 17, 1996, the Company issued a press release in
which it announced, among other things, that the Board of Directors
voted to pay a quarterly cash dividend of $.52 per share, payable
to shareholders of record on May 3, 1996, and that net income for
the first quarter of 1996 was $.47 per share.
On April 23, 1996, the Company issued a press release in
which it announced the closing of a $30 million private placement
financing of Senior Notes.
On April 30, 1996, the Company issued a press release in
which it announced that it had filed a prospectus supplement for an
offering of 2,000,000 shares of Common Stock.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
99.1 Press release dated April 15, 1996
99.2 Press release dated April 17, 1996
99.3 Press release dated April 23, 1996
99.4 Press release dated April 30, 1996
27 Financial Data Schedule
(b) Reports on Form 8-K
A report on Form 8-K was filed on May 16, 1996, reporting on
the terms of an underwriting agreement between Health Care REIT,
Inc. and Alex. Brown & Sons, Incorporated, Smith Barney Inc. and
EVEREN Securities, Inc.
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: August 14, 1996 By: BRUCE G. THOMPSON
Bruce G. Thompson, Chairman and
Chief Executive Officer
Date: August 14, 1996 By: EDWARD F. LANGE, JR.
Edward F. Lange, Jr., Chief
Financial Officer
Date: August 14, 1996 By: MICHAEL A. CRABTREE
Michael A. Crabtree, Chief
Accounting Officer
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 99.1 Press Release dated April 15, 1996. 14
2 99.2 Press Release dated April 17, 1996. 15
3 99.3 Press Release dated April 23, 1996. 17
4 99.4 Press Release dated April 30, 1996. 18
5 27 Financial Data Schedule. 19
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000766704
<NAME> HEALTH CARE REIT, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 678,768
<SECURITIES> 1,668,637
<RECEIVABLES> 357,973,617
<ALLOWANCES> 9,967,652
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 87,433,727
<DEPRECIATION> 5,074,245
<TOTAL-ASSETS> 434,477,937<F1>
<CURRENT-LIABILITIES> 9,509,855
<BONDS> 184,670,824
<COMMON> 14,457,086
0
0
<OTHER-SE> 225,840,172
<TOTAL-LIABILITY-AND-EQUITY> 434,477,937
<SALES> 0
<TOTAL-REVENUES> 25,515,959
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,020,489
<LOSS-PROVISION> 300,000
<INTEREST-EXPENSE> 7,949,491
<INCOME-PRETAX> 14,245,979
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,245,979
<EPS-PRIMARY> 1.13
<EPS-DILUTED> 1.13
<FN>
<F1>Total Assets include 1,765,085, which represents deferred loan
expenses that have not been listed separately.
</FN>
</TABLE>
F O R I M M E D I A T E R E L E A S E
April 15, 1996
For more information contact:
Erin Ibele - (419) 247-2800
Ed Lange - (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES FIRST QUARTER
NEW INVESTMENTS OF $62 MILLION
Toledo, Ohio, April 15, 1996....Health Care REIT, Inc. (NYSE/HCN)
announced today that during the first quarter of 1996, the Company
closed $62 million of new investments, of which $28.2 million has
been funded to date.
Permanent mortgage financing of $21.1 was provided for two nursing
home facilities located in Massachusetts. Operating lease
financing of $7.2 million was provided for two assisted living
facilities located in Florida. Also in the first quarter, Health
Care REIT provided $14.9 million of development/operating lease
financing for seven assisted living facilities to be constructed in
Oklahoma and Texas. Development and permanent mortgage financing
of $19.8 million was provided for two assisted living facilities
located in Texas and Pennsylvania, and a nursing home facility
located in Arizona.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a
real estate investment trust which invests in health care
facilities, primarily nursing homes, assisted living facilities and
retirement centers. The Company also invests in specialty care
hospitals and primary care facilities. The Company has investments
in 118 health care facilities in 28 states and has total assets of
approximately $390 million.
F O R I M M E D I A T E R E L E A S E
April 17, 1996
For more information contact:
Erin Ibele - (419) 247-2800
Ed Lange - (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES
FIRST QUARTER RESULTS AND DECLARES DIVIDEND
Toledo, Ohio, April 17, 1996....The Directors of Health Care REIT,
Inc. (NYSE/HCN) voted to pay a quarterly dividend at the rate of
$.52 per share. The dividend will be payable May 20, 1996 to
shareholders of record on May 3, 1996. This will be the REIT's
100th consecutive dividend distribution.
Cash Flows from Operating Activities Available for Distribution for
the three months ended March 31, 1996 was $7,362,841 ($.61 per
share) compared with $5,694,981 ($.49 per share) for the three
months ended March 31, 1995. With this release, the Company
commences its reporting of Funds From Operations (FFO), as defined
by the National Association of Real Estate Investment Trusts.
Accordingly, Funds From Operations for the three months ended March
31, 1996 was $6,147,118 ($.51 per share) compared with $5,254,703
($.45 per share) for the corresponding quarter of 1995.
Net Income for the three months ended March 31, 1996 was $5,677,108
or $.47 per share of common stock on Revenue of $10,890,381,
compared to Net Income of $4,864,965 or $.42 per share of common
stock on Revenue of $9,624,993 for the corresponding quarter of
1995. Gross Income for the three months ended March 31, 1996 was
up 13.15% from the first quarter of 1995. Total Assets of
$397,412,701 at March 31, 1996 reflect a 20% increase from one year
ago. The chart on the following page presents the information
highlighted above.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a
real estate investment trust which invests in health care
facilities, primarily nursing homes, assisted living facilities and
retirement centers. The Company also invests in specialty care
hospitals and primary care facilities. The Company has investments
in 118 health care facilities in 28 states and has total assets of
approximately $397 million.
<TABLE>
Three Months Ended
March 31 (Unaudited)
------------------------------
1996 1995
------------ ------------
<C> <C>
<S>
Gross income $ 10,890,381 $ 9,624,993
Net income $ 5,677,108 $ 4,864,965
Net income per share $ .47 $ .42
Cash flows from operating activities
available for distribution $ 7,362,841 $ 5,694,981
Cash flows from operating activities
available for distribution per share $ .61 $ .49
Funds From Operations $ 6,147,118 $ 5,254,703
Funds From Operations per share $ .51 $ .45
Average number of shares outstanding 12,052,353 11,619,386
Total assets as of March 31 $397,412,701 $331,098,644
</TABLE>
F O R I M M E D I A T E R E L E A S E
April 23, 1996
For more information contact:
Erin Ibele - (419) 247-2800
Ed Lange - (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES $30 MILLION
PRIVATE PLACEMENT OF SENIOR NOTES
Toledo, Ohio, April 23, 1996....Health Care REIT, Inc. (NYSE/HCN)
announced today the successful closing of a $30 million private
placement of Senior Notes to institutional investors. The Notes,
which mature in 2001 and 2003, have a weighted average interest
rate of 7.18%. The Company used the proceeds to reduce its lines
of credit, which in return will enable the Company to make
investments in health care facilities. EVEREN Securities, Inc.
served as Agent to the Company.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a
real estate investment trust which invests in health care
facilities, primarily nursing homes, assisted living facilities and
retirement centers. The Company also invests in specialty care
hospitals and primary care facilities. The Company has investments
in 118 health care facilities in 28 states and has total assets of
approximately $390 million.
F O R I M M E D I A T E R E L E A S E
April 30, 1996
For more information contact:
Erin Ibele - (419) 247-2800
Ed Lange - (419) 247-2800
HEALTH CARE REIT, INC. ANNOUNCES
FILING OF PROSPECTUS SUPPLEMENT
Toledo, Ohio, April 30, 1996....Health Care REIT, Inc. (NYSE/HCN)
announced that it has filed a prospectus supplement for an offering
of 2,000,000 shares of Common Stock with the Securities and
Exchange Commission. All of the shares are being offered by the
Company. The Company has also granted to the underwriters of the
offering an option to purchase up to an additional 300,000 shares
solely to cover over-allotments.
Alex. Brown & Sons Incorporated is the Manager of the underwriting
group, and Smith Barney Inc. and Everen Securities, Inc. are Co-
Managers. It is anticipated that the shares will be offered to the
public in May 1996. Proceeds will be used to invest in additional
health care properties.
Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a
real estate investment trust which invests in health care
facilities, primarily nursing homes, assisted living facilities and
retirement centers. The Company also invests in specialty care
hospitals and primary care facilities. The Company has investments
in 118 health care facilities in 28 states and has total assets of
approximately $397 million. The Company's headquarters are located
at One SeaGate, Suite 1500, Toledo, Ohio 43604.
