Health Care REIT updates financial guidance for fiscal year 2009

Sep 9 2009

Health Care REIT, Inc. (NYSE:HCN) today announced updated financial guidance for fiscal year 2009 as a result of its recent common stock public offering. On September 1, 2009, the company announced that it agreed to sell 8,000,000 shares of its common stock in an underwritten public offering. The company also granted the underwriters a thirty-day option to purchase up to 1,200,000 additional shares to cover over-allotments, if any. On September 4, 2009, the company closed its public offering of 8,000,000 shares of common stock, resulting in net proceeds of approximately $310.3 million, excluding offering expenses. The specific terms of the offering are described in a prospectus supplement, dated September 1, 2009, relating to the offering filed by the company with the Securities and Exchange Commission on September 2, 2009.

Updated 2009 Financial Guidance from August 5, 2009 Press Release. The company expects to report net income available to common stockholders in a range of $1.75 to $1.82 per diluted share, normalized funds from operations in a range of $3.07 to $3.14 per diluted share and normalized funds available for distribution in a range of $2.91 to $2.98 per diluted share. This updated guidance is based on the following items:

• The final terms of the company’s recent public offering of 8,000,000 shares of common stock, including the assumption that the underwriters fully exercise the option to purchase 1,200,000 additional shares of common stock
• Issuance of 1,552,600 shares of common stock in August under the company’s equity distribution program resulting in net proceeds of approximately $64.1 million
• Anticipated repurchase in September of $53.1 million in mortgage notes (at an average rate of 7.4%) that mature through 2011
• Recognition of debt extinguishment costs associated with the anticipated mortgage repurchase of approximately $5.5 million that will be included in net income but excluded from normalized FFO and FAD guidance
• Reduction in anticipated incurrence of secured debt in the second half of the year from $300 million to $175 million (at a rate of approximately 6.5%)