Health Care REIT second quarter normalized FFO up 13% to $0.90 per share

Health Care REIT, Inc. (NYSE:HCN) today announced operating results for the company's second quarter ended June 30, 2011.

“Health Care REIT's outstanding earnings growth in the second quarter of 2011 is the result of the successful execution of our relationship investment strategy”

"Health Care REIT's outstanding earnings growth in the second quarter of 2011 is the result of the successful execution of our relationship investment strategy," commented George L. Chapman, Health Care REIT's Chairman, Chief Executive Officer and President. "The 13% FFO and 10% FAD per share earnings increase this quarter demonstrates the momentum created by our growth platform. Our investment growth over the last 15 months is now translating into meaningful earnings growth for our shareholders and we expect this momentum to continue to drive future performance."

Recent Highlights

• Achieved 2Q11 normalized FFO of $0.90 per share, up 13%
• Achieved 2Q11 normalized FAD of $0.80 per share, up 10%
• Increased second quarter aggregate same-store NOI versus last year by 5.0%
• Completed year-to-date gross new investments totaling $4.2 billion, including $2.8 billion in the second quarter
• Closed year-to-date property sales and loan payoffs of $282 million, generating $56 million of gains
• Increased line of credit to $2 billion with an initial term through July 2015

Dividends for Second Quarter 2011 As previously announced, the Board of Directors declared a cash dividend for the quarter ended June 30, 2011 of $0.715 per share, as compared to $0.69 per share for the same period in 2010. The cash dividend will be paid on August 19, 2011 and will be the company's 161^st consecutive quarterly dividend payment.

Second Quarter Investment Highlights

• On April 1^st, the company completed the previously announced acquisition of substantially all of the real estate assets of privately-held Genesis HealthCare for a purchase price of $2.4 billion. The initial 15 year triple-net lease with Genesis will provide for rent in the first year of $198 million representing an initial cash yield of 8.25%. The rent, which includes a combination of fixed and CPI escalators, is expected to increase by 3.5% on the first five anniversary dates of the lease and 3.0% per year thereafter.
• On April 8^th, the company completed the previously announced acquisition of four combination senior housing facilities located in the Chicago and New York metro areas totaling 628 units. The company's $141.5 million investment included the assumption of $48 million in secured debt at an average rate of 6.5%. The investment is structured as a triple-net lease with Capital Senior Living (NYSE:CSU) with an initial term of 15 years and an initial rental yield of 7.25% with annual escalators of 3.0%.

Events Subsequent to Quarter End

• On July 27^th, the company entered into an expanded $2.0 billion unsecured revolving credit facility, which replaces the previous $1.15 billion facility. The company has an option to upsize the facility by $500 million through an accordion feature, allowing for aggregate commitments of up to $2.5 billion. The new facility includes 31 lenders and matures in July 2015 with a one-year option to extend at the company's discretion. The facility is priced at 1.35% over LIBOR, with a 0.25% annual facility fee based on current credit ratings and is subject to other terms and conditions customary for loans of this nature.

Investment Activity The company has completed acquisitions and joint venture investments year-to-date of $4.0 billion, up from the previously announced $3.8 billion, and funded development of $200 million, resulting in gross investments of $4.2 billion. The company continues to expect dispositions of $300 million for the full year, of which $282 million has been completed through June 30, 2011.

Outlook for 2011 The company is narrowing its 2011 earnings guidance solely to reflect year-to-date timing of dispositions. Normalized FFO has been revised to a range of $3.34 to $3.40 per diluted share from the previous $3.32 to $3.42 per diluted share, representing an increase of 8-10% from 2010. Normalized FAD has been revised to a range of $3.02 to $3.08 per diluted share from the previous $3.01 to $3.11 per diluted share, representing an increase of 6-8% from 2010. Net income attributable to common stockholders has been increased to a range of $1.04 to $1.10 per diluted share from $0.97 to $1.07 per diluted share. The company's guidance does not include any investments beyond what has been closed or identified year-to-date nor any additional transaction costs, capital transactions, impairments, unanticipated additions to the loan loss reserve or other one-time items, including any additional cash payments other than normal monthly rental payments. Please see the exhibits for a reconciliation of the outlook for net income available to common stockholders to normalized FFO and FAD.