Health Care REIT Earnings: Profit Drop Breaks Positive Streak

S&P 500 (NYSE:SPY) component Health Care REIT Inc. (NYSE:HCN) reported a lower net income in second quarter, missing analysts’ estimates. Health Care REIT is a real estate investment trust that invests in and manages senior housing and health care real estate.

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Health Care REIT Inc. Earnings Cheat Sheet

Results: Net income for Health Care REIT Inc. fell to $54.7 million (25 cents per share) vs. $69.8 million (39 cents per share) a year earlier. This is a decline of 21.6% from the year-earlier quarter.

Revenue: Rose 22.6% to $453.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Health Care REIT Inc. fell short of the mean analyst estimate of 88 cents per share. It beat the average revenue estimate of $418.7 million.

Quoting Management: “Health Care REIT continues to differentiate itself through the consistency of its relationship investment program, as evidenced by $602 million of second quarter investments from existing relationships. Total investments of $1.1 billion during the quarter brings our total year-to-date investments to $1.9 billion and drives a three cent increase in our 2012 earnings expectations,” commented George L. Chapman, Chairman and Chief Executive Officer of Health Care REIT. “Our ability to source high-quality investments in the seniors housing and MOB sectors has significantly strengthened the quality of our portfolio and increased our private pay percentage. As we move into the second half of 2012, our investment pipeline remains strong as we continue to execute our business plan.”

Key Stats:

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 87 cents.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 94 cents per share to 91 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $3.60 per share, down from $3.66 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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