Health Care REIT, Inc. Earnings Cheat Sheet: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

S&P 500 (NYSE:SPY) component Health Care REIT, Inc. (NYSE:HCN) reported higher profit for the second quarter as revenue showed growth. Health Care REIT Inc. 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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for the real estate investment trust rose to $86.2 million (39 cents per share) vs. $51.1 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 68.6% from the year earlier quarter.

Revenue: Rose more than twofold to $381.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HCN reported funds from operations (FFO) of 90 cents per share. By that measure, the company beat the mean estimate of 87 cents per share. It beat the average revenue estimate of $340.1 million.

Quoting Management: “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.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 67.6%, with the biggest boost coming in the most recent quarter when revenue rose more than twofold from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 2.3% and in the fourth quarter of the last fiscal year, the figure rose 6.4%.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 4 cents, and in the fourth quarter of the last fiscal year, it fell short by 2 cents.

Competitors to Watch: HCP, Inc. (NYSE:HCP), Ventas, Inc. (NYSE:VTR), Omega Healthcare Investors, Inc. (NYSE:OHI), National Health Investors Inc (NYSE:NHI), LTC Properties, Inc. (NYSE:LTC), Senior Housing Properties Trust (NYSE:SNH), Healthcare Realty Trust Inc. (NYSE:HR), Universal Health Realty Income Trust (NYSE:UHT), Medical Properties Trust, Inc. (NYSE:MPW), and Nationwide Health Properties Inc. (NYSE:NHP).

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(Source: Xignite Financials)

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