Health Care REIT Inc. Results

S&P 500 (NYSE:SPY) component Health Care REIT Inc. (NYSE:HCN) reported its results for the fourth quarter. 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 Earnings Cheat Sheet for the Fourth Quarter

Results: The company’s funds from operations (FFO) rose 21.3% from the year earlier quarter to 91 cents. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings. It come in ahead of the consensus estimate of 90 cents per share. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.

Quoting Management: “The transformation of our company and portfolio over the last several years has been extraordinary, capped by exceptional fourth quarter FFO per share growth of 21% and FAD per share growth of 18%” said George L. Chapman, Chairman, Chief Executive Officer and President of Health Care REIT. “The continued success of our relationship investment program was demonstrated by an additional $1.2 billion in gross investments for the quarter and $6.0 billion for the year. These investments in high-quality properties, at attractive returns, helped drive a peer group leading 21% total return in 2011. We believe that our immersion in health care will continue to generate future investment opportunities with leading operators and health systems, positioning the company for sustainable long-term growth as we shape the evolution of health care delivery.”

Looking Forward: Analysts have a more positive outlook for the company’s next quarter performance. Over the past month, the average estimate for the first quarter of the next fiscal year has gone up from 90 cents per share to 91 cents. The average estimate hasn’t changed from $3.39 per share for the fiscal year.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

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