DOW JONES NEWSWIRES
Health Care REIT Inc.'s (HCN) fourth-quarter net income fell 42%
on higher charges, though both revenue and normalized funds from
operations improved.
Shares fell 2.5% to $32.63 in after-hours trading as the real
estate investment trust projected 2009 earnings and funds from
operations below analysts' expectations.
The real estate investment trust sector, the health care
segment, had been considered the most recession-resilient, as the
ranks of seniors swell, with that population expected to nearly
double by 2030.
A large concern for the sector comes from senior housing, where
rent growth and occupancy trends are being stressed by the weakened
economy. Still, a diverse portfolio beyond senior housing,
including medical office buildings, are expected to provide some
stability, analysts say. Health Care has over 600 properties, 128
of which are medical office buildings.
Health Care, a REIT that invests in long-term care facilities,
reported net income of $28.6 million, or 22 cents a share, down
from $48.9 million, or 52 cents a share, a year earlier.
The latest period included 31 cents in impairment charges and 21
cents in realized losses on derivatives, among other items.
Normalized funds from operations rose to 83 cents from 80 cents
a share.
Gross revenue grew 17% to $147.1 million.
Analysts polled by Thomson Reuters projected funds from
operations of 83 cents on revenue of $148 million.
"As we enter 2009, we remain focused on preserving liquidity,
but we intend to take advantage of what we believe will be
increasingly attractive investment opportunities over time," said
Chairman and Chief Executive George L. Chapman, who also assumed
the president's role earlier this month.
Looking ahead, the company expects 2009 net income of $1.59 to
$1.69, compared with the analyst view of $1.87. Health Care
projects normalized funds from operations of $3.20 to $3.30, while
Wall Street forecast $3.42.
-By John Kell and Lauren Pollock, Dow Jones Newswires;
201-938-5285; john.kell@dowjones.com