Exhibit 99.2
3Q11 SUPPLEMENTAL INFORMATION
HEALTHCARE REIT TM
3Q11 Supplemental Information
Overview | 2
Portfolio | 3
Investment | 13
Financial | 16
Glossary | 21
Supplemental Reporting Measures | 23
Forward Looking Statements and Risk Factors | 24
HEALTHCARE REIT TM
2
OVERVIEW
Portfolio Composition
(dollars in thousands, except per bed / unit / square foot)
Overview by Investment Type
Age
Properties
Investment Balance
% of Total
Committed Balance
Beds / Units
/ Square Feet
Per Bed / Unit / Square Foot
Seniors housing triple-net
12
277
$
3,953,994
29.6%
$4,042,295
24,731
$163,451
Skilled nursing / post-acute
24
303
3,549,696
26.6%
3,556,646
39,426
90,211
Seniors housing operating
13
99
2,173,410
16.3%
2,173,410
10,537
206,265
Hospital
15
35
891,697
6.7%
893,042
2,105
424,248
Medical office
12
177
2,442,508
18.3%
2,602,605
10,255,203
254
Life science
13
7
340,235
2.5%
340,235
1,188,132
N/A
Total
16
898
$
13,351,540
100.0%
$
13,608,233
Current Quarter
Portfolio NOI
Total Revenues
Operating Expenses
Net Operating Income
Annualized NOI(1)
Seniors housing triple-net
$
82,355
$
—
$
82,355
$
329,420
Skilled nursing / post-acute
94,577
—
94,577
378,308
Seniors housing operating
125,125
86,218
38,907
155,628
Hospital
20,308
252
20,056
80,224
Medical office
63,366
17,861
45,505
182,020
Life science
10,814
3,199
7,615
30,460
Corporate
307
—
307
1,228
Total
$
396,852
$
107,530
$
289,322
$
1,157,288
Portfolio Performance
Facility Revenue Mix
Stable Portfolio(2)
Occupancy
Cash Flow Coverage(3)
Private Pay
Medicaid
Medicare
Seniors housing triple-net(4)
87.7%
1.42x
87.0%
9.2%
3.8%
Skilled nursing / post-acute
87.8%
2.28x
20.2%
47.0%
32.8%
Seniors housing operating
89.8%
n/a
99.0%
0.0%
1.0%
Hospital
64.9%
2.62x
32.5%
7.9%
59.6%
Medical office
93.3%
n/a
100.0%
0.0%
0.0%
Life science
100.0%
n/a
100.0%
0.0%
0.0%
Total
1.96x
68.6%
17.4%
14.0%
Notes:
(1) Annualized NOI calculated as current quarter NOI multiplied by 4.
(2) Data as of September 30, 2011 for seniors housing operating, medical office and life science and June 30, 2011 for remaining asset types.
(3) Represents trailing twelve month coverage metrics.
(4) Excludes entrance fee portfolio.
PORTFOLIO
Portfolio Concentration
(dollars in thousands)
Balances By State
Seniors Housing Triple-net
Skilled Nursing / Post-Acute
Seniors Housing Operating
Hospital
Medical Office & Life Science(1)
Total Properties
Investment Balance
% of Total
New Jersey
$
575,752
$
450,326
$—
$35,275
$172,730
54
$1,234,083
9.2%
Massachusetts
104,689
369,216
337,383
11,363
340,235
57
1,162,886
8.7%
Florida
321,206
207,543
6,744
22,458
452,452
92
1,010,403
7.6%
California
79,264
—
407,577
314,100
206,440
47
1,007,381
7.5%
Texas
221,031
166,941
113,325
191,179
216,341
76
908,817
6.8%
Pennsylvania
209,291
554,172
—
17,962
—
45
781,425
5.9%
Connecticut
128,054
99,992
368,321
—
—
37
596,367
4.5%
Washington
106,978
—
340,996
—
119,682
25
567,656
4.3%
Ohio
193,257
168,161
90,017
32,391
24,787
37
508,613
3.8%
Wisconsin
148,492
—
—
22,492
294,640
32
465,624
3.5%
Remaining
1,865,980
1,533,345
509,047
244,477
955,436
396
5,108,285
38.2%
Total
$
3,953,994
$
3,549,696
$2,173,410
$891,697
$2,782,743
898
$13,351,540
100.0%
NOI By State
Seniors Housing Triple-net
Skilled Nursing / Post - Acute
Seniors Housing Operating
Hospital
Medical Office & Life Science(1)
Total Properties
Total NOI(2)
% of Total
Massachusetts
$
2,989
$
10,040
$6,300
$—
$7,615
57
$26,944
9.4%
California
2,329
—
9,073
7,825
4,002
47
23,229
8.1%
New Jersey
7,341
10,647
—
965
2,559
54
21,512
7.5%
Florida
5,165
7,052
171
349
8,270
92
21,007
7.3%
Texas
5,090
4,913
2,118
3,661
4,378
76
20,160
7.0%
Pennsylvania
4,241
13,681
—
355
198
45
18,475
6.4%
Connecticut
3,335
2,539
7,091
—
—
37
12,965
4.5%
Ohio
3,503
5,343
1,319
818
415
37
11,398
4.0%
Wisconsin
3,238
—
—
683
6,767
32
10,688
3.7%
Washington
2,697
—
5,393
—
1,728
25
9,818
3.4%
Remaining
42,026
40,309
7,442
5,637
15,903
396
111,317
38.7%
Total
$
81,954
$
94,524
$38,907
$20,293
$51,835
898
$287,513
100.0%
Notes:
(1) Includes unconsolidated joint ventures. Balance and NOI for Massachusetts represent our Life Science portfolio only.
(2) Represents NOI including discontinued operations for the three months ended September 30, 2011, excluding other income totaling $1,809,000.
4 Top Ten Customer Descriptions
PORTFOLIO
Genesis HealthCare, LLC, located in Kennett Square, PA, is a privately held company that operates 234 eldercare facilities, consisting of 209 skilled nursing facilities and 25 assisted living facilities. Genesis has the ability to serve approximately 25,500 residents across 13 New England and Middle Atlantic states. Genesis also provides third-party rehabilitation services to nearly 900 healthcare providers. As of September 30, 2011, the HCN portfolio consisted of 149 facilities with 18,106 units in 11 states with an investment balance of $2.5 billion.
Benchmark Senior Living, LLC, located in Wellesley, MA, is a privately held company that operates 41 facilities with approximately 4,000 residents across the Northeast. The company currently operates independent living, assisted living, and dementia care facilities that focus on low to moderate acuity. As of September 30, 2011, the HCN portfolio consisted of 35 facilities with 3,090 units in six states with an investment balance of $897.9 million.
Merrill Gardens LLC, located in Seattle, WA, is a privately held company that owns, operates and/or manages 53 independent and assisted living facilities with over 6,000 units in nine states. As of September 30, 2011, the HCN portfolio consisted of 38 facilities in eight states with an investment balance of $699.9 million.
Senior Living Communities, LLC, located in Charlotte, NC, is a privately held company that operates premier continuing care retirement communities (CCRCs) throughout the southeastern United States. The company operates 12 facilities in five states. As of September 30, 2011, the HCN portfolio consisted of 12 facilities in five states with an investment balance of $605.9 million.
Brandywine Senior Living, LLC, located in Mount Laurel, NJ, is a privately held company that operates 19 seniors housing facilities with over 1,800 units in five states. As of September 30, 2011, the HCN portfolio consisted of 19 facilities in five states with an investment balance of $602.5 million.
Senior Star Living, located in Tulsa, OK, is a private operator of CCRCs and independent living, assisted living and dementia care facilities that operates 10 facilities in six states. As of September 30, 2011, the HCN portfolio consisted of 10 facilities in six states with an investment balance of $458.8 million.
Brookdale Senior Living, Inc. (NYSE:BKD), located in Chicago, IL, is a publicly traded company that provides independent living and assisted living services. The company operates 559 facilities in 33 states with the ability to serve approximately 51,000 residents. As of September 30, 2011, the HCN portfolio consisted of 74 facilities in 16 states with an investment balance of $319.1 million.
Chelsea Senior Living, located in Fanwood, NJ, is a privately held company that operates 14 seniors housing facilities throughout New Jersey, New York, and Pennsylvania. As of September 30, 2011, the HCN portfolio consisted of ten facilities in two states with an investment balance of $306.9 million.
Capital Senior Living Corp., (NYSE:CSU) located in Dallas, TX, is a publicly traded company that owns, operates, develops and manages seniors living communities throughout the United States. The Company operates 81 seniors living communities in 23 states with an aggregate capacity of approximately 11,500 residents. As of September 30, 2011, the HCN portfolio consisted of 24 facilities in seven states with an investment balance of $294.9 million.
Aurora Health Care, Inc., located in Milwaukee, WI, is a non-profit operator of over 250 hospitals, pharmacies and clinics in eastern Wisconsin. Aurora is investment grade rated and is the largest health care system in the state. As of September 30, 2011, the HCN portfolio consisted of 18 facilities with an investment balance of $294.6 million.
5
PORTFOLIO
By Relationship
(dollars in thousands)
Total Properties
Investment Balance(1)
% of Balances
Genesis HealthCare, LLC
149
$
2,472,607
18.5%
Benchmark Senior Living, LLC
35
897,925
6.7%
Merrill Gardens, LLC
38
699,913
5.2%
Senior Living Communities, LLC
12
605,861
4.5%
Brandywine Senior Living, LLC
19
602,476
4.5%
Senior Star Living
10
458,798
3.4%
Brookdale Senior Living, Inc.
74
319,141
2.4%
Chelsea Senior Living
10
306,868
2.3%
Capital Senior Living Corporation
24
294,887
2.2%
Aurora Health Care, Inc.
18
294,640
2.2%
Remaining portfolio
509
6,398,424
48.1%
Total
898
$
13,351,540
100.0%
Entrance Fee Portfolio
Properties
Average Age
Investment Balance
Entrance Fee Units
Entrance Fee Occupancy
Rental Units
Rental Occupancy
Open Properties
13
7
$ 662,600
1,432
56%
1,150
82%
Same Store Cash NOI Growth
Properties(5)
3Q10 Same Store Cash NOI
3Q11 Same Store Cash NOI
% Change
Seniors housing triple-net(2)
184
$
44,125
$
46,086
4.4%
Skilled nursing/post-acute(2)
162
33,617
34,124
1.5%
Seniors housing operating(3)
99
35,964
38,907
8.2%
Hospitals(2)
24
13,450
13,949
3.7%
Medical office(4)
123
27,221
27,680
1.7%
Life Science(6)
7
6,253
6,629
6.0%
Total
599
$
160,630
$
167,375
4.2%
Notes:
(1) Includes unconsolidated joint ventures.
(2) Represents cash-only rent or interest income excluding the impact of lease or loan basis changes (e.g., rent-producing capital improvement additions for leases and principal draws or paydowns for loans).
(3) See page 7.
(4) See page 8.
(5) Represents those properties in the portfolio (both stable and unstable) for the 15 months preceding the end of the portfolio performance period.
(6) See page 10.
1.53x
PORTFOLIO
1.30
1.40
1.50
1.60
1.70
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
2.44x
2.10
2.20
2.30
2.40
2.50
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
2.50x
1.10
1.60
2.10
2.60
3.10
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Portfolio Performance—Same Store Triple–Net
Trailing Twelve Cash Flow Coverage
Seniors Housing Triple-Net (134 properties)
Skilled Nursing/Post-Acute (160 properties)
Hospitals (12 properties)
Basis Points
YoY 2Q11/2Q10
QoQ 2Q11/1Q11
Seniors Housing Triple-Net
0
-1
Skilled Nursing/Post-Acute
11
4
Hospitals
-40
-13
7
PORTFOLIO
Portfolio Composition - Seniors Housing Operating
(dollars in thousands; dollar amounts represent 100% of partnerships)
Total Performance
4Q10
1Q11
2Q11
3Q11
Properties
47
99
99
99
Average age (years)
15
12
13
13
Beds/Units
6,075
10,538
10,536
10,537
Investment balance
$
1,080,416
$
2,240,442
$
2,207,194
$
2,173,410
Total occupancy
85.7%
84.2%
86.3%
86.6%
Total revenues
$
38,197
$
71,286
$
123,149
$
125,125
Operating expenses
$
24,628
$
49,272
$
84,334
$
86,218
NOI
$
13,569
$
22,014
$
38,815
$
38,907
Total cap-ex/TI/LC
$
2,131
$
2,903
$
4,066
$
4,319
Same Store Cash NOI Performance(1)
3Q10
3Q11
Properties
99
99
Total revenues
$
118,904
$
125,125
Operating expenses
$
82,940
$
86,218
NOI
$
35,964
$
38,907
Secured Debt(2)
Amount
Blended Interest Rate
Weighted Average Maturity
Principal balance
$1,096,214
5.3%
5.9
By State
Properties
Beds/Units
% of Total
California
25
2,793
26.5%
Washington
14
1,599
15.2%
Connecticut
14
1,380
13.1%
Massachusetts
13
1,055
10.0%
Texas
8
568
5.4%
Other
25
3,142
29.8%
Total
99
10,537
100.0%
Notes:
(1) Represents those properties in operation for 15 months preceding the end of the portfolio performance period. Amounts for 3Q10 represent the performance of operators that were not owned or operated by HCN, except for properties in the Merrill Gardens partnership which include one month of operations under HCN ownership.
(2) Non-recourse debt to HCN, secured by the joint ventures’ assets.
8
PORTFOLIO
Portfolio Composition - Medical Office Buildings
(dollars in thousands, except per bed / unit / square foot)
Properties
Square Feet
Investment Balance
Total Revenues
Operating Expenses
NOI
Age
Occupancy
Health system-affiliated
126
7,770,659
$
1,954,950
$
53,355
$
14,585
$
38,770
10
94.5%
Unaffiliated
37
1,282,870
339,256
8,673
3,012
5,661
16
89.8%
Subtotal
163
9,053,529
2,294,206
62,028
17,597
44,431
12
93.3%
Equity investment(1)
6
405,414
46,654
1,165
264
901
Development
4
723,856
75,056
—
—
—
Loans
1
72,404
6,216
173
—
173
Land
3
—
20,376
—
—
—
Total
177
10,255,203
$
2,442,508
$
63,366
$
17,861
$
45,505
Portfolio Performance - Medical Office Buildings(2)
Total Performance
3Q10
4Q10
1Q11
2Q11
3Q11
Properties
124
142
145
151
163
Square feet
6,521,731
7,756,147
8,070,387
8,423,906
9,053,529
Investment balance
$
1,619,393
$
2,009,895
$
2,096,836
$
2,144,122
$
2,294,206
Occupancy
93.3%
93.3%
92.9%
93.3%
93.3%
Total revenue
$
42,535
$
43,314
$
54,225
$
56,699
$
62,028
Operating expenses
$
12,334
$
12,085
$
14,617
$
15,823
$
17,597
NOI from continuing operations
$
30,201
$
31,230
$
39,608
$
40,877
$
44,431
NOI from discontinued operations
$
468
$
525
$
588
$
485
$
—
Total cap-ex/TI/LC
$
4,754
$
5,997
$
5,054
$
4,858
$
5,673
Expired (square feet)(3)
587,143
534,413
552,532
594,633
740,799
Retained (square feet)(3)
488,694
451,147
433,627
496,728
609,433
Retention rate(3)
83.2%
84.4%
78.5%
83.5%
82.3%
Same Store Cash Performance
3Q10
4Q10
1Q11
2Q11
3Q11
Properties
123
123
123
123
123
Square feet
6,371,842
6,371,842
6,371,842
6,371,842
6,371,842
Investment balance
$
1,583,439
$
1,577,242
$
1,567,140
$
1,552,260
$
1,542,318
Occupancy
93.2%
93.5%
93.2%
93.6%
93.3%
Cash revenue
$
39,091
$
39,356
$
39,544
$
39,209
$
39,931
Operating expenses
$
11,870
$
11,345
$
11,622
$
11,859
$
12,251
Cash NOI
$
27,221
$
28,011
$
27,922
$
27,350
$
27,680
Remaining Lease Expirations
2011
2012
2013
2014
2015
Square feet
105,571
616,122
459,380
556,676
464,820
% of total portfolio
1.2%
6.8%
5.1%
6.1%
5.1%
Notes:
(1) Amounts reflected at HCN’s ownership interest in unconsolidated joint venture properties.
(2) Excludes equity investments, development and loan properties.
(3) Amounts represent trailing twelve months from the indicated quarter end.
9
PORTFOLIO
Portfolio Concentration - Medical Office Buildings
(dollars in thousands)
By Tenant(1)
Square Feet
% of Total
Aurora Health Care, Inc.
1,441,588
15.9%
Melbourne Internal Medicine Associates
363,839
4.0%
Tenet Health Systems
284,089
3.1%
Swedish Health Services
195,148
2.2%
Baptist Health System, Inc
181,814
2.0%
Remaining Portfolio
6,587,051
72.8%
Total
9,053,529
100.0%
Notes:
(1) Excludes equity investments, development and loan properties.
By State
Properties
Square Feet
% of Total
Committed Balance
Committed Balance per Square Foot
Florida
37
1,501,785
14.6%
$
452,452
$301
Wisconsin
18
1,441,588
14.1%
294,640
204
Texas
16
896,826
8.7%
216,341
241
New Jersey
7
879,361
8.6%
252,357
287
California
10
687,130
6.7%
206,440
300
Washington
5
451,677
4.4%
180,006
399
Tennessee
8
408,107
4.0%
99,950
245
Arizona
5
338,529
3.3%
90,542
267
Georgia
7
336,819
3.3%
66,631
198
Nevada
9
324,992
3.2%
104,076
320
Remaining portfolio
55
2,988,389
29.1%
639,170
214
Total
177
10,255,203
100.0%
$
2,602,605
$254
10
PORTFOLIO
Portfolio Composition - Life Science Buildings
(dollars in thousands; dollar amounts represent HCN’s 49% ownership interest)
Total Life Science Performance
3Q10
4Q10
1Q11
2Q11
3Q11
Properties
7
7
7
7
7
Average age (years)
12
12
12
13
13
Square feet
1,188,132
1,188,132
1,188,132
1,188,132
1,188,132
Investment balance
$
349,832
$
346,562
$
344,413
$
342,725
$
340,235
Occupancy
100.0%
100.0%
100.0%
100.0%
100.0%
Total revenues(1)
$
10,401
$
10,521
$
11,270
$
10,584
$
10,814
Operating expenses
$
3,035
$
2,855
$
3,601
$
3,212
$
3,199
NOI
$
7,366
$
7,666
$
7,669
$
7,372
$
7,615
Total cap-ex/TI/LC
$
—
$
—
$
—
$
—
$
—
Same Store Cash NOI Performance
3Q10
3Q11
Properties
7
7
Total revenues
$
9,272
$
9,812
Operating expenses
$
3,019
$
3,183
NOI
$
6,253
$
6,629
Secured Debt(2)
Amount
Blended Interest Rate
Weighted Average Maturity
Principal balance
$163,669
6.3%
3.3
By Tenant
Square Feet
% of Total
Millennium (Takeda)
628,934
52.9%
Alkermes
210,248
17.7%
Brigham & Women’s Hospital
125,096
10.5%
Ariad Pharmaceuticals
100,361
8.4%
Novartis
70,475
5.9%
Genzyme
52,518
4.4%
Other Tenants
500
0.2%
Total(3)
1,188,132
100.0%
Notes:
(1) Includes amortization of below market rents and straight-line rent of $986,000 for the three months ended September 30, 2011.
(2) Non-recourse debt to HCN, secured by the joint venture’s assets.
(3) Excludes two parking garages consisting of 1,709 spaces included in the Forest City Enterprises joint venture.
11
PORTFOLIO
Development Activity
(dollars in thousands)
Projects
Beds / Units / Square Feet
CIP Balance at 12/31/10
2011 YTD Funding
2011 YTD Conversions
CIP Balance at 9/30/11
Development Properties
Seniors housing triple-net
14
1,345
$38,206
$
99,188
$(39,462)
$97,932
Hospital
3
202
208,882
40,595
(219,622)
29,855
Medical office
7
1,038,094
85,512
95,485
(105,940)
75,057
Sub-total
24
$
332,600
$
235,268
$
(365,024)
$202,844
Expansion Projects
Seniors housing triple-net
11
173
$17,455
$
22,194
$(34,236)
$5,413
Hospital
1
31
6,738
2,819
(9,557)
—
Sub-total
12
24,193
25,013
(43,793)
5,413
Total
36
$
356,793
$
260,281
$
(408,817)
$208,257
Development Funding Projections(1)
Projected Future Funding
Beds / Units / Square Feet
Projects
Projected Cash Yield(2)
2011 Funding
2012 Funding
Funding Thereafter
Unfunded Commitments
Committed Balances
Development Properties
Seniors housing triple-net
12
1,345
8.6%
$
36,442
$
51,222
$
—
$
87,664
$
185,597
Hospital
1
46
11.0%
1,345
—
—
1,345
31,200
Medical office
4
723,854
8.6%
29,684
111,890
18,524
160,097
235,154
Total
17
8.7%
$
67,471
$
163,112
$
18,524
$
249,106
$
451,951
Development Project Conversion Estimates(1)
Quarterly Conversions
Annual Conversions
Amount
Projected Cash Yields(2)
Amount
Projected Cash Yields(2)
1Q11 actual
$
105,940
8.8%
2011 estimate
$
472,850
9.2%
2Q11 actual
219,625
9.3%
2012 estimate
282,692
8.6%
3Q11 actual
39,462
8.8%
2013 estimate
61,433
8.5%
4Q11 estimate
107,823
9.3%
2014 estimate
—
—
1Q12 estimate
24,350
9.0%
2015+ estimate
—
—
2Q12 estimate
130,009
8.4%
Total
$
816,975
8.9%
3Q12 estimate
—
—
4Q12 estimate
128,333
8.7%
Total
$
755,542
8.9%
Notes:
(1) Excludes expansion projects.
(2) Actual initial yields may be higher if the underlying market rates increase. MOBs represent stabilized yields.
12
PORTFOLIO
Unstabilized Properties
(dollars in thousands)
6/30/11 Properties
Stabilized
Construction Conversions
Acquisitions/ Expansions/ Reclassifications
9/30/11 Properties
Seniors housing triple-net
30
(4)
2
—
28
Hospital
3
(1)
—
—
2
Total
33
(5)
2
—
30
9/30/11 Properties
Beds / Units
Investment Balance
% of Total Investment
Seniors housing triple-net
28
4,576
$
941,086
7.0%
Hospital
2
135
220,979
1.7%
Total
30
4,711
$
1,162,065
8.7%
Occupancy
6/30/11 Properties
Stabilized
Construction Conversions
Acquisitions/ Expansions
Progressions/ Reclassification
9/30/11 Properties
0% - 50%
9
(1)
2
—
—
10
50% - 70%
15
(1)
—
—
—
14
70% +
9
(3)
—
—
—
6
Total
33
(5)
2
—
—
30
9/30/11 Properties
Months In Operation
Revenues
% of Total Revenues(1)
Investment Balance
% of Total Investment
0% - 50%
10
16
$
43,343
4.4%
$
561,547
4.2%
50% - 70%
14
22
36,889
3.7%
457,210
3.4%
70% +
6
34
10,271
1.0%
143,308
1.1%
Total
30
22
$
90,502
9.1%
$
1,162,065
8.7%
Notes:
(1) Includes annualized revenues as presented on page 18 - revenue and lease maturity.
13
Investment
Gross Investment Activity
(dollars in thousands, except per bed / unit / square foot)
Third Quarter 2011
Properties
Beds / Units / Square Feet
Amount
Investment Per Bed / Unit / Square Foot
Cash Yield
Real Property Acquisitions
Seniors housing triple-net
13
1,175
units
$
342,500
$
291,489
6.9%
Skilled nursing/post-acute
1
106
beds
6,150
58,019
8.3%
Hospital
4
248
beds
75,000
302,419
9.3%
Medical office
12
629,623
sf
145,739
231
7.3%
Total acquisitions
30
$
569,389
7.3%
Construction in Progress
Development projects:
Seniors housing triple-net
14
1,345
units
$
38,856
Hospital
1
46
beds
920
Medical office
4
723,854
sf
13,829
Total development projects
19
53,605
Expansion projects:
Seniors housing triple-net
11
173
units
6,527
Total expansion projects
11
6,527
Total construction in progress
30
60,132
Capital improvements to existing properties
6,297
9.1%
Loan advances
8,068
7.2%
Gross investments
$
643,886
14
Investment
Gross Investment Activity
(dollars in thousands, except per bed / unit / square foot)
Year-to-Date 2011
Properties
Beds / Units / Square Feet
Amount
Investment Per Bed / Unit / Square Foot
Cash Yield
Real Property Acquisitions
Seniors housing operating
46
3,878
units
$
1,098,400
$
283,239
7.1%
Seniors housing triple-net
49
5,185
units
891,616
171,961
7.5%
Skilled nursing/post-acute
130
16,262
beds
2,229,127
137,076
8.3%
Hospital
4
248
beds
75,000
302,419
9.3%
Medical office
18
1,012,958
sf
210,346
208
7.4%
Land parcels
1
6,770
Total acquisitions
248
$
4,511,259
7.8%
Construction in Progress
Development projects:
Seniors housing triple-net
14
1,345
units
$
99,188
Hospital
3
202
beds
40,595
Medical office
7
1,038,094
sf
95,485
Total development projects
24
235,268
Expansion projects:
Seniors housing triple-net
11
173
units
22,194
Hospital
1
31
beds
2,819
Total expansion projects
12
25,013
Total construction in progress
36
260,281
Capital improvements to existing properties
13,527
8.6%
Loan advances
36,535
7.4%
Gross investments
$
4,821,602
15
Investment
Investment Timing
(dollars in thousands)
Acquisitions/ Joint Ventures
Cash Yield
Loan Advances
Cash Yield
Construction Conversions
Cash Yield
Dispositions
Yield on Sale
July
$142,389
7.3%
$1,977
6.8%
$
426
6.0%
$
6,055
5.1%
Aug
75,000
9.3%
3,756
7.6%
39,743
8.7%
6,597
12.4%
Sep
352,000
6.8%
2,335
7.1%
23,866
6.0%
2,943
8.0%
Total
$569,389
7.3%
$8,068
7.3%
$
64,035
7.7%
$
15,595
8.7%
Disposition Activity
Third Quarter 2011
Year-to-Date 2011
Amount
% of Total
Amount
% of Total
Dispositions by Investment Type
Real property
$12,652
81.1%
$
165,022
55.4%
Real estate loans receivable
2,943
18.9%
132,803
44.6%
Total
$15,595
100.0%
$
297,825
100.0%
Dispositions by Property Type
Seniors housing triple-net
$12,652
81.1%
$
93,065
31.2%
Skilled nursing
—
0.0%
36,662
12.3%
Medical office
—
0.0%
35,295
11.9%
Real estate loans receivable
2,943
18.9%
132,803
44.6%
Total
$15,595
100.0%
$
297,825
100.0%
Discontinued Operations
Third Quarter
Year-to-Date
2011
2010
2011
2010
Revenues
Rental income
$
87
$
9,805
$
9,489
$
30,944
Expenses
Interest expense
16
2,050
1,771
6,182
Property operating expenses
212
1,495
2,427
4,456
Depreciation and amortization
—
3,430
2,635
10,420
Income/(loss) from discontinued operations, net
$
(141)
$
2,830
$
2,656
$
9,886
16
Financial
Net Operating Income Reconciliation(1)
(dollars in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
Total revenues:
2011
2010
2011
2010
Seniors housing triple-net:
Seniors housing
$
78,221
$
56,162
$
223,002
$
164,723
Skilled nursing/post-acute
91,447
41,496
221,654
123,425
Sub-total rental income
169,668
97,658
444,656
288,148
Interest income
6,810
9,179
27,224
26,583
Other income
454
698
5,458
2,726
Total seniors housing triple-net income
176,932
107,535
477,338
317,457
Seniors housing operating: Resident fees and services
125,125
12,809
319,559
12,809
Medical facilities:
Rental income(3)
Medical office(2)
62,160
43,758
175,489
125,903
Hospital
19,418
13,313
49,646
36,578
Life science(2)
10,814
10,401
32,668
23,481
Sub-total rental income
92,392
67,472
257,803
185,962
Interest income
1,048
875
5,209
1,854
Other income
1,048
227
3,879
800
Total medical facilities income
94,488
68,574
266,891
188,616
Non-segment/corporate other income
307
231
637
1,276
Total revenues
396,852
189,149
1,064,425
520,158
Property operating expenses:
Seniors housing operating
86,218
7,993
219,824
7,993
Medical facilities(2,3)
21,312
16,864
61,407
47,404
Total property operating expenses
107,530
24,857
281,231
55,397
Net operating income:
Seniors housing triple-net
176,932
107,535
477,338
317,457
Seniors housing operating
38,907
4,816
99,735
4,816
Medical facilities
73,176
51,710
205,484
141,212
Non-segment/corporate
307
231
637
1,276
Net operating income
$
289,322
$
164,292
$
783,194
$
464,761
Notes:
(1) Please see discussion of Supplemental Reporting Measures on page 23.
(2) Includes HCN’s share of revenues and expenses from unconsolidated joint ventures. See pages 8 and 10 for additional information.
(3) The three months ended September 30, 2011 includes the following amounts (in thousands):
Rental income from discontinued operations:
Seniors housing triple-net
$
87
Non-cash rental income from continuing operations:
Seniors housing triple-net
$
2,953
Skilled nursing/post-acute
5,972
Hospital
212
Medical office
2,966
Life science(2)
986
Total
$
13,089
Property operating expenses from discontinued operations:
Hospitals
212
Total
$
212
17
Financial
Adjusted EBITDA Reconciliation(1)
(dollars in thousands)
Twelve Months Ended
Three Months Ended
September 30,
September 30,
2011
2011
Net income
$
216,407
$
52,353
Interest expense(2)
280,354
87,811
Income tax expense
601
223
Depreciation and amortization(2)
360,580
115,640
Stock-based compensation
11,106
1,767
Provision for loan losses
1,314
132
Adjusted EBITDA
$
870,362
$
257,926
Interest Coverage Ratio(3)
Interest expense(2)
$
280,354
$
87,811
Capitalized interest
14,873
3,111
Non-cash interest expense
(13,315)
(3,714)
Total interest
$
281,912
$
87,208
Adjusted EBITDA
$
870,362
$
257,926
Adjusted interest coverage ratio
3.09x
2.96x
Fixed Charge Coverage Ratio(4)
Total interest(2)
$
281,912
$
87,208
Secured debt principal amortization
25,051
7,204
Preferred dividends
48,572
17,234
Total fixed charges
$
355,535
$
111,646
Adjusted EBITDA
$
870,362
$
257,926
Adjusted fixed charge coverage ratio
2.45x
2.31x
Net Debt to EBITDA Ratio
Total debt
$
6,793,047
Less: cash and cash equivalents
(136,676)
Net debt
$
6,656,371
Adjusted EBITDA Annualized
1,031,704
Net debt to adjusted EBITDA ratio
6.45x
Notes:
(1) Please see discussion of Supplemental Reporting Measures on page 23.
(2) Interest expense and depreciation and amortization include discontinued operations.
(3) A comparable covenant in our senior unsecured notes is a minimum of 1.50 times.
(4) A comparable covenant in our unsecured line of credit arrangement is a minimum of 1.50 times.
Financial
Revenue and Lease Maturity
(dollars in thousands except per share data)
Rental Income(1)
Year
Seniors Housing triple-net
Skilled Nursing / Post-Acute
Hospitals
Medical Office
Total Rental Income
Interest Income(2)
Total Revenues
% of Total
2011
$
769
$
—
$
—
$
2,229
$
2,998
$
647
$
3,645
0.4%
2012
5,759
7,015
—
12,999
25,773
1,560
27,333
2.8%
2013
44,568
—
—
10,074
54,642
11,930
66,572
6.7%
2014
21,023
6,400
—
11,815
39,238
5,291
44,529
4.5%
2015
—
2,026
—
10,265
12,291
1,225
13,516
1.4%
2016
—
—
—
17,821
17,821
509
18,330
1.8%
2017
13,038
3,885
2,350
13,007
32,280
3,125
35,405
3.6%
2018
36,823
—
—
5,811
42,634
1,397
44,031
4.4%
2019
9,463
18,934
—
10,649
39,046
163
39,209
3.9%
2020
12,918
27,564
5,959
10,579
57,020
1,458
58,478
5.9%
Thereafter
184,575
289,215
70,049
95,053
638,892
3,126
642,018
64.6%
$
328,936
$
355,039
$
78,358
$
200,302
$
962,635
$
30,431
$
993,066
100.0%
Notes:
(1) Rental income represents annualized base rent for effective lease agreements. The amounts are derived from the current contracted monthly base rent including straight-line for leases with fixed escalators or annual cash rent for leases with contingent escalators, net of collectability reserves, if applicable. Rental income does not include common area maintenance charges or the amortization of above/below market lease intangibles.
(2) Reflects contract rate of interest for loans, net of collectability reserves if applicable.
18
19
Financial
Debt Maturities and Principal Payments
(dollars in thousands)
Year
Line of Credit(1)
Senior Notes(2,3)
Secured Debt(2,4)
Consolidated Debt(5)
% of Total
Joint Ventures(6)
Combined Debt
% of Total
2011
$
—
$
—
$7,522
$7,522
0.1%
$
1,226
$
8,748
0.1%
2012
—
76,853
105,993
182,846
2.7%
39,757
222,603
3.2%
2013
—
300,000
275,041
575,041
8.6%
28,967
604,008
8.7%
2014
—
—
186,726
186,726
2.8%
25,058
211,784
3.1%
2015
390,000
250,000
181,280
821,280
12.2%
9,207
830,487
12.0%
2016
—
700,000
172,758
872,758
13.0%
45,370
918,128
13.3%
2017
—
450,000
428,031
878,031
13.1%
31,654
909,685
13.2%
Thereafter
—
2,688,077
510,346
3,198,423
47.5%
10,156
3,208,579
46.4%
Totals
$
390,000
$
4,464,930
$1,867,697
$6,722,627
100.0%
$
191,395
$
6,914,022
100.0%
Weighted Avg
Interest Rate(7)
1.6%
5.1%
5.5%
5.0%
6.1%
5.0%
Weighted Avg
Maturity Years(3)
3.8
10.5
6.9
9.1
4.2
9.0
Fixed and Floating Rate Debt
(dollars in thousands)
Consolidated Debt
% of Consolidated
Combined Debt
% of Combined
Fixed Rate Debt
Senior notes
$4,464,930
66.4%
$
4,464,930
64.6%
Secured debt
1,652,593
24.6%
1,815,137
26.3%
Total fixed
$6,117,523
91.0%
$
6,280,067
90.8%
Floating Rate Debt
Line of credit
$390,000
5.8%
$
390,000
5.6%
Secured debt
215,104
3.2%
243,955
3.5%
Total floating
$605,104
9.0%
$
633,955
9.2%
Total debt
$6,722,627
100.0%
$
6,914,022
100.0%
Notes:
(1) Current line of credit capacity of $2.0 billion with remaining availability of $1.6 billion as of September 30, 2011. Line of credit currently matures on July 27, 2015.
(2) Amounts above represent principal amounts due and do not include unamortized premiums/discounts or other fair value adjustments as reflected on the balance sheet.
(3) $126 million of convertible senior notes are puttable on December 1, 2011, $168 million of convertible senior notes are puttable on July 15, 2012 and $494 million of convertible senior notes are puttable on December 1, 2014. Weighted average maturities would be 7.9 years and 7.7 years for senior notes and consolidated debt, respectively, using the puttable dates.
(4) Secured debt includes $1.1 billion related to HCN’s seniors housing – operating partnerships.
(5) Excludes capital lease obligations of $82.9 million, of which $8.8 million that mature in April 2015 and $73.3 million that mature in November 2013.
(6) Represents HCN’s share of secured debt of unconsolidated joint ventures.
(7) Line of credit interest rate represents 1-month LIBOR + 135 bps at September 30, 2011. Senior notes and secured debt average interest rate represents the face value note rate.
Current Capitalization
(amounts in thousands except per share data) % of Consolidated Total
Book Capitalization
Line of credit $ 390,000 2.9% Long-term debt obligations 6,403,047 47.5% Debt to consolidated book capitalization(1) 6,793,047 50.4% Total equity 6,693,166 49.6% Consolidated book capitalization $ 13,486,213 100.0% HCN share of unconsolidated joint venture debt 191,395 Total book capitalization $ 13,677,608
Undepreciated Book Capitalization
Line of credit $ 390,000 2.7% Long-term debt obligations 6,403,047 43.9% Debt to consolidated undepreciated book capitalization 6,793,047 46.6% Accumulated depreciation and amortization 1,084,746 7.5% Total equity 6,693,166 45.9% Consolidated undepreciated book capitalization $ 14,570,959 100.0% HCN share of unconsolidated joint venture debt 191,395 Total undepreciated book capitalization $ 14,762,354
Enterprise Value
Line of credit $ 390,000 2.4% Long-term debt obligations 6,403,047 39.2% Debt to consolidated enterprise value 6,793,047 41.6% Common shares outstanding 178,778 Period end share price $46.80 Common equity market capitalization 8,366,810 51.3% Noncontrolling interests 147,236 0.9% Preferred stock 1,010,417 6.2% Consolidated enterprise value $ 16,317,510 100.0% HCN share of unconsolidated joint venture debt 191,395 Total enterprise value $ 16,508,905
Secured Debt as % of Total Assets(2)
Secured debt $ 1,888,083 13.6% Total assets $ 13,861,089
Total Debt as % of Total Assets(3)
Total debt $ 6,793,047 49.0% Total assets $ 13,861,089
Unsecured Debt as % of Unencumbered Assets(4)
Unsecured debt $ 4,822,092 45.3% Unencumbered assets $ 10,652,015 Notes: (1) A comparable covenant in our unsecured line of credit arrangement is a maximum of 60%.
(2) A comparable covenant in our senior unsecured notes is a maximum of 40%. A comparable covenant in our unsecured line of credit arrangement is a maximum of 30%.
(3) A comparable covenant in our senior unsecured notes is a maximum of 60%.
(4) A comparable covenant in our unsecured line of credit arrangement is a maximum of 60%. A comparable covenant in our senior unsecured notes is a maximum of 66.7%.
20
21 Age: Current year, less the year built, adjusted for major renovations.
GLOSSARY
GLOSSARY
Cap-ex, Tenant Improvements, Leasing Commissions: Represents amounts paid in cash for: 1) recurring and non-recurring capital expenditures required to maintain and re-tenant our properties, 2) second generation tenant improvements and 3) leasing commissions paid to third party leasing agents to secure new tenants.
Cash Flow Coverage: Represents the ratio of EBITDARM to contractual rent for leases or interest and principal payments for loans. CFC is a measure of a property’s ability to generate sufficient cash flows for the operator/borrower to pay rent and meet other obligations, assuming that management fees are not paid. The coverage shown excludes properties that are unstabilized, closed or for which data is not available or meaningful.
Cash Yield: Represents annualized contractual or projected income to be received in cash divided by investment amount.
CCRC: Continuing care retirement communities include a combination of detached homes, an independent living facility, an assisted living facility and/or a skilled nursing facility on one campus. Resident payment plans vary, but can include entrance fees, condominium fees and rental fees. Many of these communities also charge monthly maintenance fees in exchange for a living unit, meals and some health services.
Committed Balance: Represents investment balance plus unfunded construction commitments for which initial funding has commenced.
Construction Conversion: Represents completed construction projects that were placed into service and began earning rent.
EBITDARM: Earnings before interest, taxes, depreciation, amortization, rent and management fees. The company uses unaudited, periodic financial information provided solely by tenants/borrowers to calculate EBITDARM and has not independently verified the information. EBITDARM is used to calculate CBMF.
Entrance Fee: A property where the resident pays a substantial upfront fee and an ongoing monthly service fee for the right to occupy a unit. Typically, a portion of the upfront fee is refundable.
Expense per Occupied Unit: Represents the ratio of revenue less EBITDARM to occupied units based on the most recent quarter of available data and excludes properties that are unstabilized, closed, or for which data is not available or meaningful. The company uses unaudited, periodic financial information provided solely by tenants/borrowers to calculate expense per occupied unit and has not independently verified the information.
34
Health System-Affiliated: Properties are considered affiliated with a health system if one or more of the following conditions are met: 1) the land parcel is contained within the physical boundaries of a hospital campus; 2) the land parcel is located adjacent to the campus; 3) the building is physically connected to the hospital regardless of the land ownership structure; 4) a ground lease is maintained with a health system entity; 5) a master lease is maintained with a health system entity; 6) significant square footage is leased to a health system entity; 7) the property includes an ambulatory surgery center with a hospital partnership interest; or (8) a significant square footage is leased to a physician group that is either employed, directly or indirectly by a health system, or has a significant clinical and financial affiliation with the health system.
28
Hospitals: Hospitals generally include acute care hospitals, inpatient rehabilitation hospitals and long-term acute care hospitals. Acute care hospitals provide a wide range of inpatient and outpatient services, including, but not limited to, surgery, rehabilitation, therapy and clinical laboratories. Long-term acute care hospitals provide inpatient services for patients with complex medical conditions who require more intensive care, monitoring or emergency support than that available in most skilled nursing facilities.
Investment Amount:
Acquisitions – Represents purchase price excluding accounting adjustments pursuant to U.S. GAAP.
New loans – Represents face amount of new loan.
Construction conversion – Represents book balance converted from CIP to real property upon completion.
Capital improvements to existing properties – Represents cash funded to tenants under an existing lease.
Loan advances – Represents cash funded to operators under an existing loan agreement.
Investment Balance: Represents net book value of real estate investments or the company’s interest in unconsolidated joint ventures as reflected on the company’s balance sheet.
GLOSSARY
22 Life Science: Life science buildings are laboratory and office facilities, often located near universities, specifically constructed and designed for use by biotechnology and pharmaceutical companies.
Medical Office: Medical office buildings are office and clinic facilities, often located near hospitals or on hospital campuses, specifically constructed and designed for use by physicians and other health care personnel to provide services to their patients. They may also include ambulatory surgery centers that are used for general or specialty surgical procedures not requiring an overnight stay in a hospital. Medical office buildings typically contain sole and group physician practices and may provide laboratory and other patient services.
GLOSSARY
Occupancy: Medical office occupancy represents the percentage of total rentable square feet leased and occupied, including month-to-month leases, as of the date reported. Occupancy for all other property types represents average quarterly operating occupancy based on the most recent quarter of available data and excludes properties that are unstabilized, closed or for which data is not available or meaningful. The company uses unaudited, periodic financial information provided solely by tenants/borrowers to calculate occupancy and has not independently verified the information.
35
GLOSSARY
Renewal Rate: The ratio of total square feet expiring and available for lease to total renewed square feet.
Renewed Square Feet: Square feet expiring during the reporting period upon which a lease is executed by the current occupant.
Revenue per Occupied Unit: Represents the ratio of total revenue to occupied units based on the most recent quarter of available data and excludes properties that are unstabilized, closed or for which data is not available or meaningful. The company uses unaudited, periodic financial information provided solely by tenants/borrowers to calculate revenue per occupied unit and has not independently verified the information.
Same Store: For the medical office building portfolio, same store is defined as those properties owned for the entire previous five quarters. Properties acquired, developed or classified in discontinued operations are excluded from the same store amounts. For all other property types, same store is defined as those properties in the stable portfolio for the 24 months preceding the end of the portfolio performance reporting period, unless otherwise noted. Excludes seniors housing operating portfolio.
Seniors Housing Operating: Includes independent and assisted living properties held in consolidated joint ventures, structured to take advantage of the REIT Investment Diversification and Empowerment Act of 2007.
Seniors Housing Triple-net: Includes independent and assisted living properties subject to triple-net operating leases and real estate loans receivable.
Skilled Nursing/Post-Acute: Skilled nursing facilities are licensed daily rate or rental properties where the majority of individuals require 24-hour nursing and/or medical care. Generally, these properties are licensed for Medicaid and/or Medicare reimbursement and are subject to triple-net operating leases.
Square Feet: Net rentable square feet calculated utilizing Building Owners and Managers Association measurement standards.
Stable: Generally, a property is considered stable (versus unstabilized or under development) when it has achieved payment CAMF of 1.10x or greater for three consecutive months or, if targeted performance has not been achieved, 12 months following the budgeted stabilization date. Entrance fee communities are considered stable after achieving aggregate property occupancy of 80% or more.
Unstabilized: An acquisition that does not meet the stable criteria upon closing or a construction property that has opened but not yet reached stabilization.
Yield on Sale: Represents annualized contractual income that was being received in cash at date of disposition divided by disposition cash proceeds.
SUPPLEMENTAL REPORTING MEASURES
23 The company believes that net income attributable to common stockholders (NICS), as defined by U.S. generally accepted accounting principles (U.S. GAAP), is the most appropriate earnings measurement. However, the company considers EBITDA and net operating income (NOI) to be useful supplemental measures of its operating performance.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. A covenant in our line of credit arrangement contains a financial ratio based on a definition of EBITDA that is specific to that agreement. Failure to satisfy this covenant could result in an event of default that could have a material adverse impact on our cost and availability of capital, which could in turn have a material adverse impact on our consolidated results of operations, liquidity and/or financial condition. Due to the materiality of this debt agreement and the financial covenant, we have disclosed Adjusted EBITDA, which represents EBITDA as defined above and adjusted for stock-based compensation expense, provision for loan losses and gain/loss on extinguishment of debt. We use Adjusted EBITDA to measure our adjusted fixed charge coverage ratio, which represents Adjusted EBITDA divided by fixed charges on a trailing twelve months basis. Fixed charges include total interest (excluding capitalized interest and non-cash interest expenses), secured debt principal amortization and preferred dividends. Our covenant requires an adjusted fixed charge ratio of at least 1.50 times.
Net operating income (NOI) is used to evaluate the operating performance of the company’s properties. The company defines NOI as total revenues, including tenant reimbursements and discontinued operations, less property operating expenses, which exclude depreciation and amortization, general and administrative expenses, impairments and interest expense. The company believes NOI provides investors relevant and useful information because it measures the operating performance of the company’s properties at the property level on an unleveraged basis. The company uses NOI to make decisions about resource allocations and to assess the property level performance of our properties.
Other than Adjusted EBITDA, the company’s supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and rating agencies in the valuation, comparison, rating and investment recommendations of companies. The company’s management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, these measures are utilized by the Board of Directors to evaluate management. Adjusted EBITDA is used solely to determine our compliance with a financial covenant of our line of credit arrangement and is not being presented for use by investors for any other purpose. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by the company, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Multi-period amounts may not equal the sum of the individual quarterly amounts due to rounding.
FORWARD-LOOKING STATEMENTS AND RISK FACTORS
24 Forward-Looking Statements and Risk Factors
CORPORATE
This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the company’s portfolio; the sale of properties; the performance of its operators/tenants and properties; its ability to enter into agreements with viable new tenants for vacant space or for properties that the company takes back from financially troubled tenants, if any; its occupancy rates; its ability to acquire, develop and/or manage properties; its ability to make distributions to stockholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; and its ability to meet its earnings guidance. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The company’s expected results may not be achieved and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care, seniors housing and life science industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the company’s ability to transition or sell facilities with profitable results; the failure to make new investments as and when anticipated; acts of God affecting the company’s properties; the company’s ability to re-lease space at similar rates as vacancies occur; the company’s ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; regulatory approval and market acceptance of the products and technologies of life science tenants; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; and legal and operational matters, including real estate investment trust qualification and key management personnel recruitment and retention. Finally, the company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.
Additional Information
The information in this supplemental information package should be read in conjunction with the company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, earnings press release dated August 4, 2011 and other information filed with, or furnished to, the Securities and Exchange Commission (“SEC”). The Supplemental Reporting Measures and reconciliations of Non-GAAP measures are an integral part of the information presented herein.
You can access the company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act at http://www.hcreit.com as soon as reasonably practicable after they are filed with, or furnished to, the SEC. The information on or connected to the company’s website is not, and shall not be deemed to be, a part of, or incorporated into this supplemental information package. You can also review these SEC filings and other information by accessing the SEC’s website at http://www.sec.gov.
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HEALTHCAREREIT TM
4500 DORR STREET
TOLEDO, OHIO 43615-4040
WWW.HCREIT.COM
©2011 HEALTH CARE REIT, INC.