F O R I M M E D I A T E R E L E A S E
PRESS RELEASE
July 19, 1995
For more information contact:
Erin Ibele (419) 247-2800
Robert Pruger (419) 247-2800
HEALTH CARE REIT, INC. DECLARES DIVIDEND
AND ANNOUNCES SECOND QUARTER RESULTS
Toledo, Ohio, July 19, 1995....The Directors of Health Care
REIT, Inc. (NYSE/HCN) voted to pay a quarterly dividend at the rate
of $.52 per share. The dividend will be payable August 21, 1995 to
stockholders of record on August 4, 1995. This will be the REIT's
97th consecutive dividend distribution.
Bruce G. Thompson, Chairman and Chief Executive Officer of the
Company, stated, "This is a transition year. Our portfolio is being
depleted of old finance leases and restocked with a growing
portfolio of high-quality mortgages and operating leases. At the
same time, we are aggressively moving against two defaulting loans
with a resulting loss of income and higher consulting and legal
expenses. In addition, the new definition of funds from operations
this year will affect our computation method adversely. All of
these events are necessary, but costly in the short run. For these
reasons, we are not increasing the dividend this quarter."
Cash flows from operating activities available for
distribution ("CAD") for the six months ended June 30, 1995 was
$11,295,528 ($.97 per share) compared with $15,807,478 ($1.38 per
share) for the six months ended June 30, 1994.
For the quarter ended June 30, 1995, net income per share of
$.40 was down $.28 or 41.2% from the second quarter of 1994. For
the first half of 1995, net income per share was $.82 compared to
$1.11 for the first half of 1994. The decrease in net income per
share and CAD per share, both on a quarterly and year-to-date
basis, is the result of gains in 1994. These gains (before related
expenses) increased last year's net income and CAD by $.31 per
share and $.33 per share in the second quarter and year-to-date,
respectively.
Gross income for the three months ended June 30, 1995 was down
24.0% from the second quarter of 1994. Without the 1994 gains
discussed above, revenues would have increased 10.6% in the first
half of 1995 versus the comparable period in 1994. Total assets of
$372 million at June 30, 1995 reflect a 21.3% increase from a year
ago.
The following chart presents the information highlighted
above.
Three Months Ended
June 30 (Unaudited)
-----------------------------
1995 1994
------------ ------------
Gross income $ 9,677,526 $ 12,730,715
Net income $ 4,637,190 $ 7,799,857
Cash flows from operating activities
available for distribution $ 5,600,547 $ 9,515,056
Net income per share $ .40 $ .68
Cash flows from operating activities
available for distribution per share $ .48 $ .83
Average number of shares outstanding 11,673,998 11,504,848
Six Months Ended
June 30 (Unaudited)
-----------------------------
1995 1994
------------ ------------
Gross income $ 19,302,519 $ 21,171,954
Net income $ 9,502,155 $ 12,784,107
Cash flows from operating activities
available for distribution $ 11,295,528 $ 15,807,478
Net income per share $ .82 $ 1.11
Cash flows from operating activities
available for distribution per share $ .97 $ 1.38
Average number of shares outstanding 11,646,843 11,486,049
Total assets as of June 30 $372,168,004 $306,843,312
Health Care REIT, Inc. is a real estate investment trust which
invests in health care facilities, primarily nursing homes. The
Company also invests in assisted living and retirement facilities,
behavioral care facilities, specialty care hospitals and primary
care facilities.