-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, mcLaEADTYibMGb2AcgLw4B0nVNCkivRH3Pmbw074hTJAwNcmxzh9ukuOmPN2FBQ5 7tf2voZyvPQ2WuzkgPC8nA== 0000766704-94-000003.txt : 19940524 0000766704-94-000003.hdr.sgml : 19940524 ACCESSION NUMBER: 0000766704-94-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEALTH CARE REIT INC /DE/ CENTRAL INDEX KEY: 0000766704 STANDARD INDUSTRIAL CLASSIFICATION: 6798 IRS NUMBER: 341096634 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08923 FILM NUMBER: 94525428 BUSINESS ADDRESS: STREET 1: ONE SEAGATE STE 1950 STREET 2: P O BOX 1475 CITY: TOLEDO STATE: OH ZIP: 43604 BUSINESS PHONE: 4192472800 10-Q 1 MARCH 31, 1994 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Health Care REIT, Inc. (Exact name of registrant as specified in its charter) Delaware 34-1096634 (State or jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One SeaGate, Suite 1950, Toledo, Ohio 43604 (Address of principal executive office) (Zip Code) (Registrant's telephone number, including area code) (419) 247-2800 - - ------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No. APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes _____. No _____. APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class: Shares of Common Stock, $1.00 par value Outstanding 11,494,229 shares HEALTH CARE REIT, INC. INDEX Page Part I. FINANCIAL INFORMATION Item 1. Financial Statements Unaudited Consolidated Balance Sheet as of March 31, 1994 and Audited Consolidated Balance Sheet as of December 31, 1993. 3 Unaudited Consolidated Statements of Income for the three months ended March 31, 1994 and 1993. 4 Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 1994 and 1993. 5 Unaudited Consolidated Statements of Shareholders' Equity for the three months ended March 31, 1994 and 1993. 6 Consolidated Notes to Financial Statements. 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 7 Part II. OTHER INFORMATION Item 5. Other Information. 10 Item 6. Exhibits and Reports on Form 8-K. 10 SIGNATURES 11 PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (UNAUDITED) HEALTH CARE REIT, INC. AND SUBSIDIARY
March 31 December 31 1994 1993 (Unaudited) (Audited) ------------ ------------ ASSETS Real Estate Related Investments: Loans receivable: Mortgage loans $193,045,645 $165,147,444 Construction and other short-term loans 17,596,023 12,899,830 Working capital loans to related parties 6,897,424 7,234,327 ------------ ------------ 217,539,092 185,281,601 Investment in direct financing leases 48,855,222 52,950,188 Investment in operating-lease properties 49,737,777 42,776,361 ------------ ------------ 316,132,091 281,008,150 Less allowance for losses 4,150,000 4,150,000 ------------ ------------ NET REAL ESTATE RELATED INVESTMENTS 311,982,091 276,858,150 Other Assets: Deferred loan expenses 1,555,091 1,579,134 Cash and cash equivalents 322,690 4,896,314 Receivables and other assets 2,022,702 1,690,783 ------------ ------------ 3,900,483 8,166,231 ------------ ------------ $315,882,574 $285,024,381 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Borrowings under line of credit arrangements $ 64,300,000 $ 35,000,000 Other long-term obligations 61,139,109 61,311,115 Accrued expenses and other liabilities 5,884,947 4,581,438 ------------ ------------ TOTAL LIABILITIES 131,324,056 100,892,553 Shareholders' Equity: Common Stock, $1.00 par value: Authorized - 15,000,000 shares Issued and outstanding - 11,494,229 in 1994 and 11,446,249 in 1993 11,494,229 11,446,249 Capital in excess of par value 159,074,314 158,013,957 Undistributed net income 13,989,975 14,671,622 ------------ ------------ TOTAL SHAREHOLDERS' EQUITY 184,558,518 184,131,828 ------------ ------------ $315,882,574 $285,024,381 ============ ============
See notes to financial statements CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) HEALTH CARE REIT, INC. AND SUBSIDIARY
Three Months Ended March 31 1994 1993 -------------------------- Gross Income: Interest and other income $ 5,236,096 $4,605,023 Direct financing leases: Lease income 1,816,677 2,216,886 Gain on exercise of options 192,275 1,331,353 Operating leases: Rents 1,018,818 300,424 Loan and commitment fees 177,373 149,183 ----------- ---------- 8,441,239 8,602,869 Expenses: Interest: Senior notes and other long- term obligations 1,545,209 1,077,203 Line of credit arrangements 528,954 1,182,437 Loan expense 74,243 64,140 Management fees 643,054 615,323 Provision for depreciation 301,937 82,591 Provision for losses 150,000 Other operating expenses 363,592 290,566 ----------- ---------- 3,456,989 3,462,260 ----------- ---------- NET INCOME $ 4,984,250 $5,140,609 =========== ========== Average number of shares outstanding 11,467,040 8,771,137 Net income per share $ .43 $ .59 Dividends per share $ .495 $ .475
See notes to financial statements CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) HEALTH CARE REIT, INC. AND SUBSIDIARY
Three Months Ended March 31 1994 1993 ----------------------------- OPERATING ACTIVITIES: Net income $ 4,984,250 $ 5,140,609 Adjustments to reconcile net income to cash provided by operating activities: Amortization of loan and organization expenses 74,782 64,140 Provision for losses 148,502 Provision for depreciation 301,937 82,591 Loan and commitment fees earned less than cash received 368,187 313,922 Direct financing lease income less than cash received 460,254 8,145 Interest income less than (in excess of) cash received 103,012 (193,518) Increase in accrued expenses and other liabilities 935,322 554,815 Increase in other receivables and prepaid items (332,458) (419,688) ------------ ------------ NET CASH PROVIDED FROM OPERATING ACTIVITIES 6,895,286 5,699,518 INVESTING ACTIVITIES: Proceeds from exercise of lease purchase options 1,610,393 5,077,139 Decrease in funds held in escrow--net 135,000 Investment in loans receivable (33,390,720) (34,957,732) Investment in operating-lease properties (7,263,353) Investment in direct financing leases (1,300,000) Principal collected on loans 4,354,536 1,029,482 ------------ ------------ NET CASH USED IN INVESTING ACTIVITIES (35,984,144) (28,716,111) FINANCING ACTIVITIES: Long-term borrowings under line of credit arrangements 42,100,000 85,100,000 Principal payments on long-term borrowings under line of credit arrangements (12,800,000) (56,100,000) Net proceeds from the issuance of shares 1,108,337 923,857 Principal payments on other long-term obligations (172,006) (2,711,669) Increase in deferred loan expense (50,200) (11,615) Cash distributions to shareholders (5,665,897) (4,157,190) ------------ ------------ NET CASH PROVIDED FROM FINANCING ACTIVITIES 24,520,234 23,043,383 ------------ ------------ (Decrease) increase in cash and cash equivalents (4,573,624) 26,790 Cash and cash equivalents at beginning of period 4,896,314 265,868 ------------ ------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 322,690 $ 292,658 ============ ============ Supplemental Cash Flow Information -- Interest Paid $ 1,023,582 $ 1,871,721 ============ ============
See notes to financial statements CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) HEALTH CARE REIT, INC. AND SUBSIDIARY
Three Months Ended March 31 1994 1993 ---------------------------- Balances at beginning of period $184,131,828 $118,947,994 Net income 4,984,250 5,140,609 Proceeds from issuance of shares under the dividend reinvestment plan - 47,980 in 1994 and 42,070 in 1993 1,108,337 923,857 Cash dividend paid (5,665,897) (4,157,190) ------------ ------------ Balances at end of period $184,558,518 $120,855,270 ============ ============
( ) Denotes deduction See notes to financial statements CONSOLIDATED NOTES TO FINANCIAL STATEMENTS HEALTH CARE REIT, INC. AND SUBSIDIARY Note A - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered for a fair presentation have been included. Operating results for the three months ended March 31, 1994 are not necessarily an indication of the results that may be expected for the year ended December 31, 1994. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1993. Net income per share has been computed by dividing net income by the average number of shares outstanding. Note B - Contingencies As disclosed in the financial statements for the year ended December 31, 1993, the Company was contingently liable for certain obligations amounting to approximately $21,255,000. No significant change in these contingencies has occurred as of March 31, 1994. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources In the first quarter of 1994, the Company financed four mortgage loans (including a loan to finance an option exercise discussed below) for a total of approximately $24,748,000. In addition, the Company advanced approximately $7,896,000 on 13 construction loans. The above loan activity, plus changes in working capital loans and pay offs of three mortgage loans, were the reasons total loans receivable increased $32,257,000 in the first quarter of 1994. One lessee exercised its option to purchase which provided gross proceeds of $1,610,000. The Company also provided mortgage loan financing for an amount greater than the option purchase price to a lessee who exercised its option to purchase. The Company also financed one new direct financing lease for $1,300,000. The above activity was primarily the cause for the $4,095,000 decrease in investment in direct financing leases. The Company invested in four new operating lease properties and increased its investment in several other operating lease properties for a total of approximately $7,263,000. Since December 31, 1993, borrowings under lines of credit arrangements increased $29,300,000 due to the investment activity discussed above. As of March 31, 1994, the Company had $53,637,000 in unfunded commitments and total available funding sources of approximately $60,700,000. During the first quarter of 1994, the Company received approximately $1,108,000 from the sale of its shares under the dividend reinvestment plan. Results of Operations Gross income for the first quarter of 1994 was $8,441,239 or 1.9% less than the first quarter of 1993. Interest income on loans receivable, operating lease rents and loan and commitment fees increased while direct financing lease income and gain on exercise of options declined. The increase in interest income on loans receivable and operating lease rents is attributable to the growth in the loan portfolio, a long-term trend which the Company anticipates will continue. The decrease in direct financing lease income is a reflection of another long-term trend which should also continue due to the greater market acceptance of mortgage loans and operating leases. In the first quarter of 1993, gross income included $1,331,353 in gains on exercise of options. However, in the first quarter of 1994, gain on exercise of options was $192,275. The decline in the gain is due to a combination of three exercises in the first quarter of 1993 versus one exercise in the same period in 1994 and the relative sizes of each of the original investments. Net income totalled $4,984,250 in the first quarter of 1994 versus $5,140,609 for the comparable period in 1993. The decrease in net income is reflected in the $.43 per share earned in the first quarter of 1994 versus $.59 per share earned in the first quarter of 1993. The decline in net income per share was primarily affected by the sale of 2,500,000 additional shares in the fourth quarter of 1993. The 1994 net income was also affected by several trends. First, average earnings on assets declined 68 basis points (excluding gains) in the first quarter of 1994 versus the first quarter of 1993. This trend was heightened by an increase of 71 basis points (1994 versus 1993) in the average cost of borrowing. The decline in average earnings on assets is a reflection of long- term general economic trends which may have bottomed out with the recent rise in interest rates. The increase in the average cost of borrowing is primarily the result of lower than normal borrowings on the lines of credit, which is the Company's lowest cost of debt financing. Since late March, the Company has substantially increased its borrowings on its lines of credit which should reduce the Company's average cost of debt financing for the second quarter of 1994. As the Company continues to fulfill its financing commitments, its borrowings on the lines of credit will increase even more, which should favorably affect the average cost of debt. Lastly, the Company's net income was affected by the average quarter-end debt to equity ratio of .63 to 1 in 1994 versus 1.01 to 1 in the first quarter of 1993. The decrease is solely due to the fourth quarter of 1993 equity offering, which was initially used to pay down debt. The decrease in debt had the effect of decreasing the Company's interest related expense and increasing net income. PART II. OTHER INFORMATION Item 5. Other Information On January 18, 1994, the Company issued a press release in which it announced that the Board of Directors voted to pay a quarterly dividend of $.495 per share payable to shareholders of record on February 4, 1994. On February 10, 1994, the Company issued a press release in which it announced, among other things, that the 1993 net income per share for the year was up $.24 or 12.6% more than 1992. On February 11, 1994, the Company issued a press release in which it announced, among other things, that it had provided $14.7 million first mortgage financings for one nursing home and three primary care facilities. On February 23, 1994, the Company issued a press release in which it announced, among other things, that it had provided $2.7 million in financings for two facilities. On March 22, 1994, the Company issued a press release in which it announced, among other things, that it had provided $26.8 million in financings for six facilities. On March 25, 1994, the Company issued a press release in which it announced, among other things, that it had signed an agreement to purchase a $10 million participation in an $86 million first mortgage loan for a combination health care facility in Austin, Texas. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 99 Press release dated January 18, 1994 99 Press release dated February 10, 1994 99 Press release dated February 11, 1994 99 Press release dated February 23, 1994 99 Press release dated March 22, 1994 99 Press release dated March 25, 1994 (b) Reports on Form 8-K None Pursuant to the requirement of the Securities and Exchange Act of 1934, the Registrant had duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HEALTH CARE REIT, INC. Date: April 29, 1994 By: BRUCE G. THOMPSON Bruce G. Thompson, Chairman and Chief Executive Officer Date: April 29, 1994 By: ROBERT J. PRUGER Robert J. Pruger, Chief Financial Officer Date: April 29, 1994 By: KATHLEEN S. PREPHAN Kathleen S. Prephan, Chief Accounting Officer EXHIBIT INDEX The following documents are included in this Form 10-Q as Exhibits: Designation Number Under Exhibit Item 601 of Page Number Regulation S-K Exhibit Description Number 1 99 Press release dated January 18, 1994 13 2 99 Press release dated February 10, 1994 14 3 99 Press release dated February 11, 1994 16 4 99 Press release dated February 23, 1994 17 5 99 Press release dated March 22, 1994 18 6 99 Press release dated March 25, 1994 19 EX-99 2 PRESS RELEASE F O R I M M E D I A T E R E L E A S E PRESS RELEASE January 18, 1994 For more information contact: Erin Ibele (419) 247-2800 Robert Pruger (419) 247-2800 HEALTH CARE REIT, INC. INCREASES DIVIDEND Toledo, Ohio, January 18, 1994....The Directors of Health Care REIT, Inc. (NYSE/HCN) voted to pay a quarterly cash dividend of $.495 per share, an increase of $.005 per share from the previous dividend. The dividend will be payable February 21, 1994 to shareholders of record on February 4, 1994. This will be the REIT's 91st consecutive dividend distribution. AMP\PRESS\36 EX-99 3 PRESS RELEASE F O R I M M E D I A T E R E L E A S E PRESS RELEASE February 10, 1994 For more information contact: Erin Ibele (419) 247-2800 Robert Pruger (419) 247-2800 HEALTH CARE REIT, INC. ANNOUNCES 1993 RESULTS Toledo, Ohio, February 10, 1994 (NYSE/HCN)....For the quarter ended December 31, 1993, net income was $5.1 million compared to $4.4 million in the fourth quarter of 1992, an increase of 13.9%. For the fourth quarter of 1993, net income per share of $.45 was down $.06 or 11.8% under the fourth quarter of 1992. For the year ended December 31, 1993, net income per share was $2.15 compared to $1.91 for the year ended December 31, 1992, an increase of 12.6%. Total assets of $285 million at December 31, 1993 were up 26% from a year ago, while shareholders' equity climbed 54.8% to $184 million. The increase in 1993 shareholders' equity was primarily attributable to an equity offering which raised approximately $59.1 million. Funds from operations for the three months ended December 31, 1993 was $6.1 million ($.54 per share) compared with $4.7 million ($.54 per share) for the three months ended December 31, 1992. For the year ended December 31, 1993, funds from operations was $22.8 million ($2.44 per share) compared to $18.7 million ($2.16 per share) for the year ended December 31, 1992. The following tables highlight the information presented above. SUMMARY FINANCIAL DATA (In thousands except per share amounts)
Three Months Ended December 31 Year Ended (Unaudited) December 31 ------------------ ------------------- 1993 1992 1993 1992 ------- ------ ------- ------- STATEMENTS OF INCOME Gross Income: Interest and other income $ 5,285 $4,090 $21,734 $15,331 Direct financing leases 1,865 2,410 8,094 9,697 Operating-lease rents 994 298 2,812 1,459 Loan and commitment fees 262 246 1,203 669 Gain on exercise of options 314 391 2,175 1,752 ------- ------ ------- ------- $ 8,720 $7,435 $36,018 $28,908 ======= ====== ======= ======= OTHER FINANCIAL INFORMATION Gross income $ 8,720 $7,435 $36,018 $28,908 Net income 5,052 4,437 20,055 16,515 Funds from operations 6,072 4,713 22,780 18,654 Net income per share .45 .51 2.15 1.91 Funds from operations per share .54 .54 2.44 2.16 Distributions per share .49 .47 1.93 1.85 Average number of shares outstanding 10,901 8,718 9,339 8,629
December 31 ------------------------ 1993 1992 -------- -------- Assets: Real Estate Related Investments: Loans receivable $185,282 $151,414 Investment in direct financing leases 52,950 65,411 Investment in operating-lease properties 42,776 10,301 -------- -------- 281,008 227,126 Less allowance for losses 4,150 4,000 -------- -------- 276,858 223,126 Other assets 8,166 3,081 -------- -------- Total assets $285,024 $226,207 ======== ======== Total liabilities $100,892 $107,259 Shareholders' Equity 184,132 118,948 -------- -------- $285,024 $226,207 ======== ========
Health Care REIT, Inc. is the first real estate investment trust to specialize in financing health care facilities, primarily nursing homes. The Company also invests in assisted living and retirement facilities, psychiatric hospitals, rehabilitation facilities and primary care facilities. ADB\PRESS\37 EX-99 4 PRESS RELEASE F O R I M M E D I A T E R E L E A S E PRESS RELEASE February 11, 1994 For more information contact: Erin Ibele (419) 247-2800 Robert Pruger (419) 247-2800 HEALTH CARE REIT, INC. ANNOUNCES FINANCINGS Toledo, Ohio, February 11, 1994....Health Care REIT, Inc. (NYSE/HCN) announced that it has closed three operating leases relating to primary care facilities located in the Chicago, Illinois and Dayton, Ohio areas. The Company has advanced $2.3 million for the three facilities with a commitment to fund up to a total of $8.9 million. The facilities are owned by HealthSpring, Inc., formerly known as American Health Care Groups, Inc., based in Reston, Virginia. HCN has a commitment to invest up to a total of $20 million in health care facilities owned or operated by HealthSpring, Inc. Additionally, the Company converted its lease to first mortgage financing for a 90-bed nursing home in Connecticut owned by Brian J. Foley and operated by Fowler Nursing Center, Inc. The net additional financing amounted to $2.2 million for a total new investment of $5.8 million. Health Care REIT, Inc. is a real estate investment trust which invests in health care properties, primarily nursing homes. The Company also invests in assisted living and retirement facilities, rehabilitation centers, primary care facilities and psychiatric hospitals. ADB\PRESS\38 EX-99 5 PRESS RELEASE F O R I M M E D I A T E R E L E A S E PRESS RELEASE February 23, 1994 For more information contact: Erin Ibele (419) 247-2800 Robert Pruger (419) 247-2800 HEALTH CARE REIT, INC. ANNOUNCES FINANCINGS Toledo, Ohio, February 23, 1994....Health Care REIT, Inc. (NYSE/HCN) announced that it has provided construction loan financing for a 70-unit assisted living addition to a facility located in Stow, Ohio. The Company currently owns the 90-bed nursing facility and leases it to The Briarwood Limited Partnership. The Company has advanced $135,300 against a commitment to fund up to $1.4 million. Additionally, the Company has provided lease financing of $1.3 million for an 84-unit Alzheimer's treatment/assisted living facility located in Tampa, Florida. The lessee is a Florida limited partnership, and the facility is managed by The Standish Care Company based in Boston, Massachusetts. Health Care REIT, Inc. is a real estate investment trust which invests in health care properties, primarily nursing homes. The Company also invests in assisted living and retirement facilities, rehabilitation centers, primary care facilities and psychiatric hospitals. ADB\PRESS\39 EX-99 6 PRESS RELEASE F O R I M M E D I A T E R E L E A S E PRESS RELEASE March 22, 1994 For more information contact: Erin Ibele (419) 247-2800 Robert Pruger (419) 247-2800 HEALTH CARE REIT, INC. ANNOUNCES FINANCINGS OF UP TO $26.8 MILLION Toledo, Ohio, March 22, 1994 . . . Health Care REIT, Inc. (NYSE/HCN) announced that it has provided mortgage financing in the amount of $14.1 million for a 180-bed skilled nursing and 60-bed assisted living facility located in Norwood, New Jersey. The borrower is Senior Care Foundation, Inc. and the facility is managed by Continental of Norwood, Inc. Additionally, the Company has provided mortgage financing in the amount of $2.85 million for a 161-bed long-term care facility located in Westland, Michigan. The borrowers and managers are Tamarack Associates Limited Partnership and Chaplains, Inc. The Company has also provided operating lease financing in the amount of $3.5 million for three assisted living facilities located in North Carolina. The facilities with a total of 142 units are managed by The Standish Care Company. Construction loan financing has been provided for a "to-be- built," 100-bed skilled nursing facility to be located in St. Louis, Missouri. The Company has advanced $1.4 million against a commitment to fund up to $6.4 million. The borrower and manager are affiliates of Life Care Centers of America, Inc. Health Care REIT, Inc. is a real estate investment trust which invests in health care properties, primarily nursing homes. The Company also invests in assisted living and retirement facilities, rehabilitation centers, primary care facilities and psychiatric hospitals. laj\press\40 EX-99 7 PRESS RELEASE F O R I M M E D I A T E R E L E A S E PRESS RELEASE March 25, 1994 For more information contact: Erin Ibele (419) 247-2800 Robert Pruger (419) 247-2800 HEALTH CARE REIT, INC. ANNOUNCES $10 MILLION INVESTMENT Toledo, Ohio, March 25, 1994 . . . Health Care REIT, Inc. (NYSE/HCN) announced that it has signed an agreement to purchase a $10 million participation in an $86 million first mortgage loan for a combination acute care hospital, diagnostic clinic, long-term care unit, and medical office building presently under construction in Austin, Texas. The loan was originated by National Health Investors, Inc. ("NHI") of Murfreesboro, Tennessee. HCN has funded approximately $3.6 million of its $10 million commitment to NHI and will fund the balance over the remainder of the construction period. Completion is expected in June, 1995. The facility will be owned by a joint venture between HealthTrust, Inc. - The Hospital Company, a Nashville, Tennessee based and publicly-owned hospital operator, and the Austin Diagnostic Clinic, P.C., a multi-specialty physician group in Austin, Texas. Health Care REIT, Inc. is a real estate investment trust which invests in health care properties, primarily nursing homes. The Company also invests in assisted living and retirement facilities, rehabilitation centers, primary care facilities and psychiatric hospitals. adb\press\41 -----END PRIVACY-ENHANCED MESSAGE-----