8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2014

Health Care REIT, Inc.
(Exact name of registrant as specified in its charter)
Delaware	1-8923		34-1096634
(State or other jurisdiction	(Commission		(IRS Employer
of incorporation)	File Number)		Identification No.)
4500 Dorr Street, Toledo, Ohio		43615
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code: (419) 247-2800
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02  Results of Operations and Financial Condition.

On November 4, 2014, Health Care REIT, Inc. (the “Company”) issued a press release that announced operating results for its third quarter ended September 30, 2014.  The press release refers to a supplemental information package that is available on the Company's website (www.hcreit.com), free of charge.  Copies of the press release and supplemental information package have been furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report, and are incorporated herein by reference.

The information included in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing. 

Item 9.01  Financial Statements and Exhibits.

(d)  Exhibits.

99.1Press release of Health Care REIT, Inc. dated November 4, 2014.

99.2Health Care REIT, Inc. Supplemental Information Package for the quarter ended September 30, 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HEALTH CARE REIT, INC.

By:  /s/ THOMAS J. DEROSA                                 

Name: Thomas J. DeRosa

Title:  Chief Executive Officer

Dated:  November 4, 2014

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EX-99.1

 

FOR IMMEDIATE RELEASE

November 4, 2014

For more information contact:

Scott Estes (419) 247-2800

Health Care REIT, Inc. Reports 7% Increase in Third Quarter Normalized FFO to $1.04 Per Diluted Share

Grows Third Quarter Same Store NOI 4.3%, Led by 7.6% Growth in Seniors Housing Operating Portfolio

 Completes $757 Million of Third Quarter Investments

Increases Dividend 4% for 2015

Toledo, Ohio, November 4, 2014…..Health Care REIT, Inc. (NYSE:HCN) today announced operating results for the company’s third quarter ended September 30, 2014.

“Our relationship investing strategy continues to drive consistent, predictable growth that is setting the standard in our industry,” said Tom DeRosa, CEO of HCN. “Our strong same store NOI growth of 4.3% across the portfolio, fueled by 7.6% growth in the seniors housing operating portfolio, demonstrates the power of partnering with best-in-class operators to improve the way seniors live.  We invested over $750 million in high-quality assets this quarter and have a strong investment pipeline across the US, UK and Canada.  Our balance sheet is strategically positioned to execute on these opportunities as we continue to deliver outstanding results and total returns for our shareholders.”

Earnings Results  The company earned quarterly normalized FFO and FAD per share of $1.04 and $0.91, respectively, representing 7% and 6% increases from the third quarter of 2013.  These earnings results are primarily attributable to strong quarterly operating results as well as $2.3 billion of investments over the last twelve months.

Dividend GrowthAs previously announced, the Board of Directors declared a cash dividend for the quarter ended September 30, 2014 of $0.795 per share, as compared to $0.765 per share for the same period in 2013, representing a 4% increase.  On November 20, 2014, the company will pay its 174^th consecutive quarterly cash dividend.  The Board of Directors also approved a new 2015 quarterly cash dividend rate of $0.825 per share ($3.30 per share annually), which represents a 4% increase, commencing with the February 2015 dividend payment.  The declaration and payment of quarterly dividends remains subject to review by and approval of the Board of Directors. 

Third Quarter Investment ActivityThe company completed $757 million of gross investments for the quarter including $653 million in acquisitions, $76 million in development funding, $25 million in loan advances and $4 million in capital improvements. The $653 million of acquisitions have a blended yield of 6.4%.  The acquisitions were primarily with existing relationships and are consistent with HCN’s strategic focus on high-quality properties.  They include 16 medical office buildings, a post-acute property operated by Genesis, 11 U.K. seniors housing operating properties managed by Sunrise and three U.K. seniors housing triple-net properties operated by Avery.  All of the third quarter acquisitions were included in the $1.7 billion acquisition pipeline announced by the company on September 11, 2014. The company expects the remaining $1.05 billion acquisition pipeline, including the HealthLease transaction, to be completed during the fourth quarter.  The $76 million in development funding is expected to yield 7.9% upon completion and includes seniors housing, post-acute and medical office properties.  The $25 million of loans were made at a blended rate of 8.4%.  In addition to the new investment activity during the quarter, the company placed into service one development property and one property expansion totaling $21 million with a blended yield of 7.8%.

Outlook for 2014  The company is narrowing its 2014 guidance and now expects to generate normalized FFO in a range of $4.07 to $4.13 per diluted share from the previous range of $4.05 to $4.15 per diluted share, now representing a 7%-8% increase from 2013. The company is also narrowing its normalized FAD guidance to a range of $3.59 to $3.65 per diluted share from the previous range of $3.57 to $3.67 per diluted share, now representing a 7%-9% increase from 2013. In addition, the company is increasing its dispositions guidance to $625 million from $450 million. Net income attributable to common stockholders guidance has been increased to a range of $1.18 to $1.24 per diluted share from the previous range of $1.02 to $1.12 per diluted share primarily due to gains on property dispositions and the items noted above.

The company’s guidance does not include any additional 2014 investments beyond what it has announced, nor any transaction costs, capital transactions, impairments, unanticipated additions to the loan loss reserve or other additional one-

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3Q14 Earnings ReleaseNovember 4, 2014

time items, including any additional cash payments other than normal monthly rental payments.  Please see the exhibits for a reconciliation of the outlook for net income available to common stockholders to normalized FFO and FAD.  The company will provide additional detail regarding its 2014 outlook and assumptions on the third quarter 2014 conference call.

Conference Call Information  The company has scheduled a conference call on Tuesday, November 4, 2014 at 10:00 a.m. Eastern Time to discuss its third quarter 2014 results, industry trends, portfolio performance and outlook for 2014. Telephone access will be available by dialing 888-346-2469 or 706-758-4923 (international).  For those unable to listen to the call live, a taped rebroadcast will be available beginning two hours after completion of the call through November 18, 2014. To access the rebroadcast, dial 855-859-2056 or 404-537-3406 (international).  The conference ID number is 18092422. To participate in the webcast, log on to www.hcreit.com 15 minutes before the call to download the necessary software.  Replays will be available for 90 days.

Supplemental Reporting Measures  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 funds from operations (FFO) and funds available for distribution (FAD) to be useful supplemental measures of its operating performance. Historical cost accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time as evidenced by the provision for depreciation. However, since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient. In response, the National Association of Real Estate Investment Trusts (NAREIT) created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation from net income. FFO, as defined by NAREIT, means net income attributable to common stockholders, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and impairments of depreciable assets, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests.   Normalized FFO represents FFO adjusted for certain items detailed in Exhibit 1.  FAD represents FFO excluding net straight-line rental adjustments, amortization related to above/below market leases and amortization of non-cash interest expenses and less cash used to fund capital expenditures, tenant improvements and lease commissions.  Normalized FAD represents FAD excluding prepaid/straight-line rent cash receipts and adjusted for certain items detailed in Exhibit 1.  The company believes that normalized FFO and normalized FAD are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the company between periods or as compared to other REITs or other companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items.  The company’s supplemental reporting measures and similarly entitled financial measures are widely used by investors and equity analysts in the valuation, comparison 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, they are utilized by the Board of Directors to evaluate management.  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.  Please see the exhibits for reconciliations of supplemental reporting measures and the supplemental information package for the quarter ended September 30, 2014, which is available on the company’s website (www.hcreit.com), for information and reconciliations of additional supplemental reporting measures.

About Health Care REIT, Inc.  HCN, an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate.  The company also provides an extensive array of property management and development services.  As of September 30, 2014, the company’s broadly diversified portfolio consisted of 1,246 properties in 46 states, the United Kingdom, and Canada.  More information is available on the company’s website at www.hcreit.com.

Forward-Looking Statements and Risk Factors  This document contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. In particular, these forward-looking statements include, but are not limited to, those relating to the company’s opportunities to acquire, develop or sell properties; the company’s ability to close its anticipated acquisitions, investments or dispositions on currently anticipated terms, or within currently anticipated timeframes; the expected performance of the company’s operators/tenants and properties; the company’s expected occupancy rates; the company’s ability to declare and to make distributions to shareholders; the company’s investment and financing opportunities

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3Q14 Earnings ReleaseNovember 4, 2014

and plans; the company’s continued qualification as a real estate investment trust (“REIT”); the company’s ability to access capital markets or other sources of funds; and the company’s ability to meet its earnings guidance. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the company’s actual results to differ materially from the company’s expectations discussed in the forward-looking statements. 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 properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters and other 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; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; the movement of U.S. and foreign currency exchange rates; the company’s ability to maintain its qualification as a REIT; key management personnel recruitment and retention; and other risks described in the company’s reports filed from time to time with the Securities and Exchange Commission. Finally, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

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3Q14 Earnings ReleaseNovember 4, 2014

HEALTH CARE REIT, INC.

Financial Exhibits

Consolidated Balance Sheets (unaudited)
(in thousands)
			September 30,
			2014		2013
Assets
Real estate investments:
	Land and land improvements		$	1,971,513	$	1,869,234
	Buildings and improvements			21,310,165		20,387,577
	Acquired lease intangibles			1,092,367		1,050,542
	Real property held for sale, net of accumulated depreciation			47,463		2,141
	Construction in progress			179,356		158,006
				24,600,864		23,467,500
	Less accumulated depreciation and intangible amortization			(2,959,813)		(2,168,334)
		Net real property owned		21,641,051		21,299,166
	Real estate loans receivable(1)			318,221		307,377
	Net real estate investments			21,959,272		21,606,543
Other assets:
	Investments in unconsolidated entities			656,213		475,574
	Goodwill			68,321		68,321
	Deferred loan expenses			72,083		68,569
	Cash and cash equivalents			998,678		164,838
	Restricted cash			118,167		80,890
	Receivables and other assets(2)			668,988		585,070
				2,582,450		1,443,262
Total assets			$	24,541,722	$	23,049,805
Liabilities and equity
Liabilities:
	Borrowings under unsecured lines of credit arrangements		$	-	$	847,670
	Senior unsecured notes			7,305,414		6,395,638
	Secured debt			2,893,814		3,115,862
	Capital lease obligations			83,614		84,069
	Accrued expenses and other liabilities			677,042		660,441
Total liabilities				10,959,884		11,103,680
Redeemable noncontrolling interests				76,416		31,706
Equity:
	Preferred stock			1,006,250		1,022,917
	Common stock			327,433		288,249
	Capital in excess of par value			14,665,449		12,349,678
	Treasury stock			(35,241)		(21,263)
	Cumulative net income			2,637,033		2,301,869
	Cumulative dividends			(5,358,834)		(4,363,376)
	Accumulated other comprehensive income			(52,704)		(23,475)
	Other equity			6,223		5,864
		Total Health Care REIT, Inc. stockholders’ equity		13,195,609		11,560,463
	Noncontrolling interests			309,813		353,956
Total equity				13,505,422		11,914,419
Total liabilities and equity			$	24,541,722	$	23,049,805
(1) Includes non-accrual loan balances of $0 and $2,650,000 at September 30, 2014 and 2013, respectively.
(2) Includes net straight-line receivable balances of $256,271,000 and $186,872,000 at September 30, 2014 and 2013, respectively.

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3Q14 Earnings ReleaseNovember 4, 2014

Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2014		2013		2014		2013
Revenues:
		Rental income		$	354,148	$	308,512	$	1,038,451	$	900,028
		Resident fees and service			482,412		466,127		1,406,316		1,164,446
		Interest income			9,344		7,629		26,871		24,325
		Other income			1,619		1,443		4,139		3,168
Gross revenues					847,523		783,711		2,475,777		2,091,967
Expenses:
		Interest expense			118,435		116,020		360,334		334,321
		Property operating expenses			355,157		341,921		1,040,342		872,701
		Depreciation and amortization			200,970		241,027		648,737		623,777
		General and administrative expenses			30,803		28,718		115,327		79,799
		Transaction costs			13,554		23,591		21,546		117,707
		Loss (gain) on derivatives, net			49		4,872		400		4,465
		Loss (gain) on extinguishment of debt, net			2,692		(4,068)		3,075		(4,376)
		Other expenses			10,262		-		10,262		-
	Total expenses				731,922		752,081		2,200,023		2,028,394
Income (loss) from continuing operations before income taxes
	and income from unconsolidated entities				115,601		31,630		275,754		63,573
Income tax (expense) benefit					10,198		(3,077)		6,369		(7,055)
Income (loss) from unconsolidated entities					(2,632)		(331)		(19,705)		(3,529)
Income (loss) from continuing operations					123,167		28,222		262,418		52,989
Discontinued operations:
		Gain (loss) on sales of discontinued properties, net			-		4,707		6,411		57,202
		Income (loss) from discontinued operations, net			-		676		724		2,397
					-		5,383		7,135		59,599
Gain (loss) on real estate dispositions, net					29,604		-		36,272		-
Net income (loss)					152,771		33,605		305,825		112,588
Less:			Preferred dividends		16,352		16,602		49,057		49,805
			Net income (loss) attributable to noncontrolling interests		164		(3,688)		(1,339)		(4,462)
Net income (loss) attributable to common stockholders				$	136,255	$	20,691	$	258,107	$	67,245
Average number of common shares outstanding:
		Basic			311,117		286,020		299,137		273,148
		Diluted			312,812		288,029		300,645		275,247
Net income (loss) attributable to common stockholders per share:
		Basic		$	0.44	$	0.07	$	0.86	$	0.25
		Diluted		$	0.44	$	0.07	$	0.86	$	0.24
Common dividends per share				$	0.795	$	0.765	$	2.385	$	2.295

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3Q14 Earnings ReleaseNovember 4, 2014

Normalizing Items									Exhibit 1
(in thousands, except per share data)		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Transaction costs		$	13,554 (1)	$	23,591	$	21,546	$	117,707
Loss (gain) on derivatives, net			49 (2)		4,872		400		4,465
Loss (gain) on extinguishment of debt, net			2,692 (3)		(4,068)		3,075		(4,376)
CEO transition costs			-		-		19,688		-
Nonrecurring income tax benefits			(17,426)(4)		-		(17,426)		-
Other expenses			10,262 (5)		-		10,262		-
Normalizing items attributable to noncontrolling interests and unconsolidated entities, net			488 (6)		(1,847)		5,095		(1,858)
Total		$	9,619	$	22,548	$	42,640	$	115,938
Average diluted common shares outstanding			312,812		288,029		300,645		275,247
Net amount per diluted share		$	0.03	$	0.08	$	0.14	$	0.42
Notes:	(1) Primarily costs incurred with seniors housing transactions.
	(2) Related to settlement of currency hedges on foreign investments.
	(3) Primarily related to unsecured line of credit facility enhancements and conversion of senior unsecured notes due 2029.
	(4) Related to elimination of deferred tax liabilities in the UK and expiration of statute of limitations for unrecognized tax benefits in the US.
	(5) Related to costs incurred in connection with nonrecurring income tax benefits.
	(6) Primarily related to costs incurred with unconsolidated seniors housing transactions.

Funds Available for Distribution Reconciliation											Exhibit 2
(in thousands, except per share data)				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2014		2013		2014		2013
Net income (loss) attributable to common stockholders				$	136,255	$	20,691	$	258,107	$	67,245
Depreciation and amortization(1)					200,970		242,981		648,737		630,579
Losses/impairments (gains) on properties, net					(29,604)		(4,707)		(42,683)		(57,202)
Noncontrolling interests(2)					(8,157)		(10,853)		(26,042)		(22,763)
Unconsolidated entities(3)					16,995		8,494		50,298		33,763
Gross straight-line rental income					(24,085)		(14,714)		(63,635)		(43,044)
Prepaid/straight-line rent receipts					(235)		510		2,882		4,951
Amortization related to above (below) market leases, net					138		54		503		163
Non-cash interest expense					547		(852)		2,527		3,779
Cap-ex, tenant improvements, lease commissions					(17,768)		(17,357)		(43,956)		(41,415)
Funds available for distribution					275,056		224,247		786,738		576,056
Normalizing items, net(4)					9,619		22,548		42,640		115,938
Prepaid/straight-line rent receipts					235		(510)		(2,882)		(4,951)
Funds available for distribution - normalized				$	284,910	$	246,285	$	826,496	$	687,043
Average diluted common shares outstanding					312,812		288,029		300,645		275,247
Per share data:
	Net income (loss) attributable to common stockholders			$	0.44	$	0.07	$	0.86	$	0.24
	Funds available for distribution			$	0.88	$	0.78	$	2.62	$	2.09
	Funds available for distribution - normalized			$	0.91	$	0.86	$	2.75	$	2.50
Normalized FAD Payout Ratio:
	Dividends per common share			$	0.795	$	0.765	$	2.39	$	2.295
	FAD per diluted share - normalized			$	0.91	$	0.86	$	2.75	$	2.50
		Normalized FAD payout ratio			87%		89%		87%		92%
Notes:			(1) Depreciation and amortization includes depreciation and amortization from discontinued operations.
			(2) Represents noncontrolling interests' share of net FAD adjustments.
			(3) Represents HCN's share of net FAD adjustments from unconsolidated entities.
			(4) See Exhibit 1.

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3Q14 Earnings ReleaseNovember 4, 2014

Funds From Operations Reconciliation											Exhibit 3
(in thousands, except per share data)				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2014		2013		2014		2013
Net income (loss) attributable to common stockholders				$	136,255	$	20,691	$	258,107	$	67,245
Depreciation and amortization(1)					200,970		242,981		648,737		630,579
Losses/impairments (gains) on properties, net					(29,604)		(4,707)		(42,683)		(57,202)
Noncontrolling interests(2)					(9,359)		(12,328)		(29,618)		(25,942)
Unconsolidated entities(3)					18,250		11,626		55,019		45,130
Funds from operations					316,512		258,263		889,562		659,810
Normalizing items, net(4)					9,619		22,548		42,640		115,938
Funds from operations - normalized				$	326,131	$	280,811	$	932,202	$	775,748
Average diluted common shares outstanding					312,812		288,029		300,645		275,247
Per share data:
	Net income (loss) attributable to common stockholders			$	0.44	$	0.07	$	0.86	$	0.24
	Funds from operations			$	1.01	$	0.90	$	2.96	$	2.40
	Funds from operations - normalized			$	1.04	$	0.97	$	3.10	$	2.82
Normalized FFO Payout Ratio:
	Dividends per common share			$	0.795	$	0.765	$	2.39	$	2.295
	FFO per diluted share - normalized			$	1.04	$	0.97	$	3.10	$	2.82
		Normalized FFO payout ratio			76%		79%		77%		81%
Notes:			(1) Depreciation and amortization includes depreciation and amortization from discontinued operations.
			(2) Represents noncontrolling interests' share of net FFO adjustments.
			(3) Represents HCN's share of net FFO adjustments from unconsolidated entities.
			(4) See Exhibit 1.

Outlook Reconciliations: Year Ended December 31, 2014							Exhibit 4
(dollars per fully diluted share)
		Prior Outlook				Current Outlook
		Low		High		Low		High
FFO Reconciliation:
Net income attributable to common stockholders		$	1.02	$	1.12	$	1.18	$	1.24
Losses/impairments (gains) on sale of properties, net			-		-		(0.14)		(0.14)
Depreciation and amortization(1)			2.92		2.92		2.88		2.88
Funds from operations			3.94		4.04		3.92		3.98
Normalizing items, net(2)			0.11		0.11		0.15		0.15
Funds from operations - normalized		$	4.05	$	4.15	$	4.07	$	4.13
FAD Reconciliation:
Net income attributable to common stockholders		$	1.02	$	1.12	$	1.18	$	1.24
Losses/impairments (gains) on sale of properties, net			-		-		(0.14)		(0.14)
Depreciation and amortization(1)			2.92		2.92		2.88		2.88
Net straight-line rent and above/below amortization(1)			(0.26)		(0.26)		(0.28)		(0.28)
Cap-ex, tenant improvements, lease commissions(1)			(0.22)		(0.22)		(0.20)		(0.20)
Funds available for distribution			3.46		3.56		3.44		3.50
Normalizing items, net(2)			0.11		0.11		0.15		0.15
Funds available for distribution - normalized		$	3.57	$	3.67	$	3.59	$	3.65
Notes:	(1) Amounts presented net of noncontrolling interests' share and HCN's share of unconsolidated entities.
	(2) See Exhibit 1.

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EX-99.2