Health Care REIT, Inc. Reports Second Quarter Results

Business Wire, August 5, 2008

TOLEDO, Ohio -- Health Care REIT, Inc. (NYSE:HCN) today announced operating results for the company's second quarter ended June 30, 2008.

"Our successful investment program, highlighted by record second quarter gross investments of $488 million, drove very strong 12% quarterly FFO growth," commented George L. Chapman, chief executive officer of Health Care REIT, Inc. "In addition, our line of credit, proven access to capital and proceeds from strategic dispositions provide liquidity to capitalize on additional investment opportunities throughout the remainder of the year."

Recent Highlights.

* Achieved record 2Q08 normalized FFO of $0.87 per share, up 12%

* Achieved record 2Q08 normalized FAD of $0.82 per share, up 12%

* Completed record 2Q08 gross investments totaling $488.2 million

* Completed 2Q08 net new investments totaling $354.9 million

* Issued 4.6 million shares of common stock, which generated $193.0 million in net proceeds in July

* Increasing 2008 normalized FFO guidance to a range of $3.33 to $3.39 per share from $3.30 to $3.38 per share

* Increasing 2008 normalized FAD guidance to a range of $3.08 to $3.14 per share from $3.04 to $3.12 per share

Key Performance Indicators.

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2Q08 Earnings. The following table summarizes certain items impacting NICS, FFO and FAD:

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2008 Year-To-Date Earnings. The following table summarizes certain items impacting NICS, FFO and FAD:

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Dividends for Second Quarter 2008. As previously announced, the Board of Directors declared a dividend for the quarter ended June 30, 2008 of $0.68 per share, as compared to $0.66 per share for the same period in 2007. The dividend will be paid on August 20, 2008 and will be the company's 149th consecutive quarterly dividend payment.

Outlook for 2008. The company affirms its investment guidance for 2008 in a range of $1.1 billion to $1.4 billion, including acquisitions in a range of $700 to $900 million, development funding in a range of $400 to $500 million and dispositions in a range of $300 to $400 million. Net investment guidance remains unchanged at a range of $700 million to $1.1 billion.

The company is revising its 2008 earnings guidance. Normalized FFO has been increased to a range of $3.33 to $3.39 per diluted share from $3.30 to $3.38 per diluted share. Normalized FAD has been increased to a range of $3.08 to $3.14 per diluted share from $3.04 to $3.12 per diluted share. Due to the significant gains recognized on second quarter real property dispositions, net income available to common stockholders has been increased to a range of $2.83 to $2.89 per diluted share from $1.50 to $1.58 per diluted share.

The company's guidance excludes any impairments, unanticipated additions to the loan loss reserve or other additional one-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 FFO and FAD.

Conference Call Information. The company has scheduled a conference call on Wednesday, August 6, 2008 at 9:00 a.m. Eastern Time to discuss its second quarter 2008 results, industry trends, portfolio performance and outlook for 2008. Telephone access will be available by dialing 800-926-7061 or 913-312-1375 (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 August 20, 2008. To access the rebroadcast, dial 888-203-1112 or 719-457-0820 (international). The conference ID number is 5496936. To participate in the webcast, log on to www.hcreit.com or www.earnings.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days through the same websites. This earnings release is posted on the company's website under the heading News & Events.

Supplemental Reporting Measures. The company believes that net income available 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, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Normalized FFO represents FFO adjusted for unusual and non-recurring items. FAD represents FFO excluding net straight-line rental adjustments, rental income related to above/below market leases and amortization of deferred loan 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 unusual and non-recurring items.