Quarterly profits rise 96% at Health Care REIT
04.11.2008 10:01
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- Source: toledoblade.com
Three days after shelving a $644 million deal to buy more than two dozen senior housing communities, Toledo's Health Care REIT Inc. issued a third-quarter financial report showing growth in revenues and profits. The firm reported quarterly income of $61 million, or 57 cents a share. That compared to $31 million, or 30 cents a share, at the same time last year. The real estate investment trust, which is a landlord to nursing homes and assisted living facilities nationwide, had revenues of $145 million in the third quarter, up from $119 million in the prior-year period. In another industry measure, the downtown firm said its funds from operations were 86 cents a share, up from 79 cents in the third quarter of 2007. On Friday, Health Care REIT said it was withdrawing from a deal for a 90 percent stake in 29 senior communities operated by Sunrise Senior Living Inc., of McLean, Va. The deal would not be in the best interest of shareholders "given the uncertainty of the capital markets," officials said. Executives with Arcapita Inc., which owns the Sunrise properties, could not be reached for comment yesterday. Arcapita, based in Atlanta, is a real estate investment arm of Arcapita Bank, of Bahrain. Health Care REIT officials in Toledo announced the deal in early September. But, on Oct. 16, a day before negotiations were to be finished, they said they were extending the deadline to Oct. 31. The deal was to have involved payment of $365 million in cash, along with assumption of $278 million in debt owed by the properties, which are concentrated in New York, Chicago, and Los Angeles. Executives at Sunrise, which owns a 10 percent stake in the properties and would have received about $50 million under the deal, issued a statement saying that the Toledo firm's decision was understandable in light of "current market conditions."
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