Health Care REIT Inc. (HCN), a real estate investment trust (:REIT), which operates senior housing and health care real estate, reported third-quarter 2013 normalized funds from operations (:FFO) of 97 cents per share, a cent ahead of the Zacks Consensus Estimate and up 6 cents year over year.

The improved results were primarily attributable to robust revenue growth. Alongside, the company registered decent same-store NOI.

Normalized Funds available for distribution (FAD) in the reported quarter stood at 86 cents per share, up from 82 cents per share in the year-ago period.

Behind the Headlines

Total revenue reached $786.9 million, escalating 70.4% year over year. The figure also substantially exceeded the Zacks Consensus Estimate of $728 million. Total same-store (cash NOI (net operating income) increased 3.7% from the year-ago period. This included a 9.4% rise in the seniors housing operating portfolio.

Notable Quarterly Activities

During the quarter, Health Care REIT accomplished the sale/leaseback transaction with Avery Healthcare for $212 million (140 million) in the UK. The portfolio comprises 14 seniors housing communities with 940 beds.

Also, the company closed the triple net lease deal with Emeritus Senior Living (ESC) for a portfolio of 38 senior housing communities. Notably, the properties were previously owned by Health Care REIT in an 80%/20% joint venture with Merrill Gardens. As per the deal, Health Care REIT acquired Merrill Gardens 20% interest in the JV for $173 million, which includes pro rata mortgage debt of $74 million.

In addition, Health Care REIT sealed the buyout of $95 million worth of hospital acquisitions (at a blended yield of 9.5%) and medical office building worth $50 million (at a blended yield of 6.9%). Moreover, the company finished the development of 2 seniors housing triple-net assets for $38 million (at a blended initial yield of 8.1%) and 1 medical office building for $9 million (at an initial yield of 8.3%).

Year-to-date, as of Nov 5, Health Care REIT has garnered $412 million from asset divestitures and $66 million from loan payoffs.

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Health Care REIT Q3 FFO & Revs Top