Published: Saturday, 2/21/2015 - Updated: 4 seconds ago

BY JON CHAVEZ BLADE STAFF WRITER

Toledos Health Care REIT Inc. said Friday its funds from operations in 2014 were a record $1.3 billion, or $4.13 a share, up 20 percent from a year earlier when FFO was $1.1 billion, or $3.81 a share.

The real estate investment trust, which owns and manages a real estate portfolio of senior housing and health-care properties, had annual revenues of $3.34 billion, compared to $2.88 billion in 2013.

Funds from operations is a better metric than net income for real estate investment trusts because, unlike a manufacturing plant or other fixed asset, the assets of a REIT real estate properties are expected to appreciate in value rather than depreciate. Funds from operations excludes depreciation.

Calendar 2014 was a resounding success for our organization, shareholders, and portfolio performance, said Tom DeRosa, the companys chief executive officer. We were among the best performing REITs in the S&P 500, generating a 48.5 percent total return. Our existing portfolio delivered the consistent, resilient growth that has become our hallmark, with same-store cash [net operating income] growth of 4.2 percent including phenomenal 7.3 percent growth in our seniors housing operating portfolio.

Mr. DeRosa said the company completed $3.7 billion of new investments and disposed of more than $900 million of nonstrategic assets during 2014. It also successfully raised more than $3 billion in capital.

For 2014, its net income was $446.7 million, or $1.45 a share, up from $78 million, or 28 cents a share a year earlier.

In the fourth quarter, Health Care REIT had funds from operations of $337.6 million, or $1.03 a share, up from $286.2 million, or 99 cents a share for the same quarter a year earlier.

The companys shares closed at $78.05 Friday, up $1.83 on the New York Stock Exchange.

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Health Care REIT reports record