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Health Care REIT Inc. (HCN) Q4 FFO Beats, Same store NOI Grows - Tale of the Tape

Zacks Equity Research

Have you been eager to see how Health Care REIT Inc. (HCN) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Toledo, OH-based healthcare real estate investment trust’s (REIT) earnings release this morning:

 

A FFO Beat

 

Health Care REIT came out with normalized funds from operations (FFO) of $1.03 per share, beating the Zacks Consensus Estimate of $1.02.

 

Same store net operating income (NOI) growth of 3.5% year-over-year and high quality investments primarily drove this earnings beat.  

 

How Was the Estimate Revision Trend?

 

Health Care REIT has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered a positive surprise in the prior quarter. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.51% in the trailing four quarters.

 

Revenue Came In Higher Than Expected   

 

Health Care REIT posted revenues of $867.8 million, which beat the Zacks Consensus Estimate of $865 million. It also compared favorably with the year-ago number of $788.6 million.

 

Key Developments to Note:

 

For 2015, Health Care REIT expects its FFO to range between $4.25 and $4.35 per share, reflecting a 3–5% increase and blended same store cash NOI growth of around 3.0–3.5%.

 

What Zacks Rank Says

 

Health Care REIT currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

 

Note: FFO, a widely accepted and reported measure of the performance of REITs, is derived by adding depreciation, amortization and other non-cash expenses to net income.

 

Check back later for our full write up on this HCN earnings report later!

 

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