Health Care REIT : Reports 14% Increase in Second Quarter Normalized FFO to a Record $1.06 Per Diluted Share

Health Care REIT, Inc. (NYSE:HCN) today announced operating results for the company’s second quarter ended June 30, 2014.

“Our strategy of partnering with the best-in-class seniors housing and post-acute operators as well as strong regional health systems is continuing to generate exceptional results for our shareholders,” said Tom DeRosa, CEO of HCN. “We are adding value to our high-quality portfolio through innovative programs and partnerships to generate consistent and strong same-store NOI growth, which grew 7.7% in our seniors housing operating portfolio and 4.4% in the total portfolio during the second quarter. We also maintain an investment pipeline that delivers consistent quarterly volume from our network of operating partners. The earnings power of our internal and external growth strategy culminated in 14% FFOPS growth and 15% FADPS growth for the quarter. I am proud to lead this special company positioned to continue delivering high-level performance while fulfilling our mission to improve health care delivery in the U.S., Canada and the U.K.”

Earnings Results The company earned record-high quarterly normalized FFO and FAD per share of $1.06 and $0.94, respectively, representing 14% and 15% increases from the second quarter of 2013. These earnings results are primarily attributable to strong quarterly operating results as well as $2.7 billion of investments over the last twelve months.

Dividends for Second Quarter 2014 As previously announced, the Board of Directors declared a cash dividend for the quarter ended June 30, 2014 of $0.795 per share, as compared to $0.765 per share for the same period in 2013, representing a 4% increase. On August 20, 2014, the company will pay its 173^rd consecutive quarterly cash dividend. The declaration and payment of quarterly dividends remains subject to review by and approval of the Board of Directors.

Second Quarter Investment Activity The company completed $579 million of gross investments for the quarter including $455 million in acquisitions, $44 million in development funding, $76 million in loan advances and $4 million in capital improvements. The $455 million of acquisitions have a blended initial yield of 6.5%. The acquisitions were primarily with existing relationships and are consistent with HCN’s strategic focus on high-quality properties. They include ten medical office buildings, a post-acute property operated by Genesis, a seniors housing operating property managed by Revera and eight seniors housing triple-net properties operated by existing partners. The $44 million in development funding is expected to yield 8.3% upon completion and includes seniors housing, post-acute and medical office properties. The $76 million of loans were made at a blended rate of 7.8%. In addition to the new investment activity during the quarter, the company placed into service three development properties and one property expansion totaling $65 million with a blended yield of 9.3%.

Unsecured Credit Facility Enhancements As previously announced, the company closed on a new $3.23 billion unsecured credit facility. The expanded, extended and lower-priced facility further enhances the company’s access to efficient capital and financial flexibility. The following is a summary of the key changes (with cost data reflective of HCN’s current credit ratings):

(1) Canadian denominated term loan balance was $232.9 million USD at exchange rate as of July 18, 2014. CDOR stands for Canadian Dealer Offered Rate.

Outlook for 2014 The company is increasing its 2014 guidance and now expects to generate normalized FFO in a range of $4.05 to $4.15 per diluted share from the previous range of $4.03 to $4.13 per diluted share, now representing a 6%-9% increase from 2013. The company is also increasing its normalized FAD guidance to a range of $3.57 to $3.67 per diluted share from the previous range of $3.55 to $3.65 per diluted share, now representing a 6%-9% increase from 2013. The $0.02 increase in our normalized FFO and FAD per share guidance is primarily driven by the company’s strong second quarter operating results and investment activity partially offset by an increase in dispositions guidance to $450 million from $250 million. Net income attributable to common stockholders guidance has been decreased to a range of $1.02 to $1.12 per diluted share from the previous range of $1.04 to $1.14 per diluted share due to CEO transition costs and transaction costs offset by decreased depreciation and amortization and the items noted above.

The company’s guidance does not include any additional 2014 investments beyond what it has announced, nor any transaction costs, capital transactions, 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 normalized FFO and FAD. The company will provide additional detail regarding its 2014 outlook and assumptions on the second quarter 2014 conference call.

Conference Call Information The company has scheduled a conference call on Friday, August 1, 2014 at 10:00 a.m. Eastern Time to discuss its second quarter 2014 results, industry trends, portfolio performance and outlook for 2014. Telephone access will be available by dialing 888-346-2469 or 706-758-4923 (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 15, 2014. To access the rebroadcast, dial 855-859-2056 or 404-537-3406 (international). The conference ID number is 72715970. To participate in the webcast, log on to www.hcreit.com 15 minutes before the call to download the necessary software. Replays will be available for 90 days.

Supplemental Reporting Measures The company believes that net income attributable 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 attributable to common stockholders, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and impairments of depreciable assets, plus real estate depreciation and amortization, and after adjustments for unconsolidated entities and noncontrolling interests. Normalized FFO represents FFO adjusted for certain items detailed in Exhibit 1. FAD represents FFO excluding net straight-line rental adjustments, amortization related to above/below market leases and amortization of non-cash interest 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 certain items detailed in Exhibit 1. The company believes that normalized FFO and normalized FAD are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the company between periods or as compared to other REITs or other companies on a consistent basis without having to account for differences caused by unanticipated and/or incalculable items. The company’s supplemental reporting measures and similarly entitled financial measures are widely used by investors and equity analysts in the valuation, comparison and investment recommendations of companies. The company’s management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by the company, may not be comparable to similarly entitled items reported by other real estate investment trusts or other companies. Please see the exhibits for reconciliations of supplemental reporting measures and the supplemental information package for the quarter ended June 30, 2014, which is available on the company’s website (www.hcreit.com), for information and reconciliations of additional supplemental reporting measures.

About Health Care REIT, Inc. HCN, an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate. The company also provides an extensive array of property management and development services. As of June 30, 2014, the company’s broadly diversified portfolio consisted of 1,224 properties in 46 states, the United Kingdom, and Canada. More information is available on the company’s website at www.hcreit.com.

Forward-Looking Statements and Risk Factors This document contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. In particular, these forward-looking statements include, but are not limited to, those relating to the company’s opportunities to acquire, develop or sell properties; the company’s ability to close its anticipated acquisitions, investments or dispositions on currently anticipated terms, or within currently anticipated timeframes; the expected performance of the company’s operators/tenants and properties; the company’s expected occupancy rates; the company’s ability to declare and to make distributions to shareholders; the company’s investment and financing opportunities and plans; the company’s continued qualification as a real estate investment trust (“REIT”); the company’s ability to access capital markets or other sources of funds; and the company’s ability to meet its earnings guidance. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the company’s actual results to differ materially from the company’s expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care, seniors housing and life science industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the company’s ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters and other acts of God affecting the company’s properties; the company’s ability to re-lease space at similar rates as vacancies occur; the company’s ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; the movement of U.S. and foreign currency exchange rates; the company’s ability to maintain its qualification as a REIT; key management personnel recruitment and retention; and other risks described in the company’s reports filed from time to time with the Securities and Exchange Commission. Finally, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.