Profile: Health Care REIT, Inc. (HCN)

Health Care REIT, Inc. is a real estate investment trust (REIT) that invests in senior housing and health care real estate. It also provides a range of property management and development services. As of March 31, 2008, the Company had 633 properties located in 39 states. The Company’s primary property types include investment properties and medical office buildings. Investment properties are those, in which the Company do not participate in the management of the property and are primarily land, building, improvements and related rights that are leased to operators under long-term operating leases. Its primary investment property types include skilled nursing facilities, assisted living facilities, independent living/continuing care retirement communities and certain specialty care facilities. The Company’s medical office building properties are leased to tenants under gross leases, modified gross leases or triple-net leases, to multiple tenants, and require a certain level of property management. Its properties include stand-alone facilities that provide one level of service, combination facilities that provide multiple levels of service, and communities or campuses that provide a range of services. The Company through its subsidiary, HCN Development Services Group, Inc. (DSG), develops specialty medical properties.

Assisted Living Facilities

Assisted living facilities are state regulated rental properties that provide the same services as independent living facilities, but also provide supportive care from trained employees to residents who require assistance with activities of daily living, including management of medications, bathing, dressing, toileting, ambulating and eating. Certain assisted living facilities may include state-licensed settings that specialize in caring for those afflicted with Alzheimer’s disease and/or similar forms of dementia.

Skilled Nursing Facilities

Skilled nursing facilities are licensed daily rate or rental properties, where the majority of individuals require 24-hour nursing and/or medical care. Generally, these properties are licensed for Medicaid and/or Medicare reimbursement.

Independent Living/Continuing Care Retirement Communities

These communities may include continuing care retirement communities, active adult communities and independent living facilities. Continuing care retirement communities include a combination of detached homes, an independent living facility, an assisted living facility and/or a skilled nursing facility on one campus. These communities are appealing to residents because there is no need for relocating when health and medical needs change. Resident payment plans vary, but can include entrance fees, condominium fees and rental fees. Active adult communities contain primarily for-sale, single-family homes, townhomes, cluster homes, mobile homes and/or condominiums with no specialized services. These communities are typically restricted or targeted to adults at least 55 years of age or older. Independent living facilities are age-restricted multifamily properties with central dining facilities that provide residents access to meals and other services, such as housekeeping, linen service, transportation, and social and recreational activities.

Specialty Care Facilities

The specialty care facilities include acute care hospitals, long-term acute care hospitals and other specialty care facilities. Acute care hospitals provide a range of inpatient and outpatient services, including, but not limited to, surgery, rehabilitation, therapy and clinical laboratories. Long-term acute care hospitals provide inpatient services for patients with complex medical conditions that require more intensive care, monitoring or emergency support. Other specialty care facilities provide specialized inpatient and outpatient care for specific illnesses or diseases, including, among others, orthopedic and neurologic care.

Medical Office Buildings

Medical office buildings are office and clinic facilities, often located near hospitals or on hospital campuses, specifically constructed and designed for the use by physicians and other health care personnel to provide services to their patients. They may also include ambulatory surgery centers that are used for general or specialty surgical procedures not requiring an overnight stay in a hospital. Medical office buildings contain sole and group physician practices, and may provide laboratory and other patient services.