þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 34-1096634 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
One SeaGate, Suite 1500, Toledo, Ohio | 43604 | |
(Address of principal executive office) | (Zip Code) | |
(419) 247-2800 | ||
(Registrants telephone number, including area code) |
2
3
4
5
6
7
8
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10
11
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34
HEALTH CARE REIT, INC. AND SUBSIDIARIES
June 30,
December 31,
2007
2006
(Unaudited)
(Note)
(In thousands)
$
403,460
$
386,693
4,086,599
3,659,065
136,589
84,082
24,520
14,796
173,408
138,222
4,824,576
4,282,858
(414,628
)
(347,007
)
4,409,948
3,935,851
250,238
194,448
(7,406
)
(7,406
)
242,832
187,042
4,652,780
4,122,893
4,700
4,700
19,036
20,657
38,472
36,216
109,816
96,144
172,024
157,717
$
4,824,804
$
4,280,610
$
364,400
$
225,000
1,539,155
1,541,814
500,811
378,972
52,195
52,215
98,545
101,588
2,555,106
2,299,589
2,294
2,228
338,993
338,993
80,752
73,152
2,181,830
1,873,811
(3,941
)
(2,866
)
994,463
932,853
(1,327,018
)
(1,238,860
)
(135
)
(135
)
2,460
1,845
2,267,404
1,978,793
$
4,824,804
$
4,280,610
Table of Contents
HEALTH CARE REIT, INC. AND SUBSIDIARIES
Three Months Ended
Six Months Ended
June 30,
June 30,
2007
2006
2007
2006
(In thousands, except per share data)
$
111,532
$
71,757
$
216,670
$
142,396
6,576
4,480
11,725
8,742
1,144
1,665
2,737
2,030
119,252
77,902
231,132
153,168
33,457
22,325
65,138
45,597
8,657
0
15,825
0
35,341
22,788
68,995
44,407
9,888
4,798
19,680
10,773
1,236
707
2,503
1,418
0
250
0
500
88,579
50,868
172,141
102,695
30,673
27,034
58,991
50,473
(161
)
0
(286
)
0
30,512
27,034
58,705
50,473
1,033
929
2,010
2,482
392
38
895
24
1,425
967
2,905
2,506
31,937
28,001
61,610
52,979
6,317
5,333
12,634
10,666
$
25,620
$
22,668
$
48,976
$
42,313
79,060
61,548
76,159
59,871
79,546
61,868
76,714
60,201
$
0.31
$
0.35
$
0.60
$
0.66
0.02
0.02
0.04
0.04
$
0.32
$
0.37
$
0.64
$
0.71
$
0.30
$
0.35
$
0.60
$
0.66
0.02
0.02
0.04
0.04
$
0.32
$
0.37
$
0.64
$
0.70
$
0.66
$
0.64
$
0.9591
$
1.26
*
Amounts may not sum due to rounding
Table of Contents
HEALTH CARE REIT, INC. AND SUBSIDIARIES
Six Months Ended June 30, 2007
Accumulated
Capital in
Other
Preferred
Common
Excess of
Treasury
Cumulative
Cumulative
Comprehensive
Other
Stock
Stock
Par Value
Stock
Net Income
Dividends
Income
Equity
Total
(In thousands)
$
338,993
$
73,152
$
1,873,811
$
(2,866
)
$
932,853
$
(1,238,860
)
$
(135
)
$
1,845
$
1,978,793
61,610
61,610
0
61,610
1,275
48,726
(1,075
)
(114
)
48,812
6,325
259,293
265,618
729
729
(75,524
)
(75,524
)
(3,937
)
(3,937
)
(56
)
(56
)
(6,672
)
(6,672
)
(1,969
)
(1,969
)
$
338,993
$
80,752
$
2,181,830
$
(3,941
)
$
994,463
$
(1,327,018
)
$
(135
)
$
2,460
$
2,267,404
Six Months Ended June 30, 2006
Accumulated
Capital in
Other
Preferred
Common
Excess of
Treasury
Cumulative
Cumulative
Comprehensive
Other
Stock
Stock
Par Value
Stock
Net Income
Dividends
Income
Equity
Total
(In thousands)
$
276,875
$
58,050
$
1,306,471
$
(2,054
)
$
830,103
$
(1,039,032
)
$
0
$
343
$
1,430,756
52,979
52,979
0
52,979
1,173
38,027
(660
)
(19
)
38,521
3,223
106,554
109,777
(521
)
521
0
683
683
(76,112
)
(76,112
)
(3,938
)
(3,938
)
(56
)
(56
)
(6,672
)
(6,672
)
$
276,875
$
62,446
$
1,450,531
$
(2,714
)
$
883,082
$
(1,125,810
)
$
0
$
1,528
$
1,545,938
Table of Contents
HEALTH CARE REIT, INC. AND SUBSIDIARIES
Six Months Ended
June 30,
2007
2006
(In thousands)
$
61,610
$
52,979
69,408
47,392
2,315
1,418
(4,896
)
(1,111
)
0
500
4,453
3,351
286
0
(4,123
)
8,404
(2,010
)
(2,482
)
(8,652
)
4,972
(6,482
)
(14,460
)
111,909
100,963
(411,901
)
(177,584
)
(89,959
)
(13,360
)
(1,389
)
(2,100
)
35,601
31,551
24,183
31,478
(1,673
)
(374
)
(445,138
)
(130,389
)
139,400
(49,000
)
(24,485
)
(1,411
)
309,830
146,290
(882
)
(712
)
(220
)
0
(88,158
)
(86,778
)
335,485
8,389
2,256
(21,037
)
36,216
36,237
$
38,472
$
15,200
$
66,060
$
46,945
$
146,335
$
25,049
9,815
6,050
Table of Contents
$
141,967
146,335
6,171
$
294,473
$
3,770
237,656
33,474
17,167
4
6,046
298,117
3,522
122
294,473
146,335
6,171
152,506
$
141,967
Table of Contents
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Three Months Ended
Six Months Ended
June 30,
June 30,
2007
2006
2007
2006
$
765
$
2,434
$
1,794
$
5,255
167
762
486
1,728
206
1,343
413
2,985
0
291
0
518
$
392
$
38
$
895
$
24
Table of Contents
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Three Months Ended
Six Months Ended
June 30,
June 30,
2007
2006
2007
2006
$
25,620
$
22,668
$
48,976
$
42,313
79,060
61,548
76,159
59,871
98
58
167
68
388
262
388
262
486
320
555
330
79,546
61,868
76,714
60,201
$
0.32
$
0.37
$
0.64
$
0.71
$
0.32
$
0.37
$
0.64
$
0.70
Table of Contents
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Six Months Ended
Six Months Ended
June 30, 2007
June 30, 2006
5.60
%
6.79
%
19.9
%
20.3
%
4.74
%
4.35
%
5
5
$
8.31
$
5.26
(1)
Certain options granted to employees include dividend equivalent rights (DERs). The
fair value of options with DERs also includes the net present value of projected future
dividend payments over the expected life of the option discounted at the dividend yield rate.
Number
of
Weighted
Weighted Average
Aggregate
Shares
Average
Remaining
Intrinsic
Stock Options
(000s)
Exercise Price
Contract Life (years)
Value ($000s)
917
$
30.79
7.9
124
45.73
(349
)
28.19
(2
)
39.72
690
$
34.77
7.7
$
6,293
308
$
31.09
6.7
$
3,942
$
8.31
Table of Contents
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Stock Options
Restricted Stock
Number of
Weighted Average
Number of
Weighted Average
Shares
Grant Date
Shares
Grant Date
(000s)
Fair Value
(000s)
Fair Value
478
$
5.35
248
$
34.07
(218
)
3.78
(119
)
35.22
124
8.31
260
44.85
(2
)
7.63
(1
)
39.36
382
$
7.20
388
$
40.92
Property
Net
Real Estate
Rental
Interest
Other
Total
Operating
Operating
Depreciation/
Interest
Total
Income (1)
Income
Income
Revenues (1)
Expenses
Income (2)
Amortization (1)
Expense (1)
Assets
$
84,105
$
6,576
$
90,681
$
90,681
$
25,056
$
2,312
$
3,377,096
28,192
28,192
$
8,657
19,535
10,491
4,637
1,275,684
$
1,144
1,144
1,144
26,675
172,024
$
112,297
$
6,576
$
1,144
$
120,017
$
8,657
$
111,360
$
35,547
$
33,624
$
4,824,804
$
74,191
$
4,480
$
78,671
$
78,671
$
24,131
$
2,369
$
2,958,442
$
1,665
1,665
1,665
20,718
103,670
$
74,191
$
4,480
$
1,665
$
80,336
$
0
$
80,336
$
24,131
$
23,087
$
3,062,112
Table of Contents
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Property
Net
Real Estate
Rental
Interest
Other
Total
Operating
Operating
Depreciation/
Interest
Total
Income (1)
Income
Income
Revenues (1)
Expenses
Income (2)
Amortization (1)
Expense (1)
Assets
$
164,707
$
11,725
$
176,432
$
176,432
$
49,436
$
4,622
$
3,377,096
53,757
53,757
$
15,825
37,932
19,972
8,092
1,275,684
$
2,737
2,737
2,737
52,910
172,024
$
218,464
$
11,725
$
2,737
$
232,926
$
15,825
$
217,101
$
69,408
$
65,624
$
4,824,804
$
147,651
$
8,742
$
156,393
$
156,393
$
47,392
$
4,347
$
2,958,442
$
2,030
2,030
2,030
42,978
103,670
$
147,651
$
8,742
$
2,030
$
158,423
$
0
$
158,423
$
47,392
$
47,325
$
3,062,112
(1)
Includes amounts from discontinued operations.
(2)
Net operating income (NOI) is used to evaluate the operating performance of our
properties. We define NOI as total revenues, including tenant reimbursements, less property
level operating expenses, which exclude depreciation and amortization, general and
administrative expenses, impairments, interest expense and discontinued operations. We believe
NOI provides investors relevant and useful information because it measures the operating
performance of our properties at the property level on an unleveraged basis. We use NOI to
make decisions about resource allocations and to assess the property level performance of our
properties.
Table of Contents
Investments(1)
Percentage of
Revenues(2)
Percentage of
Number of
# Beds/Units
Investment per
Operators/
Type of Property
(in thousands)
Investments
(in thousands)
Revenues(2)
Properties
or Sq. Ft.
metric (3)
Tenants
States
$
588,241
13
%
$
21,137
9
%
50
6,037
units
$145,264
per unit
20
20
1,032,430
22
%
52,815
23
%
206
12,516
units
90,521
per unit
24
33
1,535,795
33
%
91,458
39
%
232
31,446
beds
49,048
per bed
22
28
1,202,284
26
%
50,076
21
%
109
4,275,776
sq. ft.
281
per sq. ft.
811
17
303,886
6
%
14,703
6
%
20
1,508
beds
224,934
per bed
9
9
2,737
2
%
$
4,662,636
100
%
$
232,926
100
%
617
(1)
Investments include gross real estate investments and credit enhancements which amounted to
$4,660,186,000 and $2,450,000, respectively.
(2)
Revenues include gross revenues and revenues from discontinued operations for the six months
ended June 30, 2007.
(3)
Investment per metric was computed by using the total investment amount of $5,093,748,000
which includes gross real estate investments, credit enhancements and unfunded construction
commitments for which initial funding has commenced which amounted to $4,660,186,000,
$2,450,000 and $431,112,000, respectively.
Table of Contents
our Board of Directors increased our quarterly dividend to $0.66 per share, which
represents a two cent increase from the quarterly dividend of $0.64 paid for 2006. The
dividend declared for the quarter ended June 30, 2007 represents the 145
th
consecutive dividend payment;
we completed $661,790,000 of gross investments and had $52,038,000 of investment payoffs
during the six months ended June 30, 2007;
we completed a public offering of 6,325,000 shares of common stock with net proceeds to
the company of approximately $265,337,000 in April 2007;
we issued $400,000,000 of 4.75% convertible senior unsecured notes due July 2027 with
net proceeds to the company of approximately $389,500,000 in July 2007; and
we closed on a $1,150,000,000 unsecured revolving credit facility to replace our
$700,000,000 facility which was scheduled to mature in July 2009 and our $40,000,000
facility which was scheduled to mature in May 2008. Among other things, the new facility
provides us with additional financial flexibility and borrowing capacity, extends our
agreement to August 2011 and reduces our borrowing cost from 80 basis points to 60 basis
points over LIBOR.
Table of Contents
Three Months Ended
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
2006
2006
2006
2006
2007
2007
$
19,645
$
22,668
$
21,480
$
17,494
$
23,356
$
25,620
41,354
45,870
45,898
44,459
56,207
59,979
49,975
47,071
48,032
46,809
53,825
59,016
$
0.34
$
0.37
$
0.34
$
0.27
$
0.32
$
0.32
0.71
0.74
0.73
0.69
0.76
0.75
0.85
0.76
0.76
0.72
0.73
0.74
Three Months Ended
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
2006
2006
2006
2006
2007
2007
52
%
49
%
51
%
53
%
54
%
52
%
38
%
37
%
36
%
39
%
40
%
41
%
2.99x
3.16x
2.98x
2.75x
2.82x
2.83x
2.41x
2.52x
2.41x
2.23x
2.28x
2.30x
Table of Contents
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
2006
2006
2006
2006
2007
2007
94
%
94
%
93
%
95
%
94
%
95
%
6
%
6
%
7
%
5
%
6
%
5
%
15
%
15
%
16
%
13
%
13
%
13
%
33
%
33
%
32
%
25
%
24
%
22
%
45
%
45
%
46
%
34
%
36
%
33
%
22
%
21
%
26
%
7
%
7
%
6
%
6
%
6
%
6
%
12
%
12
%
11
%
9
%
8
%
8
%
10
%
10
%
9
%
7
%
7
%
6
%
8
%
6
%
6
%
5
%
7
%
8
%
7
%
6
%
6
%
5
%
7
%
7
%
6
%
4
%
4
%
4
%
6
%
6
%
58
%
57
%
59
%
68
%
69
%
72
%
14
%
14
%
15
%
17
%
16
%
16
%
8
%
8
%
8
%
11
%
13
%
13
%
12
%
11
%
11
%
8
%
8
%
7
%
7
%
7
%
7
%
9
%
9
%
8
%
6
%
6
%
6
%
7
%
7
%
6
%
50
%
51
%
52
%
51
%
50
%
51
%
March 31, 2005
March 31, 2006
March 31, 2007
CBMF
CAMF
CBMF
CAMF
CBMF
CAMF
1.47x
1.25x
1.42x
1.22x
1.49x
1.27x
1.53x
1.31x
1.59x
1.38x
2.18x
1.65x
2.16x
1.58x
2.20x
1.58x
3.46x
2.82x
3.02x
2.42x
2.64x
2.09x
1.90x
1.52x
1.93x
1.51x
1.96x
1.52x
(1)
As a result of our significant independent living/continuing care retirement community
acquisitions in the fourth quarter of 2005, we began to separately disclose this facility
classification in our portfolio reporting. We adopted the National Investment Center
definitions and reclassified certain of our existing facilities to this classification.
Table of Contents
Rental
Property Operating
Net Operating
Income
Expenses
Income
$
26,289
$
8,597
$
17,692
1,903
60
1,843
$
28,192
$
8,657
$
19,535
$
50,076
$
15,748
$
34,328
3,681
77
3,604
$
53,757
$
15,825
$
37,932
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
$
36,216
$
36,237
$
(21
)
0
%
111,909
100,963
10,946
11
%
(445,138
)
(130,389
)
(314,749
)
241
%
335,485
8,389
327,096
3,899
%
$
38,472
$
15,200
$
23,272
153
%
Table of Contents
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
$
8,109
$
4,616
$
3,493
76
%
0
(1,494
)
1,494
-100
%
(4,910
)
(11,526
)
6,616
-57
%
924
0
924
n/a
$
4,123
$
(8,404
)
$
12,527
n/a
Six Months Ended
June 30, 2007
June 30, 2006
Facilities
Amount
Facilities
Amount
1
$
6,781
2
$
9,875
3
26,150
7
103,300
11
87,482
19
314,175
1
11,923
6,127
3,274
29
445,400
15
123,687
(146,335
)
(25,049
)
(3,765
)
295,300
98,638
104,520
70,296
12,081
8,650
411,901
177,584
3
16,037
4
26,974
1
4,500
2
4,017
3,646
487
4
24,183
6
31,478
25
$
387,718
9
$
146,106
$
76,875
$
10,601
13,084
2,759
89,959
13,360
29,936
21,240
5,665
10,311
35,601
31,551
$
54,358
$
(18,191
)
Table of Contents
Shares Issued
Issue Price
Gross Proceeds
Net Proceeds
3,222,800
$
36.00
$
116,021
$
109,777
959,501
34.73
33,323
33,323
148,302
21.51
3,190
3,190
4,330,603
$
152,534
$
146,290
6,325,000
$
44.01
$
278,363
$
265,618
787,382
43.64
34,362
34,362
349,437
28.19
9,850
9,850
7,461,819
$
322,575
$
309,830
Six Months Ended
June 30, 2007
June 30, 2006
Per Share
Amount
Per Share
Amount
$
0.9591
$
75,524
$
1.2600
$
76,112
0.9844
3,937
0.9844
3,938
0.7500
56
0.7500
56
0.9532
6,672
0.9532
6,672
0.9376
1,969
0
$
88,158
$
86,778
Table of Contents
Payments Due by Period
Contractual Obligations
Total
2007
2008-2009
2010-2011
Thereafter
$
364,400
$
0
$
364,400
$
0
$
0
1,539,830
52,500
42,330
1,445,000
500,435
4,070
80,716
66,989
348,660
51,000
51,000
1,121,966
79,816
283,668
234,928
523,554
0
49,704
1,515
5,496
4,847
37,846
466,678
52,992
266,634
147,052
0
$
4,094,013
$
190,893
$
1,043,244
$
453,816
$
2,406,060
(1)
Amounts represent principal amounts due and do not reflect unamortized premiums/discounts or
other fair value adjustments as reflected on the balance sheet.
Table of Contents
Three Months Ended
Change
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
June 30, 2007
June 30, 2006
$
%
$
25,620
$
22,668
$
2,952
13
%
$
48,976
$
42,313
$
6,663
16
%
59,979
45,870
14,109
31
%
116,187
87,223
28,964
33
%
59,016
47,071
11,945
25
%
112,842
97,045
15,797
16
%
102,275
75,938
26,337
35
%
199,087
149,126
49,961
34
%
$
0.32
$
0.37
$
(0.05
)
-14
%
$
0.64
$
0.70
$
(0.06
)
-9
%
0.75
0.74
0.01
1
%
1.51
1.45
0.06
4
%
0.74
0.76
(0.02
)
-3
%
1.47
1.61
(0.14
)
-9
%
2.83x
3.16x
-0.33x
-10
%
2.82x
3.08x
-0.26x
-8
%
2.30x
2.52x
-0.22x
-9
%
2.29x
2.46x
-0.17x
-7
%
Table of Contents
Three Months Ended
Change
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
June 30, 2007
June 30, 2006
$
%
$
111,532
$
71,757
$
39,775
55
%
$
216,670
$
142,396
$
74,274
52
%
6,576
4,480
2,096
47
%
11,725
8,742
2,983
34
%
1,144
1,665
(521
)
-31
%
2,737
2,030
707
35
%
$
119,252
$
77,902
$
41,350
53
%
$
231,132
$
153,168
$
77,964
51
%
Three Months Ended
Change
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
June 30, 2007
June 30, 2006
$
%
$
33,457
$
22,325
$
11,132
50
%
$
65,138
$
45,597
$
19,541
43
%
8,657
0
8,657
n/a
15,825
0
15,825
n/a
35,341
22,788
12,553
55
%
68,995
44,407
24,588
55
%
9,888
4,798
5,090
106
%
19,680
10,773
8,907
83
%
1,236
707
529
75
%
2,503
1,418
1,085
77
%
0
250
(250
)
-100
%
0
500
(500
)
-100
%
$
88,579
$
50,868
$
37,711
74
%
$
172,141
$
102,695
$
69,446
68
%
Three Months Ended
Change
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
June 30, 2007
June 30, 2006
$
%
$
23,671
$
19,574
$
4,097
21
%
$
47,342
$
39,149
$
8,193
21
%
6,949
2,369
4,580
193
%
12,714
4,347
8,367
192
%
4,592
1,997
2,595
130
%
8,633
4,869
3,764
77
%
931
0
931
n/a
1,781
0
1,781
n/a
(2,570
)
(909
)
(1,661
)
183
%
(4,896
)
(1,111
)
(3,785
)
341
%
51
56
(5
)
-9
%
50
71
(21
)
-30
%
(167
)
(762
)
595
-78
%
(486
)
(1,728
)
1,242
-72
%
$
33,457
$
22,325
$
11,132
50
%
$
65,138
$
45,597
$
19,541
43
%
Table of Contents
Three Months Ended
Three Months Ended
Six Months Ended
Six Months Ended
June 30, 2007
June 30, 2006
June 30, 2007
June 30, 2006
Weighted Avg.
Weighted Avg.
Weighted Avg.
Weighted Avg.
Amount
Interest Rate
Amount
Interest Rate
Amount
Interest Rate
Amount
Interest Rate
$
376,506
6.347
%
$
131,946
7.135
%
$
378,400
6.406
%
$
107,540
7.328
%
146,335
5.824
%
146,335
5.824
%
25,049
6.315
%
(20,506
)
7.732
%
(20,506
)
7.732
%
(1,900
)
6.425
%
(768
)
7.212
%
(3,794
)
6.466
%
(1,411
)
7.292
%
$
500,435
6.137
%
$
131,178
7.135
%
$
500,435
6.137
%
$
131,178
7.135
%
$
518,860
6.187
%
$
131,563
7.135
%
$
521,101
6.194
%
$
121,176
7.208
%
Three Months Ended June 30,
Six Months Ended June 30,
2007
2006
2007
2006
$
364,400
$
146,000
$
364,400
$
146,000
$
364,400
$
146,000
$
381,000
$
201,000
$
270,891
$
111,247
$
257,346
$
147,605
6.78
%
7.18
%
6.71
%
6.60
%
Table of Contents
Three Months Ended
Change
Six Months Ended
Change
June 30, 2007
June 30, 2006
$
%
June 30, 2007
June 30, 2006
$
%
$
(161
)
$
0
$
(161
)
n/a
$
(286
)
$
0
$
(286
)
n/a
1,033
929
104
11
%
2,010
2,482
(472
)
-19
%
392
38
354
932
%
895
24
871
3,629
%
(6,317
)
(5,333
)
(984
)
18
%
(12,634
)
(10,666
)
(1,968
)
18
%
$
(5,053
)
$
(4,366
)
$
(687
)
16
%
$
(10,015
)
$
(8,160
)
$
(1,855
)
23
%
Table of Contents
Table of Contents
Three Months Ended
Six Months Ended
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
June 30,
June 30,
2006
2006
2006
2006
2007
2007
2006
2007
$
19,645
$
22,668
$
21,480
$
17,494
$
23,356
$
25,620
$
42,313
$
48,976
23,262
24,131
24,526
25,645
33,860
35,547
47,392
69,408
(1,553
)
(929
)
(108
)
1,324
(977
)
(1,033
)
(2,482
)
(2,010
)
0
0
0
(4
)
(32
)
(155
)
0
(187
)
$
41,354
$
45,870
$
45,898
$
44,459
$
56,207
$
59,979
$
87,223
$
116,187
58,178
61,548
62,524
64,277
73,224
79,060
59,871
76,159
58,535
61,868
62,866
64,687
73,791
79,546
60,201
76,714
$
0.34
$
0.37
$
0.34
$
0.27
$
0.32
$
0.32
$
0.71
$
0.64
0.34
0.37
0.34
0.27
0.32
0.32
0.70
0.64
$
0.71
$
0.75
$
0.73
$
0.69
$
0.77
$
0.76
$
1.46
$
1.53
0.71
0.74
0.73
0.69
0.76
0.75
1.45
1.51
Three Months Ended
Six Months Ended
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
June 30,
June 30,
2006
2006
2006
2006
2007
2007
2006
2007
$
19,645
$
22,668
$
21,480
$
17,494
$
23,356
$
25,620
$
42,313
$
48,976
23,262
24,131
24,526
25,645
33,860
35,547
47,392
69,408
(1,553
)
(929
)
(108
)
1,324
(977
)
(1,033
)
(2,482
)
(2,010
)
(2,400
)
(2,216
)
(1,904
)
(2,912
)
(4,231
)
(3,878
)
(4,616
)
(8,109
)
10,310
2,710
3,256
4,285
2,078
2,832
13,020
4,910
0
0
0
(60
)
(460
)
(464
)
0
(924
)
711
707
782
1,056
1,267
1,236
1,418
2,503
0
0
0
(21
)
(1,063
)
(762
)
0
(1,825
)
0
0
0
(2
)
(5
)
(82
)
0
(87
)
$
49,975
$
47,071
$
48,032
$
46,809
$
53,825
$
59,016
$
97,045
$
112,842
58,178
61,548
62,524
64,277
73,224
79,060
59,871
76,159
58,535
61,868
62,866
64,687
73,791
79,546
60,201
76,714
$
0.34
$
0.37
$
0.34
$
0.27
$
0.32
$
0.32
$
0.71
$
0.64
0.34
0.37
0.34
0.27
0.32
0.32
0.70
0.64
$
0.86
$
0.76
$
0.77
$
0.73
$
0.74
$
0.75
$
1.62
$
1.48
0.85
0.76
0.76
0.72
0.73
0.74
1.61
1.47
Table of Contents
Three Months Ended
Six Months Ended
March 31,
June 30,
September 30,
December 31,
March 31,
June 30,
June 30,
June 30,
2006
2006
2006
2006
2007
2007
2006
2007
$
24,978
$
28,001
$
26,813
$
22,958
$
29,673
$
31,937
$
52,979
$
61,610
24,238
23,087
24,274
25,235
31,999
33,624
47,325
65,624
0
12
70
0
11
(69
)
12
(58
)
23,262
24,131
24,526
25,645
33,860
35,547
47,392
69,408
711
707
782
1,056
1,267
1,236
1,418
2,503
73,189
75,938
76,465
74,894
96,810
102,275
149,126
199,087
2,514
838
839
2,789
3,177
1,276
3,351
4,453
250
250
250
250
0
0
500
0
$
75,953
$
77,026
$
77,554
$
77,933
$
99,987
$
103,551
$
152,977
$
203,540
$
24,238
$
23,087
$
24,274
$
25,235
$
31,999
$
33,624
$
47,325
$
65,624
202
909
1,384
1,976
2,327
2,570
1,111
4,896
24,440
23,996
25,658
27,211
34,326
36,194
48,436
70,520
$
73,189
$
75,938
$
76,465
$
74,894
$
96,810
$
102,275
$
149,126
$
199,087
2.99x
3.16x
2.98x
2.75x
2.82x
2.83x
3.08x
2.82x
$
75,953
$
77,026
$
77,554
$
77,933
$
99,987
$
103,551
$
152,977
$
203,540
3.11x
3.21x
3.02x
2.86x
2.91x
2.86x
3.16x
2.89x
$
24,440
$
23,996
$
25,658
$
27,211
$
34,326
$
36,194
$
48,436
$
70,520
643
768
773
849
1,894
1,894
1,411
3,788
5,333
5,333
5,333
5,464
6,317
6,317
10,666
12,634
30,416
30,097
31,764
33,524
42,537
44,405
60,513
86,942
$
73,189
$
75,938
$
76,465
$
74,894
$
96,810
$
102,275
$
149,126
$
199,087
2.41x
2.52x
2.41x
2.23x
2.28x
2.30x
2.46x
2.29x
$
75,953
$
77,026
$
77,554
$
77,933
$
99,987
$
103,551
$
152,977
$
203,540
2.50x
2.56x
2.44x
2.32x
2.35x
2.33x
2.53x
2.34x
Table of Contents
the nature of the estimates or assumptions is material due to the levels of subjectivity
and judgment necessary to account for highly uncertain matters or the susceptibility of
such matters to change; and
the impact of the estimates and assumptions on financial condition or operating
performance is material.
Nature of Critical
Assumptions/Approach
Accounting Estimate
Used
The determination of the
allowance is based on a quarterly
evaluation of all outstanding
loans, including general economic
conditions and estimated
collectibility of loan payments
and principal. We evaluate the
collectibility of our loans
receivable based on a combination
of factors, including, but not
limited to, delinquency status,
historical loan charge-offs,
financial strength of the
borrower and guarantors and value
of the underlying property.
As a result of our quarterly
evaluation, we concluded that the
allowance for loan losses at
December 31, 2006 remained
appropriate as of June 30, 2007,
resulting in an allowance for
loan losses of $7,406,000
relating to loans with
outstanding balances of
$97,778,000. Also at June 30,
2007, we had a loan with an
outstanding balance of $799,000
on non-accrual status.
Table of Contents
Nature of Critical
Assumptions/Approach
Accounting Estimate
Used
We compute depreciation
and amortization on our
properties using the
straight-line method based
on their estimated useful
lives which range from 15 to
40 years for buildings and
five to 15 years for
improvements. Lives for
intangibles are based on the
remaining term of the
underlying leases.
For the six months ended
June 30, 2007, we recorded
$55,968,000, $8,112,000 and
$5,328,000 as provisions for
depreciation and
amortization relating to
buildings, improvements and
intangibles, respectively,
including amounts
reclassified as discontinued
operations. The average
useful life of our
buildings, improvements and
intangibles was 32.4 years,
12.0 years and 5.3 years,
respectively, for the six
months ended June 30, 2007.
The net book value of
long-lived assets is
reviewed quarterly on a
property by property basis
to determine if there are
indicators of impairment.
These indicators may include
anticipated operating losses
at the property level, the
tenants inability to make
rent payments, a decision to
dispose of an asset before
the end of its estimated
useful life and changes in
the market that may
permanently reduce the value
of the property. If
indicators of impairment
exist, then the undiscounted
future cash flows from the
most likely use of the
property are compared to the
current net book value.
This analysis requires us to
determine if indicators of
impairment exist and to
estimate the most likely
stream of cash flows to be
generated from the property
during the period the
property is expected to be
held.
We did not record any
impairment charges for the
six months ended June 30,
2007.
The valuation of derivative
instruments requires us to
make estimates and judgments
that affect the fair value
of the instruments. Fair
values for our derivatives
are estimated by a third
party consultant, which
utilizes pricing models that
consider forward yield
curves and discount rates.
Such amounts and the
recognition of such amounts
are subject to significant
estimates which may change
in the future. At June 30,
2007, we participated in two
interest rate swap
agreements related to our
long-term debt. At June 30,
2007, the swaps were
reported at their fair value
as a $1,679,000 other
liability. For the six
months ended June 30, 2007,
we incurred $50,000 of
losses related to our swaps
that was recorded as an
addition to interest
expense.
Table of Contents
Nature of Critical
Assumptions/Approach
Accounting Estimate
Used
We evaluate the collectibility
of our revenues and related
receivables on an on-going basis.
We evaluate collectibility based on
assumptions and other considerations
including, but not limited to, the
certainty of payment, payment
history, the financial strength of
the investments underlying
operations as measured by cash flows
and payment coverages, the value of
the underlying collateral and
guaranties and current economic
conditions.
If our evaluation indicates that
collectibility is not reasonably
assured, we may place an investment
on non-accrual or reserve against
all or a portion of current income
as an offset to revenue.
For the six months ended June 30,
2007, we recognized $11,725,000 of
interest income and $218,464,000 of
rental income, including
discontinued operations. Cash
receipts on leases with deferred
revenue provisions were $4,910,000
as compared to gross straight-line
rental income recognized of
$8,109,000 for the six months ended
June 30, 2007. At June 30, 2007,
our straight-line receivable balance
was $56,419,000, net of reserves
totaling $2,854,000. Also at June
30, 2007, we had a loan with an
outstanding balance of $799,000 on
non-accrual status.
Table of Contents
June 30, 2007
June 30, 2006
Change in
Change in
Balance
fair value
Balance
fair value
$
1,539,830
$
(66,569
)
$
1,194,830
$
(33,250
)
486,029
(24,392
)
131,178
(5,690
)
51,000
(1,695
)
$
2,076,859
$
(92,656
)
$
1,326,008
$
(38,940
)
Table of Contents
Nominee
For
Withheld
63,485,501
1,289,817
63,821,699
953,619
63,809,530
965,788
63,416,174
1,359,144
55,096,506
9,259,769
419,043
63,843,478
615,803
316,038
Table of Contents
36,962,914
9,727,620
405,667
6,750,490
1,034,177
51,030
Table of Contents
3.1
Second Restated Certificate of Incorporation of Health Care REIT, Inc. (filed with the
SEC as Exhibit 3.1 to Health
Care REIT, Inc.s Form 10-K filed March 20, 2000, and incorporated herein by reference
thereto).
3.2
Certificate of Designation, Preferences and Rights of Junior Participating Preferred
Stock, Series A, of Health Care
REIT, Inc. (filed with the SEC as Exhibit 3.1 to Health Care REIT, Inc.s Form 10-K
filed March 20, 2000, and incorporated herein by reference thereto).
3.3
Certificate of Amendment of Second Restated Certificate of Incorporation of Health Care
REIT, Inc. (filed with the SEC
as Exhibit 3.1 to Health Care REIT, Inc.s Form 10-K filed March 20, 2000, and
incorporated herein by reference thereto).
3.4
Certificate of Amendment of Second Restated Certificate of Incorporation of Health Care
REIT, Inc. (filed with the SEC
as Exhibit 3.1 to Health Care REIT, Inc.s Form 8-K filed June 13, 2003, and
incorporated herein by reference thereto).
3.5
Certificate of Designation of 7 7/8% Series D Cumulative Redeemable Preferred Stock of
Health Care REIT, Inc. (filed
with the SEC as Exhibit 2.5 to Health Care REIT, Inc.s Form 8-A/A filed July 8, 2003,
and incorporated herein by reference thereto).
3.6
Certificate of Designation of 6% Series E Cumulative Convertible and Redeemable Preferred
Stock of Health Care
REIT, Inc. (filed with the SEC as Exhibit 3.1 to Health Care REIT, Inc.s Form 8-K
filed October 1, 2003, and incorporated herein by reference thereto).
3.7
Certificate of Designation of 7 5/8% Series F Cumulative Redeemable Preferred Stock of
Health Care REIT, Inc. (filed
with the SEC as Exhibit 2.5 to Health Care REIT, Inc.s Form 8-A filed September 10,
2004, and incorporated herein by reference thereto).
3.8
Certificate of Designation of 7.5% Series G Cumulative Convertible Preferred Stock of
Health Care REIT, Inc. (filed
with the SEC as Exhibit 3.1 to Health Care REIT, Inc.s Form 8-K filed December 20,
2006, and incorporated herein by reference thereto).
3.9
Certificate of Amendment of Second Restated Certificate of Incorporation of Health Care
REIT, Inc.
10.1
Credit Agreement by and among Health Care REIT, Inc. and certain of its subsidiaries and
Fifth Third Bank, dated as of
May 31, 2007 (filed with the SEC as Exhibit 10.1 to Health Care REIT, Inc.s Form 10-Q
filed May 10, 2007, and incorporated herein by reference thereto).
10.2
Fourth Amended and Restated Loan Agreement, dated as of August 6, 2007, by and among
Health Care REIT, Inc. and
certain of its subsidiaries, the banks signatory thereto, KeyBank National
Association, as administrative agent, Deutsche Bank Securities Inc., as syndication
agent, and UBS Securities LLC, Bank of America, N.A., JPMorgan Chase
Bank, N.A., Barclays Bank PLC, Calyon New York Branch and Fifth Third Bank, as
documentation agents.
31.1
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.
31.2
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.
32.1
Certification pursuant to 18 U.S.C. Section 1350 by Chief Executive Officer.
32.2
Certification pursuant to 18 U.S.C. Section 1350 by Chief Financial Officer.
Date: August 9, 2007
By:
/s/
George L. Chapman
George L. Chapman,
Chairman and Chief Executive Officer
(Principal Executive Officer)
Date: August 9, 2007
By:
/s/
Scott A. Estes
Scott A. Estes,
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
Date:August 9, 2007
By:
/s/ P
aul D. Nungester, Jr.
Paul D. Nungester, Jr.,
Vice President and Controller
(Principal Accounting Officer)
By: | /s/ Erin C. Ibele | |||
Erin C. Ibele | ||||
Senior Vice President-Administration
and Corporate Secretary |
||||
PAGE | ||||||||
Article 1. Definitions | 2 | |||||||
|
||||||||
|
Section 1.1 | Defined Terms | 2 | |||||
|
Section 1.2 | GAAP | 15 | |||||
|
||||||||
Article 2. Revolving Credit Commitments; Revolving Credit Loans | 15 | |||||||
|
||||||||
|
Section 2.1 | Revolving Credit Loans | 15 | |||||
|
Section 2.2 | Notices Relating to Revolving Credit Loans | 16 | |||||
|
Section 2.3 | Disbursement of Loan Proceeds | 16 | |||||
|
Section 2.4 | Notes | 17 | |||||
|
Section 2.5 | Payment of Revolving Credit Loans; Termination of and Voluntary Changes in Commitments; Mandatory Repayments | 17 | |||||
|
Section 2.6 | Interest | 18 | |||||
|
Section 2.7 | Fees | 19 | |||||
|
Section 2.8 | Use of Proceeds of Loans | 20 | |||||
|
Section 2.9 | Computations | 20 | |||||
|
Section 2.10 | Minimum Amounts of Borrowings, Conversions and Repayments | 20 | |||||
|
Section 2.11 | Time and Method of Payments | 20 | |||||
|
Section 2.12 | Lending Offices | 21 | |||||
|
Section 2.13 | Several Obligations | 21 | |||||
|
Section 2.14 | Pro Rata Treatment Among Banks | 21 | |||||
|
Section 2.15 | Non-Receipt of Funds by the Agent | 21 | |||||
|
Section 2.16 | Sharing of Payments and Set-Off Among Banks | 22 | |||||
|
Section 2.17 | Conversion of Loans | 22 | |||||
|
Section 2.18 | Additional Costs; Capital Requirements | 22 | |||||
|
Section 2.19 | Limitation on Types of Loans | 24 | |||||
|
Section 2.20 | Illegality | 24 | |||||
|
Section 2.21 | Certain Conversions pursuant to Sections 2.18 and 2.20 | 25 | |||||
|
Section 2.22 | Indemnification | 25 | |||||
|
Section 2.23 | Swing Line Loans | 26 | |||||
|
Section 2.24 | Extension of Revolving Credit Commitment Termination Date | 27 | |||||
|
Section 2.25 | Increase in Total Revolving Credit Commitment | 28 | |||||
|
||||||||
Article 3. Representations and Warranties | 29 | |||||||
|
||||||||
|
Section 3.1 | Organization | 29 | |||||
|
Section 3.2 | Power, Authority, Consents | 29 | |||||
|
Section 3.3 | No Violation of Law or Agreements | 30 | |||||
|
Section 3.4 | Due Execution, Validity, Enforceability | 30 | |||||
|
Section 3.5 | Title to Properties | 30 | |||||
|
Section 3.6 | Judgments, Actions, Proceedings | 30 | |||||
|
Section 3.7 | No Defaults, Compliance With Laws | 30 | |||||
|
Section 3.8 | Burdensome Documents | 31 | |||||
|
Section 3.9 | Financial Statements; Projections | 31 |
PAGE | ||||||||
|
Section 3.10 | Tax Returns | 31 | |||||
|
Section 3.11 | Intangible Assets | 32 | |||||
|
Section 3.12 | Regulation U | 32 | |||||
|
Section 3.13 | Name Changes, Mergers, Acquisitions | 32 | |||||
|
Section 3.14 | Full Disclosure | 32 | |||||
|
Section 3.15 | Licenses and Approvals | 32 | |||||
|
Section 3.16 | ERISA | 33 | |||||
|
Section 3.17 | REIT Status | 33 | |||||
|
||||||||
Article 4. Conditions to the Loans | 33 | |||||||
|
||||||||
|
Section 4.1 | Conditions to Initial Loan(s) | 33 | |||||
|
Section 4.2 | Conditions to Subsequent Loans | 34 | |||||
|
||||||||
Article 5. Delivery of Financial Reports, Documents and Other Information | 35 | |||||||
|
||||||||
|
Section 5.1 | Annual Financial Statements | 35 | |||||
|
Section 5.2 | Quarterly Financial Statements | 35 | |||||
|
Section 5.3 | Compliance Information | 36 | |||||
|
Section 5.4 | No Default Certificate | 36 | |||||
|
Section 5.5 | Intentionally Omitted | 36 | |||||
|
Section 5.6 | Intentionally Omitted | 36 | |||||
|
Section 5.7 | Business Plan and Projections | 36 | |||||
|
Section 5.8 | Quarterly Facility Reports | 36 | |||||
|
Section 5.9 | Accountants Reports | 37 | |||||
|
Section 5.10 | Copies of Documents | 37 | |||||
|
Section 5.11 | Notices of Defaults | 37 | |||||
|
Section 5.12 | ERISA Notices and Requests | 37 | |||||
|
Section 5.13 | Additional Information | 38 | |||||
|
||||||||
Article 6. Affirmative Covenants | 38 | |||||||
|
||||||||
|
Section 6.1 | Books and Records | 38 | |||||
|
Section 6.2 | Inspections and Audits | 38 | |||||
|
Section 6.3 | Maintenance and Repairs | 38 | |||||
|
Section 6.4 | Continuance of Business | 39 | |||||
|
Section 6.5 | Copies of Corporate Documents | 39 | |||||
|
Section 6.6 | Perform Obligations | 39 | |||||
|
Section 6.7 | Notice of Litigation | 39 | |||||
|
Section 6.8 | Insurance | 39 | |||||
|
Section 6.9 | Financial Covenants | 40 | |||||
|
Section 6.10 | Notice of Certain Events | 40 | |||||
|
Section 6.11 | Comply with ERISA | 41 | |||||
|
Section 6.12 | Environmental Compliance | 41 | |||||
|
Section 6.13 | Maintenance of REIT Status | 41 | |||||
|
||||||||
Article 7. Negative Covenants | 41 | |||||||
|
||||||||
|
Section 7.1 | Indebtedness | 41 | |||||
|
Section 7.2 | Liens | 42 | |||||
|
Section 7.3 | Guaranties | 42 |
-ii-
PAGE | ||||||||
|
Section 7.4 | Mergers, Acquisitions | 43 | |||||
|
Section 7.5 | Distributions | 43 | |||||
|
Section 7.6 | Changes in Structure | 43 | |||||
|
Section 7.7 | Disposition of Assets | 43 | |||||
|
Section 7.8 | Investments | 44 | |||||
|
Section 7.9 | Fiscal Year | 45 | |||||
|
Section 7.10 | ERISA Obligations | 45 | |||||
|
Section 7.11 | Intentionally Omitted | 45 | |||||
|
Section 7.12 | Intentionally Omitted | 45 | |||||
|
Section 7.13 | Use of Cash | 45 | |||||
|
Section 7.14 | Transactions with Affiliates | 46 | |||||
|
Section 7.15 | Hazardous Material | 46 | |||||
|
Section 7.16 | Construction Investments | 46 | |||||
|
||||||||
Article 8. Events of Default | 47 | |||||||
|
||||||||
|
Section 8.1 | Payments | 47 | |||||
|
Section 8.2 | Certain Covenants | 47 | |||||
|
Section 8.3 | Other Covenants | 47 | |||||
|
Section 8.4 | Other Defaults | 47 | |||||
|
Section 8.5 | Representations and Warranties | 48 | |||||
|
Section 8.6 | Bankruptcy | 48 | |||||
|
Section 8.7 | Judgments | 48 | |||||
|
Section 8.8 | ERISA | 49 | |||||
|
Section 8.9 | Material Adverse Effect | 49 | |||||
|
Section 8.10 | Ownership | 49 | |||||
|
Section 8.11 | REIT Status, Etc. | 49 | |||||
|
Section 8.12 | Environmental | 49 | |||||
|
Section 8.13 | Default by Operator | 49 | |||||
|
||||||||
Article 9. The Agent | 50 | |||||||
|
||||||||
|
Section 9.1 | Appointment, Powers and Immunities | 50 | |||||
|
Section 9.2 | Reliance by Agent | 50 | |||||
|
Section 9.3 | Events of Default | 50 | |||||
|
Section 9.4 | Rights as a Bank | 51 | |||||
|
Section 9.5 | Indemnification | 51 | |||||
|
Section 9.6 | Non-Reliance on Agent and other Banks | 51 | |||||
|
Section 9.7 | Failure to Act | 52 | |||||
|
Section 9.8 | Resignation or Removal of Agent | 52 | |||||
|
Section 9.9 | Sharing of Payments | 52 | |||||
|
||||||||
Article 10. Miscellaneous Provisions | 53 | |||||||
|
||||||||
|
Section 10.1 | Fees and Expenses; Indemnity | 53 | |||||
|
Section 10.2 | Taxes | 54 | |||||
|
Section 10.3 | Payments | 55 | |||||
|
Section 10.4 | Survival of Agreements and Representations; Construction | 55 | |||||
|
Section 10.5 | Lien on and Set-off of Deposits | 55 | |||||
|
Section 10.6 | Modifications, Consents and Waivers; Entire Agreement | 56 |
-iii-
PAGE | ||||||||
|
Section 10.7 | Remedies Cumulative; Counterclaims | 56 | |||||
|
Section 10.8 | Further Assurances | 57 | |||||
|
Section 10.9 | Notices | 57 | |||||
|
Section 10.10 | Counterparts | 58 | |||||
|
Section 10.11 | Severability | 58 | |||||
|
Section 10.12 | Binding Effect; No Assignment or Delegation by Borrowers | 59 | |||||
|
Section 10.13 | Assignments and Participations by Banks | 59 | |||||
|
Section 10.14 | Delivery of Tax Forms | 61 | |||||
|
Section 10.15 | GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF TRIAL BY JURY | 61 | |||||
|
Section 10.16 | Confidentiality | 62 | |||||
|
Section 10.17 | USA Patriot Act Notice; Anti-Money Laundering | 63 | |||||
|
Section 10.18 | Syndication Agent and Documentation Agents | 63 |
EXHIBITS: | ||
|
||
1
|
List of Borrowers | |
A-1
|
Form of Revolving Credit Note | |
A-2
|
Form of Swing Line Note | |
B
|
Form of Assignment and Acceptance | |
C
|
Form of Compliance Certificate |
SCHEDULES: | ||
|
||
3.1
|
States of Incorporation and Qualification, and Capitalization of Borrowers and Subsidiaries | |
3.2
|
Consents, Waivers, Approvals; Violation of Agreements | |
3.6
|
Judgments, Actions, Proceedings | |
3.7
|
Defaults; Compliance with Laws, Regulations, Agreements | |
3.8
|
Burdensome Documents | |
3.13
|
Name Changes, Mergers, Acquisitions | |
3.16
|
Employee Benefit Plans | |
5.8
|
Form of Quarterly Facility Report | |
7.1
|
Permitted Indebtedness and Guarantees | |
7.2
|
Permitted Security Interests, Liens and Encumbrances |
-iv-
Applicable Margin for | ||||
LIBOR Loans | ||||
Rating Level | and Swing Line Loans | |||
Level 1
A-/A3 or above |
0.425 | % | ||
Level 2
BBB+/Baa1 |
0.475 | % | ||
Level 3
BBB/Baa2 |
0.600 | % | ||
Level 4
BBB-/Baa3 |
0.800 | % | ||
Level 5
Lower than Level 4 or No Rating |
1.050 | % |
2
3
4
5
Rating Level | Facility Fee Percentage | |||
Level 1
A-/A3 or above |
0.125 | % | ||
Level 2
BBB+/Baa1 |
0.125 | % | ||
Level 3
BBB/Baa2 |
0.150 | % | ||
Level 4
BBB-/Baa3 |
0.150 | % | ||
Level 5
Lower than Level 4 or No Rating |
0.250 | % |
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
|
(a) | If to the Borrowers: | ||
|
||||
|
Health Care REIT, Inc.
One SeaGate/Suite 1500 Toledo, Ohio 43603-1475 Attention: Mr. George L. Chapman Chairman of the Board and Chief Executive Officer Telecopier No: (419) 247-2826 |
|||
|
||||
|
with a copy to: | |||
|
||||
|
Shumaker, Loop & Kendrick, LLP
North Courthouse Square 1000 Jackson Toledo, Ohio 43624-1573 Attention: Mary Ellen Pisanelli, Esq. Telecopier No.: (419) 241-6894 |
|||
|
||||
|
(b) | If to any Bank: | ||
|
||||
|
To its address set forth below its
name on the signature pages hereof, with a copy to the Agent; and |
57
|
(c) | If to the Agent: | ||
|
||||
|
KeyBank National Association, as Administrative Agent
127 Public Square Cleveland, Ohio 44114-1306 Attention: Laura Conway Vice President Telecopier No.: (216) 689-5970 |
|||
|
||||
|
with a copy (other than in the case
of Borrowing Notices and reports and other documents delivered in compliance with Article 5 hereof) to: |
|||
|
||||
|
Emmet, Marvin & Martin, LLP
120 Broadway New York, New York 10271 Attention: Richard S. Talesnick, Esq. Telecopier No.: (212) 238-3100 |
58
59
60
61
62
63
By | /s/ George L. Chapman | |||
Chief Executive Officer | ||||
Revolving Credit Commitment
:
|
||||||||
|
||||||||
$100,000,000 |
KEYBANK NATIONAL ASSOCIATION,
as Administrative Agent, as a Swing Line Bank and as a Bank |
|||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Laura Conway | ||||||
Revolving Credit Commitments
:
|
Name: | Laura Conway | ||||||
|
Title: | Vice President | ||||||
|
||||||||
8.7%
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
KeyBank National Association
127 Public Square, MC:OH-01-27-0605 Cleveland, Ohio 44114 Attention: Healthcare Administrative Assistant |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
KeyBank National Association
127 Public Square, MC:OH-01-27-0605 Cleveland, Ohio 44114 Attention: Laura Conway Telecopier: (216) 216-689-5970 |
Revolving Credit Commitment
:
|
||||||||
|
||||||||
$100,000,000 | DEUTSCHE BANK AG NEW YORK BRANCH | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Frederick Laird | ||||||
Revolving Credit Commitments
:
|
Name: | Frederick Laird | ||||||
|
Title: | Managing Director | ||||||
8.7%
|
||||||||
By: | /s/ Heidi Sandquist | |||||||
|
Name: | Heidi Sandquist | ||||||
|
Title: | Vice President | ||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Deutsche Bank AG New York Branch
90 Hudson Street Jersey City, New Jersey 07302 Attention: Linda Hill |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Deutsche Bank
60 Wall Street MS NYC60-1104 New York, New York 10005 Attention: Diane F. Rolfe Vice President |
Revolving Credit Commitment
:
|
||||||||
|
||||||||
$100,000,000 | BANK OF AMERICA, N.A. | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Amie Edwards | ||||||
Revolving Credit Commitments
:
|
Name: | Amie Edwards | ||||||
|
Title: | Vice President | ||||||
|
||||||||
8.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Bank of America, N.A.
2001 Clayton Road Concord, California 94520 Ref: Credit Services, Health Care REIT Attention: Lynne O. Famularcano |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Bank of America, N.A.
100 North Tryon Street Charlotte, North Carolina 28255 Attention: Amie Edwards |
||||||||
|
||||||||
Telecopier: (704) 388-6002 |
Revolving Credit Commitment
:
|
||||||||
|
||||||||
$100,000,000 | JPMORGAN CHASE BANK, N.A. | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Jan E. Petrik | ||||||
Revolving Credit Commitments
:
|
Name: | Jan E. Petrik | ||||||
|
Title: | Senior Vice President | ||||||
|
||||||||
8.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
JPMorgan Chase Bank, N.A.
1300 East Ninth Street Cleveland, Ohio 44114 Attention: Commercial Loan Operations |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
JPMorgan Chase Bank, N.A.
1300 East Ninth Street Mail Code: OH2-5444 Cleveland, Ohio 44114 Attention: Ms. Jan E. Petrik |
||||||||
|
||||||||
Telecopier: (216) 781-4567 |
Revolving Credit Commitment
:
|
||||||||
|
||||||||
$100,000,000 | UBS LOAN FINANCE LLC | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Mary E. Evans | ||||||
Revolving Credit Commitments
:
|
Name: | Mary E. Evans | ||||||
|
Title: | Associate Director | ||||||
|
||||||||
8.7%
|
||||||||
|
||||||||
By: | /s/ David B. Julie | |||||||
|
Name: | David B. Julie | ||||||
|
Title: | Associate Director | ||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
UBS AG
677 Washington Boulevard Stamford, Connecticut 06901 Attention: Iris Choi |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
UBS AG
677 Washington Boulevard Stamford, Connecticut 06901 Attention: Iris Choi |
||||||||
|
||||||||
Telecopier: (203) 719-3888 |
Revolving Credit Commitment
:
|
||||||||
|
||||||||
$40,000,000 | COMERICA BANK | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Kristy A. Ahee | ||||||
Revolving Credit Commitments
:
|
Name: | Kristy A. Ahee | ||||||
|
Title: | Assistant Vice President | ||||||
|
||||||||
3.5%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Comerica Bank
Comerica Tower at Detroit Center 500 Woodward Avenue 9 th Floor, MC 3266 Detroit, Michigan 48226 Attention: Karen Leja/Debbie Borthwick |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Comerica Bank
Comerica Tower at Detroit Center 500 Woodward Avenue 9 th Floor, MC 3266 Detroit, Michigan 48226 Attention: Kristy A. Ahee |
||||||||
|
||||||||
Telecopier: (313) 222-3420 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$50,000,000 | LASALLE BANK NATIONAL ASSOCIATION | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Robert Goeckel | ||||||
Revolving Credit Commitments:
|
Name: | Robert Goeckel | ||||||
|
Title: | First Vice President | ||||||
4.3%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
LaSalle Bank National Association
135 S. LaSalle Street Suite 1425 Chicago, Illinois 60603 Attention: Candy Danckaert |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
LaSalle Bank National Association
135 S. LaSalle Street Suite 1260 Chicago, Illinois 60603 Attention: Robert Goeckel |
||||||||
|
||||||||
Telecopier: (312) 992-1324 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$100,000,000 | CALYON NEW YORK BRANCH | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Thomas Randolph | ||||||
Revolving Credit Commitments:
|
Name: | Thomas Randolph | ||||||
|
Title: | Managing Director | ||||||
|
||||||||
|
||||||||
By: | /s/ Priya Vrat | |||||||
|
Name: | Priya Vrat | ||||||
|
Title: | Director | ||||||
|
||||||||
8.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Calyon New York Branch
1301 Avenue of the Americas New York, New York 10019 Attention: Mykelle Williams |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Calyon New York Branch
1301 Avenue of the Americas New York, New York 10019 Attention: Tom Randolph |
||||||||
|
||||||||
Telecopier: (212) 261-3440 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$100,000,000 | BARCLAYS BANK PLC | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Nicholas Bell | ||||||
Revolving Credit Commitments:
|
Name:
Title: |
Nicholas Bell
Director |
||||||
8.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Barclays Capital Services LLC
200 Cedar Knolls Road Whippany, New Jersey 07981 Attention: Jan Becker |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Barclays Capital
200 Park Avenue/4 th Floor New York, New York 10166 Attention: Nicholas Bell |
||||||||
|
||||||||
Telecopier: (212) 412-7600 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$65,000,000 | WACHOVIA BANK, NATIONAL ASSOCIATION | |||||||
Pro Rata Share of Aggregate | By: | /s/ Jeanette A. Griffin | ||||||
Revolving Credit Commitments:
|
Name: | Jeanette A. Griffin | ||||||
|
Title: | Director | ||||||
5.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Wachovia Bank, National Association
201 S. College Street, CP-9 NC1183 Charlotte, North Carolina 28244-0002 Attention: LaShasta Jackson |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Wachovia Bank, National Association
One South Broad Street, PA 4152 Philadelphia, Pennsylvania 19107 Attention: Jeanette Griffin |
||||||||
|
||||||||
Telecopier: (267) 321-6700 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$100,000,000 | FIFTH THIRD BANK | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Jeffrey A. Thieman | ||||||
Revolving Credit Commitments:
|
Name: | Jeffrey A. Thieman | ||||||
|
Title: | Vice President | ||||||
8.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Fifth Third Bank
5520 Monroe Street MD#234014 Sylvania, Ohio 43560 Attention: Jeffrey Thieman |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Fifth Third Bank
5520 Monroe Street MD#234014 Sylvania, Ohio 43560 Attention: Jeffrey Thieman |
||||||||
|
||||||||
Telecopier: (419) 885-0991 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$40,000,000 | NATIONAL CITY BANK | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ James T. Adsit | ||||||
Revolving Credit Commitments:
|
Name: | James T. Adsit | ||||||
|
Title: | Senior Vice President | ||||||
3.5%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
National City Bank
6750 Miller Road Part/Synd Servicing Loc 01-7164 Brecksville, Ohio 44141 Attention: Jennifer Jeffery |
||||||||
|
||||||||
Telecopier: (440) 546-7346 | ||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
National City Bank
405 Madison Avenue Toledo, Ohio 43604 Attention: James T. Adsit |
||||||||
|
||||||||
Telecopier: (419) 259-6666 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$25,000,000 |
MIDFIRST BANK,
a federally chartered savings association |
|||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Todd G. Wright | ||||||
Revolving Credit Commitments:
|
Name: | Todd G. Wright | ||||||
|
Title: | Vice President | ||||||
2.2%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
MidFirst Bank
501 NW Grand Blvd., First Floor Oklahoma City, OK 73118 Attention: Linda Duncan |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
MidFirst Bank
501 NW Grand Blvd., First Floor Oklahoma City, OK 73118 Attention: Todd Wright |
||||||||
|
||||||||
Telecopier: (405) 767-7119 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$20,000,000 | FIRST COMMERCIAL BANK, New York Agency | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Bruce M.J. Ju | ||||||
Revolving Credit Commitments:
|
Name: | Bruce M.J. Ju | ||||||
|
Title: | Senior Vice President | ||||||
1.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
First Commercial Bank, New York Agency
750 Third Avenue/34 th Floor New York, New York 10017 Attention: Carol Chou |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
First Commercial Bank, New York Agency
750 Third Avenue/34 th Floor New York, New York 10017 Attention: Jerry Fu |
||||||||
|
||||||||
Telecopier: (212) 599-6133 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$20,000,000 | CHEVY CHASE BANK, F.S.B. | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Carlos L. Heard | ||||||
Revolving Credit Commitments:
|
Name: | Carlos L. Heard | ||||||
|
Title: | Vice President | ||||||
1.7%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Chevy Chase Bank, F.S.B.
7501 Wisconsin Avenue/12 th Floor Bethesda, Maryland 20814 Attention: Lisa Manning Jackson |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Chevy Chase Bank, F.S.B.
7501 Wisconsin Avenue/12 th Floor Bethesda, Maryland 20814 Attention: Carlos L. Heard |
||||||||
|
||||||||
Telecopier: (240) 497-7714 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$75,000,000 | CHARTER ONE BANK, N.A. | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Dawn M. Stokes | ||||||
Revolving Credit Commitments:
|
Name: | Dawn M. Stokes | ||||||
|
Title: | Vice President | ||||||
6.5%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Citizens Bank
20 Cabot Road Medford, MA 02155 Attention: Michelle Caul |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Charter One Bank, N.A.
27777 Franklin Road/Suite 1900 Southfield, MI 48034 Attention: Dawn M. Stokes |
||||||||
|
||||||||
Telecopier: (248) 228-9405 |
Revolving Credit Commitment:
|
||||||||
|
||||||||
$15,000,000 | CHANG HWA COMMERCIAL BANK, LTD., NEW YORK BRANCH | |||||||
|
||||||||
Pro Rata Share of Aggregate | By: | /s/ Jim C.Y. Chen | ||||||
Revolving Credit Commitments:
|
Name: | Jim C.Y. Chen | ||||||
|
Title: | Vice President & General Manager | ||||||
1.3%
|
||||||||
|
||||||||
Lending Office for Base Rate Loans
and LIBOR Loans: |
||||||||
|
||||||||
Chang Hwa Commercial Bank, Ltd.,
New York Branch 685 Third Avenue/29 th Floor New York, New York 10017 Attention: Sarah Chow |
||||||||
|
||||||||
Address for Notices: | ||||||||
|
||||||||
Chang Hwa Commercial Bank, Ltd.,
New York Branch 685 Third Avenue/29 th Floor New York, New York 10017 Attention: Nelson Chou Telecopier: (212) 651-9785 |
1
|
List of Borrowers | |
A-1
|
Form of Revolving Credit Note | |
A-2
|
Form of Swing Line Note | |
B
|
Form of Assignment and Acceptance | |
C
|
Form of Compliance Certificate |
3.1
|
States of Incorporation and Qualification, and Capitalization of Borrowers and Subsidiaries | |
3.2
|
Consents, Waivers, Approvals; Violation of Agreements | |
3.6
|
Judgments, Actions, Proceedings | |
3.7
|
Defaults; Compliance with Laws, Regulations, Agreements | |
3.8
|
Burdensome Documents | |
3.13
|
Name Changes, Mergers, Acquisitions | |
3.16
|
Employee Benefit Plans | |
5.8
|
Form of Quarterly Facility Report | |
7.1
|
Permitted Indebtedness and Guarantees | |
7.2
|
Permitted Security Interests, Liens and Encumbrances |
TO FOURTH AMENDED AND RESTATED LOAN AGREEMENT
BY AND AMONG
HEALTH CARE REIT, INC. AND CERTAIN OF ITS SUBSIDIARIES,
THE BANKS SIGNATORY HERETO
AND
KEYBANK NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT
State of
Name of Borrower
Organization
Delaware
Pennsylvania
Delaware
Texas
Nevada
Delaware
Delaware
Indiana
Delaware
Massachusetts
Delaware
Massachusetts
Delaware
Delaware
Delaware
Kentucky
Massachusetts
Maryland
North Carolina
North Carolina
North Carolina
Wisconsin
Mississippi
Delaware
Delaware
Ohio
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
State of
Name of Borrower
Organization
Ohio
Ohio
Ohio
Delaware
Indiana
Virginia
Indiana
Virginia
Florida
Florida
Tennessee
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
Delaware
$ | Dated: August 6, 2007 |
2
3
4
By
|
||||
5
Interest Period | ||||||||||||||
(if other than a | ||||||||||||||
Principal | Base Rate | Amount | Unpaid | |||||||||||
Amount of | Loan) and | of Principal | Principal | Notation | ||||||||||
Date | Loan | Interest Rate | Repaid | Balance | Made By |
$40,000,000 | Dated: August 6, 2007 |
2
3
4
By | ||||
5
Principal Amount | Due Date | Interest Rate on | ||||||||||
Date Made | of Loan | of Loan | Loan | Amount of Payment | Balance Outstanding | Notation Made By | ||||||
|
2
[NAME OF ASSIGNOR]
|
||||
By: | ||||
Title: | ||||
[NAME OF ASSIGNEE]
|
||||
By: | ||||
Title: | ||||
Lending Office for Base Rate Loans:
Lending Office for LIBOR Loans: Attention: Address for Notices: Attention: Telephone No.: Telecopier No.: |
||||
KEYBANK NATIONAL ASSOCIATION,
AS ADMINISTRATIVE AGENT |
||||
By | ||||
Title | ||||
3
HEALTH CARE REIT, INC.
|
||||
Date: | By: | |||
Title | ||||
1. | I have reviewed this quarterly report on Form 10-Q of Health Care REIT, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ George L. Chapman | ||||
George L. Chapman, | ||||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Health Care REIT, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Scott A. Estes | ||||
Scott A. Estes, | ||||
Chief Financial Officer | ||||
/s/ George L. Chapman | ||||
George L. Chapman, | ||||
Chief Executive Officer
Date: August 9, 2007 |
||||
/s/ Scott A. Estes | ||||
Scott A. Estes, | ||||
Chief Financial Officer
Date: August 9, 2007 |
||||