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TOLEDO, OH-Locally based Health Care REIT Inc. completed new investments totaling $163.3 million during the third-quarter and $330.4 million year-to-date. “Our new investment is targeted to combo facilities targeted to baby boomers,” George Chapman, CEO, said during a conference call.

“Changes in infrastructure are under way” to achieve the goal of offering “the full spectrum of healthcare facilities as boomer demand rises,” he said. The previously announced pending acquisition of Indianapolis-based Windrose Medical Properties Trust, “will jumpstart our medical office and acute-care sectors.” The $877-million acquisition, which includes the assumption of approximately $426 million in outstanding Windrose debt, is expected to close by year-end.

Meanwhile, Health Care REIT’s third-quarter earnings reached $26.8 million, up from $25.3 million for the same quarter a year ago. Funds from operations rose to $45.9 million, up from $42 million in third-quarter 2005.

“Our yield on investments is up 9% for the year and averaging about 11% for the life of investments,” Chapman said. “We’re happy with that considering how competitive this market is.” Asked if that yield would continue, he said that while he expected it to remain above 9%, “8.5% is probably a safer prediction.” Of all investments, he said some skilled-nursing facility investments tend to be slightly higher than the average.

Without disclosing the size and cost, Chapman said high-acuity specialty hospitals in Fort Wayne, IN and Boise, ID are on the development schedule. “Serving the highest acuity patients is part of our model,” he added.

As of June 30, the company had approximately $3 billion in real estate investments in 464 facilities in 37 states. The Windrose merger will further diversify the portfolio and expand it to more than 550 properties and approximately $4 billion in gross real estate investments.

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