Jefferies Adjusts Health Care REIT Estimates; Lowers PT To $54

Jefferies & Company is revising its Health Care REIT HCN 2010, 2011, and 2012 FFO/share estimates to $3.11, $3.20, and $3.48, from $3.11, $3.32, and $3.55, respectively. “Our adjustments reflect: 1) 3Q10 results; 2) dilution from the recent senior unsecured note issuance ($450M @ 4.95%) and equity raise (9M shares with 1.35M overallotment); 3) revised acquisition expectations; and 4) revised financing assumptions,” Jefferies writes. “We are also updating some of the inputs in our valuation model (i.e. DDM). As a result of our revisions, we are adjusting our PT to $54, from $55.” Health Care REIT currently trades at $46.28.