HCP boosts full-year FFO view as profit rises

Published: Oct 29, 2013 8:41 a.m. ET




HCP Inc.'s HCP, -1.01% third-quarter earnings increased 19% as the senior-focused real-estate investment trust's rental revenue continued to increase.

The company also raised its full-year outlook for funds from operations, a key measure of performance for REITs, by a penny. It now expects adjusted FFO of $2.97 to $3.03 a share.

HCP--one of the largest health-care landlords in the U.S. with investments in senior housing, medical offices and skilled nursing properties--has logged increased revenue in recent periods due in part to acquisitions and higher resident fees.

Earlier this month, HCP fired James Flaherty as its chief executive and chairman after a decade at the helm, pointing to a loss in confidence in his leadership style amid a slew of executive turnover. The company named Jones Lang LaSalle Inc. (JLL) executive Lauralee Martin as its new CEO and appointed lead director Michael McKee as non-executive chairman. Ms. Martin has said the company's "5x5" business model, in which it invests in five health care property types through five investment products, will remain the same.

Overall, HCP reported a profit of $233.8 million, or 51 cents a share, up from $196.1 million, or 45 cents a share, a year earlier. Revenue rose 16% to $544 million.

Analysts polled by Thomson Reuters most recently forecast earnings of 50 cents a share and revenue of $511 million.

Adjusted funds from operations--which exclude certain impairments--improved to 79 cents from 69 cents. Analysts had expected adjusted FFO Of 76 cents a share.

The latest period included severance-related charges of six cents a share.

Rental and related revenue, the largest top-line contributor, jumped 16% to $280.6 million.

Shares closed at $42.85 and were inactive premarket. The stock is off 4.9% over the past three months.

Write to Nathalie Tadena at nathalie.tadena@wsj.com


Stock References

  • HCP
    -0.45 -1.01%

Data Provided By
Today's Interest Rates

Credit Cards
  1. 4.29%
  2. 3.95%
  3. 3.13%
  4. 3.01%
  5. 3.98%
  6. 3.14%
  7. 3.11%
  8. 3.19%
National averages from Bankrate.com
  1. 1.51%
  2. 0.86%
  3. 0.7%
  4. 0.36%
  5. 0.64%
  6. 0.43%
  7. 0.5%
National averages from Bankrate.com
Avg. APR Last Week 6 Months
Low Interest 10.37% 10.37% 10.37%
Balance Transfer 12.73% 12.73% 12.64%
Business 12.85% 12.85% 12.80%
Student 13.14% 13.14% 13.27%
Reward 14.90% 14.90% 14.97%
Cash Back 14.94% 14.94% 14.91%
Airline 15.52% 15.52% 15.30%
Bad Credit 22.73% 22.73% 22.73%
Instant Approval 23.33% 23.33% 28.00%
Source: CreditCards.com

MarketWatch Partner Center

We Want to Hear from You

Join the conversation