HCP Inc.'s (HCP) fourth-quarter profit surged as both funds from
operations and revenue increased more than expected.
HCP said it expects 2011 adjusted funds from operations, a key
measure of profitability for real estate investment companies, of
$2.58 to $2.64, higher than the $2.56 analysts had predicted.
The biggest health-care REIT in the U.S. by market
capitalization--whose investments include senior housing,
medical-offices and skilled-nursing properties--has seen its
revenue climb in recent quarters. Last month, Moody's Investors
Service upgraded HCP a notch further into investment-grade
territory because of its progress in financing its $6.1 billion
acquisition of HCR ManorCare Inc.
For the latest quarter, the company reported a profit of $141.9
million, or 42 cents a share, up from $32 million, or 9 cents a
share, a year earlier. Excluding items, FFO rose to 64 cents from
55 cents as rental revenue plus tenant recoveries increased 13% to
$276.1 million.
Revenue rose 16% to $341.4 million.
Analysts expected FFO of 59 cents on revenue plus tenant
recoveries of $265 million.
HCP's shares were at $37.51, up 0.8% in premarket trading and
have climbed 12% in the past three months.
-By Lauren Pollock and David J. Reynolds, Dow Jones Newswires;
212-416-2356; lauren.pollock@dowjones.com