HCP Beats by a Cent - Analyst Blog
October 31 2011 - 11:09AM
Zacks
HCP, Inc (HCP) reported FFO (funds from
operations) of $259.6 million or 63 cents per share in the third
quarter of 2011 compared with $96.1 million or 31 cents per share
in the year-earlier quarter. Funds from operations, a widely used
metric to gauge the performance of REITs, is obtained after adding
depreciation and amortization and other non-cash expenses to net
income.
Excluding non-recurring items, FFO in the reported quarter came
in at $274.9 million or 67 cents per share compared with $167.8
million or 54 cents per share in the year-ago quarter. Recurring
FFO in the third quarter of 2011 surpassed the Zacks Consensus
Estimate by a penny.
HCP reported total revenue of $444.7 million in the reported
quarter compared with $317.0 million in the year-ago period. Total
revenue was ahead of the Zacks Consensus Estimate by $433
million.
During the reported quarter, HCP completed a strategic venture
with Brookdale Senior Living, Inc., which includes the operation of
37 HCP-owned senior living communities.
Subsequent to quarter end, LinkedIn Corporation agreed to expand
their corporate headquarters at HCP’s Shoreline campus in Mountain
View, California. The expansion totaling 373,000 square feet
consists of a lease totaling 303,000 square feet and includes an
option of extending the lease till March 2023. Additionally, it
also includes a lease for a new 70,000 square foot building for 10
years, which is expected to complete in 2013.
In the reported quarter, HCP made investments worth $43 million
to fund development and other capital projects primarily in the
life science and medical office segments.
At quarter end, the company had cash and cash equivalents of
$44.9 million. For full-year 2011, HCP increased its FFO guidance
before non-recurring items from $2.63 -$2.69 per share to $2.65 -
$2.71.
HCP currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We are also maintaining our long-term
Neutral recommendation on the stock. One of its competitors,
Health Care REIT Inc. (HCN)
currently holds a Zacks #4 Rank, which translates into a
short-term Sell rating.
HEALTH CR REIT (HCN): Free Stock Analysis Report
HCP INC (HCP): Free Stock Analysis Report
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