HCP Inc.'s (HCP) fourth-quarter earnings fell 52% on a $125
million charge related to a litigation settlement that arose from
Ventas Inc.'s (VTR) 2007 acquisition of Sunrise Senior Living.
For the year, the largest health-care real-estate investment
trust in the U.S. by market capitalization forecast per-share funds
from operations of $2.70 to $2.76. Analysts polled by Thomson
Reuters recently expected adjusted FFO of $2.24.
HCP--whose investments include senior housing, medical offices
and skilled-nursing properties--has posted revenue growth as it has
grown through acquisitions.
HCP reported a profit of $67.8 million, or 15 cents a share,
down from $141.9 million, or 42 cents a share, a year earlier.
Excluding litigation settlement charges and prior-year
acquisition-related costs, adjusted FFO--a key measure of
performance for REITs--was up at 67 cents from 64 cents.
Rental revenue plus tenant recoveries increased 4.9% to $271
million. Overall revenue was up 35% to $461.6 million.
Analysts recently expected adjusted FFO of 52 cents and revenue
of $451 million.
Shares closed Monday at $41.70 and were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com