) extended its relationship with Brookdale Senior Living (
) by creating a $1.2 billion continuing care retirement communities
(CCRC) joint venture (JV) and amending previous Emeritus leases.
The CCRC partnership with Brookdale offers a solid platform for
expansion with favorable dynamics in senior housing and good
Moreover, on Aug 5, HCP came up with second-quarter 2014 adjusted
FFO (funds from operations) per share of 75 cents, in line with the
Zacks Consensus Estimate and up 4.2% from the year-ago quarter,
thanks to a rise in revenues. The company also raised its full-year
With an increase in the elderly population and consequent
proliferation in healthcare expenses, demand for healthcare
facilities and senior housing has been on the rise. Given its
well-balanced, diversified portfolio and decent balance sheet, not
to mention the strategic acquisitions and tie-ups, HCP remains well
poised to capitalize on the promising prospects in this industry.
However, cut-throat competition, dependence on governmental
healthcare programs for a number of its tenants and operators and
an expected increase in interest rate remain matters of concern.
Echoing similar sentiments, the Zacks Consensus Estimate over the
last 30 days remained unchanged at $3.02 per share for 2014, while
for 2015 the consensus inched up 0.3% to $3.14 per share. HCP
currently carries a Zacks Rank #3 (Hold).
To gain a deeper insight into HCP, you can refer to our updated
research report issued on Sep 3, 2014.
Other Stocks to Consider
Investors interested in the REIT industry may consider
better-ranked stocks like Omega Healthcare Investors Inc. (
) and Gladstone Commercial Corp. (
). Both these stocks have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
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HCP INC (HCP): Free Stock Analysis Report
BROOKDALE SENR (BKD): Free Stock Analysis
GLADSTONE COMML (GOOD): Free Stock Analysis
OMEGA HLTHCARE (OHI): Free Stock Analysis
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