By Dow Jones Business News, October 29, 2013, 08:34:00 AM EDT
By Nathalie Tadena
HCP Inc.'s ( HCP ) 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
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.
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