) is a real estate investment trust that invests in four
health-care sectors: senior housing; post-acute/skilled nursing
facilities; life sciences; and medical offices and hospitals.
The company manages, acquires, develops and sells properties,
seeking geographic and sector diversity. Some of its operating
partners include big players such asHCA (
), Genentech,Tenet Healthcare (
) andBrookdale Senior Living (BKD).
HCP says that it has $22 billion in assets under management,
spread across 1,154 properties. Although it has a presence in
most states, the Irvine, Calif.-based REIT is heavily invested in
California, Texas and Florida.
It generates $1.7 billion in annual net operating income and
The company says that it has generated an annual shareholder
return of 15.5% since its 1985
and has grown its dividend for 29 straight years.
Its heaviest concentration is in senior housing, which
accounts for 38% of its assets under management. Brookdale is its
biggest partner and is now bigger, thanks to a recent merger.
Skilled nursing facilities make up 29% of revenue, and hospitals
account for only 3%.
Growth has been steady, if unspectacular. Funds from operation
(FFO), the REIT equivalent of earnings, have been up for four
straight years. Analysts expect 1% growth this year and 4%
In the most recent quarter, FFO rose 4%, while revenue grew
5%. The company's 2013 pretax margins were an impressive 41%.
On Tuesday, HCP paid a 54.5-cent quarterly dividend to
shareholders of record Aug. 11. That rate represents an annual
yield of 5.2%.
The annual dividend growth rate is 4%.
The stock hit an all-time high of 56.06 on May 22, 2013. It
now trades in the low 40s. It's built a narrow consolidation that
goes back to early May this year. The pattern has varied from
high to low by little more than 6%.