HCP, Inc.
(
HCP
), a real estate investment trust (REIT), recently announced that
it has priced 3.15% senior unsecured notes worth $300 million.
These notes are scheduled to mature in 2022 and were priced at
98.888% of their face value to generate 3.28%.The offering is
expected to close on July 23, 2012.
The notes offering is expected to generate net proceeds of
$293.7 million, which will be utilized to fund future acquisitions
and for general corporate purposes.
During the first quarter of 2012, the company issued $450
million of 3.75% senior unsecured notes scheduled to mature in
2019. The net proceeds of approximately $444.0 million from the
transaction were utilized to repay the debt under its revolving
credit facility and for general corporate purposes.
HCP reported first quarter 2012 FFO (funds from operations) of
$264.8 million or 64 cents per share, compared with $149.7 million
or 40 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.
Headquartered in Long Beach, California, HCP is engaged in
acquiring, developing, managing, selling and leasing a diverse
portfolio of healthcare real estate related properties. The company
also provides mortgage and other financing to healthcare
providers.
HCP follows a conservative approach to financial management by
actively managing its debt-to-equity levels and maintaining
multiple sources of liquidity like the revolving credit facility,
access to capital markets and secured debt providers, and divesture
of assets. The financial flexibility enables the company to take
advantage of potential investment opportunities that in turn
bolsters top-line growth.
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,
Ventas Inc.
(
VTR
), also has a Zacks #3 Rank.
HCP INC (HCP): Free Stock Analysis Report
VENTAS INC (VTR): Free Stock Analysis Report
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