), a real estate investment trust (REIT), reported second quarter
2012 FFO (funds from operations) of $293.6 million or 69 cents per
share compared with $317.9 million or 78 cents per share in the
Excluding non-recurring items, FFO for the reported quarter was
$293.6 million or 69 cents per share compared with $312.2 million
or 77 cents per share in the year-ago quarter. Recurring FFO
per share in the quarter beat the Zacks Consensus Estimate by a
HCP reported total revenue of $464.4 million during the quarter
compared with $488.1 million in the year-ago period. Total revenue
in the reported quarter missed the Zacks Consensus Estimate of
Adjusted same-property net operating income (NOI) of the company
stood at $224.8 million in the quarter versus $218.0 million in the
year-ago period. Cash NOI in the same property portfolio increased
3.1% on a year-over-year basis.
During the reported quarter, HCP invested about $59 million to
fund development and other capital projects, primarily in the life
science and senior housing segments. The company also acquired a
life science facility for $8 million and a land parcel for $3
million. Additionally, HCP made a debt investment of $215 million
in the UK with a yield to maturity of 12.5% during the quarter.
Subsequent to the end of the quarter, HCP acquired a medical
office building (MOB) totaling 80,000 square feet for $14 million.
Also the company entered into agreements to acquire eight on-campus
MOBs for $81 million from Scottsdale Healthcare and a
portfolio of 12 MOBs from The Boyer Company valued at $179
During the quarter, the company issued $300 million of 3.15%
senior unsecured notes, scheduled to mature in 2022. The
transaction generated net proceeds of approximately $293.7 million.
Also the company entered into an agreement for a four-year 1.81%
unsecured loan worth $215 million. Additionally, the company
completed an offering of 8.97 million shares worth $41.88 per
share, totaling $376 million during the second quarter of 2012.
At the end of the quarter, the company had cash and cash
equivalents of $169.6 million. For full-year 2012, HCP increased
its adjusted FFO guidance from $2.71 to $2.77 per share to $2.73 to
$2.79. The company also expects cash NOI guidance in the
same-property portfolio to be in the range of 3.5%-4.5%.
HCP currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating. We are also maintaining our long-term
Neutral recommendation on the stock. One of its competitors,
Health Care REIT, Inc
) carries a Zacks #3 Rank, which translates into a short-term Hold
Note: FFO, 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.
HEALTH CR REIT (HCN): Free Stock Analysis
HCP INC (HCP): Free Stock Analysis Report
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