HCP Q1 FFO Rises, Backs Full Year Outlook - Update

(RTTNews) - HCP, Inc. (HCP), an independent hybrid real estate investment trust, Tuesday reported an increase in first-quarter funds from operations, with a growth in revenues. The company also reaffirmed its guidance for full year 2014.

For the first quarter, funds from operations or FFO applicable to common shares rose to $343.14 million or $0.75 per share from $339.53 million or $0.74 per share in the previous year. On average, 14 analysts polled by Thomson Reuters expected the company to report $0.74 per share for the quarter. Analysts' estimates typically exclude one-time items.

Excluding items, funds available for distribution or FAD per share were $0.63, higher than the prior year's $0.62 per share.

Net income applicable to common shares totaled $258.05 million or $0.56 per share, compared with $230.11 million or $0.51 per share a year ago.

The company noted that earnings per share for the recent quarter included $0.06 per share of gain from sales of real estate. During the quarter, it sold two skilled nursing facilities for $22 million and a hospital for $17 million.

Total revenues for the quarter increased to $529.99 million from $511.19 million a year ago. Four analysts estimated revenues of $515.87 million for the quarter.

For full year 2014, the company still expects FFO to be in the range of $2.96 to $3.02 per share; FAD to range between $2.47 and $2.53 per share; and earnings per share to be in the range of $2.04 to $2.10 per share.

Analysts project the firm to report $3.02 per share for 2014.

On May 1, the board declared a quarterly cash dividend of $0.545 per share, to stockholders of record on May 12, 2014, payable on May 27.

HCP is currently trading at $42.26, up 0.14 percent on the NYSE.