HCP (the “Company” or “we”) (NYSE:HCP) announced results for the quarter ended September 30, 2008 a few weeks ago and it’s net income applicable to common shares for the quarter ended September 30, 2008 was $120.1 million, or $0.49 per diluted share of common stock, compared to net income applicable to common shares of $316.9 million, or $1.53 per diluted share of common stock, in the year ago period. Net income applicable to its common shares for the quarter ended September 30, 2008 included gain on sales of real estate of $27.4 million, compared to gain on sales of real estate of $286.2 million in the year ago period. During the quarter the company sold three hospitals and issued 14.95 million shares of common stock and received net proceeds of $481 million, which were used to repay a portion of outstanding indebtedness under the company’s bridge loan facility.
The company expects funds from operations to be between $2.31 and $2.35 per share, or $2.38 and $2.42 per share excluding acquisition-related charges and impairment charges. FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of REIT strength because it gives a more accurate picture of cash performance. Analysts polled by Thomson Reuters, on average, predict funds from operations of $2.29 per share. Analyst estimates typically exclude one-time items. Seems that HCP might be a bright spot on horizon for Senior Housing REIT stocks. For the full earnings release, click here.
