HCP (the “Company”) (NYSE:HCP) announced results last week for the quarter ended June 30, 2009 and announced the pricing of a public offering of 15.5 million shares of common stock at a price per share of $24.75. The deal was upsized from the originally announced 11.5 million shares due to investor demand. The proceeds from this offering will be approximately$384 million and will be used to repay all borrowings under HCP’s revolving credit facility, including borrowings that were applied toward the cash payment of $165 million for the participation in first mortgage debt of HCR ManorCare, with the remainder to be used for general corporate purposes.
Funds from operations (“FFO”) applicable to common shares was $146.1 million, or $0.55 per diluted share, for the quarter ended June 30, 2009, compared to FFO applicable to common shares of $119.1 million, or $0.50 per diluted share, in the year-ago period. Net income applicable to common shares for the quarter ended June 30, 2009 was$91.8 million, or $0.35 per diluted share, compared to net income applicable to common shares of $225.9 million, or $0.96 per diluted share, in the year-ago period. The results for the quarter ended June 30, 2009 includes gain on sales of real estate of $30.5 million, compared to gain on sales of real estate of $190.5 million in the year-ago period.
Other notable activities during the quarter included:
- The company funded $30 million for construction and other capital projects, primarily in its life science segment
- The company sold two hospitals with an aggregate value of $46 million and recognized gains of $30.5 million, which are excluded from FFO and sold marketable debt securities of $5 million
- The company completed a $440 million public offering of 20.7 million shares of common stock at a price per share of $21.25. HCP received net proceeds of $422 million, which were used to repay all amounts of indebtedness outstanding under its bridge loan credit facility, with the remainder used for general corporate purposes
For the full 10-Q, click here.