HCP (NYSE:HCP) announced results for the quarter that showed a profit of $81 million which was up from $48 million in Q1 2009. Revenues for the quarter rose to $295 million as HCP saw rental revenues rise and interest income increase by 32%. FFO applicable to common shares was $158.7 million, or $0.54 per diluted share, for the quarter ended March 31, 2010, compared to FFO applicable to common shares of $128.0 million, or $0.50 per diluted share, in the year-ago period.
As part of the events for HCP in the first quarter, it announced that it has entered into a settlement agreement with Erickson Retirement Communities ("Erickson"), which filed for bankruptcy in October 2009. The settlement agreement provides that HCP is entitled to: (i) retain deposits held by us with balances of $5 million as of March 31, 2010; and (ii) receive an additional $9.6 million. During the quarter ended March 31, 2010, HCP recognized aggregate income of $11.9 million, which represents impairment recoveries of portions of previous impairment charges related to investments in three direct financing leases and a participation interest in a senior construction loan related to Erickson.