HCP Earnings Nearly Triple for 2Q, Helped by Rental Revenues

HCP, Inc.’s (NYSE:HCP) profit ballooned 180% with a net income of $222.9 million, and $0.55 per share, up from last year’s $79.5 million, and $0.27 per share, due to growth in rental revenues and tenant recoveries.

Quarterly revenue increased to $488.7 million for the quarter ending on June 30, 2011, from last year’s $301.9 million. Rental and related revenues rose by 13.5% during this period, while income from direct financing leases was nearly 12 times higher than last year, and income interest nearly doubled.

HCP’s funds from operations (FFO) rose 41.8% to $317.9 million and $0.78 per share for the quarter, up from last year’s $161.9 million and $0.55 per share. This is slightly higher than analyst’s predictions of $.75 per share.


During the second quarter, HCP made investments and acquisitions of $97 million, and also entered agreements with Brookdale Senior Living concerning the operation of 37 HCP-owned senior living communities previously leased to or operated by Horizon Bay Retirement Living. The transaction, detailed in the earnings report, is expected to close in September of this year and result in Brookdale operating 61 of HCP’s communities.

For the full year of 2011, HCP projects diluted earnings per common share to range between $1.59 and $1.65, with an FFO between $2.48 and $2.54.

View the earnings report here.


Written by Alyssa Gerace