Healthcare real estate investment trust HCP Inc. saw its net income attributable to common shares more than double in the first quarter ended March 31, 2012, to $175.3 million, compared to $63.9 million the previous year. Net income applicable to common shares rose to $0.43, compared to $0.17 in 2011.
FFO per share increased 60% in the first quarter to $0.64 from $0.40 during the same period of last year, and HCP raised its full-year guidance for adjusted FFO to range between $2.71 and $2.77 per share.
Total revenues increased 39% to $459 million, with nearly half of that derived from rental and related revenues.
Net operating income, at $390.4 million, was nearly 59% above 2011’s $245.6 million. Adjusted NOI was $354.1 million, while adjusted NOI for new property portfolios had a net loss of $132.9 million. The REIT’s same property, stabilized portfolio netted $221.2 million.
HCP made $40 million in investments in the first quarter to fund development and other capital projects, mostly in its senior housing and life science segments. The REIT also sold a medical office building for $7 million for a $3 million gain.
In the first quarter, HCP completed $809 million of capital market transactions, broken into $450 million of 3.65% senior unsecured notes, due in 2019; and $359 million of common stock priced at $39.93 per share. In March, HCP redeemed 4 million shares of 7.15% (blended rate) preferred stock for $296 million with proceeds from the common stock offering, which served to improve the REIT’s credit profile.
View the full first quarter earnings report here.
Written by Alyssa Gerace