By Everdeen Mason
HCP Inc. (HCP) said its fourth-quarter earnings rose 22% as the
senior-focused real-estate investment trust posted growth in its
rental segment.
The company also offered a 2014 outlook for funds from
operations, a key measure of performance for REITs, that falls
short of the consensus estimates. It expects adjusted FFO of $2.96
to $3.02 a share, versus analysts' estimate of $3.04 a share.
HCP--one of the largest health-care landlords in the U.S. with
investments in senior housing, medical offices and skilled nursing
properties--has logged increased revenue in recent periods due in
part to acquisitions and higher resident fees.
During the quarter, HCP fired James Flaherty as its chief
executive and chairman after a decade at the helm, pointing to a
loss in confidence in his leadership style amid a slew of executive
turnover. The company named Jones Lang LaSalle Inc. (JLL) executive
Lauralee Martin as its new CEO and appointed lead director Michael
McKee as non-executive chairman.
Overall, HCP reported a profit of $293.1 million, or 64 cents a
share, up from $241 million, or 53 cents a share, a year earlier.
Revenue rose 5.4% to $530.3 million.
Analysts polled by Thomson Reuters most recently forecast
earnings of 48 cents a share and revenue of $510 million.
Adjusted funds from operations--which exclude certain
impairments--rose to 76 cents a share from 72 cents. Analysts had
expected adjusted FFO of 75 cents a share.
The latest period include $870,000 related to severance
charges.
Rental and related revenue, the largest top-line contributor,
climbed 3.9% to $284.7 million.
Shares closed at $38.82 on Monday and were inactive premarket.
The stock is down 17% in the past 12 months.
Write to Everdeen Mason at everdeen.mason@wsj.com
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