Resident fees and services boost HCP's 3Q FFO
LONG BEACH, Calif. (AP) — HCP Inc., a real estate investment trust which invests in health care facilities, said Tuesday its funds from operations improved in the third quarter as it received more revenue from resident fees and services.
The company also raised its full-year estimates. After the quarter ended HCP announced that it would pay $1.73 billion to buy 133 senior housing communities from a joint venture between Emeritus Corp. and an affiliate of The Blackstone Group L.P.
Funds from operations rose 12 percent to $290.2 million, or 67 cents per share, from $259.6 million, or 63 cents per share. Funds from operations, or FFO, adds items like amortization and depreciation to net income, and it is considered key to measuring the financial performance of real estate investment trusts.
Excluding one-time items, the company said its FFO rose 8 percent to $298.1 million.
HCP had almost $18.1 billion in assets at the end of the third quarter, up from $17.4 billion a year ago.
HCP said its revenue rose 8 percent, to $475.5 million from $441.2 million. Rental revenue decreased, but the company got more money from resident fees and services and reported greater interest income.
For the full year, HCP now expects adjusted FFO of $2.75 to $2.81 per share, up from a previous guidance of $2.65 to $2.71 per share.