When looking at HCP Inc.’s recently second quarter results, Mizuho Securities USA LLC’s Richard Anderson, managing director, said that he was “impressed that HCP’s pace of activity is meeting the lofty expectations it set last November,” but he noted that some of the pricing expectations has declined.
The REIT’s numbers show generated net income of $0.19 per share, FFO of $0.45 per share and FFO as adjusted of $0.47 per share. This quarter, the REIT entered into a $605-million joint venture with Morgan Stanley Real Estate Investing on a two million square foot medical office portfolio. Also this quarter, the REIT commenced $267 million of life science development projects, including $160 million at Hayden Research Campus in the Boston market and $107 million at Phase IV of The Cove in South San Francisco.
Other highlights from this quarter were as follows:
– Generated $892 million of proceeds from asset sales, including: (i) a 51% interest in our U.K. holdings; (ii) our remaining investment in the RIDEA II senior housing joint venture (“RIDEA II”); and (iii) five assets sold to Brookdale Senior Living, Inc. (“Brookdale”)
– Under contract on the previously announced disposition of 22 senior housing communities managed by Brookdale to an investment fund managed by affiliates of Apollo Global Management for $428 million
– Completed 28 senior housing operator transitions from Brookdale to date, including 20 to Atria, five to Sunrise, two to Eclipse and one to Sonata
– Completed 324,000 square feet of leasing at Phase III of The Cove, bringing Phase III to 100% leased
– Repaid $700 million of our 5.375% senior notes due 2021 using proceeds from capital recycling
– Appointed Katherine Sandstrom to the Company’s Board of Directors
– Named to the FTSE4Good sustainability index for the seventh consecutive year
– Increased 2018 FFO as adjusted guidance and reaffirmed full-year 2018 SPP Cash NOI guidance ranges
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