This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

HCP's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: HCP

Excluding this charge, FFO, as adjusted for the quarter, was $0.67 per share and FAD was $0.54 per share, representing year-over-year increases of 20% and 10%, respectively, primarily driven by last year's HCR ManorCare acquisition and strong 2012 cash, Same Property Performance.

During the quarter, we made investments of $40 million to fund development and other capital projects, and sold one medical office building for $7 million, recognizing a gain of $3 million.

Turning now to financing activities and balance sheet. On the capital markets front, we were active during the first quarter and raised $809 million consisting of: $450 million of 7-year senior unsecured notes with a coupon of 3.75%; and $359 million of common stock at a price of $39.93 per share. Proceeds from these offerings were primarily used to clear out the revolver balance at year end and redeem all outstanding preferred stock at par. On April 23, we retired our Series E and Series F preferred stock for a total of $296 million. Going forward, this equity for preferred swap will be accretive to FAD in 2012 and further strengthen our fixed charge coverage ratio.

In addition, during the quarter, we improved the terms of our revolving credit facility that included lowering the funded interest cost by 55 basis points and extending the maturity one additional year to March 2016. Our undrawn revolver provides up to $1.5 billion of immediate liquidity at a current rate of LIBOR plus 1.075%.

Pro forma for the cash used to redeem the $296 million of preferred stock in April, we ended the quarter with $50 million of unrestricted cash.

Our remaining 2012 debt maturities total $317 million, of which $250 million relates to the 6.45% senior unsecured notes maturing next month.

Finally, updates to our 2012 guidance. Based on stronger-than-forecasted performance to date, we are raising our full year, cash same property growth to a range of 3.25% to 4.25%, up 25 basis points from our February guidance. We are updating our FFO guidance to range from $2.68 to $2.74 per share, which is $0.02 lower than our last guidance. This change is primarily due to the $0.03 first quarter preferred stock redemption charge mentioned earlier, less an additional $0.01 for several small items, offset by a positive $0.02 from an insurance recovery of $7 million received in the second quarter for past G&A expenses and increased Same Property Performance.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs