Lower Real Estate Gains Hurt HCP

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On April 28, 2009, HCP(HCP Quote) reported that its Q1 FY09 earnings declined 2.9% year-over-year, hurt by lower real estate gains. Net income applicable to common shareholders stood at $43.29 million or $0.17 per share compared to $44.58 million or $0.21 per share a year ago. However, diluted funds from operations (FFO) increased 2.7% to $129.64 million from $126.25 million. On a per share basis, FFO decreased 10.7% to $0.50 per share from $0.56 per share, due to higher shares count. The latest quarterly FFO missed the consensus estimate of $0.53 per share.

Total revenue advanced 2.8% to $251.62 million from $244.79 million, driven by higher rental and related revenue, spiked 3.2% to $213.59 million from $206.91 million a year ago. Revenue from tenant recoveries increased 10.3% to $23.66 million from $21.45 million. On the flip side, income from direct financing leases dipped 13.7% to $12.93 million from $14.97 million in the year-ago quarter. Finally, investment management fee income decreased marginally to $1.44 million from $1.47 million in Q1 FY08. ...