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HCP, Inc. (HCP)

- NYSE
  • Yesterday, 8:30 AM
    • The Master Lease with HCR ManorCare encompasses a portfolio of 333 post-acute, skilled nursing and assisted-living facilities owned by HCP.
    • Starting April 1, HCP will provide an annual rent reduction of $68M, meaning an initial lease year rent of $473M, with rents going up by 3% annually during the initial term.
    • In exchange, HCP will receive fee ownership in nine new post-acute facilities valued at $275M with a median age of four years currently owned and operated by HCR. HCR's initial lease term is also extended by five years to 16 years.
    • Updating on the sale of 50 non-strategic assets, HCP expects all the be completed in late 2015-early 2016, and generate net proceeds of $250M-$350M.
    • HCP will record a non-cash impairment charge of $481M or $1.03 per share.
    • Full-year AFFO guidance is cut to $3.06-$3.12 per share from $3.15-$3.21. FAD guidance is cut to $2.63-$2.69 from $2.73-$2.79.
    • Source: Press Release
    | 2 Comments
  • Tue, Mar. 17, 9:28 AM
    • The portfolio of 35 private-pay senior housing communities from Chartwell Retirement Residences has 5,025 units. The portfolio will be purchased using a RIDEA joint venture structure, with HCP owning 90% and Brookdale (NYSE:BKD) 10%.
    • Brookdale has operated the communities since 2011 and will continue to do so post-closing.
    • The portfolio is located in eight states with concentrations in Florida, Texas, and Colorado; it's expected to generate a first year cash yield of about 6.6%.
    • Closing is expected in Q3.
    • Source: Press Release
    | 1 Comment
  • Mon, Mar. 16, 9:56 AM
    • The 10-year Treasury yield is lower by five basis points to 2.07% in early action as crude oil takes out new multi-year lows, industrial production falls for the third straight month, and capacity utilization declines to its lowest level in a year.
    • Outperforming the averages is the iShares U.S. Real Estate ETF (IYR +1.2%).
    • Among some individual players: Kimco (KIM +1.6%), Federal Realty (FRT +1.5%), Realty Income (O +1.3%), Omega Healthcare (OHI +1.3%), HCP (HCP +1.4%), Equity Residential (EQR +1.6%), General Growth Properties (GGP +1.4%), Public Storage (PSA +1%), Boston Properties (BXP +1.5%), Hospitality Properties (HPT +1.2%), Liberty Property Trust (LPT +0.8%), American Campus Communities (ACC +1.2%).
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
    | 11 Comments
  • Tue, Mar. 10, 3:08 PM
    • With the averages having a tightening tantrum - the Dow down nearly 300 - money is cautiously flowing into some income plays, notably the REITs. The iShares U.S. Real Estate ETF (NYSEARCA:IYR) is flat on the session.
    • Among the larger caps: Simon Property (SPG +0.2%), General Growth (GGP +0.7%), Health Care REIT (HCN +0.9%), HCP (HCP +0.4%), Equity Residential (EQR +0.5%), AvalonBay (AVB +0.6%), Boston Properties (BXP +0.2%), American Capital Agency (AGNC +0.2%), Annaly Capital (NLY -0.8%)
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
    • Previously: Yields tumble alongside stocks (March 10)
    | 7 Comments
  • Fri, Mar. 6, 10:31 AM
    • Equity REITs are facing some competition as the 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
    • Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
    • The iShares U.S. Real Estate ETF (IYR -2.3%).
    • Realty Income (O -3.7%), National Retail Properties (NNN -3.9%), Agree Realty (ADC -3.1%), Omega Heathcare (OHI -4.5%), Health Care REIT (HCN -3.5%), Ventas(VTR -3.7%), HCP (HCP -3.6%), Medical Properties (MPW -4%), Healthcare Trust (HTA -4%), AvalonBay (AVB -2.7%), Essex Property (ESS -2.3%), Simon Property (SPG -2.3%), General Growth (GGP -2.2%), Kimco (KIM -2.9%), Inland Real Estate (IRC -2.9%), DDR (DDR -2.7%), Federal Realty Investment (FRT -2.6%), Public Storage (PSA -2%), Sovran Self Storage (SSS -2.7%), Boston Properties (BXP -2.8%), First Potomac (FPO -3.2%), Digital Realty Trust (DLR -1.9%), Hospitality Properties (HT -2.1%), Ashford (AHT -2.7%), STAG Industrial (STAG -3%), American Campus (ACC -2.9%).
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
    • Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
    | 62 Comments
  • Wed, Feb. 25, 9:53 AM
    | 2 Comments
  • Tue, Feb. 24, 3:32 PM
    • The 10-year Treasury yield has tumbled back beneath 2% amid Janet Yellen's congressional testimony and some weak economic data, but there's no bid for income favorites like equity REITs.
    • The iShares DJ U.S. Real Estate ETF (IYR -1.9%).
    • Realty Income (O -2.9%), National Retail Properties (NNN -2.7%), Senior Housing Properties (SNH -2.2%), Ventas (VTR -3.8%), HCP (HCP -3.6%), Equity Commonwealth (EQC -2.3%), Vornado (VNO -1.9%), Equity Residential (EQR -2.5%), AvalonBay (AVB -2.7%), Simon Property (SPG -1.8%), General Growth (GGP -2.1%), Kimco (KIM -3%), Sovran Self Storage (SSS -2%), Boston Properties (BXP -2%), Hospitality Properties (HPT -2.7%), LaSalle Hotel (LHO -2.8%), Liberty Property Trust (LPT -2.7%), American Campus Communities (ACC -1.7%).
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    | 40 Comments
  • Tue, Feb. 10, 8:14 AM
    • Q4 adjusted FFO of $364.9M or $0.79 per share vs. $347M and $0.76 one year ago. FAD of $304.9M or $0.66 per shave vs. $276.9M and $0.61. Dividend of $0.565.
    • Adjusted FFO per share for 2015 is guided to $3.15-$3.21, representing a growth rate of 5%; FAD of $2.73-$2.79 represents a growth rate of 7%.
    • Conference call at 12 ET
    • Previously: HCP beats by $0.02, beats on revenue (Feb. 10)
    • HCP flat premarket
    | Comment!
  • Tue, Feb. 10, 8:02 AM
    • HCP (NYSE:HCP): Q4 FFO of $0.79 beats by $0.02.
    • Revenue of $603.52M (+13.8% Y/Y) beats by $18.7M.
    • Press Release
    | 6 Comments
  • Mon, Feb. 9, 5:30 PM
  • Fri, Feb. 6, 10:19 AM
    • Equity REITs have had as a big of a move as any sector over the past year as interest rates confounded the experts and continued to fall. WIth today's jobs report and a summer rate hike looking far more likely, fans of the income favorites are reassessing.
    • Realty Income (O -4.3%), National Retail Properties (NNN -3.9%), Omega Healthcare (OHI -3.5%), Ventas (VTR -4%), HCP (HCP -2.3%), Equity Residential (EQY -2%), Essex Property (ESS -2.1%), Simon Property (SPG -2.1%), General Growth (GGP -1.5%), Inland Real Estate (IRC -2.3%), Federal Realty (FRT -2.6%), Extra Space Storage (EXR -2.1%), Government Properties (GOV -1.8%), Washington Real Estate (WRE -2.1%), Hospitality Properties (HPT -1.8%), Chambers Street (CSG -1.5%), American Campus Communities (ACC -1.5%).
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    | 64 Comments
  • Thu, Jan. 29, 4:46 PM
    • HCP (NYSE:HCP) declares $0.565/share quarterly dividend, 3.7% increase from prior dividend of $0.545.
    • Forward yield 4.71%
    • Payable Feb. 24; for shareholders of record Feb. 9; ex-div Feb. 5.
    | 11 Comments
  • Wed, Jan. 21, 3:14 PM
    • Equity REITs had a nice run after bond yields peaked last year and began declining, but, says a now-cautious John Authers from the FT, that rally has turned into a stampede. And while the U.S. has led the way, U.K., European, and global REIT indexes have also had big gains.
    • Since October, the S&P 500 REITs index is up 19% vs. 1.4% for the S&P 500, and a 22.5% loss for the Alerian index of MLPs.
    • Valuation has now become a concern, with every REIT sector covered by SNL Securities trading at a premium to NAV (not the mortgage REITs though). Healthcare REITs - HCP, MPW, HTA, UHT, LTC, SBRA, OHI, HCN come to mind - are at a 25% premium.
    • SNL's Jason Lail dismissed some concerns, noting REITs trade at a 12.% premium to NAV, well within the 20% above and below NAV they typically range between. Also, fundamentals remain sound, with supply still constricted in many areas.
    • JPMorgan's Jason Ko notes pockets of value, particularly office REITs which trade a minimal premium. Boston Properties (BXP -0.1%) is a particular favorite. Others in the sector include: EQC, WRE, CSG, FPO, HIW.
    • Simon Property (SPG +0.2%) is Ko's biggest holding as mall bankruptcies and chain closings should leave the survivors stronger. His 2nd-largest holding is industrial player ProLogis (PLD +0.2%).
    • ETFs: IYR, VNQ, WPS, VNQI, DRN, RWX, URE, SRS, ICF, SCHH, RWR, RWO, IFGL, KBWY, DRV, DRW, REK, FRI, GRI, IFEU, FTY, FFR, RWXL, PSR, IFNA, WREI, REET
    | 19 Comments
  • Wed, Jan. 14, 10:14 AM
    | 4 Comments
  • Tue, Jan. 6, 2:25 PM
    • The 10-year Treasury yield plunging all the way to 1.94% makes the dividends on these players even more attractive.
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
    • Individual names: National Retail Properties (NNN +2.3%), Spirit Realty (SRC +3.2%), Health Care REIT (HCN +1.6%), Ventas (VTR +2.1%), HCP (HCP +2.3%), AvalonBay (AVB +1.4%), Essex Property Trust (ESS +1.2%), Brixmor Property (BRX +1.8%), Macerich (MAC +0.9%), Retail Properties of America (RPAI +1.2%), Tanger Factory (SKT +1.3%), Public Storage (PSA +1.6%), Sovran Self Storage (SSS +1.9%),
    | 1 Comment
  • Dec. 22, 2014, 10:37 AM
    • Concluding its 9.4% ownership stake in HCR ManorCare is impaired, HCP, Inc. (HCP +0.5%) will record a non-cash charge of about $36M or $0.08 per share in Q4, bringing the carrying value of the investment down to $39M.
    • Updated full-year FFO is lowered to $2.95-$3.01 per share and expected EPS is cut as well, but adjusted FFO and FAD per share remain at $2.98-$3.04 and $2.52-$2.58, respectively.
    • Source: SEC Form 8-K
    | 1 Comment
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Company Description
HCP Inc is a real estate investment trust. The Companyinvests in real estate serving the healthcare industry in the United States. Its business segments aresenior housing, post-acute/skilled nursing, life science, medical office and hospital.