HCP Inc.'s (HCP) first-quarter net income more than doubled as revenue soared and the health-care real-estate investment trust recorded better-than-expected growth in a key performance metric.
The REIT--whose investments include senior housing, medical offices and skilled-nursing properties--has had its revenue steadily grow with help from several acquisitions.
Looking ahead, HCP raised its full-year outlook for funds for operations, a key measure of performance for REITs, by a penny. It nows expects FFO of $2.71 to $2.77 for the year.
For the first quarter, the company reported a profit of $193.4 million, up sharply from a year-earlier profit of $70.1 million. On a per-share basis, which reflects the payment of preferred dividends, earnings jumped to 43 cents from 17 cents a year earlier, matching analyst expectations.
Overall revenue climbed 39% to $459 million. Analysts polled by Thomson Reuters expected $463 million.
Adjusted fund from operations rose to 67 cents from 56 cents, topping the 66 cents analysts expected.
Shares closed Monday at $41.45 and were inactive premarket. The stock is up 4.6% over the past 12 months.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; [email protected]