HCP, Inc. (NYSE:HCP) Misses Earnings Estimate, Cuts Dividend

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Shares in HCP, Inc. (NYSE:HCP) were down Tuesday after the company reported an earnings miss during its third quarter and also cut its quarterly dividend.

The stock fell 2.32% to $30.47 after trading 10.59 million shares.

HCP, Inc. (NYSE:HCP) completed on October 31, the spin-off of Quality Care Properties, Inc. (NYSE:QCP).

Technically, the stock has made a bearish rounding top pattern on the daily chart over the last five months, and in the last four trading sessions has violated the 200-day moving average, signifying chances of a further slide in prices.

HCP, Inc. is a self-administered real estate investment trust (REIT) that invests in real estate serving the healthcare industry in the United States.

HCP, Inc. (NYSE:HCP) in the third quarter

HCP reported third quarter FFO (funds from operations) of $0.65, which missed by $0.06, and revenue of $654.3 million which beat by $19.5 million.

It sold 64 communities triple-net leased to Brookdale Senior Living, Inc. for $1.125 billion to affiliates of Blackstone Real Estate Partners VIII L.P.

During the quarter HCP completed $254 million of acquisitions and announced $204 million of dispositions other than QCP and Brookdale mentioned above.

“The combined proceeds from QCP financing and Brookdale transactions will be used by HCP to pay off our line of credit and substantially all other debt maturities through the end of 2018,” said Michael McKee, CEO, on the conference call. “Once completed, this will result in a much improved balance sheet profile.”

Health care REITs have also been anxious to move away from skilled nursing facilities because of changing medical billing practices at Medicare and other government insurance programs.

 

HCP, Inc. (NYSE:HCP) guidance for full year 2016

The company provided full year 2016 guidance of EPS of $1.49 – $1.55 and FFO per share of $2.35 – $2.41.

For full year 2017 it expects EPS of $1.07 – $1.13 and FFO per share of $1.88 – $1.94.

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