How HCP, Inc. Makes Most of Its Money

I've written before about healthcare real estate investment trust HCP, Inc. (NYSE: HCP) and how it could be a big beneficiary of the aging U.S. population over the next few decades. While I certainly feel like HCP is an excellent long-term investment, before you buy any stock, it's important to understand how the company makes its money.

In HCP's case, it may seem logical that virtually all of the company's income would come from leasing its properties to tenants -- after all, it's a real estate investment trust, and that's how REITs typically make money. However, in the case of HCP, it's not quite that simple.

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Source: Fool.com