HCP Is Making All the Right Moves

Healthcare real estate investment trust HCP (NYSE: HCP) reported strong third-quarter earnings and increased its full-year 2017 guidance. In addition, the company announced several transactions designed to further reduce its concentration to its largest tenant and strengthen the balance sheet. Here's a rundown of the news and what it means for investors.

For the third quarter of 2017, HCP reported adjusted funds from operations (FFO) of $0.48 per share, which is down by $0.02 from last year (excluding HCP's spun-off assets). However, this isn't bad news. HCP has taken steps to get rid of certain assets in order to pay down debt and strengthen its balance sheet, so its FFO is coming from a narrower pool of assets and, more importantly, is more stable and secure than it was a year ago.

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Source: Fool.com