Sale of hospital boosts HCP 3rd-quarter results

Funds from operations rose 60 percent to $179.1 million, or 71 cents per share, from $111.6 million, or 52 cents per share last year.

Analysts polled by Thomson Reuters, on average, predicted funds from operations of 66 cents per share.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of REIT strength because it gives a more accurate picture of cash performance.

FFO was boosted by 11 cents per share by the sale of a hospital in Tarzana, Calif., and settling legal disputes related to Tenet Healthcare Corp.

Profit fell 62 percent to $120.1 million, or 49 cents per share, from $316.9 million, or $1.53 per share a year ago.

The Long Beach, Calif.-based company said revenue rose 11 percent to $270 million from $243.6 million last year.

Rental revenue rose 14 percent to $233.6 million.

The company also received lease termination fees of $18 million from a tenant in connection with the early termination of three leases in its life-science segment.

During the quarter the company sold three hospitals valued at $116 million and made investments totaling $89 million through the purchase of debt securities and a joint venture interest, plus the funding of construction and other capital projects.