HCP Profit Falls 22 Percent in Quarter

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HCP Inc. Tuesday reported fourth-quarter earnings and guidance for the coming year that all missed Wall Street’s expectations.

The Long Beach health care real estate investment trust reported net income of $35.1 million (14 cents per share) compared with $45 million (21 cents) a year ago. Revenue rose 4 percent to $263.3 million. Results were impacted by a impairment charge of $12 million related to leasing 11 properties to Emeritus Corp.

HCP said its funds from operations rose 1 percent to $123.3 million (48 cents. Analysts polled by Thomson Reuters on average expected quarterly FFO of 55 cents per share.

FFO, which adds items such as amortization and depreciation back to net income, is a key metric for REITS because it provides a more accurate picture of cash performance.

HCP said it expects to report 2009 FFO between $2.15 per share and $2.21 per share. Analysts were expecting $2.31 per share.

Shares were down $1.45, or nearly 6 percent, to $24.02 in morning trading on the New York Stock Exchange.

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