HCP Inc. on Friday reported a 24 percent drop in fourth quarter earnings as the real estate investment trust took charges on properties, leases and other investments that had lost market value.

The Long Beach owner of senior housing facilities, medical office buildings and other health care facilities reported net income of $26.4 million (9 cents per share), compared with $34.7 million (14 cents) a year earlier. Revenue rose half a percent to $296 million.

Funds from operations applicable to common shares were $106 million (36 cents) compared with nearly $123 million (48 cents) a year earlier. FFO is a common performance measure for REITs that removes the profit-reducing effect of depreciation, a non-cash accounting item.

Adjusted FFO, which discounts the impact of impairments, litigation provision and other charges, was 55 cents per share. Analysts surveyed by Thomson Reuters on average expected the company to report 50 cents per share on revenue of more than $251 million.

Shares were down 59 cents, or 2 percent, to $27.45 in midday trading on the New York Stock Exchange.