HCP Raises $650M In Equity in First Half of 2019

Los Angeles

HCP had a “productive first half of 2019,” according to Tom Herzog, president and CEO of the healthcare REIT on its recent earnings call. The company has been focused on restructuring its portfolio to strengthen its balance sheet in an effort to take advantage of “favorable capital market conditions and accelerate our growth across all three of our core business segments of life science, senior housing and medical office,” said Herzog on the call.

During the second quarter, the healthcare REIT raised $650 million in equity and refinanced $1.3 billion in debt, leading to FFO as adjusted of $0.44 per share and blended same store cash NOI growth of 3.5% and the total SPP NOI growth by 50 basis points. Year-to-date, the firm has also capitalized on a favorable cost of capital to acquire $1.5 billion of high-quality real estate year-to-date, already surpassing our full year guidance, according to Scott Brinker, chief investment officer.