The REIT's FFO per diluted common stock, after a $2 million write-off on an equity investment, still increased 4.3% to $3.22 per share for the year. As of the close of trading Friday on the New York Stock Exchange, the firm's common stock was selling at $31.88, a decline of $0.38 on a volume of 81,800 shares.
The company's board of directors has also increased the quarterly common stock cash dividend $0.01 above the previous quarter to $0.76 per share. This is the 61st consecutive quarterly increase in common stock dividends since the REIT's inception in 1985.
"We completed a very challenging year in 2000 and still achieved record results," says Kenneth B. Roath, HCPI's chairman and CEO. "The main focus of operations centered on integrating the acquisition of American Health Properties and selling under-utilized investments and those of less strategic value. Additionally, lease renewals, property management consolidation, mortgage financing and addressing the issues of bankrupt nursing home operators rounded out the accomplishment of a difficult year."
With the integration of the $1 billion acquisition of American Health Properties in late 1999 complete and $81 million in proceeds realized from the sale of some facilities as of Dec. 31, 2000, HCPI is working with various investors to identify its investment strategy for the future. According to James G. Reynolds, SVP/CFO, the REIT is looking at potential investments with high cap rates such as assisted-living facilities and stable nursing homes. "We'd also like to invest in medical office buildings, but they have a lower cap rate so they're harder to do," he says.
The company also received $51.6 million from the sale of seven assisted-living facilities over the last year, and it has $80 million in properties it may sell including medical office buildings, long-term care and assisted-living facilities. However, hospitals and medical office buildings are expected to provide a solid revenue base for the REIT this year.
Currently, the REIT's portfolio of properties generate revenue, including 17.9% from managed medical office buildings and physician clinic properties and 14.2% from assisted-living facilities. The portfolio consists of 172 long-term care facilities, 86 congregate-care and assisted-living facilities, 80 medical office buildings, 22 acute care hospitals, nine freestanding rehabilitation hospitals and 44 physician group practice clinics throughout 43 states. In Orange County, the REIT owns the Irvine Medical Center.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
