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HCPI Reports Lower First Quarter FFO With SAB 101

NEWPORT BEACH, CA-The healthcare equity REIT's first quarter performance was down slightly from the same period last year after conforming to the Securities and Exchange Commission's Staff Accounting Bulletin adopted at the end of last year.

By Joel Cone | Updated on April 24, 2001

NEWPORT BEACH, CA-Health Care Properties Inc., an equity REIT investing in a variety of health care-related facilities around the country, reported Funds From Operations of $39, 418,000 for the quarter ended March 31, 2001. FFO is the generally accepted measure of general performance for REITs.

This first quarter figure compares favorably with the REIT’s FFO of $39.947 million for the first quarter last year, because this represents HCPI’s first implementation of the Securities and Exchange Commission Staff Accounting Bulletin No. 101 (“SAB 101″ “Revenue Recognition in Financial Statements”).

In accordance with SAB 101, the company deferred customary cash rental receipts of $4.1 million. The company’s implementation of SAB 101 also had a minor impact in reducing income by $300,000 in the company’s results of operations for last year. The company expects back the amount deferred during the first quarter over the remainder of the year.

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