The company had a solid 1st quarter, with FFO per share increasing 12% (excluding charges) over the
year earlier quarter. Operations are holding up in the company s core portfolio and the company has
completed or is close to completing most of its planned 2008 asset sales. HCP was a heavy
acquirer in 2007, making $4.7 billion of investments. High debt levels are the main negative for HCP,
although, the company has brought down debt levels ahead of schedule. Despite recent share price
increases, partly due to the company s inclusion in the S&P in March, HCP is still valued below its peer
group (P/FFO). We think health care will continue to outperform other sectors in 2008. Health care is a
good, defensive sector, in a weakening economy that could put pressure on other commercial real
estate sectors.
http://astuk-virtuallystocks.blogspot.com/
$35.3 (05/13/08)
