Our ratings on Long Beach, Calif.-based HCP Inc. reflect the diversified health care real estate investment trust's (REIT's) satisfactory business risk profile, characterized by a large portfolio of health care properties that continue to provide more robust income growth relative to other commercial property types. With an undepreciated asset base of $18.9 billion at Sept. 30, 2011, we believe HCP's investment platform has sufficient scale and diversity to deliver consistent growth in funds from operations (FFO) despite regulatory uncertainty surrounding the delivery and reimbursement of health care, and our expectations for weak economic growth over the next one to two years. The ratings are also supported by an intermediate financial risk profile, which balances improved leverage and fixed-charge coverage (FCC)...
Companies mentioned in this report are:
- HCP Inc.
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