HCP (HCP) Enters $125M Settlement with Ventas (VTR); Modifies FY11 FFO Outlook, Adj. Number Remains Same
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HCP (NYSE: HCP) announced that it has entered into an agreement with Ventas, Inc. (NYSE: VTR) to settle all claims relating to Ventas’s litigation against HCP arising out of Ventas’s 2007 acquisition of Sunrise Senior Living REIT. HCP has agreed to pay $125 million to Ventas and will incur a charge during the current quarter for such amount. This payment is in addition to the $102.8 million paid to Ventas in August 2011 resulting from the 2009 jury verdict, which was previously accrued.
We are updating our full-year 2011 guidance to reflect a $0.31 per share charge related to this announcement, and we expect Funds From Operations per share to range between $2.15 and $2.21 and net income per share to range between $1.25 and $1.31. FFO as adjusted and Funds Available for Distribution are presented before the impact of litigation provisions; accordingly, we continue to expect FFO as adjusted per share and FAD per share to range between $2.65 and $2.71 and $2.11 and $2.17, respectively. The Street sees $2.52.
We are updating our full-year 2011 guidance to reflect a $0.31 per share charge related to this announcement, and we expect Funds From Operations per share to range between $2.15 and $2.21 and net income per share to range between $1.25 and $1.31. FFO as adjusted and Funds Available for Distribution are presented before the impact of litigation provisions; accordingly, we continue to expect FFO as adjusted per share and FAD per share to range between $2.65 and $2.71 and $2.11 and $2.17, respectively. The Street sees $2.52.
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