HCP, Inc. (HCP)

HCP, Inc. (HCP - Analyst Report) continues to raise cash through asset sales and equity issuance. The company has done a successful job of de-levering and strengthening the balance sheet. With nearly $1.4 billion available on its credit facility, the company has adequate capital to address 2009 and 2010 debt maturities.

We continue our Buy rating. HCP has a diversified asset base and is moving toward more private pay sources, which we view as a positive. HCP has increased its quarterly dividend from $0.455 per share to $0.46, and the current yield is over 8%.

We think healthcare will continue to outperform other REIT sectors in 2009. Healthcare REITs should hold up better in a recession. Consumers will continue to spend on healthcare while cutting out other non-essential services. HCP will report 1Q results on April 28th.