HCP Inc. HCP reported second-quarter 2018 funds from operations (FFO) as adjusted of 47 cents per share, beating the Zacks Consensus Estimate of 46 cents. Comparable FFO as adjusted in the prior-year quarter was 48 cents per share.Results reflect better-than-expected revenue numbers for the reported quarter.This healthcare real estate investment trust (REIT) generated revenues of $ 469.5 million, surpassing the Zacks Consensus Estimate of $467.2 million. Moreover, the figure compares favorably with the year-ago number of $458.9 million.Behind the HeadlinesHCP experienced 0.7% year-over-year rise in the three-month cash SPP net operating income (NOI). Though there was growth of 0.5% in life-science cash NOI, 0.7% increase in senior-housing triple-net and 2.5% rise in the Medical office portfolio, the positives were offset by 4.4% decrease in senior-housing operating portfolio (SHOP) cash NOI.During the quarter under review, HCP completed the sale of five assets, totaling $243 million to Brookdale Senior Living.To date, the management of 20 senior-housing communities, owned by HCP, were being transitioned from Brookdale to Atria Senior Living. The remaining will likely be transitioned in the ongoing quarter.Also, two senior-housing communities were transitioned to Eclipse, five to Sunrise and another to Sonata.HCP had cash and cash equivalents of around $91.4 million as of Jun 30, 2018, up from $55.3 million recorded at the end of 2017. Further, the company ended the reported quarter with $1.5 billion of liquidity from a combination of cash and availability under its $2-billion credit facility. It has no major senior notes or secured debt maturities until 2019.OutlookHCP revised its 2018 FFO as adjusted guidance and expects it in the range of $1.79-$1.83 per share as compared with the previous band of $1.77-$1.83 per share. The Zacks Consensus Estimate is pegged at $1.81.Furthermore, the company reaffirmed the 2018 SPP cash NOI growth guidance of 0.25-1.75%.ConclusionStrategic divestitures, efforts to lower the Brookdale portfolio concentration and a focus on deleveraging augur well for HCP’s long-term growth.Nonetheless, cash NOI for the company’s SHOP portfolio witnessed a year-over-year decline. Notably, softness in the seniors housing fundamentals is likely to continue in the upcoming quarters amid rise in new supply in the market. This is anticipated to affect the company’s pricing power and occupancy level.In addition, the cut-throat competitive market makes it more challenging for the company to boost its revenues, as well as identify and successfully capitalize on acquisition opportunities that meet its objectives.HCP, Inc. Price, Consensus and EPS Surprise HCP, Inc. Price, Consensus and EPS Surprise | HCP, Inc. QuoteHCP currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other REITsDuke Realty Corporation’s DRE Q2 core FFO per share of 33 cents came in line with the Zacks Consensus Estimate. Moreover, the figure came in a cent higher than the year-ago tally.Iron Mountain Inc. IRM reported second-quarter 2018 normalized FFO of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents. The reported figure inched up 1.8% year over year.Digital Realty Trust, Inc.’s DLR June-end quarter’s core FFO per share of $1.66 outpaced the Zacks Consensus Estimate of $1.61. The figure also came in higher than the year-ago quarter tally of $1.54.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.See Them Free>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iron Mountain Incorporated (IRM): Free Stock Analysis Report HCP, Inc. (HCP): Free Stock Analysis Report Duke Realty Corporation (DRE): Free Stock Analysis Report Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research