#8 HCP (HCP)
HCP (HCP) has been an absolute dog over the last year, losing roughly 17% on a price basis. Add in the big dividend and the total return still looks bad at -8.3%.
Part HCP’s problem is that REITs had a giant run in 2012, and last year it was time for payback. And now that the Federal Reserve is tapering its bond-buying program, investors and traders have looked to lock in profits and search for yield elsewhere.
HCP is projected to generate small gains in fourth-quarter earnings, but the market remains concerned that its revenue stream is too concentrated on a relatively small number of operators and tenants. It’s also an intensely competitive industry with especially relentless cost pressures.