HCP to Focus on High-Growth Sectors after Spinning-Off HCRManorCare
By
Tony Seruga
Five years after acquiring HCR ManorCare and its $6.1 billion portfolio, HCP decided the challenges facing that part of the industry were holding back growth of its core healthcare sectors.
Kevin Tyler, Analyst, Green Street Advisors
Irvine, Calif.—Five years after acquiring HCR ManorCare Inc. and its portfolio of post-acute, skilled nursing and assisted-living facilities for $6.1 billion, HCP Inc. has decided the challenges facing that part of the industry were holding back growth of its core “high-growth healthcare sectors” like senior housing, life science and medical office properties and is spinning HCR ManorCare off into its own publicly traded REIT.
“Skilled nursing operators have been out of favor with investors in recent months as Medicare-centric payment changes have impacted industry length-of-stay and reduced payment rates. The ManorCare spin-off allows HCP to separate itself from the struggling entity, while providing investors with the choice of ManorCare ownership via the newly created company,” Green Street Advisors analyst Kevin Tyler said in a written statement provided to Commercial Property Executive….
HCP to Focus on High-Growth Sectors after Spinning-Off HCRManorCare
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