HCN Announces $2.2 Billion Q1 Investment Pipeline

Just days after Health Care REIT (NYSE: HCN) reported a record year of earnings during a call with industry analysts, the real estate investment trust announced that it anticipates completing approximately $2.2 billion of investments in the first quarter of 2015.

In comparison, the company completed $3.7 billion of new investments during the entirety of 2014.

HCN’s first-quarter investments will be comprised of approximately $1.1 billion of seniors housing operating investments, $664 million of triple-net investments and $460 million of loan investments, of which the majority is with Genesis Healthcare (NYSE: GEN).

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In last Friday’s earnings call, HCN Chief Investment Officer Scott Brinker noted that most of the REIT’s growth, at least in the post-acute space, would be attributable to its partnership with Genesis. 

In keeping with this strategy to grow through established partners, approximately 81% of HCN’s investments are expected to involve existing portfolio partners including Belmont Village Senior Living, Benchmark Senior Living, Brandywine Senior Living, Cascade Living Group, Genesis Healthcare, Merrill Gardens, HCN’s Canadian partner Revera and HCN’s U.K. partners Avery Healthcare and Signature Senior Lifestyle.

It’s worth noting that HCN did pick up a number of new partners through its deal with Mainstreet, including Ensign and Trilogy, and that it “expect[s] to be growth partners going forward,” Brinker said during the company’s fourth-quarter earnings call. 

Of its first-quarter investments, HCN expects 52% to be located in the United States, 30% in the United Kingdom and 18% in Canada.

The aggregate anticipated investment amount includes approximately $156 million of secured debt that HCN expects to assume at an average annual interest rate of 3.9%.

Written by Emily Study