HCP Changes Name to Healthpeak, Brinker Becomes President

Irvine, California-based health care real estate investment trust HCP announced it is changing its name to Healthpeak Properties on Wednesday, along with several leadership changes. The new name will take effect immediately. The company is also changing its New York Stock Exchange ticker logo to PEAK. That change will take effect on Nov. 5.

Healthpeak’s other big news is the promotion of Chief Investment Officer Scott Brinker to president. He will assume full operational oversight of Healthpeak’s senior housing, medical office and life science segments, with the leaders of each arm reporting to him. He will also continue to be responsible for enterprise-wide investments and portfolio management, including acquisitions and dispositions.

“This promotion will enable stronger strategic alignment across our segments, accelerated decision-making and portfolio optimization,” Healthpeak said in a press release.

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The name change and Brinker’s promotion highlighted a flurry of announcements on Wednesday, including:

— Entering a $790 million joint venture in which it will sell a 46.5% stake in a 19-property Brookdale portfolio to a sovereign wealth fund. The properties are located in Texas, Illinois, Tennessee, Maryland and are 23 years old on average.

— Agreed to sell its remaining 49% interest in its U.K. holdings for gross proceeds of $232 million to Omega Healthcare Investors (NYSE: OHI).

— Agreed to the early termination of a nine-property master lease with Capital Senior Living originally scheduled to mature in October 2020. Healthpeak intends to convert three properties operated by Atria Senior Living and a fourth operated by Discovery to RIDEA structures, and sell five non-core properties to third parties over the next 6-12 months.

HCP also elaborated on previously announced moves to reduce its exposure to Brookdale Senior Living (NYSE: BKD). HCP will acquire Brookdale’s 51% interest in 13 CCRC campuses for $541 million, increasing from a previously reported acquisition of 12 campuses for $510 million.

In other personnel moves, Healthpeak promoted Jeff Miller to executive vice president of its senior housing division; Lisa Alonso to executive vice president and chief human resources officer; Barbat Rodgers to senior director and leader of its investor relations team; and Andrew Johns will head its financial planning and analytics team.

An ongoing evolution

The name change is the latest move in what has been an active 2019 for Healthpeak.

Under the leadership of Brinker and CEO Tom Herzog, the REIT has restructured its senior housing portfolio over the past couple years and entered 2019 in acquisition mode.

It acquired $558 million in senior housing assets in the first quarter, acquired nine communities from Discovery Senior Living in May for $445 million, and sold 18 properties to Brookdale Senior Living (NYSE: BKD) earlier this month for $405 million.

Healthpeak does not expect its senior housing restructuring to yield results until 2020 at the earliest, but Herzog noted in the release it is primed to deliver consistent cash flows, earnings and dividend growth.

“We have developed a more disciplined investment approach. We are an innovative company at the forefront of providing premium real estate to the evolving healthcare industry, and are focused on delivering value to our shareholders, customers and employees,” Herzog’s statement read.

The name change announcement came in conjunction with the REIT reporting its third-quarter earnings.

For the quarter ending on September 30, Healthpeak announced revenues of $537.97 million, an 18% increase over the previous year. The REIT also generated a net loss of $0.09 per share, NAREIT funds from operations (FFO) of $0.37 per share, FFO as adjusted of $0.44 per share and blended total portfolio share purchase plan cash NOI growth of 2.4%.

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