Nine of the biggest senior living companies are working with Harvard Medical School researchers to examine the sector’s role in the changing healthcare system. Brookdale Senior Living (NYSE:BKD), Atria Senior Living, Elmcroft Senior Living, Emeritus Corporation (NYSE:ESC), Erickson Living, HCP, Inc. (NYSE:HCP), Health Care REIT, Inc. (NYSE:HCN), Sunrise Senior Living, and Ventas, Inc. (NYSE:VTR) have […]
HCP Inc.
Low capitalization rates for many high-quality senior housing transactions has made for a “seller’s market” the past several quarters. But senior living buyers may become more cautious as interest rates climb following rises in 10-year Treasury yields. In mid-June, Ben Bernanke, chairman of the Federal Reserve, announced plans to taper off the quantitative easing program—through which […]
HCP Inc. (NYSE:HCP) reported a 4% boost in funds from operation (FFO) to $0.72 for the second quarter ended June 30, 2013 after completing $367 million of investment transactions in the quarter. The REIT’s FFO increased to $327.7 million up from $293.6 million, or $0.69 per share, in 2012’s second quarter. Revenue rose 12% to […]
Much ado is made about the blockbuster deals made in recent quarters by the Big 3 REITs, but while Ventas, HCP, and Health Care REIT fight for the large, high-quality senior housing portfolios, smaller-cap REITs are quietly snatching up their own deals at more stable—and reasonable—cap rates. Senior Housing Properties Trust (NYSE:SNH), for example, is […]
The Affordable Care Act is sure to impact the senior housing space, and the Big Three healthcare REITs expect their capital will be a crucial component for operators to stay in the game. “The winners from the operating standpoint will be able to create new operating models or paradigms to lower the cost of care,” […]
As high-quality portfolio investment opportunities for senior housing-focused real estate investment trusts (REITs) dwindle, the large-cap U.S. REITs are expected to chase growth opportunities abroad. “I would not be surprised at all to see more growth coming outside of the U.S.,” says Jeff Theiler, a research analyst with Green Street Advisors. “As the pool of large, […]
Long Beach, Calif.-based HCP Inc. (NYSE:HCP) recently bought 30% of a United Kingdom nursing home chain’s junior debt, according to Sky News. In the deal, HCP acquired about £175 million (about $264 million USD) of borrowings from Barchester Healthcare’s property arm at a discount from Isobel, a joint venture between private equity firm The Blackstone Group […]
Healthcare REITs have been among the top-performing REIT sectors throughout the past several years—and that trend continued through the first quarter of 2013 as the segment produced the highest returns in the Global REIT index, revealed a recent S&P Down Jones Global Real Estate Report on Thursday. The Healthcare segment of the S&P Global REIT index […]
The use of RIDEA structures in REIT acquisitions is becoming more commonplace in the senior housing sector as a model that helps drive long-term growth, and analysts say the days of healthcare REITs enjoying healthy margins are far from over. “We see the RIDEA structure as a way for the REITs to remain competitive within […]
After snapping up several large ‘Class A’ senior living portfolios between 2011 and the present, real estate investment trusts (REITs), hungry to keep their margins healthy, are casting wider nets that may include off-market deals, other asset types, and new development. “The biggest challenge the REITs are currently facing is a shortage of quality properties […]
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