Opinions and controversy are all part of the game, but sometimes it can go too far.
Some people think I speak my mind a little too frequently, but after 30 years in the seniors housing and care sector, it is hard not to have a lot of opinions. I have always thought that with so much news out there, and so much rehashed news, people want to hear what someone really thinks. It may not be popular, but if it based on experience and a lot of thought, well, then maybe it is worth something. Controversial? Sometimes, at least I hope so. But perhaps not as controversial as the current spat among some healthcare REITs about their decisions to spin off their skilled nursing portfolios, or not. For the big REITs, divesting several billion dollars of assets at one time is not an easy decision when asset and dividend growth always seem paramount. That said, sometimes strategic decisions have to be made, or should be made, when looking at a 10-year horizon. With HCP and its spin-off of the HCR ManorCare portfolio, it was a tough decision, and in hindsight it was one that perhaps should have been made earlier. But to call it a leaking, steaming bag of….Well, that just seemed un-called for. So everyone should just tone it down a bit, unless you really want to hear my opinion.
Steve if anyone can have an opinion and get paid for it you as well as I certainly can. Not sure why someone would be so uncouth, it really just drags the sector down in the eyes of institutional investors that have plenty of options on where to place investment dollars. Then again the commentator is new to the sector and maybe feels like they want/need some recognition…
As you know, I do have my opinions. But usually I am civil, and always analytical, in my opinions. Not sure what the point of the outbursts really are. I am sure investors are not impressed, and I can’t imagine their customers are either.
Well stated Steve. These are strategic decisions made by intelligent leaders and based on their evaluation of paths to unlock value and improve return to shareholders. HCP has a smart, experienced management team at the helm as does Ventas, Welltower and the next tier of REITS. The industry is well served by a spirited and informed debate, but the steaming bags should be left for cooking vegetables in a microwave. Time will tell if either or both approaches are effective.
Yes, time will tell about the approaches, and I like the “should be left for cooking vegetables” comment, but not sure I would want to eat them….