Quality Care Properties Cuts Rent
Within weeks of being spun out of HCP, Inc. (NYSE: HCP), Quality Care Properties (NYSE: QCP) announced that it had agreed to a two-month temporary rent reduction for its major client, HCR ManorCare. December’s rent was reduced by $15.0 million, or nearly 40% below what it should have been, and January 2017’s rent will be reduced by $10.0 million, or 25% below what it should have been. Quality Care Properties agreed to these reductions in response to a request from HCR ManorCare because of the “continuing financial deterioration” at the company. QCP believes this partial and temporary relief with give it time to “perform due diligence and gather information about the Lessee in advance of a... Read More »
Genesis HealthCare, Kindred and Brookdale Working With REITs
It was not easy, but Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living have worked with their REITs to strengthen all concerned. In reviewing the events of the year, I think perhaps the most important ones involve Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living. And, of course, the REITs with close ties to them. With regard to Genesis, I know it took some brass ones for Welltower to work through their various leases with Genesis and sell a large number of the properties. But the important aspect was the reduction of the rents and the smaller annual escalators that will keep Genesis on an upward track. Investors liked it, boosting the share price by 37%... Read More »Blackstone and Brookdale
The beginning of November brought with it a lot of big news. Sorting through the mess that was the Brookdale Senior Living earnings announcement, which caused quite the buzz in the industry, we also noted the year’s second-largest transaction was announced. Private equity firm Blackstone Real Estate Partners is acquiring 64 Brookdale-operated seniors housing properties from HCP, Inc. for $1.125 billion, or about $188,500 per unit. That was for 100% of the ownership, but Brookdale will pay Blackstone $170 million for a 15% ownership interest in the joint venture, in addition to operating the portfolio on behalf of the joint venture. Occupancy across the portfolio averaged 85%, and the... Read More »HCP boosts seniors housing holdings
Just as HCP, Inc. is about to spin off its large skilled nursing portfolio into a new REIT, it has closed a smaller, but large in today’s M&A market, acquisition of a portfolio of seven assisted living and memory care communities with 526 units in Maryland and Virginia. The price was $186.25 million, which comes in at $354,400 per unit, much higher than the average price per unit of $198,000 for the past four quarters, but near the levels we have been seeing for some good portfolios of late. The properties were built between 1993 and 2013, and talking to other buyers it appears that occupancy was not quite stabilized, so there should be room for improvement for the new operator, Senior... Read More »Schedule a demo
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