Legacy Tenant Capital Structures Create REIT Turmoil
It all started when HCP, Inc. completed a series of rent negotiations with HCR ManorCare, but to no avail. It just wasn’t enough for a long-term solution, and they ended up spinning the HCRMC portfolio into a new entity (Quality Care Properties) that was supposed to be a REIT but may end up not being one depending on the final solution. Even after those lowered rents, HCRMC defaulted on some payments to QCP, and it got messier after that. As everyone now knows, that was the tip of the iceberg. Practically every major REIT has reported “issues” with tenants, ranging from covenants broken, inability to make rent payments, and high likelihood of not being able to make rent payments in the... Read More »Quality Care Properties Seeking Receiver for HCR ManorCare
Quality Care Properties is taking its issues with HCR ManorCare (the lack of full rent payments) one step further. Late yesterday QCP announced that it is initiating a legal process to appoint an independent receiver to oversee the operation of the skilled nursing and assisted living properties that it owns which are leased to HCRMC. Apparently, the two companies had previously agreed that QCP would have the right to appoint a receiver to operate the properties if HCRMC defaulted on the leases. That default has already occurred. Assuming the California State Court appoints a receiver, QCP plans to start transitioning the properties to new owners and operators. They believe there will... Read More »
Genesis Healthcare Pulls Guidance
A lot of people have been nervous about the skilled nursing sector recently, given the deteriorating finances at HCR ManorCare and other companies. However, that has not seemed to impact acquisition prices in the market, at least for the better facilities and facilities in general in attractive markets. Genesis Healthcare is another company that has had a tough time negotiating through the Medicare Advantage reimbursement changes and declining industry occupancy in general. The company’s earnings announcement from earlier this week came without a typical “pre-notice” of the release date, and the conference call with analysts was a rather early 8:30 am ET, which may have also caught some... Read More »
Is The Carlyle Group Going To Sell HCR ManorCare?
While we are sure Carlyle would like to divest HCR, they may sell their German SNF company first. Okay, so is The Carlyle Group going to sell its HCR ManorCare portfolio company or not? Well, we may not know that answer for a few weeks, maybe days, but the large PE firm is on the move to dispose of other nursing facility assets. Just not in this country. Apparently, Carlyle is planning to sell its German nursing home company, Alloheim, which is the third largest nursing home company in Germany with more than 124 facilities in 2016. Carlyle bought it in 2013 for about 180 million euros when the company had just 49 facilities, up from 13 when London-based private equity firm Star Capital... Read More »Schedule a demo
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