Continued Uncertainty At HCP
Lauralee Martin is out as CEO, but who will be in remains a mystery. The only thing surprising about the “sudden” announcement that Lauralee Martin stepped down as CEO of HCP, Inc. was that the effective date of her departure was also the announcement date. Now, we don’t want to read too many tea leaves into the situation, but remember that she came into the CEO position from the Board nearly three years ago in a tumultuous dumping of the previous CEO. She already had a top job at another real estate company and didn’t really need the aggravation. But she steered the REIT through another tumultuous period with, first the two lease adjustments, and then the in-process spin-off of the $6... Read More »
Controversy Among The REITs
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... Read More »
Changes at HCP, Brookdale, Genesis
Earnings season brings more than just earnings to the surface for some companies. What can I say? It has been quite a week, and we are only at Wednesday. On Monday subscribers received my initial take on HCP’s announcement about spinning out its HCR ManorCare portfolio into a new REIT. Maybe management thought it was necessary, but I really think we are going to be hearing some negative news in the future, and if so, it will make HCP’s decision look better. Just look at the performance of Genesis Health in the first quarter, which sent its share price plummeting by 20% yesterday. One problem is that with the HCR portfolio representing more than 25% of HCP’s revenues, with it gone,... Read More »Troubles Everywhere
This week can go down as one of the worst we have seen in the seniors housing and care market. Putting aside the nearly $10 billion drop in market value of the healthcare REITs and senior care companies, when analysts start asking HCP, Inc. whether they think HCR ManorCare, its $6 billion tenant (well, now closer to $5 billion), may have to file for bankruptcy protection, you know that things are out of whack. The problems at HCR ManorCare, among other things, sent HCP (and some of the other healthcare REITs) into a nosedive. At one point Thursday, HCP’s yield was just over 9.0%, something that is shocking to most people. Now, three of the healthcare REITs yield more than 10%, with a few... Read More »Schedule a demo
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