REIT realignment.Health Care Property Investors Inc. last week announced several moves that reordered its portfolio, unloading more than half of its nursing home properties Home Properties (NYSE: HME) is a real estate investment trust (REIT) that owns and manages apartments and apartment properties in the Midwest, New England, Mid-Atlantic and Southeast Florida. It manages or owns over 47,000 apartments. and buying out the interest of a joint venture partner that was ready to take its profits. The Long Beach-based real estate investment trust said it sold to unnamed parties 78 skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. run by 28 different operators around the country for $443.5 million, leaving it with 66 such facilities. The deals shift the REIT's property mix from 16 percent skilled-nursing to only 4 percent. Because nursing homes are reliant on public payers, they are considered a riskier investment than properties with a larger private payer revenue base, such as senior housing, of which the REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). owns 333 facilities. The company also owns 265 medical office buildings and 30 hospitals. "Management has been saying for a while that they're not comfortable with the risk-reward relationship with nursing home investments," said Robert Main The Reverend Robert Main (July 12 1808 – May 9 1878) was a British astronomer. Born in Kent, he studied mathematics and graduated as sixth wrangler from Queens' College, Cambridge in 1834. , an analyst with Ryan Beck & Co. "While nursing homes are performing well now, there's some concern about how well they'll do in the future." The company significantly added to its private payer properties in October when it acquired CNL CNL CityNightLine (German Rail) CNL Cancel CNL Clinical Nurse Leader Cnl Colonel CNL Center for Naval Leadership CNL Compensated Neutron Log (oil industry) Retirement Properties Inc., which increased its senior housing portfolio from 34 percent to 58 percent of assets. Analyst Paul Morgan For the British journalist of the same name, see . Paul Morgan was a British engineer who co-founded Ilmor Engineering with Mario Illien in 1983. Ilmor had major successes providing engines for motorsport and won three Queen's Awards for Export Achievement. at Friedman, Billings, Ramsey & Co. Inc. estimates that private-pay sources now account for 87 percent of the REIT's revenues, up from 51 percent four years ago. In the second deal announced last week, HCP HCP, n healthcare provider, a professional who specializes in treating and managing a person's general or specific health needs. said it paid $141 million to buy out the interest of an affiliate of General Electric Co. in a joint venture formed in 2003 to own 59 medical office buildings. The REIT, which had a 30 percent share in the venture, likely will seek another partner, Mains said, and has been exploring potential partnerships for some of the CNL properties it acquired. The company's shares were trading at $36.35 last week and are up 43 percent so far this year. Staff reporter Deborah Crowe can be reached at (323) 549-5255, ext. 232, or at dcrowe@labusinessjournal.com. |
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