HCP, Inc. HCP, the Irvine, CA-based healthcare real estate investment trust (“REIT”) has made the announcement that its board of directors has approved the earlier announced spin-off of its HCR ManorCare portfolio of skilled nursing, assisted living and certain other assets. The spin-off will create an independent publicly-traded REIT named Quality Care Properties, Inc. ("QCP").
It is anticipated that the spin-off will strengthen HCP’s position as a leading healthcare REIT. Post spin-off, a large chunk of the healthcare REIT’s portfolio will be private pay and will comprise over 850 properties from its three main segments – Senior Housing, Life Science and Medical Office. On the other hand, a separated HCR ManorCare can squarely concentrate on investing in real properties focused on post-acute/skilled nursing and memory care/assisted living properties.
HCP acquires, develops, manages, sells and leases a diverse portfolio of healthcare real estate related properties. The spin-off will be executed through a pro rata distribution of the outstanding common shares of QCP to HCP’s stockholders as of Oct 24, 2016. Each common shareholder of HCP will receive one share of QCP for every five common shares of HCP. After the spin-off, which is subject to the satisfaction of certain conditions, QCP’s common shares will be listed on the NYSE under the symbol “QCP.”
HCP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Arbor Realty Trust Inc. ABR, Crown Castle International Corp. CCI and Seritage Growth Properties SRG, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Current quarter estimates for Arbor Realty Trust and Crown Castle International remained stable at 16 cents and $1.13 per share, respectively over the last month.
Seritage Growth Properties’ current quarter estimates have moved up 7.5% over the past one month to 57 cents.
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