HCP

HCP Inc.

Healthcare


Presented:10/17/2014
Price:$42.50
Cap:$19.50B
Current Price:$33.86
Cap:$6.87B

Presented

Date10/17/2014
Price$42.50
Market Cap$19.50B
Ent Value$28.34B
P/E Ratio21.03x
Book Value$23.35
Div Yield5.3%
Shares O/S458.82M
Ave Daily Vol2,100,000
Short Int2.27%

Current

Price$33.86
Market Cap$6.87B
HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. It primarily invests in properties serving the healthcare industry including sectors of healthcare such as senior housing, life science, medical office, hospital and skilled nursing. The fund also invests in mezzanine loans and other debt instruments. It engages in acquisition, development, leasing, selling and managing of healthcare real estate and provides mortgage and other financing to healthcare providers. The fund benchmarks the performance of its portfolio against the S&P 500 Index, Berkshire Hathaway Index, and MSCI REIT Index. HCP, Inc. was formed in 1985 and is based in Irvine, California with additional office in Nashville and San Francisco.

Publicly traded companies mentioned herein: HCP Inc (HCP), Brookdale Senior Living (BKD)

Highlights

HCP, Inc. (HCP), also known as Healthcare Property Investors, Inc., is a REIT that invests primarily in real estate serving the US healthcare industry. Roughly 70% of HCP’s assets are triple net leases with senior housing operators such as HCR ManorCare and Brookdale Senior Living. The presenter is short the stock, and sees an attractive risk/ reward setup at present levels. The company is essentially a landlord collecting rent from nursing home operators, and the max organic growth it can generate is based on rent increases (which are typically in line with inflation). At best, he thinks HCP’s cash flow stream grows 3% per year.

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Idea Discussion

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