May 21, 2013
HCP is a real estate investment trust investing in real estate serving the health care industry in the United States.[1] Because of regulations that prevent REITs from operating health care properties, HCP does not manage most of its properties, instead leasing them to operating tenants on a triple-net basis. Also, like all REITs federal regulations require HCP to pay out 90% of its taxable income in dividends. HCP has historically paid out a stable dividend.
Demand for HCP's properties, like that of all healthcare REITs, is tied to the demand for healthcare in the United States. Factors affecting demand for HCP's properties include the aging U.S. population and changing government health care legislation. On the competitive landscape, HCP is the largest healthcare REITS by value.[2]
(Read more at Wikinvest
) - Business Overview
- Business & Financial Metrics[4]
- Business Segments[5]
- Trends and Forces
- HCP Is Highly Levered, Increasing The Risk of Interest Rate Fluctuations and Difficulties Refinancing During the Credit Crunch
- An Aging Baby Boomer Population Is Likely To Increase Demand For Health Care Services and HCP's Properties
- The Demand For Medical Office Buildings Is Growing
- Increased Governmental Regulation Affects HCP's Collection of Rents From Tenants
- Declining Medicare and Medicaid Reimbursement Rates Affect HCP's Tenants’ Revenues and Therefore Their Ability To Pay Rents
- Competitors
- References
