Purchased by the operators who had leased the properties from HCP, an equity health-care REIT, the transactions resulted in a book gain of $10.5 million and an economic gain on the original investment cost of $4.8 million. With these sales, assisted-living facilities now account for 14% of the REIT's total annualized revenues, down from 16% before the sales. In all, the REIT sold $81 million in assets during 2000.

"We are pleased to sell these assets at price levels that should enable the company to reinvest the proceeds at a more favorable yield," says HCP chairman/CEO Kenneth B. Roath. "In addition, the sales of these facilities will temporarily reduce the company's overall investment in the assisted-living sector. For some time, there has been slower than anticipated lease up in this sector, which may be attributable to overbuilding in some areas."

HCP invests in health care-related properties either directly or through joint ventures. The company's investment portfolio at year's end consisted of 414 facilities in 43 states. Those facilities include 172 long-term care facilities, 86 congregate-care and assisted-living facilities, 80 medical office buildings, 22 acute-care hospitals, nine freestanding rehabilitation hospitals, and 45 physician-group practice clinics.