"The key to our first quarter results, within a challenging operating environment, is our continuing strong commitment to strategic property diversification," says HCPI chairman/CEO Kenneth B. Roath. "While the company did experience several serious operator short-falls within the long-term care industry over the last two years, our carefully executed acquisitions reduced our overall exposure in that area, avoiding a potentially greater negative impact on our operations.

"While a number of the problems within the long-term care industry seem to be fading, the assisted-living sector continues to experience a decline. Because of the company's effective diversification strategies, we are prepared to deal with what should be a normal real estate cycle shakeout within the assisted-living sector. We would expect the current difficulties to continue for the next 12 to 18 months within that sector of our business." HCPI invests directly or through joint ventures in health-care related facilities. The company's portfolio at the end of the first quarter consisted of 412 facilities in 42 states. The company's investments include 173 long-term care facilities, 86 congregate-care and assisted-living facilities, 80 medical office buildings, 21 acute-care hospitals, nine freestanding rehabilitation hospitals, and 43 physician group practice clinics.