IRVINE, CA—HCP's latest initiative to further reduce its Brookdale Senior Living exposure poses “execution risk associated with a multi-phased transaction,” Mizuho Securities analysts Haendel St. Juste and Richard Anderson wrote Friday. That risk stems from “pressure of staying on a satisfactory time schedule, and not allow the effort to lose the limelight.” HCP's announcement of the transaction notes that it's expected to be completed “in various stages throughout 2017 and 2018, but the closings may not occur on the anticipated timeline, or at all.”

Nonetheless, St. Juste and Anderson also felt that the transaction's cap rate range of 6.5% to 7.5% “will resonate well with the Street.” They also raised their price target on HCP's stock from $29 to $31.

The multi-phased transaction in question—the second this year involving HCP and Brookdale—involves three buyers, including Columbia Pacific Advisors LLC as well as HCP and Brookdale. HCP will sell six Brookdale-operated properties to Brentwood, TN-based Brookdale for $275 million, and will buy Brookdale's 10% equity stake in two RIDEA joint ventures for $99 million. HCP is also selling its remaining investment in the RIDEA II JV for $332 million to a group led by Columbia Pacific. Forty-six of the 49 properties in RIDEA II are managed by Brookdale.