Exteroor of seniors housing facility A Brookdale Senior living-operated property in Grants Pass, OR, part of the HCP portfolio.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.