Profile: HCP Inc (HCP)
6 Mar 2015
HCP Inc. incorporated on March 21, 1985, invests in real estate serving the healthcare industry in the United States. The Company is a self-administered real estate investment trust (REIT). The Company acquires, develop, leases, manages and dispose of healthcare real estate, and provide financing to healthcare providers. The Company’s portfolio is comprised of investments in the five healthcare segments: senior housing, post-acute/skilled nursing, life science, medical office and hospital. The Company makes investments in healthcare segments using five investment products: properties under lease, debt investments, developments and redevelopments, investment management and investments in senior housing operations.
At December 31, 2013, the Company had interests in 444 senior housing facilities, 20 of which are in a RIDEA structure. Senior housing facilities include assisted living facilities (ALFs), independent living facilities (ILFs) and continuing care retirement communities (CCRCs). Services provided by the Company’s operators or tenants in these facilities are paid for by the residents directly or through private insurance and are less reliant on government reimbursement programs such as Medicaid and Medicare.
ALFs are licensed care facilities that provide personal care services, support and housing for those who need help with activities of daily living (ADL), such as bathing, eating and dressing, yet require limited medical care. The programs and services may include transportation, social activities, exercise and fitness programs, beauty or barber shop access, hobby and craft activities, community excursions, meals in a dining room setting and other activities sought by residents. ILFs are designed to meet the needs of seniors who choose to live in an environment surrounded by their peers with services such as housekeeping, meals and activities. CCRCs provide housing and health-related services under long-term contracts. Some CCRCs require a substantial entry or buy-in fee, and most also charge monthly maintenance fees in exchange for a living unit, meals and some health services. The Company’s senior housing segment accounted for approximately 36% of total revenue for the year ended December 31, 2013.
At December 31, 2013, the Company had interests in 302 post-acute/skilled nursing facilities (SNFs). SNFs offer restorative, rehabilitative and custodial nursing care for people not requiring the more extensive and complex treatment available at hospitals. The Company’s services to residents beyond room and board and include occupational, physical, speech, respiratory and intravenous therapy, wound care, oncology treatment, brain injury care and orthopedic therapy, as well as sales of pharmaceutical products and other services. Certain SNFs provide some of the foregoing services on an out-patient basis. Post-acute/skilled nursing services provided by the Company’s operators and tenants in these facilities are paid for by private sources or through the Medicare and Medicaid programs. The Company’s post-acute/skilled nursing segment accounted for approximately 29% of total revenue for the year ended December 31, 2013.
At December 31, 2013, the Company had interests in 115 life science properties, including four facilities owned by its Investment Management Platform. These properties contain laboratory and office space for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies and other organizations involved in the life science industry. While these properties contain similar characteristics to commercial office buildings, they generally contain more advanced electrical, mechanical, and heating, ventilating, and air conditioning (HVAC) systems. The facilities have specialty equipment including emergency generators, fume hoods, lab bench tops and related amenities. Life science properties are configured in business park or campus settings and include multiple buildings. The Company’s life science segment accounted for approximately 14% of total revenue for the year ended December 31, 2013.
At December 31, 2013, the Company had interests in 272 medical office buildings (MOBs), including 66 facilities owned by its Investment Management Platform. These facilities typically contain physicians' offices and examination rooms, and include pharmacies, hospital ancillary service space and outpatient services such as diagnostic centers, rehabilitation clinics and day-surgery operating rooms. While these facilities are similar to commercial office buildings, they require additional plumbing, electrical and mechanical systems to accommodate multiple exam rooms that may require sinks in every room, and special equipment such as x-ray machines. The Company’s medical office segment accounted for approximately 17% of total revenue for the year ended December 31, 2013.
At December 31, 2013, the Company had interests in 20 hospitals, including four facilities owned by its Investment Management Platform. Services provided by the Company’s operators and tenants in these facilities are paid for by private sources, third-party payors such as insurance and Health Maintenance Organizations, or through the Medicare and Medicaid programs. The Company’s hospital property types include acute care, long-term acute care, specialty and rehabilitation hospitals. The Company’s hospital segment accounted for approximately 4% of total revenue for the year ended December 31, 2013.
1920 Main St Ste 1200
IRVINE CA 92614-7230