Seniors Housing Weekly Update - Health Care REIT Sector Going Through Changes
April 29, 2014
Health Care REIT Sector Going Through Changes
The times they are a changin’, or so said a folk rock song nearly 50 years ago. Health care REITs, a group of real estate investment companies that helped fuel the growth and financial stability of the seniors housing and care sector in the 1980s, the 1990s and into the new century, may be going through a generational change of sorts. The Big Three now have two new CEOs who did not come out of the senior care side of the business. The smaller REITs, both publicly traded and non-traded, dominate the acquisition market, at least for transactions under $100 million, but that may soon be $200 million, and maybe higher. The sudden departure this month of George Chapman as President, CEO and Chairman of Health Care REIT, and like HCP last fall, replaced as CEO by a board member, marks a definite change in atmosphere, as well as governance, for the once collegial health care REIT industry. What’s to come of this very important financial source as it keeps searching for yield to fuel their own dividend growth? We hope to have some answers.