Health Care REIT HCP Highlights Diversity of Repositioned Company

Justin Hutchens, chief investment officer at HCP, Inc. (NYSE: HCP), joined REIT.com for a video interview at REITWeek 2016: NAREIT’s Investor Forum at the Waldorf Astoria New York.

Earlier this year, HCP announced it would spin off its ManorCare portfolio of skilled nursing and assisted living assets into an independent, publicly traded REIT. Hutchens said the decision was made following a number of years of efforts to try to reposition the portfolio.

“The remaining HCP will be a very interesting company. It’s arguably the best diversified health care portfolio in the REIT space,” he said.

Half of the remaining HCP holdings consist of senior housing assets, with the remainder of the company split between medical properties and life sciences assets. Hutchens said HCP will pursue opportunities in all three sectors.

Reflecting on the senior housing segment, Hutchens said he sees “a lot of growth opportunity in a fragmented industry.”

Meanwhile, the medical office platform has relationships with more than 200 health systems and hospitals and has seen consistent growth, Hutchens said. He described the life science market as “red hot,” with occupancy levels of 98 percent.