HCP Inc.’s first quarter results were in line with expectations. According to the firm’s president and CEO, Tom Herzog, during the first four months of 2019, the company was active on the investment front with activities launched across all three lines of business.
“Our capital allocation and investments have been driven primarily by our strong relationships with top tier partners,” he explained. “We are also advance discussions on additional acquisition opportunities but are not yet in position to provide detail.”
He explained that while they couldn’t provide further detail at this time, he was confident in the completion of those opportunities. “As a result have raised the necessary funding capacity with our recent forward ATM activity.”
In Life Science, he said, “we closed on the previously announced acquisition of Cambridge Park Drive in Boston, and are on track to close this quarter on the acquisition of Sierra Point towers in South San Francisco. These transactions expand our portfolio of high-quality Life Science assets. Benefit from the strong sector fundamentals and offer attractive initial yields with potential for future upside through identification and development opportunities.”
In Medical Office, he said, the company added three new projects to its HCA development program, bringing the total to approximate $100 million. “This program allows HCA to meet demand at some of the most successful campuses will provide HCP new MOB investment opportunities that benefit from significant pre-leasing of HCA as our strong anchor tenant. In Senior Housing, the transactions with Discovery in Oakmont creates strategic SHOP relationships with two top tier operators plus improve our portfolio with new Class A assets and strong markets.”
And while there continues to be softness in senior housing fundamentals, he said that the company’s senior housing performance was relatively in line with their expectations. “We have locked in our 2019 acquisition goals and have an attractive acquisition pipeline.”