Recently, I had my annual meeting with my personal money manager to cover the progress of my retirement accounts. Since I am in the real estate business it is only natural that the subject of REITs (Real Estate Investment Trusts) would come up. He rattled off a list of names, and since health care is such a dominant industry in the Triangle one REIT in particular caught my eye…
HCP, Inc., A Maryland corporation, is a REIT formed in 1985 that owns retirement communities, medical office buildings, nursing facilities, and other varied health care properties. It does not provide healthcare services since healthcare REITs cannot typically operate the properties they own.
With their focus being entirely in this services sector, HCP seems well-positioned for long-term growth due to the fact that the U.S. population over 65 is expected to increase from about 14.5% today to 22% by 2040. It has a stellar management team that has paid shareholders a rising dividend for 31 consecutive years and counting.
Recent developments include the announcement earlier this year that the company would spin off its ManorCare portfolio of nursing and assisted-living facilities into a separate REIT. HCP expects to complete the spinoff in the second half of 2016.
If you are interested in learning more about HCP, Inc. you can download their annual report from their website at www.hcpi.com.
NOTE: This article is informational only. It is neither an endorsement or recommendation for an investment.