Citigroup Reports on HCP

Citigroup commented on HCP HCP in a report released today. In the report, Citigroup was mixed in its assessment of the company. Citigroup writes, " HCP's first RIDEA transaction appears positive done in conjunction with Brookdale Senior Living's (BKD) acquisition of Horizon Bay. There appears to be minimal changes in HCP's income, better guarantees with BKD's corporate credit and potential for future growth if BKD can improve operations of 21 of the 37 Horizon Bay assets owned by HCP being rolled into the new RIDEA structure. Recall the issues at these assets were more revenue than expense driven. However, two other announcements by HCP are more neutral to negative with continued turnover in the executive ranks highlighting increased enterprise risk, and a continued legal battle with escalating costs with fellow healthcare REIT Ventas (VTR)." Citigroup currently has a Hold rating on HCP and a target price of $36. Shares of HCP closed at $36.86 on Wednesday, down 2.85% on the day.