Morgan Keegan Has Outperform On Health Care REIT

Morgan Keegan has an Outperform rating and a $59.50 price target on shares of Health Care REIT HCN. In a note to clients, Morgan Keegan writes, "Belying investor worries, the senior housing facilities we saw are running at strong occupancies (ranging from 89% to 99%) and driving high private pay rate increases. The Genesis SNF is increasing its Medicare census, greatly improving facility-level cash flows. The geographically proximate Benchmark and Genesis facilities have cross-selling opportunities that can improve operating performance for each. The opportunity for Health Care REIT to provide expansion, development, and acquisition capital to these partners provides another growth avenue, enhancing the RIDEA operating returns for Merrill Gardens and Benchmark and the above-average annual rent increases for Genesis." Shares of HCN gained 32 cents on Friday to close at $52.75, a gain of 0.6%.