HCP Highlights Ability To Source Growth Opportunities, Goldman Sachs Reports

Goldman Sachs said that while it expected a transaction with HCR ManorCare due to HCP, Inc.'s HCP significant debt investment, “we believed the timing of any deal would be closer to the associated debt's maturity in 2012/13.” That being said, Goldman Sachs writes, “the potential reinvestment of HCP's $1.7 billion investment (about 14% of assets) at an attractive yield and both the size and complexity of the transaction highlight HCP's ability to source attractive growth opportunities.” Goldman Sachs' questions include: (1) Real estate values today vs. 2007, the peak of the cycle (2) Does HCP plan to invest in the operating company or even take a larger position? (3) How much growth in EBITDA does HCP expect over time? HCP currently trades at $33.78.