Zacks_Analysts' Blog : Health Care Closes Benchmark Deal - Analyst Blog

Health Care REIT Inc. (HCN), a health care real estate investment trust has recently completed its $890.0 million partnership deal with Benchmark Senior Living. The deal includes 34 high quality senior housing communities with an $890.0 million investment balance.

The partnership extends Health Care’s strategy of expanding its base in the senior housing industry, with best operators having a track record of profitability growth and good quality care. This deal has resulted in gross investments of $6.9 billion.

Following this partnership, Heath Care will receive a right to fund future investments and developments by Benchmark. Health Care is one of the premium investors, which aims at excellence in the Senior Living market.

Benchmark is one of New England’s fastest growing companies and one of the fastest growing assisted living providers in the nation. Despite a challenging economic environment, Benchmark communities have outstanding asset quality and have an average age of twelve years and produce rental rates and occupancy in excess of industry averages.

The partnership positions Benchmark with a strong capital partner and offers it the potential for geographic expansion beyond the New England markets.

Health Care is a real estate investment trust that invests across the full spectrum of senior housing and health care real estate. The long-term triple-net leases of the company are a steady revenue source. Health Care currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.

We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Nationwide Health Properties Inc. (NHP), currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.