Seeking Alpha

Health Care REIT (HCN -1.7%) slips on a downgrade to Neutral at UBS on the back of its...

Health Care REIT (HCN -1.7%) slips on a downgrade to Neutral at UBS on the back of its acquisition of Sunrise Senior Living yesterday. The firm cites the near-term mechanics of the deal and the pressure it will put on operating leverage, plus the potential overhang from a possible equity offering. The deal was an expensive one for HCN, who paid a 62% premium to Sunrise's closing price on Tuesday - marking a level it hasn't traded at in nearly four years.
Comments (3)
  • gauker
    , contributor
    Comment (1) | Send Message
     
    why would anyone pay a 62% premium for any stock acquisition? It doesn't make sense in any way. I liked HCN and it's fundamentals before the SRZ acquisition. Not sure why they percieved SRZ to be such a vital addition to what they were doing.
    23 Aug 2012, 01:59 PM Reply Like
  • ricklcullen
    , contributor
    Comments (12) | Send Message
     
    Would not be surprised if HCN spins off management arm of SRZ and keeps, of course, the real estate.
    23 Aug 2012, 02:10 PM Reply Like
  • aschroed
    , contributor
    Comments (130) | Send Message
     
    It may have not be a bad price to pay as the previous owner paid 27M for the three healthcare facilities in 2007, HCN paid 26.2M.
    28 Aug 2012, 10:45 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs