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 (NYSE: 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.