Health Care Property Investors Has Diversified Its Portfolio
Officials at Health Care Property Investors Inc., a Newport Beach-based real estate investment trust, have spent much of the past two years diversifying their portfolio in a bid to reduce dependence on any one part of the industry.
Those efforts appear to have paid off, at least in terms of revenue. Health Care Property Investors’ revenue has grown 133% over a three-year period, going from $123.5 million in June 1997 to $287.7 million as of June of this year.
Health Care Property Investors ranks No. 22 on the Business Journal’s list of fastest-growing companies by revenue. The company was No. 51 on last year’s list.
Health Care Property Investors employs 40 people at its MacArthur Court corporate offices. It is solely involved with healthcare-related real estate. Its properties include long-term care facilities, acute care and rehabilitation hospitals and medical office buildings.
The company either owns or has interest in approximately 425 properties in 43 states. Its tenants include Beverly Enterprises, a nursing home chain, and Tenet Healthcare Corp., one of the country’s largest for-profit hospital operators.
Kenneth Roath, the REIT’s chairman and chief executive, has cited its $1 billion acquisition of Denver-based American Health Properties Inc. in August 1999 as a positive factor in the company’s revenue and earnings growth.
At the time of the acquisition, Roath said American Health Properties’ strong hospital portfolio would help his company diversify. Currently, Health Care Property Investors’ portfolio breakdown is 27% acute care hospitals, 26% long-term care facilities, 21% medical office buildings, 15% assisted-living and congregate-care facilities, 6% physician group practices and 5% rehabilitation hospitals.
Health Care Property Investors, however, has not invested in every form of healthcare-related real estate, Roath said. “We’ve stayed away from HMOs.” n
