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Working it out; dried ink


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Working it out; dried ink

S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Working it out

* Quality Care Properties Inc. has agreed to let its principal tenant defer $7.5 million of rent per month for April, May and June until July 5, or earlier if the agreement is terminated. HCR ManorCare must also furnish its 2016 financial statements by April 10 under the agreement, statements that Quality Care said it has repeatedly requested but not received.

Quality Care and HCR ManorCare intend to work on a long-term restructuring of their lease terms, to which end Quality Care also is providing HCR ManorCare a temporary secured extension of credit of up to $7 million per month for April, May and June.

"We are pleased to have reached this agreement and are working with HCR ManorCare to reach a comprehensive, long-term solution to the master lease that seeks to both preserve and enhance the value of our properties, while supporting the ability of HCR ManorCare and its thousands of employees and caregivers to provide high-quality care for their patients and residents," Quality Care CEO Mark Ordan said in a release. He added that the company is open to "all appropriate solutions," including taking a larger equity stake in HCR ManorCare.

Dried ink

* EPR Properties closed its acquisition of a ski resort, 15 water parks and amusement parks, and five small family entertainment centers from CNL Lifestyle Properties Inc. Aggregate consideration in the deal was about $455.5 million, and EPR provided an additional $251.0 million of debt to Och-Ziff Real Estate funds for their purchase of 14 ski properties from CNL Lifestyle, valued at $374.5 million.

* GEO Group Inc.'s $360 million all-cash acquisition of Community Education Centers was finalized this week. The target provides rehabilitative services in re-entry and in-prison treatment facilities in addition to management services for county, state and federal correctional and detention facilities. The deal takes GEO Group's total count of owned and/or managed facilities to 142, with about 99,000 beds.

* Edgefront REIT and Nobel REIT are now Nexus REIT, having completed their merger April 3. The combined company's portfolio comprises 36 properties covering about 2.1 million square feet of rentable area. The company focuses on the North American industrial, office and retail sectors.

Buy, sell

* Federal Realty Investment Trust added a grocery-anchored shopping center in Chicago for $107 million. "Riverpoint Center is located on a large piece of land in the dense, urban Lincoln Park neighborhood with strong demographics and high barriers to entry -- all of which are consistent with our investment strategy," CFO and Treasurer Dan Guglielmone said in a release.

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The Westin Maui Resort & Spa, Ka'anapali
Source: Marriott International

* The Westin Maui Resort & Spa, Ka'anapali, in Hawaii, now belongs to a joint venture of funds managed by Trinity Investments LLC and Oaktree Capital Management LP. Marriott International Inc., which acquired the property as part of its merger with Starwood Hotels & Resorts, sold its long-term leasehold interest in the property for about $317 million. Marriott will continue to manage the resort.

Public potential

* Hudson's Bay Co.'s chairman said during an earnings call April 5 that the company has a lot of options for creating value and financial flexibility through its real estate portfolio, which he called "tremendously valuable."

"What we should've done and what we should be doing as quick as possible is IPO-ing our U.S. real estate portfolio and/or IPO-ing our Canadian real estate portfolio," Richard Baker stated, according to a transcript. He added that it might have been even better to have done an IPO six or eight months earlier.

Leadership shuffle

Mack-Cali Realty Corp. CEO Mitchell Rudin is stepping into the role of vice chairman, and President Michael DeMarco is taking the reins as CEO. The executives joined the company in 2015.

HCP Inc. President Justin Hutchens has accepted a role as CEO of U.K. care home provider HC-One and will leave HCP in June.

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