They announced that they are looking at strategic alternatives in regards to manor care. I read that as selling most if not all of the real estate. This will derisk the portfolio and give opportunity to invest in other than SNF like the ones manor care runs. IMO in 12 mos manor care will represent about 10% of the business or less. The bump in price comes when sell of manor care assets is announced. Still think there is room to fall more, but I'll continue to add. I'd be worried about HCP if there was weakness in other areas of their portfolio, but absent HCR it is running on all cylinders.
They are returning cash to shareholders. Mgt has been straight forward with share buybacks. They are buying shares at a discount to NAV. Not sure rising interest rates will drive NAV down as much of assets are in financials which should do better with rising rates. I do have concerns with their compensation but as long as they perform I'll continue to hold.