While there is still plenty of time and news to be released before this becomes a reality, it is never too early to start thinking about a transaction’s potential risks and opportunities. Off the top of my head…depending on your macro view, real estate (the REIT) is either a great segment to be invested with or is to be avoided like the plague. It should be possible to dig deeper into the company and look at the various geographic regions where their real estate is located. Obviously, there are some legislative changes occurring in the healthcare industry whose effect on the operating company will need to be assessed. Looking closer at the transaction, the transfer of debt and changing of the capital structure could potentially unlock value as well. I also find it interesting that the CEO of the overall company chose to head up the REIT. I am sure there is a lot more to talk about and we will provide updates as the transaction date approaches or as additional information is released.
Disclosure: Author has no position in any stock mentioned