A Short Note On The Formation Of Ccp

1532 Words Sep 22nd, 2015 7 Pages
2.3 COMPETITOR ANALYSIS
With the formation of CCP, there are now 15 publicly traded REITs that compete with CCP in addition to several private healthcare REITs. When examining the sub sector, the SNF REIT market, we see that only one other REIT competes with CCP, which is OHI, as mentioned earlier. We note that publicly traded companies’ access to public capital markets give them a significant ability to grow in comparison to private REITs that don’t have such access to public capital, therefore, we view non-public companies as less competitive as a whole.
When examining OHI in relation to CCP, we see that OHI is a much larger company than CCP when measured by market cap. Due to its larger size, OHI owns a greater number of properties and has relationships with more operators (tenants) than CCP does. Since CCP does not have as many operator relationships, it could have less access to new deals as acquisitions are often sourced from established relationships. This could make growing CCP’s property portfolio more difficult. OHI also tends to have relationships with larger operators than those of CCP. Due to economies of scale, these larger operators may be less harmed from downward reimbursement rate pressure than the smaller SNF operators. This could cause CCP to potentially face more problems with operators’ inability to fulfill their rental contracts, as compared to OHI, when the operators face pressures from lower reimbursement rates.
When examining CCP’s other…

More about A Short Note On The Formation Of Ccp

Open Document