HCP, CareTrust REIT Provide Updates After Hurricane Harvey

September 4, 2017, Elizabeth Jakaitis, Senior Housing News - HCP Inc. (NYSE: HCP) and CareTrust REIT (Nasdaq: CTRE) both issued statements on Thursday to provide an update on their residents and communities in the aftermath of Hurricane Harvey.  Though each had to evacuate senior housing communities, no one was hurt and limited damage was done to buildings.

Irvine, California-based HCP had to evacuate three operating communities and one triple-net senior housing community due to water leaks and to ensure resident safety.  Repairs to the buildings are already underway and residents are expected to return to the communities in the coming days and weeks, according to a press release from the company.

The limited damage done to HCP properties is expected to be covered by property and business interruption insurance, the release stated.

“Our thoughts go out to the many people impacted by this devastating storm,” said Tom Herzog, HCP president and CEO, in the prepared statement.  “Brookdale and our other operating partners, along with our on-site teams, were well-prepared and continue to work diligently to ensure the safety of our residents and tenants.”

CareTrust REIT, Inc., based in San Clemente California, evacuated the 48 residents of its Courtyard Rehabilitation and Healthcare Center in Victoria, Texas, due to utility outages, according to a press release from the company.  The skilled nursing facility (SNF) is operated by an affiliate of the Ensign Group (Nasdaq: ENSG), based in Mission Viejo, California. Residents were temporarily relocated to other Ensign-affiliated SNFs in San Antonio, about two hours away.

CareTrust has seven properties located in the region hit hardest by flooding and high winds, but all escaped flooding and most other material damage.

“The swiftness and efficiency with which Ensign’s local care teams responded to the crisis was not surprising,” said Greg Stapley, CareTrust’s chairman and CEO.  “Their outstanding leaders and caregivers first ensured the safety and comfort of their patients, and then quickly pivoted to helping fellow employees and their families.”