March 28, 2016, Kourtney Liepelt, Senior Housing News - Timothy Schoen, executive vice president and CFO of HCP Inc. (NYSE: HCP), will step down in the coming months, the real estate investment trust (REIT) announced Monday. He will remain at HCP through May 22 to oversee reporting of first quarter earnings and to guarantee a smooth transition of duties, according to a company news release.
HCP has subsequently initiated the process of recruiting a successor to take over Schoen’s responsibilities, retaining global executive search firm Spencer Stuart to lead the endeavor.
Schoen leaves HCP to become president of BioMed Realty, a real estate company serving the life science industry recently acquired by real estate funds managed by Blackstone for approximately $8 billion. He joined HCP in 2006 and served as executive vice president and CFO since 2011.
“We have a detailed transition plan in place and are grateful that Tim will remain in his position for the next two months to help us with the process,” HCP President and CEO Lauralee Martin said in a statement. “Until we find the right successor, our strong and talented finance team is capable of handling all of the needs of the organization.”
The announcement comes after HCP lowered its funds from operations (FFO) guidance for the year due to the ongoing poor performance of HCR ManorCare, one of the nation’s largest skilled nursing companies and a key tenant of the REIT.
With reimbursement challenges, shorter lengths of stay and increased regulation, the skilled nursing sector faced headwinds in the second half of 2015 and ManorCare was severely impacted, HCP executives reported during the company’s fourth-quarter earnings call. ManorCare also has been subject to an ongoing Department of Justice investigation.