Recent Sell – Care Capital Properties

This will be a quick post about a sale of one of our holdings last week. Normally we do not trade in and out of our holdings, but occasionally a security sale is warranted.

Last week, we sold our position in Care Capital Properties Inc (CCP). Most people may not be aware of this company. The company was a spin-off from Ventas Inc (VTR) last year. Ventas decided to spin-off the skilled nursing facilities (SNF) business segment (except for a few specific properties, so Ventas still runs a few SNFs). We already own another company in the SNF space in the healthcare REIT sector: Omega Healthcare Investors Inc (OHI) and did not want another company overlapping the investment space. In order to simplify our portfolio, we sold our tiny position in CCP.

Full Disclosure: Long OHI, VTR. Our full list of holdings is available here.

12 thoughts on “Recent Sell – Care Capital Properties

  1. IH says:

    I hadn’t heard of this company probably because I don’t own Ventas. I like the idea of focusing on one REIT in here and OHI would be my choice as well.

  2. Timely post. I just published a piece today about potentially selling my lower yielding stocks that I bought a while back or came into my portfolio via spin off, etc. I didn’t mention CCP as it still has a nice yield but the idea of simplifying a portfolio sounds good to me.

    • Hi DivHut,
      Saw your post this morning. I wouldnt necessarily sell just because a yield is low. But CCP doesnt really have a place in my portfolio esp since I own VTR and OHI, so I decided to simplify my portfolio.

      Thanks for stopping by and sharing
      R2R

  3. One thing I do not understand: you had the activity in your portfolio when it was part of Ventas. Now, it just happens to be stand alone. How is that different to you?
    DO you prefer less companies to manage/follow up?

    • Thats a very good question, AT.
      On the surface, yes – I prefer a more simplified portfolio as it gives me few companies to follow and read up on.
      But more importantly, I liked the portfolio of properties as part of Ventas, but after the spinoff, CCP now owns a very concentrated portfolio, a different balance sheet, a different credit rating etc. Investors are rewarded with a good 7%+ yield, but considering I already have another REIT in the exact same space, I decided to sell and exit this position.

      R2R

  4. Thanks for sharing, as I wasn’t knowledgeable about this particular company. I definitely understand the reasoning behind selling, as I’m sure there was a reason for the parent company to spinoff this asset as well.

    • Hi Agent,
      Its starting to look like the CCP spinoff was a great move from VTR. There have been some reports in the industry of oversupply in some markets, so there has been some pressure in the SNF market. Overall, I am not too concerned as the right balance will be found, but considering I already own OHI, I decided to sell CCP.

      R2R

  5. Interesting choice. if the company is in a sector you like I’d have thought it would be nice to have a little bit of diversification within that (Such as owning multiple different Canadian banks)?

    Best wishes with whatever you do with the money.

    Tristan

    • Good points, Tristan. As you are aware, I am a big fan of diversification. But considering that I already own OHI – which specializes in SNFs in healthcare REITs, I didnt want another company to monitor and stay on top of. A bit of simplification of my portfolio was in order.

      Best
      R2R

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