765880--2/14/2006--HEALTH_CARE_PROPERTY_INVESTORS_INC

related topics
{regulation, government, change}
{loan, real, estate}
{investment, property, distribution}
{loss, insurance, financial}
{acquisition, growth, future}
{capital, credit, financial}
{debt, indebtedness, cash}
{tax, income, asset}
Risks Related to Our Operators If our facility operators are unable to operate our properties in a manner sufficient to generate income, they may be unable to make rent and loan payments to us. The bankruptcy, insolvency or financial deterioration of our facility operators could significantly delay our ability to collect unpaid rents or require us to find new operators. Tenet Healthcare Corporation accounts for a significant percentage of our revenues and is currently experiencing significant legal, financial and regulatory difficulties. Our operators are faced with increased litigation and rising insurance costs that may affect their ability to make their lease or mortgage payments. Decline in the skilled nursing sector and changes to Medicare and Medicaid reimbursement rates may have significant adverse consequences to us. Risks Related to Real Estate Investment and Our Structure We rely on external sources of capital to fund future capital needs, and if our access to such capital is difficult or on commercially unreasonable terms, we may not be able to meet maturing commitments or make future investments necessary to grow our business. If we are unable to identify and purchase suitable healthcare facilities at a favorable cost, we will be unable to continue to grow through acquisitions. Unforeseen costs associated with the acquisition of new properties could reduce our profitability. Since real estate investments are illiquid, we may not be able to sell properties when we desire. Transfers of healthcare facilities generally require regulatory approvals, and alternative uses of healthcare facilities are limited. We may experience uninsured or underinsured losses. Increases in interest rates may increase our interest expense and adversely affect our cash flow and our ability to service our indebtedness. Loss of our tax status as a REIT would have significant adverse consequences to us.

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