IRVINE, Calif., Nov. 28, 2016 /PRNewswire/ -- As previously
disclosed on October 31, 2016, HCP
(NYSE:HCP) completed the spin-off (the "Spin-Off") of its HCR
ManorCare portfolio of skilled nursing and assisted living assets,
as well as certain other assets, into Quality Care Properties, Inc.
("QCP"). HCP common stockholders on October 24, 2016, the record date for the
Spin-Off (the "Record Date"), received one share of QCP common
stock for every five shares of HCP common stock they held
(the "Distributed Shares") and cash in lieu of fractional
shares of QCP. The following information only applies to
holders of HCP common stock on the Record Date.
Tax Basis of Distributed QCP Stock
For U.S. federal income tax purposes, HCP intends to report that
the fair market value of the QCP common stock distributed per each
share of HCP common stock outstanding on the Record Date was
approximately $6.17, or $30.85 for each share of QCP common stock.
Accordingly, every HCP common stockholder who received a
Distributed Share will have a tax cost basis of $30.85 per Distributed Share.
Impact of Distribution on HCP Common Stockholders
For U.S. federal income tax purposes, HCP's distributions
(including both cash distributions and stock distributions such as
the Distributed Shares) are treated as taxable dividends to the
extent of HCP's earnings and profits ("E&P"). Such
amounts in excess of E&P will be treated as a non-taxable
return of capital to the extent of the holder's tax basis in HCP
common stock, and any remaining excess above such basis will be
treated as capital gain. The actual amounts of HCP's overall
E&P, and the taxable income and the non-taxable return of
capital (including both cash distributions and stock distributions
such as the Distributed Shares), will not be available until early
2017. The Spin-Off did not create additional E&P for HCP.
The above summary does not constitute tax advice. It
does not purport to be complete or to describe the tax consequences
that may apply to particular categories of stockholders. Each
stockholder is urged to consult a tax advisor as to the specific
tax consequences of the distribution to such stockholder, including
the effect of any state, local or non-U.S. tax laws, and of changes
in applicable tax laws. For more information, please refer to
QCP's registration statement on Form 10, as filed with the
Securities and Exchange Commission on October 13, 2016.
About HCP
HCP, Inc. is a fully integrated real estate investment trust
(REIT) that invests primarily in real estate serving the healthcare
industry in the United States. HCP owns a large-scale
portfolio diversified across multiple sectors, led by senior
housing, life science and medical office. Recognized as a
global leader in sustainability, HCP has been a publicly traded
company since 1985 and was the first healthcare REIT selected to
the S&P 500 index. For more information regarding HCP,
visit www.hcpi.com.
Contact
Andrew Johns
Vice President - Finance and Investor Relations
(949) 407-0400
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SOURCE HCP, Inc.