When Will Medical Office Building Sales Bounce Back?

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On the surface, the current state of the medical office building (MOB) investment market is about as slow as it’s been for years, maybe decades.

However, as is typically the case with a complex, robust industry like HRE, there is much more going on than meets the eye.

The InterFace Healthcare Real Estate conference investment panel included (from left to right): John Fry, SVP- Acquisitions, Rendina Healthcare Real Estate; Ryan Crowley, SVP, Investments, Healthcare Realty; Alex Bell, Partner, Catalyst Healthcare Real Estate; Eric Lee, Managing Director Medical & Life Sciences, Berkadia Real Estate Advisors LLC; Chris Morgan, Senior Manager, Investments, Big Sky Medical; and the moderator, Andy Dow, Shareholder, Member of Board of Directors and Chair, Real Estate Industry Group, of Winstead PC. (PHOTO CREDIT: HREI)

“The first half of the year volume was down … anywhere from 66 to 71 percent versus the first half of 2022,” said Andy Dow, an attorney with a focus on healthcare real estate (HRE) and the chair of the Real Estate Industry Group with Dallas-based Winstead PC. “The (second quarter) volume was roughly $1.2 billion, which was the lowest quarterly volume ever recorded by RevistaMed (an HRE data and research firm) since it was founded in 2015.”

So when will it bounce back?  Probably not before the elections of 2024, according to the InterFace Healthcare Real Estate panel.

 

Source: HREI

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Demand For Healthcare Real Estate Investment Trusts To Get Boost

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U.S. healthcare real estate investment trusts recorded solid performance in the second quarter, with average funds from operations and same-store net operating income up 20.3% and 8.1%, respectively, year over year, according to a new report from Nareit.

Nareit is the US-based trade association for REITs and publicly traded real estate companies.

The sector is expected to continue performing well due to demand tailwinds such as the aging population in the country. In just over a decade, for the first time in U.S.history, people aged at least 65 years are expected to outnumber those under the age of 18, according to U.S. Census Bureau projections.

Healthcare REITs, which own senior living communities, hospitals, medical office buildings and skilled nursing facilities, comprise 8% of equity market capitalization as of the end of August.

The sector’s share in the FTSE Nareit All Equity REIT Index stood at 4.5%, surpassing the office sector’s share, the report said.

 

Source: S&P Global

Institutional Investor Acquires Stake In Acadia Healthcare, Reinforcing Its Potential For Future Growth

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Boulder Hill Capital Management LP, a prominent institutional investor, recently acquired a new position in Acadia Healthcare Company, Inc.

This information was obtained from the company’s most recent Form 13F filing with the Securities & Exchange Commission. The investor acquired 5,800 shares of Acadia Healthcare’s stock during the first quarter, which were valued at approximately $419,000.

Acadia Healthcare (NASDAQ:ACHC) made its most recent quarterly earnings announcement on Thursday, July 27th. The company reported earnings per share of $0.92 for the quarter, surpassing the consensus estimate of $0.83 by $0.09. Moreover, Acadia Healthcare achieved a return on equity of 10.27% and maintained a net margin of 9.74%. Additionally, the company generated revenue of $731.34 million during this period, exceeding analyst expectations set at $707.06 million.

Acadia Healthcare Company, Inc is primarily engaged in providing behavioral healthcare services in the United States and Puerto Rico. The company offers its patients a wide range of behavioral healthcare services across various settings such as inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers, eating disorder facilities, and outpatient clinics.

This recent acquisition by Boulder Hill Capital Management LP indicates growing interest among institutional investors in Acadia Healthcare Company. As a result of their confidence in the company’s performance and potential for growth in the future, Boulder Hill Capital Management LP decided to strengthen its position by acquiring these additional shares.

Looking ahead to the current fiscal year, equities analysts project that Acadia Healthcare Company will achieve an EPS (Earnings Per Share) of around 3.37 EPS based on their estimates.

As one of the leading providers of behavioral healthcare services in the United States and Puerto Rico, Acadia Healthcare is well-positioned to capitalize on increasing demand for mental health support services both within hospitals and outpatient clinics.

The acquisition made by Boulder Hill Capital Management LP further solidifies Acadia Healthcare’s standing in the market and reaffirms its potential for future growth. With its extensive network of facilities and strong financial performance, the company is expected to continue providing essential behavioral healthcare services to patients across various settings.

 

Source: BestStocks