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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

HCA Healthcare And Brookdale Senior Living Sell Off Large Chunk Of Home Health Joint Venture

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A little more than two months after closing a $400 million deal to purchase a majority stake in Brookdale Health Care Services, HCA Healthcare Inc. is selling off a large chunk of its new joint venture.

Home health care provider LHC Group has agreed to purchase 23 home health locations, 11 hospice and 13 outpatient therapy agencies across 22 states from the HCA and Brookdale Senior Living joint venture, according to a news release. Terms of the deal, which is expected to close in the fourth quarter, were not disclosed.

HCA officially completed its purchase of a majority stake in BHS — Brookdale’s home health, hospice and outpatient therapy business — in July at a price tag of $400 million.

The deal implied a $500 million value for BHS, enabling Brookdale to retain a 20% stake in the division. At the time, BHS operated 57 home health agencies, 22 hospice agencies and 84 outpatient therapy locations across 26 states, providing care at Brookdale facilities and inside patients’ homes.

The facilities that are being sold to LHC Group are not in HCA markets, according to the release. HCA (NYSE: HCA) is Nashville’s largest publicly traded company and the nation’s biggest hospital operator, with $51.5 billion of revenue in 2020. The company operates 185 hospitals across 20 states.

“In July, HCA Healthcare purchased a majority stake in Brookdale Health Care Services to expand access to healthcare services for our patients,” HCA CEO Sam Hazen said in the release. “We believe the sale to LHC Group of these sites of care, which were part of that transaction and are not in communities we currently serve, positions them for continued success.”

Brookdale is the nation’s largest senior-living community operator, with 737 facilities in 44 states. The company reported $3.5 billion of revenue in 2020, making it one of Nashville’s largest publicly traded health care companies, according to Nashville Business Journal research.

Brookdale received $300 million upfront as part of its joint venture deal with HCA, strengthening the Brentwood-based company’s liquidity and creating value for shareholders.

The sale of a large portion of BHS to LHC Group brings more liquidity to Brookdale, according to the release.

“We are looking forward to working with LHC Group, another national provider of healthcare services,” Brookdale CEO Cindy Baier said in the release. “This transaction will further strengthen our liquidity, maintain our 20% interest in the venture with HCA Healthcare, and ensure that high-quality home health and hospice services continue to be available to our residents at communities in these markets. I’m pleased that Brookdale’s residents will benefit from a seamless offering of services across our broad care continuum.”

 

Source: Nashville Biz Journal

Assisted 4 Living, Inc. Acquires The Assets Of The Trillium Healthcare Group

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Assisted for Living Inc. is pleased to announce the acquisition of Trillium Healthcare Group’s assets.

Trillium Healthcare is a post-acute healthcare company which has offered operational insight into the skilled nursing and senior living communities for over 10 years.

A Skilled Nursing Facility (SNF) is a state licensed and regulated in-patient rehabilitation and medical treatment center staffed with trained medical professionals.  SNFs provide the medically necessary services of licensed nurses along with physical, occupational and speech therapy.

Trillium currently leases and operates 26 facilities in four states: Florida, Georgia, Iowa, and Nebraska with 1,685 total licensed beds (1,546 skilled nursing, 139 assisted living) and 36 independent living apartments. Trillium 2020 revenues were approximately $100 million.

“The Trillium acquisition includes their back office, which is a group of very well qualified and highly skilled employees with a commitment to quality and support to the facilities.  We will integrate the Trillium back office with the current team at Assisted 4 Living, Inc. and the combination will provide a highly efficient and extremely solid foundation and platform to support all our subsidiaries and facilities.  This was a key acquisition for us in our growth plans and we are thrilled to be able to acquire an organization like Trillium,” – Louis Collier, CEO of Assisted 4 Living, Inc.

About Assisted for Living

Assisted 4 Living, Inc. (OTC: “ASSF”) is diversified healthcare company providing post-acute care for Pediatrics and Seniors through three separate and distinct operating divisions. Wholly owned subsidiary, Trillium Healthcare – OPS, LLC provides medically necessary services of licensed nurses, physical and occupational therapists, and speech pathologists within the Skilled Nursing arena. Wholly owned subsidiary, Banyan Pediatric Centers, Inc. is a PPEC (Prescribed Pediatric Extended Care), providing nurse-staffed pediatric day care center for medically complex children age birth to 21 years. Real Living Property Holdings, LLC is the real estate holding company into which all real estate will be housed.  It does not currently consist of any other operations.  Assisted 4 Living’s growth plan is primarily through an acquisition strategy for the Seniors and a build-out plan for the Pediatric division. Additionally, the company will optimize the operations and internalize services such as Therapy, Medical Management and Pharmacy.

 

Source: WFMZ-TV 69 News