Healthcare fundamentals are strong as evidenced by the annual expenditures within the growing healthcare sector: 10,000 people turning 65 every day, explains Brad Thomas, editor of The Intelligent REIT Investor.
Collectively, all of the demographics point to medical office buildings (MOBs) as the most core, critical assets that have the highest tenant demand.
Healthcare Trust of America (HTA) utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market.
HTA’s investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth.
Development has become a key driver for the REIT and we suspect to see the company capitalizing on its rolodex by generating ground-up development opportunities.
There are more opportunities to invest in medical office today as health systems evaluate their capital requirements and local owners evaluate their options. This additional liquidity is allowing institutions to get invested, which is tremendous for valuation long term.
Medical office buildings offer stable and growing cash flows that are far removed from operating risk, changes in reimbursement, and new supply that are negatively impacting senior housing and skilled nursing. HTA is a Strong Buy.