U.S. Hospital REIT Deals Roar Back in 2019

U.S. Hospital REIT Deals Roar Back in 2019

REIT deals are back in the Hospital sector, after a two-year lull. Through mid-July, six transactions targeting U.S. hospitals were announced by real estate investment trusts (REITs), a total that equals the annual REIT deal volume of 2013, 2015 and 2016. Three of this year’s U.S. deals were announced in July 2019. Medical Properties Trust (NYSE: MPW) made a splash, announcing a combined $1.75 billion invesment in 24 hospital facilities through three separate transactions. The largest of the three, at $1.55 billion, was for 14 acute care hospitals and two behavioral health hospitals (2,383 beds) owned by for-profit Prospect Medical Holdings in California, Connecticut and... Read More »
U.S. Hospital REIT Deals Roar Back in 2019

U.S. Hospital REIT Deals Surge in 2019

It’s become an accepted, almost expected, transaction. Privately held hospitals sell their real estate assets to a real estate investment trust (REIT) to get some fresh cash and to focus on operations rather than physical plants. Between 2009 and 2012, REIT deals for U.S. hospitals were announced once or twice a year. The number rose to six per year in 2013, 2015 and 2016 (just three in 2014). After two years of two or three deals annually (2017 and 2018), the number has already reached seven in 2019, with several weeks of deal making left in the year. The most recent deal was announced on November 5, as LifePoint Health agreed to sell the real estate assets of 10 unidentified... Read More »