Rehab Hospitals Attract More REITs in 2016

REITs are on the move in the healthcare services sectors, and rehabilitation hospitals are following the trend we’ve noted in the Hospital sector. Through December 1, REITs have made five acquisitions targeting rehabilitation hospitals, compared with two such deals announced in 2015, and two in 2014. The most recent announcement came from Global Medical REIT Inc. (NYSE: GMRE), which went public on June 29, 2016. Using proceeds from that IPO, the company acquired three rehab hospitals from affiliates of Healthcare Realty Trust Inc. (NYSE: HR), for a total of approximately $68 million. HealthSouth Corp. (NYSE: HLS) is the tenant in all three hospitals, which are located in Mesa, Arizona, and... Read More »
Sanders Trust Buys Cobalt Rehab Hospital

Sanders Trust Buys Cobalt Rehab Hospital

Curahealth, a portfolio company of Nautic Partners, is selling the real estate assets of a rehabilitation hospital in New Orleans operated by its subsidiary, Cobalt Rehabilitation. Birmingham, Alabama-based The Sanders Trust will pay $29 million for the 60-bed inpatient rehab facility. The Cobalt Rehabilitation Hospital is a Class A, 65,345-square-foot facility located less than two miles from the new Louisiana State University and Veteran Administration hospitals that have approximately 1,000 acute care beds. Built in 2016, it serves a wide range of physical rehabilitation patients with conditions such as stroke, trauma, hip fracture, brain injuries, concussions, orthopedic and... Read More »

Rehabilitation Attracted Private Equity and REITs in 2016

The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too. Spending in this sector is generally lower than other sectors, because so many transactions are made by local or regional buyers who want to keep deals private. Many targets are privately owned, and sellers don’t wish to disclose prices, either. In 2016, deal value was approximately $712 million, down 11% compared with 2015’s $799 million. For this sector, those figures represent healthy... Read More »