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Market Overview

Healthcare Industry and Real Estate Markets Overview

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The delivery of healthcare services is real estate intensive – healthcare providers have an increasing dependency on real estate to maintain and grow their businesses.

 

CCP Reit believes that the healthcare real estate market provides investment opportunities due to the:

 

Favorable trends driving the demand for healthcare services

– Focus on outcomes and quality of care
– Increase in outpatient procedures
– Aging of the population
– Healthcare reform legislation

Dynamic healthcare landscape and the specialized nature of healthcare investing

– Consumer-driven healthcare decision making
– Technological and pharmacological advances
– Changing regulations specific to individual sectors

The Healthcare Real Estate Sector is:

– Under-penetrated sector with 7% of real estate owned by Public Healthcare REITs
– Senior housing market characterized predominantly by numerous local and regional operators
– Skilled nursing facilities – primarily a “mom and pop” business
– Top 10 operators own 14% of total beds
– REITs own 13% of total beds