Hammond Hanlon Camp LLC Second Quarter Medical Office Building Report:  Medical Office Sector Leads the Way as Healthcare REITs Continue Strong Performance During the Second Quarter

posted on September 8, 2016

NEW YORK — Concerns over rising interest rates, reduced ability to raise capital and an oversupply of seniors housing, especially in assisted living facilities, combined to drive down returns for healthcare REITs last year.  Healthcare REITs have since rebounded, demonstrating that healthcare real estate continues to be a resilient asset class that delivers strong financial returns to investors.  The second quarter of 2016 proved to be one of strong gains for the healthcare REIT sector largely due to an increased demand for MOB investment.  In H2C’s index of the thirteen largest healthcare REITs, returns increased an average of 10.1 percent quarter over quarter.  The three largest diversified healthcare REITS in terms of market capitalization, Welltower, Inc. (NYSE: HCN), Ventas, Inc. (NYSE: VTR) and HCP, Inc. (NYSE: HCP) rose 9.9 percent, 15.7 percent and 8.6 percent over the last quarter, respectively.  The largest gains over the prior quarter were posted by Medical Properties Trust (NYSE: MPW) and Senior Housing Properties Trust (NASDAQ:SNH), with their share prices rising 17.2 percent and 16.4 percent, respectively.

Inside the 2Q16 MOB Quarterly Update

• Key Transaction Highlights 

• Transaction Volume Trends 

• Regional Transaction Highlights

• Pricing and Cap Rate Trends

• Industry Rate Benchmark Trends

Download the full report to learn more

Should you have any questions or desire to discuss the sector with an H2C professional, information about the firm and how to contact us is presented at the end of the report.

Thank you for your interest in this publication.
Printed copies available upon request.