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
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Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers & acquisitions, capital markets, real estate and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, go to h2c.com
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The real estate investment banking professionals at H2C have successfully served as advisor for over 20 years on real estate transactions in excess of $10 billion nationwide. For more information on our real estate advisory group, please contact one of the adjacent H2C professionals.
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