As healthcare REITs get ready to invest in 2018, it will be important for owners to know whether to go the traditional sale/leaseback route, or the newer RIDEA structure.
Many of you have noticed that the volume of healthcare REIT financing has been lower the past couple of years, especially for those REITs that have been restructuring their portfolios. That is going to change. I suspect we will be seeing a turnaround in activity next year, and when that happens, it is best to be prepared.
But prepared for what? Will customers want to continue with the traditional sale/leaseback structure that has been around for more than four decades? Or maybe a different twist on the old product? What about the RIDEA structure that has been around in seniors housing for less than a decade? They both involve selling your property to the REIT, but after that, there are many differences, some short-term and others more long-term. Can anyone do a REIT financing? No. But those who are large enough, with a sufficient track record should always consider this source of capital, which has served the industry through good times and bad.
Join me this Thursday as I host our webinar on REIT Financing: RIDEA or Sale/Leaseback. And don’t forget to bring your questions.
