Comments

  1. The REIT funding structure can be a great way for Operators to build and operate seniors housing properties as long as the parameters of the lease (i.e., mostly talking about rent) are not too expensive and as long as the Operator has a long-term perspective.
    High rents reduce the value of the Operations so if an Operator is considering the transfer of their business to the next generation or looking to cash-out within, let's say 5-10 years, then other funding sources may be a better option to consider.

    Moral of the story: look at all your options, preferably summarized on a single sheet of paper, before you decide the best course of action.
    Chris Foley
    CPA (Retired)
    Equity National Seniors Housing Brokerage & Advisors
    cfoley@Equity.net