- American Healthcare REIT experienced a seasonal decline in skilled nursing occupancy, but the negative impact was mitigated by strong performance of its senior health campus segment, which is managed by Trilogy Health Services. That segment reported a 24.1% year-over-year same-store NOI growth in Q2.
- Similarly, Sabra Health Care REIT reported that its senior housing portfolio significantly contributed to its positive performance in Q2, having experienced NOI growth of 17.7%. Sabra reported 6% growth in funds from operations and increased occupancy during the quarter.
- After relocating earlier this month to a new, $650M facility, Lutheran Hospital’s old campus in Wheat Ridge, CO, has already seen “significant interest” from buyers looking to redevelop the campus. Current master planning includes uses for residential, retail and office space.
- Telehealth therapy and psychiatry provider LifeStance Health slowed its facility expansion plans in the second half of 2024 due to economic pressures and a shift in strategy. The company closed 82 clinic locations in 2023 and seeks to boost patient volumes at existing facilities before expanding its physical footprint further.
- The Boston/Cambridge lab leasing market is facing challenges due to an oversupply of lab space, leading to increased vacancy rates and slower leasing activity. Lab space inventories grew from 15M SF in 2019 to 35M SF today, which has outpaced current demand in the region.
- Phoenix Children’s Hospital opened a new $195M hospital facility in Glendale, AZ, and it has plans for another hospital in the East Valley region. The 175,000 SF hospital has 24 inpatient beds and plans to treat 72,000 patients annually.
- A bill pending in California’s legislature would require private equity groups and hedge funds to get approval from the CA Attorney General before purchasing many types of health care businesses. The state’s hospital association has opposed the bill, saying it would discourage needed investment.
- A public-private partnership between the University of Nebraska Medical Center and its clinical partner Nebraska Medicine obtained approval from the NU Board of Regents for a new, $2.19B health care facility that will serve as a clinical learning center, conducting research and offering clinical trials. The project is the largest in the university’s history.
- Steward Health’s St. Luke’s Behavioral Health Center was ordered by Arizona state officials to suspend operations amid complaints from employees about the condition of the facilities, including an air conditioning failure that resulted in internal temperatures near 100 degrees. St. Luke’s must submit a corrective action plan to the State Department of Healthcare Compliance before reopening.
- Kaufman Hall’s latest hospital flash report (with June data) indicates that U.S. hospitals are overall stabilizing, but there is a growing divide between higher-performing and lower-performing hospitals, often depending upon access to capital and control of the hospital’s real estate portfolio. Payments resulting from a recent 340B settlement are also bolstering performance for some hospitals.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
