Our Strategy
The demand for expertly conceived and well-located medical office buildings will remain essential over the near and long term future, as healthcare visits are a demographically certain requirement of the U.S. population.
Why does Stage value the investment of medical office buildings?
The 65 year old population in the US is expected to double in the next 35 years, which will comprise 25% of the entire US population
The 65 year old population require 3X as many annual physician visits as opposed to general population
Healthcare spending is expected to account for 20% of the entire US GDP by 2024, which is the single largest segment of any GDP cost expenditure
Medical office market valuation exceeds $1 Trillion
Ownership of medical office market is extremely fragmented, with only 15% owned by healthcare REITs
Healthcare tenants have historically lower default rates and vacancies than any other real estate asset class
Why does Stage tend to pursue off-campus medical office buildings?
Over the past ten years, healthcare systems have consistently shifted their focus to off-campus medical office buildings, which buildings have become a vital cog in the healthcare delivery model. What has accounted for the shift to off-campus medical buildings?
Reduced operating costs and expenses than main campus
Increased technology allows for additional procedures and patient visits
Decentralization of healthcare industry as a whole
Shift in emphasis to consumer driven model (i.e., closer to their patient base)
Retain hospital campus space for patients with highest acute care requirements
How does Stage locate investment opportunities?
As one of the original healthcare specific real estate investment companies, Stage has deep brokerage, physician and owner relationships across the country. Over 65% of Stage’s acquisitions are located by Stage before the transaction is broadcast to the investment community at large.
Given the need for healthcare REITs and large private equity backed funds to acquire scale in the medical office market, Stage has intentionally sought to build its portfolio of properties that are generally smaller in square footage and scope than its institutional competitors. By applying a high level of analysis and expertise, Stage is able to acquire properties that provide a similar risk profile to the institutional deals, yet generate historically greater yields.
In addition, over 50% of Stage’s investments include acquiring properties directly from physician owners, in sale-leaseback transactions. Stage prides itself on its ability to solve conflicts and issues for physician owners, and craft long-term workable solutions for all parties.
What type of medical investments does Stage acquire?
Acquisitions
New development and retrofit of existing buildings
Sale-Leasebacks
Physician Equity Recapitalizations
Hospital Monetizations
REIT acquisitions of smaller or out-of-market dispositions
Value -add and re-development acquisitions, including vacancies and near-term lease roll