"The success of the Company’s

senior living portfolio is the product

of our relationships with qualified,

experienced operators and our people

who understand the sector, as well as

the Company’s access to capital.”

Kris Douglas and Rob Hull
Senior Living Investments

Healthcare Realty Trust has dedicated a portion of its investments to the senior living industry by investing in skilled nursing, assisted living, and independent living facilities. We believe that senior living is a critical part of healthcare delivery and the Company’s diversity as a healthcare real estate investor. We expect the demand for senior living services will continue to grow with the aging of the population, providing the Company with opportunities for stable, long-term investments.

Healthcare Realty’s senior living investments are primarily focused on small- to medium-sized portfolios, generally consisting of one to 10 buildings. Facilities we invest in are generally 80 to 200 beds in size and may be located in metropolitan areas as well as rural areas of the country. Because of our REIT status, we master lease our senior living facilities to reputable, proven third-party operators through long-term leases of between 10 and 15 years. The long-term nature of our lease structure allows third-party operators sufficient time to establish themselves in the facility and the market area, resulting in significant returns over time to the operator. In return, Healthcare Realty receives a long-term commitment from the operator, translating into a stable, profitable income stream for the Company.
 

One of the most important factors in our decision to invest capital is our relationship with the senior living operator. We will only invest capital to acquire a facility after discussions with the operator’s leadership determine how a building can best meet their long-term strategic needs. We have found that successful real estate partnerships result from a shared mindset regarding facilities as the basis of a lasting relationship, rather than merely a financial transaction.
 

Our team has worked with a range of senior living providers, from large, multi-facility providers in urban centers to single, independent providers in rural communities. Our partners tend to be leaders in their markets, and they recognize that their capital is better invested in delivering quality resident care than in owning real estate. As the senior living industry continues to consolidate, Healthcare Realty Trust’s ability to execute transactions quickly using internal capital generated at the corporate level is critical to the success of establishing relationships with providers and the growth of our portfolio. In addition, our experience gives us the knowledge to better understand the needs of senior living providers at the facility level.