The Fund

FDL Health Investors utilizes its management’s experience and knowledge to source and strategically finance acquisitions of such healthcare properties as skilled nursing facilities, long term acute care hospitals, inpatient hospice centers, assisted living and memory care facilities, medical office buildings, and micro-hospitals. With over $1 trillion of healthcare related properties in the United States, these property types in the healthcare real estate sector provide ample opportunity for return on investment.

Healthcare Sector Real Estate

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Skilled Nursing Facilities (SNFs)

Skilled nursing facilities are medical centers that provide inpatient rehabilitation services and other medical treatment provided by trained medical specialists. Generally, these facilities are a temporary residence for patients requiring specific rehabilitation treatment.

Real estate occupied by these skilled nursing facilities provide attractive investments due to the revenue generated by the operators of such facilities (primarily paid by government programs such as Medicare), as well as the fact that such facilities are eligible for HUD financing.

Assisted Living/Memory Care Facilities

According to the U.S. Department of Health & Human Services, someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. Much of these services are provided by Assisted Living and Memory Care Facilities.

With the U.S. population aging at its current rate, the demand for these facilities results in consistent rental growth for the real estate in which they are occupied. Such real estate is also eligible for HUD financing.

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Long Term Acute Care Hospitals (LTACs)

Long-term acute care hospitals specialize in treating patients that require long-term hospital stays. LTACs often provide care to patients that have been stabilized in an acute care hospital and require a high level of continued complex care such as the management of complex wounds or burns, severe brain injuries, feeding tube nutrition, and respiratory therapy or ventilator weaning. All patients at LTACHs will typically see a physician every day, and it is common for patients to stay at these facilities for several weeks.

This length of stay and the revenue associated with it for operators make LTAC-occupied real estate another attractive investment for our fund. These facilities are eligible for HUD financing as well.

Inpatient Hospice Centers

An inpatient hospice center treats patients in the last phase of their lives when treatment at a hospital is not necessary and treatment at home or a nursing facility is not possible. The goal of this treatment is to provide the best quality of life to the patient during this time.

The consistent need for inpatient hospice care for an aging population creates quality real estate tenants through the operators of such facilities. Inpatient hospice care centers are another property type that is eligible for HUD financing.

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Medical Office Buildings

Physician group and clinic-based outpatient services found in medical office buildings will always be in demand. This demand is slated to only grow with an increasing emphasis on wellness combined with preventative care in a setting outside of the typical hospital.

Tenants located in medical office buildings usually maintain strong credit, which creates stable rental income and annual rent growth for these properties. These factors contribute to the attractiveness of these property types as a real estate investment.

Micro-Hospitals

Micro-hospitals are inpatient facilities that operate on a smaller scale than typical large hospitals. The micro-hospitals are able to offer a wide range of medical services, while commonly having between eight to ten beds for patients to be observed or admitted for short stays.

These micro-hospitals are often located in a neighborhood setting, providing convenience to those in need of its services. Such convenience combined with the reimbursements garnered for its services make micro-hospital operators excellent real estate tenants.

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Summary

As you can see, the various properties that make up the healthcare real estate sector offer prime investment opportunities. FDL Health Investors is positioned to capitalize on these opportunities by using its extensive expertise and network within the overall healthcare market.

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