Preserving and Enhancing Liquidity

Are You Ready to Turn Your Bricks and Mortar Into Cash?

There are many benefits to monetizing non-core healthcare real estate assets. Liquidity can help healthcare systems enhance financial ratios and improve their credit rating. Hospitals benefit by unleashing or preserving funds for service expansion and other capital projects. Having third-party ownership also helps hospital executives improve physician relationships by exiting the landlord role. 

Physicians benefit from the opportunity to invest in the real estate ownership of the buildings they occupy, providing not only investment opportunity, but also strengthening their ties to the hospital campus. Physicians and other tenants also benefit from increased capital investment to upgrade the property condition, as well as professional property management services. And last, but certainly not least, increasingly demanding patients appreciate the comfort and conveniences of upgraded facilities when they receive their healthcare. 

Making the decision to monetize your real estate assets is a complex endeavor -

We believe it makes sense to first evaluate your portfolio to determine all of your options. You first need to have an accurate economic picture of your real estate portfolio, including understanding how your rental rates compare to the market, whether you are maximizing your revenues, and how well you are controlling expenses. You also must understand the strategic value of the buildings in relation to your overall strategies.

With this information, value ranges can be determined for the properties and all potential ownership options can be evaluated for your specific situation. Finally, the impact of the various options on your balance sheet and operating statements needs to be evaluated. The Monetization Assessment will result in a very clear picture of the value of your portfolio and the various economic options available to maximize benefits to your healthcare organization. Armed with this information, you will be able to confidently make recommendations to your Board. 

You need to remember that a Monetization Assessment is NOT a transaction; rather, it is the study which provides you the information you will need to make an informed decision. If you do decide to move forward with monetization, you will then need to engage a broker who will market your portfolio to the widest audience of potential buyers.

Don't gamble on the timing of the market. Be prepared by knowing your options.