Todd Meredith, Executive Vice President – Investments of Healthcare Realty Trust Inc (HR), says the company continues to incorporate development as an important part of its strategy. Meredith says developing is a good investment and also makes Healthcare Realty Trust a better acquirer.
“A lot of acquirers are simply taking an investment, a rent roll from a property, and putting a cap rate on the cash flow,” Meredith says. “We think by building from the ground up and being involved in everything from location to the structure of the building, the aesthetics of the building, the design of the building to tenants and all the contracts and leases that you have to put in place, that we have a good understanding of what it takes to have a great asset.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Meredith says that when Healthcare Realty Trust finds good developments, the company can generate better returns by taking calculated risks on some of the leasing to fill up the building. He says the company has a couple of locations where it already owns land on or next to a hospital campus, and that management is planning to pursue development opportunities on those properties by year end.
“They’re fairly modest in size, probably $15 million to $20 million a piece, and would be funded over the course of 12 to 15 months to construct those properties,” Meredith says. “Generally, our developments would be leased anywhere from 35% to 50%, maybe even more, as we break ground and start those projects. So it will continue to be a part of our strategy.”
Costco Wholesale Corporation (NASDAQ:COST) Makes Value to Customers Main Priority
February 17, 2016
CapLease, Inc. (LSE) Valued at 13 Times FFO, Makes New Investments in the Second Quarter
June 24, 2013
Brett Huff at Stephens Inc. Makes 30% Annual Returns for Investors Who Took His Advice: What Is He Buying Now?
April 30, 2019
What Makes You Unique?
October 17, 2007
Recommended Reading – What Makes the Best CEOs? Mergers Can Help., Deal Journal
December 22, 2008
