Investing in Healthcare
Healthier Investments Generate Stronger Returns
GFH, classified amongst the top 40 asset management financial groups in the Middle East according to Forbes Magazine, distinguishes itself by identifying and capitalizing on diversified investment opportunities in sectors with clear fundamentals and long-term trends. Healthcare is one of these sectors with strong long-term fundamentals supported by increasing expenditures on healthcare services and resilience to market downturns.
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US$16.4bn
Assets and Funds Under Management
8.3%
Medical Office Vacancy Rate
(compared to 14.8%
broader office sector)
+90%
Average Rent Collection for Medical Offices
Investments With Value
GFH capitalizes on its network and capability as a resilient financial group by securing deals, cultivating partnerships, and delivering value. With a history spanning over twenty years, we closed 9 deals in 2021. The current AUM of the group stands at USD$16.4 billion with an annualized ROE of 8.6% in 2021.
Our healthcare portfolio is backed by a foundation of long-term positive fundamentals. In the US and GCC regions, medical offices and clinics are among the fastest-growing segments due to rising healthcare expenditures, a growing preference for outpatient care, and an increase in chronic illnesses requiring specialized care. They play a key role in delivering crucial healthcare services to patients in lower cost settings. Furthermore, the sector provides a protection against inflation through a dynamic tenancy comprising a diversified base of long and short-tern tenants. We focus on assets in affluent markets with favorable demographics and long-term fundamentals.
Partnerships That Last
GFH aligns with expert partners who share the same focus of investing in high-demand and downturn-resistant sectors. By partnering with high-growth firms in strategic markets, we position ourselves to capitalise on promising opportunities across the globe. Our portfolio of medical clinics spread across the United States provide much needed healthcare services in high growth and well populated markets, providing stable and recurring earnings for our shareholders.
A Strategy That Yields
Our healthcare portfolio is guided by a dynamic strategy that prioritises a defensive approach that limits risk and maximizes returns in recession-resilient sectors. We invest in high-quality and high-performing assets in geographies with strong demographics across domestic and international markets. GFH maintains a balanced approach that targets a mix of credit-rated, national operators and performing individual tenants in a diversified portfolio that serves to create value and produce significant cash flows. Our experienced team has established a results-oriented and data-driven culture that prioritizes performance across all cycles, co-investing alongside our partners to underscore our absolute commitment to the mission.
Core Plus Profile
- Target MOBs and ASCs
- Longer lease terms
- Higher occupancy
- Modest leverage
- Recession resistant asset class
High Volume
- Utilize long-standing industry relationships to get 'last looks' at premium assets
- Steer away from time-sensitive transactions
- Streamlined transaction processes to create efficiencies and minimize cost
Lower Risk
- Targeting a medical office portfolio with a high concentration of hospital-credit tenancy
- Healthcare has shown to be recession-resistant during the pandemic
Add Value
- Operator model (direct vs allocator model)
- Use expertise to find overlooked value
- Leverage relationships to gain off-market access
- Seek to realize a portfolio premium upon disposition
