1315_Nareit Testimonials_Meredith_2023-06-20_v2
06/26/2023
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Todd Meredith, president and CEO of Healthcare Realty Trust Inc. (NYSE:HR), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.
Meredith commented on the outlook for the outpatient medical facility business within the health care REIT sector, whether rising rates have impacted the supply or demand for outpatient medical facilities, as well as Healthcare Realty’s merger with Healthcare Trust of America, Inc. (HTA) that closed in the third quarter of 2022.
During the interview, Meredith noted that:
- “We really see an uptick in utilization in both the volume of services but also the complexity of services as people age.” Aging demographics are a “huge driver” of outpatient medical care.
- Over 65’s are expected to reach about 20% of the population by 2030.
- Advances in innovation are driving more medical procedures to outpatient facilities.
- Higher rates and inflation are providing a benefit for Healthcare Realty’s existing buildings, due to the cost pressures surrounding new supply.
- Benefits of market scale have already resulted from the merger with HTA, along with more relationships with health systems. Healthcare Realty is expecting same-store growth of 4%-6% in 2024.