Hello,
I made it to the final round of interview for a Healthcare REIT. The recruiter informed me that the final round would consist of a case study that would take an hour and then I would have to present it. After that I would interview with the COO.
This position is for an entry level analyst on the portfolio management team. I am hoping you guys can tell me what I can expect for the case study. This would be my first case study that requires a presentation. I did pass their first case study which was a small Excel test and financials for a portfolio of 4 properties. This case study had questions about EBITDARM coverage, which properties worries me the most, and primary drivers between properties. I am hoping it is similar to this but I do not want to risk being caught off guard, so I want to be prepared.
I am feeling anxious about the upcoming case study and presentation and I want to be as prepared as possible. Can anyone please provide insights of what I might expect for a case study on a portfolio management team.
Thank you!
hey man,
it would be easier for us to know what types of medical the invest in (office building, single tenant net lease, hospitals, etc) for us to answer your question on what to expect
Hi nymetrorealestate,
Thanks for replying. They invest in nursing homes, senior living, and hospitals and do only triple net leases. They also use other operators for property management.
Is there anything else that might be helpful?
I appreciate the help!
hey man,
so you model senior homes and senior living areas much like multifamily (that is, if the person hasn't bought the unit). So, they would be paying rent per month just like an apartment building. So, you'd also apply a vacancy factor in your income lines just like MF, and go through the income statement (obviously some items will be kind of odd if it's a nursing home). Hospitals are a bit different, because normally it's a sale-leaseback scenario in which the hospital is paying a NNN rent so the NOI they're getting is equal to the contractual rent stream.
So, in summary - model senior living and nursing homes like multifamily because that is actually what the asset falls under, it's just a subcategory, and model hospitals much like you'd model any office lease that is NNN (no base years, full pass-through for Real estate taxes and operating expenses). hope this helps!
nymetrorealestate,
That does help. Thank you for the information! I will start practicing these models.
One thing to keep in mind with senior housing is how much weight is placed on the operator. Never modeled an acquisition for SH before, but do a lot of work in the medical office space. As mentioned above, the bones are very similar to MF - however there is a ton of risk/emphasis placed on the operator. A very business intensive model for sure, after looking into it deeper.
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