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Q4 Medical Office Industry Report

March 13, 2025
Q4 Medical Office Industry Report

Q4 Healthcare REIT Highlights

Healthcare Realty Trust
Healthpeak Properties Inc.
Ventas
Welltower

Macroeconomic Highlights

Q4 2024 Healthcare REIT Data Overview

Healthcare Realty Trust (HR) Healthpeak Properties Inc. (PEAK) Ventas (VTR) Welltower (WELL)
Ending Occupancy (Same Store) 2024 89.80% 92.20% 90.10% 94.40%
2023 89.20% 91.60% 91.90% 94.90%
YoY Revenue Increase (Same Store) 2024 2.9% 4.4% 2.4% 4.1%
2023 3.2% 3.9% 3.5% -0.3%
YoY Expense Increase (Same Store) 2024 2.7% 7.1% 3.6% 9.0%
2023 4.1% 3.2% 6.9% -7.3%
YoY NOI Increase (Same Store) 2024 3.1% 3.1% 1.8% 2.0%
2023 2.7% 4.3% 2.1% 2.8%
NOI/Occupied SF (Same Store) 2024 $23.21 $22.83 $23.70 $26.94
2023 $23.01 $21.26 $24.27 $27.04
Average Lease Term Remaining (Yrs) 4.4 6.2 6.8 7.0
Q4 Medical Office Acquisitions 0 0 0 0
Total Properties 651 519 397 429

Q4 2024 Healthcare Real Estate Operating Fundamentals

Healthcare Real Estate Lease Rates

Healthcare Real Estate Occupancy

Healthcare Real Estate Income & Expenses

Healthcare Real Estate Investment & Transaction Activity

Healthcare Real Estate Cap Rates & Bid-Ask Spread

Headwinds in the Healthcare Real Estate Market

Tailwinds in the Healthcare Real Estate Market

The medical office market experienced several tailwinds, including strong demand driven by health systems shifting patient care into lower-cost outpatient settings, as noted by Healthpeak Properties. This trend is expected to continue, supporting the long-term growth prospects of the medical office sector. Ventas highlighted an unprecedented multiyear growth opportunity in senior housing, driven by compelling secular demand, favorable pricing environments, and robust investment opportunities. The company reported year-over-year same-store cash NOI growth of nearly 16% in their senior housing operating portfolio (SHOP), underscoring the strong demand dynamics in the sector. Healthcare Realty Trust emphasized the steady, long-term growth of the outpatient medical space, benefiting from powerful secular demographic tailwinds and constrained supply, with new construction starts at historically low levels.

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