Partnering with real estate investment trusts (REITs) could be a major opportunity for certain behavioral health operators.
That’s the case Sabra Health Care REIT Chief Investment Officer Talya Nevo-Hacohen made during a panel chat at Behavioral Health Business event INVEST.
Specifically, sponsor-backed operators that are dependent on a facility could be a good fit for such a partnership.
The norm in most segments of behavioral health is to avoid owning real estate. Investors and providers alike would much rather see capital go to care services and operations.
“[Real estate] sucks up a lot of capital with, essentially, no other return,” Nevo-Hacohen said. “That’s where we kind of feel like we come in as the knight in shining armor and can say, ‘We’ll buy that real estate … and lease it to you long-term.’” Read more.
