According to Revista and Healthcare Real Estate Insights, with Aurora Health Care’s $433 million
acquisition of 18 medical office buildings from Welltower, Inc. in January, this purchase marked the first
major transaction that could be labeled a “reverse monetization”. According to Healthcare Real Estate
Insights, several members of its Editorial Advisory Board at the end of last year predicted that the
medical real estate sector would begin seeing what it called “reverse monetizations”, whereby a health
system buys properties in order to gain control of the operating costs, or to simply purchase the medical
buildings they already occupy because it’s a smart business decision due to a new lease-accounting rule
by the Financial Accounting Standards Board (FASB) which now requires them to recognize all of the
leases on their balance sheets.
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