US Medical Clinics Portfolio II

In 2022, we announced our second US Medical Clinics Portfolio of 11 income-yielding geographically diversified assets spread across four US states – California, Texas, Maryland, and Louisiana. The portfolio, worth approximately $400 million, is anchored by investment-grade credit tenancy through the likes of Baylor Scott White, Texas A&M Health Science Center, Texas Tech University, Memorial Hermann, and Tidal Health, among others.

The medical clinics sector has proved to be highly resilient during economic downturns, with 99% rent collection during the COVID-19 pandemic. The portfolio was acquired in a joint venture partnership with our affiliated, Big Sky Asset Management, a highly reputed and experienced asset manager with a total AUM of approximately $1 billion.

The portfolio is perfectly positioned to leverage the positive market fundamentals of the subsector, with a steady long-term increase in US healthcare expenditure and a growing preference for outpatient care continuing to drive demand for medical clinics.