Why Invest in Healthcare Real Estate?

Wally Smith:
Very good. Well, this sounds like a lot of depth definitely in this sector and obviously in the industry as a whole. You guys, you’ve chosen healthcare. Obviously the demographic, the baby boomer wave and all of that is supportive of that. What do you like about it? What do you like about healthcare? I know it seems to be one of the strongest DST sectors that we work in.

Patrick Lam:
Absolutely. One of the things that excite us the most about the healthcare sector is as you mostly know, not all real estate is created equal. And we like the healthcare or senior housing asset class because it’s more recession resilient than most other asset classes.

Patrick Lam:
Let me tell you what I mean by that. You don’t ever choose as a baby boomer or senior when you get sick or when you need long-term care or when you start losing your memory or have Alzheimer’s. And because of that, it’s not sensitive to the economic cycle. And so when you’re a baby boomer that you need a certain type of care every single day, we’re the provider for you. And that’s why we really like healthcare or senior housing. But more importantly, we only focus on something called assisted living and memory care, and that’s really the most predictable, the most conservative, and more importantly, the most consistent type of asset class inside healthcare and real estate.