Valuation by specialists
We assess healthcare real estate for investors, financial institutions and operators. We determine the sustainable achievable level of rent for care homes, assisted living homes, day care etc. However, there are special challenges: The valuation of, for example, nursing homes is quite detached from the local rent index. Care rates are negotiated with representatives of the nursing care insurance fund and the welfare authorities.
Other sample valuation topics:
We assess healthcare real estate for investors, financial institutions and operators. We determine the sustainable achievable level of rent for care homes, assisted living homes, day care etc. However, there are special challenges: The valuation of, for example, nursing homes is quite detached from the local rent index. Care rates are negotiated with representatives of the nursing care insurance fund and the welfare authorities.
Other sample valuation topics:
- Is there an „Overrent“ or „Underrent“? Are the nursing rates high enough to offset the rent, reinvestments in equipment and maintenance? We are calculating for these cost positions between 1.30 € to 2.20€ per day and person, depending on the circumstances.
- What competitive position does your healthcare facility have within a 15 minute radius of driving time? Do your care rates match up to the standard of equipment? And if there is backlog for a rise of care rates it should be taken into account in the valuation of your real estate or your operating company.
- Are there special circumstances such as the quality of the local management or the local labour market (i.e. shortage of professional staff)?
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Case Study: Deteriorating price positioning of a nursing home
In the example on the left, a care home’s relative price position had been declining each year. (The amounts stated in the table are the out-of-pocket expenses for direct payers after all reimbursements by the care insurance funds.) In 2014, this care home used to be 9th most expensive one, compared to the 20 surrounding competitors. However, until 2017, this home became one of the cheapest homes – resulting poor financial figures as the cost base (especially staffing costs) rose sharply. The reason for this development was negligence in the negotiations of care rates by the operator. As a result, there were not enough resources to refurbish and replace the equipment. The appearance gradually deteriorated and the operator asked the landlord for a reduction of the rent. NAI apollo was being asked to analyse the rent level, resulting in a change of the operator. |