Who we are Healthcare Real Estate Solutions (“HCRE Solutions”) is focused on building successful relationships. We accomplish this by committing to a high level of personalized service, offering intrinsic value for dollars invested and seeking out reliable investment performance. Achieving a high level of customer satisfaction and enriching the lives of our family of investors are primary goals for everyone at HCRE Solutions.
OUR AFFILIATES Healthcare Real Estate corpORATION In investing, performance largely depends on the advisor to find attractive opportunities. HCRE Corp. is a real estate company that focuses on attractive levels of current income and growth potential from the acquisition and development of senior housing properties. The HCRE Corp. management team is led by Kent Eikanas, who has over ten years of experience in the acquisition, financing, asset management and disposition of healthcare real estate located across the United States. Mr. Eikanas has acquired or managed a combined asset value of approximately $1.0 billion of healthcare real estate assets during his career. His primary areas of specialty include assisted living facilities, memory care facilities and skilled nursing facilities. Mr. Eikanas has built an extensive network of relationships with high quality local and regional healthcare operators throughout the United States.
STEPHEN A. KOHN StePHen A. Kohn & Associates & A S S O C I AT E S , LT D.
Securities offered through Stephen A. Kohn & Associates (“The Firm”), is an Independent broker/dealer that clears its transactions, fully disclosed, through National Financial Services, LLC, a division of Fidelity Investments, a New York Stock Exchange Member Firm. In addition, The Firm is a state Registered Investment Advisor (RIA). The Firm is a member of the Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation (SIPC) and the Municipal Securities Rulemaking Board (MSRB). The Firm is operated by Stephen A. Kohn. Mr. Kohn oversees all aspects of the broker/dealer’s operations including, but not limited to compliance, trading, recruiting and day-to-day operations. Mr. Kohn has over 28 years of experience in the financial services industry, and served, from 2010 through 2012, as one of two small firm FINRA Members, elected by the Membership, to hold seats on the National Adjudicatory Council. Mr. Kohn also serves as a FINRA Industry Arbitrator and as President of the Independent Broker Dealer Association.
CONTACT US TODAY: (877) 980-4477 | www.HCRESolutions.com
STRONG OCCUPANCY
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The average occupancy rates between 2003 and 2010 for:
Assisted Living
91.4%
A UNIQUE OPPORTUNITY
skilled nursing
SENIOR HOUSING- OUTPERFORMING OTHER SECTORS Senior housing has already outperformed other noted real estate sectors, and we believe it will continue to be a more favorable opportunity in the coming years due to impressive demographic fundamentals.
84.4%
•• People 65 and older in the U.S. spend twice as much as all other consumers. 1 •• Every 8 seconds someone turns 65 in the U.S. (10,000 people per day)
2
•• 1 out of every 5 dollars is expected to be spent on Healthcare by 2020. 3
•• B y 2016, growth in healthcare employment will double the projected growth of all other industries combined. 4
Annualized Total Returns (%)
ATTRACTIVE CAP RATES The average capitalization rates between 2009 and 2011 for:
5
3-, 5- and 7-year Periods Ending December 31, 2011
asisted living
16
9.5%
14 12 10 8 6
skilled nursing
4 2 0 -2
3 Years Apartment
Industrial
5 Years Office
Retail
7 Years Hotels
1. http://www.aoa.gov/aoaroot/aging_statistics/Profile/2011/docs/2011profile.pdf 2. USA Today (http://www.usatoday.com/news/nation/2010-11-14-baby-boomersturn-65_N. htm, http://pewresearch.org/pubs/1834/baby-boomers-old-age-downbeat-pessimism) 3. Centers for Medicare and Medicaid Services http://www.cms.gov/Research-StatisticsData-and-Systems/Statistics-Trends-and-Repor ts/NationalHealthExpendData/ Downloads/Proj2011PDF.pdf 4. The Washington Post, July, 2008
13.2%
Senior Housing
5. National Council of Real Estate Investment Fiduciaries Property Index, AEW Research 6. American Seniors Housing Association. The State of Seniors Housing 2011. (http://www.statehealthfacts.org/comparetrend.jsp?yr=13&sub=97&cat=8&o=a&ind =416&typ=2&sort=a&sortc=1&srgn=1) 7. Healthcare Reform Insights. Long-Term Care M&A Market Update – February 2012 (http://www.healthcarereforminsights.com/2012/02/10/longtermcare-ma-market-update-february-2012/)
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Additional Services The senior housing industry is one of the fastest growing segments of the real estate market. With growth driven independently of economic cycles and supported by the powerful demographics of the changing nature of the American family and societal attitudes, we believe this trend will continue over the next several decades. While this is our primary focus, in addition to these products we have access to all exchanges both national and international. Some of the financial vehicles we offer are as follows: •• COMMON, PREFERED, AND CONVERTIBLE STOCKS •• OVER 4000 MUTUAL FUNDS
•• CORPORATE, GOVERNMENT, AND MUNICIPAL BONDS •• CD’S AND COMMERICAL PAPER
We recognize that each investor has a different tolerance for investment risk. We are convinced that diversification is the key to longterm investing success. If you would like to find out more about us or our services or how you could benefit from an investment in healthcare real estate, please contact us today.
Diversification is the key to longterm investing success.
RISK FACTORS TO CONSIDER “This paper provides a brief summary of the senior care real estate industry, and a general introduction to Healthcare Real Estate Partners, LLC, a real estate company developing a portfolio of investments in this industry. The paper is for information purposes only, does not discuss any particular investment, and does not constitute a solicitation to purchase, an offer to sell, or a sale of a security. The success of an investment in health care real estate will be subject to certain risks. The Company will disclose these risks in detail in offering documentation for any future Company offering. Generally, interest rate fluctuations over time are a fundament risk that will affect the value of our mortgage assets, net income and units. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control. Interest rate fluctuations can adversely affect our income in many ways and present a variety of risks including the risk of variances in the yield curve, a mismatch between asset yields and borrowing rates, and changing prepayment rates. Reductions in reimbursement from third-party payors, including Medicare and Medicaid, could adversely affect the profitability of our tenants and hinder their ability to make rent payments to us. Sources of revenue for our tenants may include the federal Medicare program, state Medicaid programs, private insurance carriers and health maintenance organizations, among others. Efforts by such payors to reduce healthcare costs have intensified in recent years and will likely continue, which may result in reductions or slower growth in reimbursement for certain services provided by some of our tenants. In addition, the failure of any of our tenants to comply with various laws and regulations could jeopardize their ability to continue participating in Medicare, Medicaid and other government-sponsored payment programs. The financial impact on our tenants could restrict their ability to make rent payments to us, which would have a material adverse effect on our business, financial condition and results of operations and our ability to make distributions to our unitholders.�
At HCRE Solutions, we are focused on offering you the highest quality of service. SECURITIES OFFERED THROUGH STEPHEN A. KOHN & ASSOCIATES Ltd. Member FINRA, SIPC, MSRB
1920 Main Street, Suite 410 Irvine, CA 92614 Phone: (877) 980-4477 www.HCRESolutions.com
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