The real estate assets of the adult care division include 27 facilities with total of 65,500 square metres with annualized rents of €12.4 M and a gross market value of €278 M.
The dependency care division comprises 1,240 beds split between 9 EHPAD, 7 SSR facilities and psychiatric clinics and 1 residential with senior services, representing around 73 beds per facility.
Breakdown of number of facilities
Distribution of gross market value
EHPAD : Etablissement d’Hébergement pour Personnes Agées Dépendantes, (Dependency care centres for senior citizens), whether able-bodied or disabled, in facilities designed to make everyday life easier and foster dialogue between residents, families and friends.
Cliniques-SSR : Post-acute and rehabilitation clinics, including addictology and psychiatric clinics;
Agences HAD-MAD : Agencies providing services and equipment for home-care services
RSS & autres: Residential with Senior Services.
The Group’s real estate assets have an essential and critical nature for the operating lessee insofar as the operating licence is specifically tied to the building which it operates. These facilities are recent or in a good operating condition and close to 80% were built or renovated in the last 10 years.
The tenants of the Adult care division are major players in the care sector, which are mainly Orpea, the European market leader, representing around 53% of the net rents generated by the expertized asset perimeter, SIS, DomusVI and Korian.
Dependency care division development strategy
For the Dependency care division, Foncière Siscare’s development strategy is based on the growing need for adult care services and the growing predisposition of incumbent operators, notably amongst the largest players, to outsource their real estate assets and therefore recover financial resources to support their growth (especially abroad). The 10 leading private operators in the French health care sector still hold close to 5 billion euros of real estate assets, across all types of assets, in other words, a very high outsourcing potential for real estate investors in the health sector.
Foncière Siscare is also available to invest in building new facilities or to carry out major renovation, modernisation or extension works for existing facilities at the request of its tenants. Projects such as these are very favourable opportunities to grow its rental income and extend existing leases.
Finally, budgetary constraints weigh on public finances, limiting the development of new facilities in France, and the Agences Régionales de Santé (ARS) (government regional health agencies) are issuing very few calls for projects. This paucity is forcing operators to extend their business internationally. Fonciere Siscare has already identified 6 projects to develop properties for dependency care in Europe.