Organic Growth
Growth is built-in to our business model. Our lease agreements with the operators of our facilities contain embedded rent escalators, typically ranging from 1% to 3% annually. This increases the yield periodically on each property we own. We will also look to improve our lease spread over our cost of debt and expenses by exploring additional opportunities currently available in the market.
Construction of Pre-Leased Development Facilities
We have a proven development model that mitigates the normal risks associated with development. We pre-lease all of our facilities prior to the commencement of construction. The typical timeline for project completion is less than one year and because of our triple-net lease structure, operators begin paying rent on the entire facility upon receipt of a property’s certificate of occupancy. We take further steps to mitigate risk through the use of bonded contractors with guaranteed maximum price construction contracts and setting up binding timelines for the project’s completion.
Strategic and Accretive Acquisitions
We see opportunity for strategic acquisitions. With Mainstreet’s significant capabilities in development and leasing knowledge we will seek to identify strategic acquisitions that may exist in the market. We will maintain our focus across the U.S. and Canada on seniors housing and care properties that meet our specific acquisition criteria; considerations such as the quality of the facilities and services offered, the strength of the underlying operations, opportunities for expansion, security of cash flows, and potential for increasing value through more efficient management of the assets being acquired, including through expansion and repositioning.