What is the typical asset holding period?
MEPT typically owns an asset for seven to ten years, but will dispose of an asset if a favorable opportunity occurs. A formal hold/sell analysis is conducted each January after the annual budget has been formalized, but it may also be initiated because of an asset review for a quarterly report or a weekly portfolio meeting. The process of determining whether a property should be brought to market starts with assessing the risk profile of the asset and then estimating the achievable sales price. The disposition analysis is continuous and reported quarterly. Reasons for disposition may include a change in demographic and economic forecasts, real estate market conditions, new competitive product, property lease rollover projections and market conditions for the sale of property.
