Supurva Healthcare Group, Inc. Advocates Medical Real Estate as an Effective Hedge Against Inflation
Liverpool, New York--(Newsfile Corp. - May 27, 2021) - Supurva Healthcare Group, Inc. (OTC Pink: SPRV) ("SPRV") (the "Company") announced today that John Murphy, President and CEO, recently stated that macroeconomic trends that include the Government's COVID -19 stimulus packages, reduced unemployment, and increases in GDP, strongly indicate inflation is on the horizon in the United States. Historical empirical evidence supports real estate as an effective hedge against inflation, as rents and property values tend to increase, and debt depreciates. Murphy believes that the Medical Office sector will be one of the top performers in this inflationary period.
The majority of medical offices that SPRV has evaluated this past year to acquire have long lease terms, NET leases, with annual base rent escalations. The ability to shift operating costs to the tenants, the growth rate of annual base rent, the length of lease and the benefit of historically low cost of debt support values increasing at a rate in excess of historic inflationary rates.
Murphy also stated there was another strong factor that supports the medical office sector as an effective inflationary hedge: the health care industry. Most people do not realize the health care industry has been the best hedge against inflation. Health care demand has been largely immune to inflation for the past 8 decades. With the advent of insurance programs, we have become increasingly reluctant to decline health care and medical procedures. Since 1940 the CPI for health care has increased 40 times as compared to the regular CPI has increased 12 times.
The combination of the real estate and health care industry will continue to provide strong predictable returns and withstand the impacts of inflation.
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in several places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations, and/or (iii) its growth strategy and operating strategy. The words "may," "would," "will," expect," "estimate," "can," "believe," "potential" and other similar expressions and variations, thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the Company's business and financial results is and will be included in the Company's filings with the SEC.
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