(Sept 11): When compared with real estate investment trusts (REIT), the locally listed business trusts have generally performed poorly — whether because of underperforming assets or difficult operating environments. Among the better performers is RHT Health Trust, with an annualised return of 14.4% since it was listed in 2012.
Some of that gain comes from a special distribution in October last year, when RHT sold a 51% stake in New Delhi-based hospital operator Fortis Hospotel and 100% of Escorts Heart Institute and Research Centre for a total of $198.5 million. This resulted in a special distribution of 24.8 cents per unit.
“We felt it was a good time to take money off the table because healthcare pricing in the region has accelerated and [it has] become expensive to acquire new assets. We need to be responsible enough to take money off the table and exit some opportunities. Also, it goes a long way to give comfort to our unit holders,” says Gurpreet Dhillon, CEO of RHT’s manager.