The document outlines the key assumptions for the financial model of American Medical Properties. It includes revenue estimates based on a 9.0% cap rate, rent growth, and occupancy assumptions. Operating expenses are minimized due to triple-net lease agreements. General and administrative expenses start at $6 million, increasing annually by 2.0%. Depreciation is assumed over 39 years. The model assumes $300 million in equity capital and a maximum leverage of 60% for acquisitions. Debt capital has a 6.0% interest rate and a 30-year amortization period. Capital expenditures for renovations are included in acquisition costs, and maintenance is covered by tenants. Cash distributions begin one quarter after rental income generation. Exit assumptions include a REIT IPO in two years with an exit cap rate of 8.75%.
documents/EFTA01382182.pdf
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