Equity and Debt Financing Capabilities

As of December 31, 2015, the net worth of Landmark was $243.5 million, the cash position of Landmark was $33 million.  As of September 30, 2016, the market value of the 27 outpatient buildings that comprise the healthcare real estate portfolio of Landmark was $1.16 billion. The Landmark Fund is the largest independent portfolio of outpatient buildings in the United States.

Landmark is in a position to self-fund all the outpatient buildings Landmark is selected to develop and own.

With Landmark as the full-service developer and owner, the same principals who provide all the professional services that are required to achieve successful development also provide all the capital that is required to fund development and construction.

More than $1.5 Billion of Equity and Debt Financing
During recent years, Landmark provided more than $1.5 billion of equity and debt financing to fund the development and construction of the outpatient buildings Landmark was selected to develop and own.

During recent years, Landmark provided more than $1.5 billion of equity and debt financing to fund the development and construction of the outpatient buildings Landmark was selected to develop and own.

Source of Funds for Outpatient Buildings Under the Ownership of Landmark 
Landmark finances the outpatient buildings Landmark is selected to develop and own with an equity investment equal to 25 percent and debt financing equal to 75 percent of capital costs.

Landmark provides the 25 percent equity investment and obtains the 75 percent debt financing from leading insurance companies, commercial and investment banks and other institutional leaders.

Equity Source of Landmark
Landmark utilizes the $250 million equity line of credit Landmark received from a $10 billion pension plan in February 2013 to finance the outpatient buildings Landmark is selected to develop and own.  The credit rating of the pension plan is A3, according to Moody’s.

The pension plan provides 90 percent and Landmark provides 10 percent of the equity investments that are required to finance the outpatient buildings Landmark is selected to develop and own.

As of December 31, 2015, $211.5 million of the $250 million equity line of credit from the $10 billion pension was available to Landmark. With a debt to equity ratio of 75 to 25 percent, the $211.5 million of equity that is currently available to Landmark will enable Landmark to develop and own new outpatient buildings worth $845.8 million.

The $250 million equity line of credit from the pension plan is replenished as the outpatient buildings that are financed with the equity line of credit are completed and stabilized.

The pension plan does not participate in the ownership of the outpatient buildings that are financed with the equity line of credit, and the pension plan is required to limit its investment in outpatient buildings in the United States to the outpatient buildings that are developed for the ownership of Landmark.

With a debt to equity ratio of 75 to 25 percent, the $250 million equity line of credit will enable Landmark to develop and own new outpatient buildings worth $1 billion.

The $250 million equity line of credit of the pension plan is unsecured.  The pension plan is not a party to the construction and permanent loans Landmark obtains from its lenders, and the pension plan is not entitled to hold or record liens or mortgages on the outpatient buildings that are financed with the equity line of credit.

Debt Financing Sources of Landmark
The debt financing Landmark provided to fund the development and construction of the 27 outpatient buildings that comprise the healthcare real estate portfolio of Landmark as of September 30, 2016 was obtained from the 12 commercial banks and insurance companies that are listed below.

  • Capital One
    McLean, Virginia
  • U.S. Bank
    Minneapolis, Minnesota
  • Regions Bank
    Birmingham, Alabama
  • KeyBank [ Key Healthcare Finance ]
    Cleveland, Ohio
  • Comerica Bank
    Detroit, Michigan
  • Thrivent Financial
    Minneapolis, Minnesota
  • American Equity Life
    West Des Moines, Iowa
  • Aviva Life and Annuity
    West Des Moines, Iowa
  • PHL Variable Insurance
    Hartford, Connecticut
  • Phoenix Home Life
    Hartford, Connecticut
  • County Insurance & Financial Services
    Bloomington, Illinois
  • Teachers Insurance and Annuity
    Association of America
    New York, New York

During the balance of 2016 and in future years, Landmark expects to receive numerous commitments for debt financing from the commercial banks and insurance companies that have provided debt financing to Landmark over the years.

©2017 Landmark Healthcare Facilities LLC