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Author: BruceCM Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77725  
Subject: Sequestration and REITs Date: 2/26/2013 5:15 PM
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Came across a couple of auto-email articles that could be of interest to some, having to do with the 1 March sequestration of across-the-board budget cuts, that is looking inevitable, and REITs. Particularly office properties and health facilities vis-a-vis' Medicare and Medicaid reimbursement reductions.

http://www.snl.com/InteractiveX/Article.aspx?cdid=A-17055975...

http://medicarenewsgroup.com/news/medicare-faqs/individual-f...

The risk to office properties in the WDC area seems logical, although not sure what effect this will have on longer term lease-ups, vacancy rates, renegotiated rates and the bottom line of the likes of OFC, WRE and VNO. Others may be better able to offer some insight into this.

The HC REIT that I think will be at greatest risk to Medicare Reimbursement reductions is OHI. Most of their revenue comes from operators of Skilled Nursing, and most if not all of these rely on Medicare and Medicaid, according to their last annual earnings report.

Any other thoughts?

BruceM
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