HOW WILL THE CORONA VIRUS IMPACT YOUR INVESTMENT?
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
OrbVest's strategy has always centered around the preservation of your capital, and this is the primary reason why we focus on low risk, stable income producing real estate in the Healthcare niche in the USA.
We are resolute that our strategy is recession proof, and stand by our assertion, that when a correction or recession comes, our investments will serve as a safe haven for our investors. At this current time, we are confident that your investment is financially sound and will outperform other sectors.
Medical services will be one of the unique areas of the global economy that will be deemed “essential services” and will remain open, regardless of the level of the pandemic. Our strategy was constructed around the low risk nature of medical tenants. Our buildings and the tenants, have a strong client base in the surrounding communities where they operate, are profitable and are unlikely to move.
Not only do we expect patient numbers to maintain at the very least, but some of our facilities actually provide services that are vital in the war against this scourge. Lifehope Lab is a proud tenant in our Medical 25 building in Sandy Springs, Atlanta Georgia and this week received media coverage when it partnered with Southside Medical Centre (and approved by the CDC in the US), to become the first laboratory in the state, to be able to test more than 800 Corona virus patients per day. LifeHope will also be a tenant in our newly acquired Dallas project, Two Forest Plaza Medical 26.
We would like to assure our investors and our shareholders that the Executive team have held numerous meetings regarding the current events and are well prepared going forward.
What is the Impact on the company and what are we doing to mitigate against these risks?
The ORBVEST team: Most of OrbVest’s employees already are remote workers, but our teams in Cape Town and Centurion are already able to work from home and we have plans in place to implement this as and when required. This is being assessed on a daily basis.
Suppliers and vendors: We have pro-actively engaged with these vendors and are comfortable that no disruptions are anticipated.
Cashflow: OrbVest has had a strong start to the 2020 year and has sufficient cashflow to meet our requirements going forward.
US interest rate: The dramatic reduction in the interest rate in the US, will have a materially positive impact on portions of our existing portfolio that we can refinance and will increase the returns on future acquisitions.
Deal flow: OrbVest has a solid pipeline of deals and will shortly be launching Medical 27. We do not anticipate any delays or disruptions in our acquisition process.
Expenditure: OrbVest is privileged to be earning revenue in USD while the bulk of our expenditure is in South African Rands. Under the current circumstances, the executive team will maintain tight fiscal discipline, whilst ensuring at all times that the focus remains on the performance of the existing portfolio and meeting the expectations of our investors.
OrbVest would like to acknowledge the tremendous stress and anguish that the COVID19 is placing on you both personally and financially. This virus continues to impact all aspects of society and will have a significant impact on the majority of businesses in the world.
But it is our strong view that the healthcare niche will continue to attract strong interest over the coming months as investors seek alternative “safe haven” assets. We believe that this will increase exponentially over the coming months as investors transition out of equities and emerging currencies into more stable income producing assets.
We would like to assure all our investors and shareholders that your existing investments, whether as a shareholder in OrbVest or as an investor into our buildings remain sound.
The OrbVest Team