MPW - 2 Healthcare REITs to Consider Buying on the Dip
2023-05-04 09:30:00 ET
Medical Properties Trust (NYSE: MPW) and Physicians Realty Trust (NYSE: DOC) are two of the larger real estate investment trusts ( REITs ) that specialize in owning and leasing healthcare facilities. Medical Properties Trust owns 440 hospitals in 31 states and 10 countries; Physicians Realty Trust owns 290 medical office buildings in the United States.
Medical Properties Trust should benefit from the expected increase in spending on healthcare in the U.S. The most recent Centers for Medicare & Medicaid Services National Health Expenditure report concludes that annual growth in national health spending is expected to average 5.1% from 2021 to 2030, reaching nearly $6.8 trillion by 2030. Physicians Realty also counts on that trend, in addition to the growing use of outpatient facilities.
Healthcare REITs struggled in 2022, with their shares dropping 22.2%, according to data from the National Association of REITs, which tracks the industry. In March, the sector saw a drop of 5.2%. Medical Properties' shares are down more than 21% this year, and Physicians Realty has seen its shares drop less than 1% in that period. Is it time to buy the dip on either stock? Let's see.
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2 Healthcare REITs to Consider Buying on the Dip