REIT - Healthcare REITs: Vaccines Avert Dark Decade

• Healthcare REITs - particularly senior housing and long-term care facilities - have been revived by the early vaccination success. New coronavirus cases have been nearly eradicated in senior living facilities.
• Senior living facilities were ground zero of the pandemic as the illness has devastated the world's elderly populations. Aggravated by policy errors, 34% of all COVID deaths were among nursing home residents.
• The "Big Three" senior housing-focused REITs have led the rebound this year. Welltower reported that cases have plunged 99% since the peak and nearly all communities are again accepting new residents.
• Government relief funds continue to pour into the "public pay" sectors. Fundamentals are stronger for hospitals and skilled nursing facilities than they were pre-pandemic. Lab space continues to be a bright spot as well.
• Risks remain, but long-term fundamentals remain more compelling than other troubled property sectors. While unquestionably devastating, the pandemic did not compromise the sector's favorable demographic trends.

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