SBRA - These healthcare REITs get a boost at Mizuho after it weighs audit opinion news

Healthcare REITS focused on skilled nursing facilities are in the spotlight at Mizuho, which noted the news last week that operators Genesis (GEN) and Signature received qualified audit opinions. That's a report that raised concerns about tenant credit at REITs focused on SNFs, the firm says, but it believes investors may be missing the big picture. "In our opinion, government support for the sector is likely to remain robust, suggesting most SNF operators will be able to keep paying their rental obligations," Mizuho says. A qualified audit opinion might call for a change to cash accounting from straight-line - that's an action that might come during Sabra Health Care REIT's Q3 report cycle, along with a $14.4M write-off - but that's a noncash impact, Mizuho notes. And while tenant credit risk is worth watching, the firm believes the sector is in the early stages of seeing an inflection in occupancy

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These healthcare REITs get a boost at Mizuho after it weighs audit opinion news