2024-02-02 07:30:00 ET
Summary
- Healthcare REITs have had a slow start this year, underperforming compared to other indices.
- "Private pay" subsectors such as senior housing, medical office, and lab space are likely to deliver better returns this year than public pay.
- Global Medical REIT is a small-cap private-pay company focused primarily on acquiring medical office buildings at high cap rates and renting them to physicians' groups and regional healthcare systems.
- The company offers a high yield, but the dividend is in some danger of a cut.
Healthcare REITs are off to a slow start this year, averaging a total return of (-4.98)%, compared to positive returns for the S&P 500 (3.36%), Nasdaq 100 (3.90%) and Dow Jones (2.17%), and somewhat below the REIT average of (-4.05)%.
Hoya Capital Income Builder
The Healthcare REIT sector is very diversified, with 16 companies holding differing mixes of MOB (Medical Office Buildings), SH (senior housing), SNF (skilled nursing facilities), rehab facilities, hospitals, and lab/research facilities. Right now, those with exposure to senior housing should have an advantage, according to Hoya Capital's latest sector report , which reads, in part:
For Senior Housing REITs, the long-awaited recovery is finally taking hold. Robust rent growth is being fueled by rising resident incomes from record-high Cost-of-Living-Adjustments ("COLA") to Social Security benefits.
Read the full article on Seeking Alpha
For further details see:
Global Medical REIT: Patient In Stable Condition, Risk Priced In