The big-picture story for healthcare real estate investment trusts (REITs) like Welltower (NYSE: WELL) hasn't changed -- society is getting older, and older people need more medical care. That said, the coronavirus pandemic upended the senior housing segment over the short term and caused Welltower to cut its dividend by 30%. Roughly two years into this headwind, here's why Welltower thinks 2022 will be a turnaround year.
Although Welltower gets roughly a third of its rents from outside the senior housing sector (health systems and outpatient medical care), the rest comes from some form of senior housing. The smallest exposure is to nursing homes (5.5% of rents), which was probably the hardest hit subsector of senior housing. That's a modest sum, which is positive. However, the REIT also has exposure to other senior housing properties.
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Here's Why This Healthcare REIT Thinks 2022 Will Be a Very Good Year