Benzinga - Real estate investment trusts (REITs) operating in the healthcare sector, tend to have a trailing 10-year return of 11.6%, according to SP Global. Healthcare REITs tend to invest in properties operated by hospitals, assisted living facilities, and medical offices, among others.
Although healthcare REITs will continue to experience negative effects from interest rate hikes, they are still well-positioned to benefit from their sustainable demographics, and some have held up considerably well so far. For instance, National Health is only down roughly 4.2% year-to-date, while Ventas is only down about 11% year-to-date.
When the Federal Reserve eventually decides to pivot to a dovish policy stance, this may signal a prime buying opportunity for certain REITs. Here are two healthcare real estate investment trusts to throw on your watchlist, that have held up well compared to the overall market.
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National Health Investors Inc. (NYSE: NHI) is offering a forward dividend yield of 6.35% or $3.60 per share annually, conducting quarterly payments, with an inconsistent track record of increasing its dividends.
National Health specializes in sale-leaseback, joint venture, mortgage and mezzanine financing for independent, assisted and memory care communities, skilled nursing facilities, medical office buildings and specialty hospitals.
National Health has partnered with 28 operating partners that manage roughly 190 properties across 32 states.
Ventas Inc . (NYSE: NYSE:VTR) is offering a forward dividend yield of 3.96% or $1.80 per share annually, through quarterly payments, with an infrequent track record of increasing its dividends. Ventas owns a diversified healthcare portfolio of over 1,200 properties spread across senior housing, medical office, hospital, life science, and skilled nursing/post-acute care.
Debra A. Cafaro, Ventas Chairperson and CEO said, “In the fourth quarter, we expect accelerating year-over-year same-store SHOP cash NOI growth of 15% to 21% and positive contributions from all other segments amidst a continuing dynamic macroeconomic environment,” adding that, “the Ventas balance sheet is well positioned with an outstanding 2023 maturity profile.”
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