REIT - Healthcare Facilities Stock Performance - Yahoo Finance (2024)

FAQs

What is the performance of healthcare REITs? ›

Past Earnings Growth

Total earnings for the Health Care REITs industry have declined over the last three years, with the industry now making a loss overall. Meanwhile revenues have grown 2.2% per year.

Based on 9 Wall Street analysts offering 12 month price targets for American Healthcare REIT, Inc. in the last 3 months. The average price target is $15.78 with a high forecast of $18.00 and a low forecast of $14.00. The average price target represents a 14.93% change from the last price of $13.73.

Risks of investing in healthcare REITs

Here are some of the risks they face: Leverage risk: REITs borrow heavily to acquire and develop real estate. The debt reduces their financial flexibility during economic recessions. Interest rate risk: REITs are highly sensitive to changes in interest rates.

The healthcare REIT had struggling tenants and a deteriorating financial profile. Shares of Medical Properties Trust (MPW 0.62%) plummeted 55.9% in 2023, according to data from S&P Global Market Intelligence.

Interest rate risk

The biggest risk to REITs is when interest rates rise, which reduces demand for REITs. 6 In a rising-rate environment, investors typically opt for safer income plays, such as U.S. Treasuries. Treasuries are government-guaranteed, and most pay a fixed rate of interest.

By law, a REIT must pay at least 90% of its income to its shareholders, providing investors with a passive income option that can be helpful during recessions. Typically, the upfront costs of investing in a REIT are low, while their risk-adjusted returns tend to be high.

Health care REITs own and manage a variety of health care-related real estate and collect rent from tenants. Health care REITs' property types include senior living facilities, hospitals, medical office buildings and skilled nursing facilities.

Is American healthcare REIT a good investment? ›

The real estate investment trust (REIT) based in Irvine, California posted a strong fourth quarter of 2023, with a nine and a half percent year-over-year growth in same-store NOI, with Trilogy's occupancy increasing by roughly 300 basis points compared to 2022, Willhite said.

Healthcare Realty Trust has 7.30% upside potential, based on the analysts' average price target. Is HR a Buy, Sell or Hold? Healthcare Realty Trust has a conensus rating of Moderate Buy which is based on 2 buy ratings, 5 hold ratings and 0 sell ratings.

However, medical real estate can be an attractive investment option for several reasons: 1) Stable income: Medical real estate can provide stable and predictable income streams for investors, as healthcare providers typically sign long-term leases with built-in rent increases.

The analyst consensus target price for shares in Target Healthcare Reit is 99.50p. That is 29.22% above the last closing price of 77.00p.