Alex Pettee, CFA
Healthcare REITs: Signs of Life
Healthcare REITs - which have been "ground-zero" of the coronavirus pandemic - have shown signs of life over the past quarter on stabilizing fundamentals and on hopes of a potential vaccine.
For senior housing REITs, in particular, the pandemic has put a significant dent in near-term demand and has driven significantly higher expenses, but interim updates suggest the worst is behind us.
Despite the headwinds, Healthcare REITs reported near-perfect rent collection outside of the senior housing sub-sector. Five healthcare REITs have reduced dividends this year while three have raised.
The positive long-term outlook for senior housing remains intact as the long-awaited demographic-driven demand boom is finally arriving. Attitudes towards senior housing need to be monitored.
No healthcare REIT sector is entirely immune from the long-term consequences of the pandemic. Even the "safe haven" Medical Office Building sub-sector faces pressures from the dramatically increased use of telemedicine.
Click Here to Read the Report on Seeking Alpha!
Disclosure: A complete list of holdings and Real Estate and Housing Index definitions and holdings are available at HoyaCapital.com. Hoya Capital Real Estate advises an Exchange Traded Fund listed on the NYSE. Hoya Capital is long all components in the Hoya Capital Housing 100 Index.
Additional Disclosure: It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Data quoted represents past performance, which is no guarantee of future results. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy.