Finally, some good news: Healthcare real estate stocks may be taking a beating now, but industry watchers say that things should work out in the long run. The stocks will likely be saved by the large aging population in the U.S., which is expected to nearly double by 2030.
Health care REITs may have gone down nearly 22 percent, but their performance is positively stellar compared to REITs in other sectors. Take, for example, retail, which has plunged to nearly half its previous value; or office, which has seen nearly a 45 percent drop.
Analysts say the biggest jitters are coming from senior living, which generates nearly 40 percent of the net operating income. Rent growth and occupancy trends are getting increased scrutiny, and are expected to be stressed by the recession for some time.
To learn more about the positive trends:
- read this Wall Street Journal piece (reg. req.)