Healthcare REITs: Safe And Effective
- Healthcare REITs – which were “ground zero” of the pandemic – were revived by the early vaccine rollout, but the “fourth wave” of the pandemic has slowed the positive momentum.
- Senior Housing REITs – the hardest-hit sub-sector – were leading the recovery as occupancy rates appear to have bottomed in early 2021, benefiting from the red-hot and undersupplied housing market.
- Staffing shortages have become critical issues at skilled nursing facilities – worsened by recent vaccine mandates – pressuring not only operating margins but also forcing some facilities to turn away new business.
- For skilled nursing REITs, operator issues have re-emerged as government relief funds begin to dry up. Medical office and lab space, however, have been largely unaffected by these headwinds.
- While near-term headwinds will persist until the pandemic abates, we remain optimistic on the long-term outlook for healthcare REITs. Baby Boomers are substantially larger and wealthier than any prior generation.
For further details see:Healthcare REITs: Safe And Effective