Boom for Healthcare Real Estate Companies Expected to Continue

After toting up more than $11 billion in acquisitions last year, healthcare real estate investment trusts are expected to continue leading REITs in other industries, based on dividend increases, through the first quarter of 2011, according to a report by Bloomberg Businessweek.
Owners of hospitals, medical office buildings and nursing homes had the biggest percentage of dividend increases last year, with 69 percent of them raising payouts, according to SNL Financial in Charlottesville, Va.

It was the first year healthcare has led real estate activity since at least 2005. For healthcare REITs, 2010 "was an outsized year for acquisitions," said Jeff Theiler, an analyst at Green Street Advisors in Newport Beach, Calif. But he expected earnings to grow more modestly in 2011.

The dividend yield for Bloomberg's REIT Healthcare Index was 5.3 percent, compared with 3.8 percent for industrial landlords, 3.1 percent for office owners and apartment companies, and 1 percent for hotels.

Read the Bloomberg Businessweek report on healthcare property.

Read more coverage of real estate investment trusts

-The Role of Real Estate in Hospital Transactions: 3 Considerations

-Texas' Humble Surgical Hospital Sells Facility to Healthcare REIT

-Four Trends in Real Estate Investment Trusts


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