Investors may find safety in healthcare REITs

Sector REITs are offering decent dividends compared to other “safe” investments

National /
Mar.March 15, 2020 12:00 PM
Looking for a safe place to put your money to wait out the coronavirus pandemic? Healthcare stocks and real estate investment trusts in the sector aren’t a bad idea.

REITs and companies that own hospitals, medical offices, and medical science research facilities are expected to weather the pandemic and are considered safe bets even outside of health crises, according to CNN.

Kenneth Leon, an analyst with CFRA Research recommends three entities in particular: Alexandria Real Estate Equities, Healthcare Trust of America, and Medical Properties Trust.

They are each paying dividend yields of between 2.7 percent and 5 percent, making them attractive alternatives to bonds as the Federal Reserve slashes interest rates.

Companies that own senior living centers, however, probably aren’t the best bet. Leon said senior living centers will have trouble safely showing prospective new residents their facilities, pointing out that many underwent lockdowns during the flu seasons of 2018 and 2017.

The spread of Covid-19 is putting pressure on most other real estate sectors, particularly residential markets in areas with numerous cases of the virus. Home sales are down in Milan and Italy’s Lombardy region, for example. Daily deals in Seoul are down 90 percent.
Miami-Dade County has suspended all eviction activities as part of its declaration of a state of emergency.

New York landlords are stockpiling soaps and hand sanitizers and ramping up cleaning of their buildings. After an employee tested positive for the virus, Newmark Knight Frank stationed nurses at its Park Avenue office to screen clients and employees. [CNN] — Dennis Lynch


Related Articles

arrow_forward_ios
A photo illustration of the Marcal Group's Mark Caller and the Calko Medical Center in Bensonhurst (Getty Images, Marcal Group, YouTube/Bensalem Outreach)
Marcal Group sells Bensonhurst medical office for $82M
Marcal Group sells Bensonhurst medical office for $82M
From left: Columbia Property Trust CEO Nelson Mills and Oxford Properties Group executive Adam Frazier (Getty Images, Columbia Property Trust)
Oxford exec to lead Columbia Property Trust
Oxford exec to lead Columbia Property Trust
Blackstone COO Jonathan Gray and CEO Stephen Schwarzman (Blackstone, Illustration by The Real Deal with Getty)
Blackstone posts $29M loss, touts relative strength of real estate holdings
Blackstone posts $29M loss, touts relative strength of real estate holdings
Jim Chanos, president and founder of Chanos & Company LP (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Jim Chanos’ next Big Short: data centers
Jim Chanos’ next Big Short: data centers
SL Green's Marc Holliday and Prologis' Hamid Moghadam (Getty, Prologis, iStock)
Here’s how real estate stocks are faring in Wall Street chaos
Here’s how real estate stocks are faring in Wall Street chaos
Hakimian Organization president Ben Hakimian and 2236 Nostrand Avenue in Brooklyn (Hakimian Organization, Google Maps, iStock)
Cancer care facility coming to Hakimian Brooklyn property
Cancer care facility coming to Hakimian Brooklyn property
(iStock)
The real estate stocks that won (and lost) the most during Covid
The real estate stocks that won (and lost) the most during Covid
1140 Sixth Avenue in NYC with REIT president Michael Weil (Google Maps, LinkedIn, iStock)
New York City REIT in danger of default on NY real estate loans
New York City REIT in danger of default on NY real estate loans
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...