Real estate investment trusts with portfolios heavy in skilled nursing and senior living assets are being called the “unsung heroes” among investments by the author of one online post.
As the large Baby Boom generation continues to age, “the proportion of older adults in the US population is projected to increase, leading to a higher number of seniors in need of healthcare services, assisted living and retirement communities, and other age-related solutions,” wrote Kate Stalter, a Series 65-licensed asset manager, in an article posted on MarketBeat. “That, combined with their income potential means nursing home REITs could be lucrative investments for the long haul.”
The article on the site for stock market news described Irvine, CA-based Sabra Health Care REIT, Hunt Valley, MD-based Omega Healthcare Investors and Westlake Village, CA-based LTC Properties as high-yield investments, with yields of 8.74%, 8.14% and 7.42%, respectively.
Long-term care companies “aren’t your grandma’s stocks,” Stalter said.
“Sure, they’re not as flashy as tech giants or EV stocks, but you frequently can unearth opportunities among the non-glamorous sectors,” she added. “REITs have built-in tax benefits, as they are required to distribute at least 90% of their taxable income to shareholders. That means REIT investors receive a consistent stream of dividends derived from rental income or property sales,” she added.
Read the whole piece here.