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Healthcare Reits getting slammed today.

ron
edited June 2015 in Fund Discussions
Is this mostly due to constraining healthcare cost with mergers? Or a buying opportunity? Are there any HC reits with long term dividend growth over at least 10 years?

Comments

  • edited June 2015
    Due to interest rates. Ventas is on the top of my list in the category and I'm increasingly interested in that at these levels.

    http://www.forbes.com/sites/bradthomas/2015/04/27/ventas-knows-how-to-make-dividend-magic/

    Ventas recent presentation:
    http://www.ventasreit.com/sites/default/files/corporate_presentations/Ventas_NAREIT REITWeek Presentation_v01.pdf
  • A lot of investors have overweighted on healthcare. Maybe time to pare back a bit?
  • edited June 2015

    A lot of investors have overweighted on healthcare. Maybe time to pare back a bit?

    Healthcare REITs do not trade with healthcare and primarily follow REITs, as far as I've seen.

    Personally, I'll continue to sleep well at night with healthcare. I do continue to think that some of the small, binary healthcare names (has one drug, does that drug work yes/no) are overvalued, but I think there's still a lot of healthcare (Gilead, Allergan, Abbott, Celgene, BMY/LLY, Pfizer - Pfizer probably will split at some time not far down the road) and healthcare-related (CVS, McKesson, among others) names that are still quite appealing.

    Perhaps that speaks to a view that there is a lot of positives in healthcare but perhaps at this point a better way to play it is via actively managed funds vs broader etfs, especially in regards to biotech? We'll see.

    The healthcare REITs are appealing and have a number of tailwinds. Ventas in particular is also spinning off its skilled nursing facilities (http://www.bloomberg.com/news/articles/2015-04-06/ventas-spinoff-may-inspire-more-health-care-reit-deals-real-m-a.)

    "Ventas’s planned purchase of Ardent Medical will give it a bigger stake in the U.S. hospital market, which is set to grow amid an aging baby-boomer population and an increased number of insured Americans under the Patient Protection and Affordable Care Act. At the same time, the company is shedding much of its slower-growing skilled-nursing and post-acute facilities, which should improve the quality of its portfolio, Omotayo Okusanya, a Jefferies analyst, wrote in a report on Monday."
  • "At the same time, the company is shedding much of its slower-growing skilled-nursing and post-acute facilities, which should improve the quality of its portfolio"

    I wonder if this is a industry wide action? Hospitals depended on nursing homes as a secondary hospital so to speak to free up beds for patients. If this is the case it means that hospitals will expand to be larger. Makes good sense due to logistics but I wonder if costs will go up? Nursing homes and SNF's are viewed cheaper to run than hospital beds.
  • Started small position in Ventas (VTR) earlier today. May add to it, but wanted to start at least a small position at this point.
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