Despite real estate woes, healthcare REITs doing well

Though the residential real estate market is still in pain, healthcare facilities are hot. In recent times, healthcare real estate investment trusts (REITs) have been doing well--in fact, they're doing much better than REITs focused on other forms of commercial real estate, according to research by Newport Beach, CA-based Green Street Advisors. In fact, healthcare REITs have generated a striking 39 percent return to shareholders since Aug. 1, 2007, as compared with only 2 percent over that period for other REITs, Green Street found.

Not only have existing properties performed well, but healthcare REITs have also been investing briskly in new properties. In one recent deal, for example, Medical Properties Trust of Birmingham, AL agreed to deals totaling $92.6 million that cover five hospitals operated by Victorville, CA-based Prime Healthcare and Birmingham-based HealthSouth Corp. In another recent case, Health Care REIT of Toledo, OH invested $107.1 million in long-term and general acute care hospitals (and other specialty facilities) during the second quarter that ended June 30.

To learn more about this trend:
- read this Modern Healthcare article (reg. req.)

Related Articles:
Grubb & Ellis Healthcare REIT Acquires Decatur Medical Plaza in Decatur, Ga.
Investors choosing medical real estate as safe haven