For the commercial real estate sector, the last few months haven’t exactly been booming. Thanks to their tax-structure, real estate investment trusts (REITs) are high-yielding stocks by nature. That’s part of their appeal and is one of the reasons why they’ve been great total-return elements for a portfolio. But with the Fed starting to ratchet up interest rates, REITs have taken it on the chin in a big way.
This has led to plenty of opportunities for investors, with the upcoming “Silver Tsunami’’ being the biggest of them all.
Our aging population means pretty big things ahead for the owners and operators of healthcare-related real estate. For investors using the recent dips in the broader REIT sector to load up on healthcare REITs is a prescription for long-term gains.
Explore our list of healthcare REITs here.
Recent REIT Woes
After several years of market-beating performance, the last year or so has been abysmal for REITs. Much of that has come from the Federal Reserve’s return to a more normal interest rate environment. Yield tourists and other income investors have flown the coop to the safety in higher-yielding bonds. This fact has affected the entire REIT sector to some extent.