Demand for healthcare-related real estate is projected to grow in the long term, driven by growing medical needs amid the aging population and increasing prevalence of chronic diseases. But the healthcare REIT sector is very vulnerable to higher interest rates because of their long-term leases and small re-leasing spreads.
Therefore, investors could watch fundamentally sound healthcare REIT National Health Investors, Inc. (NHI) for a steady income and long-term capital appreciation. On the contrary, it could be wise to avoid struggling healthcare REITs Welltower Inc. (WELL) and Healthcare Realty Trust Incorporated (HR).
