Real Estate Buffs --- Heard of Health Care REIT?
Just curious if anyone out there has ever heard of the company Health Care REIT.
Any thoughts?
Just curious if anyone out there has ever heard of the company Health Care REIT.
Any thoughts?
Career Resources
Yeah, they are one of the biggest public health care REITs in the country. HQed in Toledo, Ohio. Good rep....good management.
Competition in the space is changing dramatically with Ventas' recent acquisition of NHP.
Overall, healthcare RE is an interesting place to be in right now. Aging population of the US bodes well for the industry.
Any chance you could elaborate on the 2 points? Thanks in advance!
From a top down perspective healthcare / senior living RE should be in for a good few years... I've heard of Health Care REIT (it's very big, I think) but I don't really know much about them specifically.
Sure.
Ventas (VTR) is a large healthcare REIT based in Chicago. About a month ago they bought Nationwide Health Properties (NHP). The acquisition will result in the largest public healthcare REIT. VTR has a history of growth through acquisition, and the NHP deal follows suit. As a result of the acquisition, VTR gained access to two segments in the market that their current portfolio was lacking 1) West coast properties 2) Senior Living Housing.
See more about the deal here: http://www.bloomberg.com/news/2011-02-28/ventas-to-purchase-nationwide-…
So why is Senior Living Housing a segment VTR wanted increased exposure to in their portfolio? As many people are aware of, the baby boomer generation -- which represents a huge % of the US population -- is starting to approach their "senior" years. As a result, the US population is becoming increasingly skewed towards the elderly.
This segment of people, who are empty nesters and have recently seen their net worth decrease as a result of the Credit Crisis, are looking to downsize their residences. However, they still want to lead an "active lifestyle" and be involved with some sort of community. The answer to this need is the increasing development of Senior Living Housing. These communities 1) are cost effective 2) often luxurious 3) community based. In other words, everything the baby boomer generation wants!
Consequently, there is going to be growth in this market as the baby boomer generation continues to age.
Only downside is that it is in Toledo.
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