5 reasons to stay bullish on these dividend-paying assets, according to Morgan Stanley
The aging population has been a boon to healthcare real estate investment trusts, which also pay solid dividends.
TL;DR
- Senior housing assets have outperformed the broader market over the past 12 months.
- The demand for senior housing is increasing due to the growing elderly population, particularly those aged 80 and above.
- Current occupancy levels are near 90%, with expectations for further increases as demand outpaces new construction.
- Morgan Stanley highlights five key reasons for optimism: occupancy upside, acquisition potential, a shift towards higher-growth senior housing operating portfolios, underleveraged balance sheets, and strong management execution.
- Welltower, American Healthcare REIT, and Ventas are identified as key beneficiaries, with specific ratings and price targets provided for Welltower.