TheStreet, August 25, 2010
Real estate investment trusts (REITs) that specialize in senior and healthcare facilities have seen a rebound in 2010 with investors betting that the horde of aging baby boomers will buoy the group's long-term prospects.
Standard & Poor's is fairly bullish as well as it expects the healthcare REITs to be relatively stable over the next 12 months. The ratings agency doesn't expect these owners of healthcare and medical office properties to share in the difficulties of facility operators when it comes to reform. Instead, they should continue to generate huge cash flow from rent payments. Specifically, S&P expects private senior facilities to see growing demand and not be affected by changes in government subsidies.