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Health care REITs extend strong 2026 performance on senior demand
Through August 2026, the sector gained 23.1% and funds from operations rose 26.3% year over year, supported by higher senior housing occupancy.
Health care REITs are continuing to post strong results in 2026, with the sector remaining the largest property segment in the FTSE Nareit All Equity Index, accounting for 19% of market capitalization worth more than $300 billion, according to Nareit.
Performance has been fueled largely by demographic trends, Nareit said. As the youngest baby boomers have turned 60, senior housing demand has risen, with the National Investment Center for Seniors Housing & Care reporting occupancy increased to 89.9% in the second quarter of 2026, up 1.8 percentage points year over year.
Nareit also pointed to resilient sector fundamentals. In 2025, health care led all property sectors with a 28.5% total return, and through the end of August 2026 the sector is up 23.1% with a double digit gain.
Operationally, the outlet cited year over year growth including funds from operations up 26.3% and net operating income up 15.2%, while health care same store net operating income grew 6.6%. Nareit added that sector balance sheets are supported by well structured debt, with 86% of debt unsecured and 85% fixed rate as of the second quarter of 2026.
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