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Health care REITs see strong 2025 and 2026 performance
In 2025, the health care property sector delivered a 28.5% total return, and in 2026 it was up 23.1% through the end of August.
Nareit highlighted that health care REITs own and manage a range of health care-related real estate, generating income by collecting rent from tenants. The sector covers assets such as senior housing operating portfolios and triple net leases, medical office buildings, skilled nursing facilities, life science assets, and hospitals.
According to Nareit, health care is now the largest property sector in the FTSE Nareit All Equity Index, accounting for 19% of market capitalization, or more than $300 billion. It reported that health care delivered the biggest total return in 2025 at 28.5%.
Nareit also said health care performance remained strong in 2026, with a double-digit gain of 23.1% through the end of August. It attributed the sector’s resilience to demographic trends, noting that the youngest baby boomers have turned 60 and are driving senior housing demand.
The outlet cited Green Street data that senior housing operating portfolios make up more than half of health care REITs’ asset value, and said that occupancy for senior housing rose to 89.9% in the second quarter, according to the National Investment Center for Seniors Housing & Care.
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