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Healthcare REITs pivot toward senior housing as private capital fills gap

Bisnow reports that senior housing has become the top revenue contributor for major healthcare REITs including Ventas, Welltower, Healthpeak, and American Healthcare REIT.

Reported · Written up by our desk · REITs

Healthcare real estate REITs that once focused on medical offices and other healthcare properties are increasingly shifting their strategies toward senior housing, while private capital moves in where REIT demand has eased, Bisnow reports. The outlet points to a broader trend of REITs directing more resources to senior housing as investor interest rises in the sector.

At the Bisnow Southern California Healthcare Real Estate Conference on Wednesday, Stockdale Capital Partners Managing Partner Andrew Saba said many REITs that were active buyers in the teens have concentrated efforts on senior housing. He also attributed the shift to private equity’s growing participation, citing the sector’s fundamentals, according to Bisnow.

Capright, a commercial real estate advisory and consulting firm, is cited by Bisnow as saying senior housing is now the top revenue contributor for major healthcare real estate REITs, including Ventas, Welltower, Healthpeak, and American Healthcare REIT. The consulting firm also said these REITs are moving away from triple-net leases and medical office space.

The article_text provided by Bisnow is cut off after noting that, this year through August, Welltower closed or had under c..., so no further details can be confirmed from the source text.

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