Images Source: HCP
Structure of the REIT – Healthcare Industry
The healthcare REIT industry is comprised of companies spanning the full spectrum of healthcare real estate. Firms compete vigorously with other entities in the acquisition and financing of health care properties. Tenant revenues are generated by occupancy, private pay rates, and Medicare/Medicaid, though government reimbursement could come under pressure. Costs, including labor and taxes, continue to increase for operators, reducing the credit health of customers. Still, the group benefits from strong demographic trends (aging population), which shines a favorable light on the overall industry structure.
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