Seniors Housing Weekly Update - Health Care REIT Shares Jump, As Do Skilled Nursing

November 11, 2014


November 11, 2014. 60 Seconds with Steve Monroe. Health Care REIT shares hit 52-week highs in October, but seniors housing stocks are lagging skilled nursing...

Health Care REIT Shares Jump, As Do Skilled Nursing

We are coming down the stretch in 2014, and fortunately there was no October spook for the stock market. Most health care REIT stocks hit 52-week highs during the month, but did not hit all-time highs despite the continued low interest rates. The Big Three – Health Care REIT, HCP and Ventas – all topped the $20 billion mark for market cap, something we haven’t seen in a while. And with another major acquisition or two, they may stay there. The consolidation trend among the REITs that we expected is certainly taking place, but it is far from over. As far as the provider stocks are concerned, who would have thought that the skilled nursing oriented companies would be outperforming the three remaining publicly traded seniors housing companies? What is a little disconcerting, however, is that the company that is positioning itself to be the king of post-acute care, with LTACs, SNFs, rehab, home health and hospice, still does not get any credit from investors. That would be Kindred Healthcare, which through the end of October had just a single-digit return for the year. Perhaps next year they will be crowned.


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