Ventas (VTR) and Health Care REIT (HCN) have been aggressively using the RIDEA structure for their seniors housing assets, focusing on the higher end of the market where the fundamentals continue being strong, says Omotayo Okusanya, Managing Director and Senior Analyst at Jefferies & Company, Inc.
“All the RIDEA activity that they are involved in is senior housing related, so there is no reimbursement risk associated with that. That’s purely being attracted to the growth opportunities in regard to rental increases as well as occupancy increase you could see on a going forward basis,” Okusanya said.
FOR MORE INFORMATION ABOUT THIS INTERVIEW CLICK HERE.
Okusanya says these two REITs are expected to perform better than peers, even as interest rates are on the rise and health care is expected to underperform. He has a “hold” rating on the stocks based on valuation.
“It’s very difficult for me to have a ‘buy’ rating on any of our health care names at this point, although I would say I still have a preference for the names that are going to show very strong earnings growth, primarily through the senior housing operating platforms that they have. So I am still a little bit more partial toward a name like Ventas, more partial toward a name like HCN,” Okusanya said.
Health Care REIT (HCN) Gets 38% NOI from Seniors Housing Assets; Expected Upside from Rising Interest Rates
July 25, 2013
Sabra Health Care REIT CEO Rick Matros Details the Sabra Health Care REIT Success Story
August 17, 2018
Health Care Providers Rush to Fulfill Stage I Meaningful Use
June 28, 2011
Limited Housing Fuels Student Lifestyle REIT Expansion
August 30, 2011
Sabra Health Care REIT Inc (SBRA) Managing Competition From Financial Buyers
August 12, 2014
