Analysts Just Upgraded These 3 Healthcare REITs

A brand new yr often brings recent hope for the stock market, and after the terrible performance of real estate investment trusts (REITs) in 2022, it’s refreshing to see analysts coming out with improved forecasts for a similar REITs that were downgraded so heavily last yr.

Healthcare is one area of the general market often cited as being recession resistant, and with fears of a 2023 recession pervading the market, several analysts are turning their attention to this sector in a positive way.

Take a take a look at three healthcare REITs which have received analyst upgrades throughout the past month, have performed quite well year-to-date and might be poised for a much improved 2023:

Welltower Inc. (NYSE: WELL) is a Toledo, Ohio-based healthcare REIT that owns 1,687 facilities that provide senior housing, post-acute healthcare and outpatient health systems across the U.S., Canada and the U.K.

In November, Welltower announced it had initiated a master lease with Integra Health for 147 expert nursing properties that Integra Health would sublease to fifteen regional operators.

On Jan. 9, Raymond James analyst Jonathan Hughes upgraded Welltower from Outperform to Strong Buy, while raising his price goal from $72 to $82. From its most up-to-date closing price of $72.10, that represents a possible increase of 13.7%.

The quarterly dividend is $0.61 per share, or $2.44 annually, yielding 3.3%. Welltower has risen 7.69% for the reason that start of the Latest 12 months.

Healthpeak Properties Inc. (NYSE: PEAK) is a Denver-based REIT that owns and operates private-pay facilities comparable to life science centers, medical offices and senior housing. The corporate was added to the S&P 500 in 2008.

Healthpeak Properties owns 464 properties in Colorado, Tennessee and California which might be valued at greater than $20 billion. Lots of Healthpeak Properties’ life science tenants are large, well-known pharmaceuticals, comparable to Amgen Inc, Pfizer Incand Bristol Myers Squibb Co.

Healthpeak Properties pays an annual dividend of $1.20 per share, yielding 4.3%. Its funds from operations (FFO) payout ratio is a snug 69%.

Third-quarter FFO of $0.43 was 19.4% above the $0.36 FFO achieved within the third quarter of 2021. Revenue of $520.41 million was up 8.1% from the third quarter of 2021.

On Jan. 3, Jefferies analyst Jonathan Petersen upgraded Healthpeak Properties from Hold to Buy. He also considerably raised the worth goal, from $23 to $29. At its most up-to-date closing price of $27.32, that represents a possible return of 6.1%.

Healthpeak Properties had a negative total return of over 27% in 2022, but since Jan. 1, shares have risen by 7.39%.

Physicians Realty Trust (NYSE: DOC) owns and operates a various group of 290 healthcare properties across 32 states. The vast majority of these are physician-leased medical office buildings.

On Dec. 14, Keybanc Capital Markets Inc. analyst Todd Thomas upgraded Physicians Realty Trust from Sector Weight to Obese. He announced a price goal of $17. At a recent closing price of $15.24, that represents a possible gain of 11.5%.

On Dec. 22, Physicians Realty Trust announced that its board of trustees has declared a quarterly dividend of $0.23 per share, its thirty eighth consecutive quarterly dividend.

In its third-quarter operating results, Physicians Realty Trust reported revenue of $131.5 million, a rise of 14.1% over the third quarter of 2021, and normalized funds from operations of $0.26, in keeping with the outcomes from the third quarter of 2021. A sale of three properties in Great Falls, Montana, for $116.3 million realized a net gain of $53.9 million.

Physicians Realty Trust is up 7.28% up to now in 2023.

Take into account that despite these upgrades, analysts are usually not all the time correct, and investors should perform their very own research before purchasing any stock.

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