Morgan Stanley expects the good times to continue for senior housing. These healthcare real estate assets have outperformed the broader market over the last 12 months, gaining 31.3% versus the S&P 500’s 20.7% gain. Demand is currently outpacing new senior housing construction, with overall occupancy near 90%, and the population aged 80 and above is expected to grow from roughly 15 million to nearly 23 million by 2025. Analyst Ronald Kamdem reiterated his overweight rating on Welltower with a price target raised to $251, and also favors American Healthcare REIT. The three main REITs in the sector, Welltower, American Healthcare REIT and Ventas, offer dividend yields ranging from 1.44% to 2.28%.
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