What is a healthcare REIT?

What is a REIT?
A real estate investment trust is a fund created

exclusively for holding real properties

and mortgage-related assets. Publicly traded

REITs make it possible for small investors

who normally would not be able to purchase

a diverse property portfolio to trade properties

in the stock market. An investor can buy

REIT funds with the intention of buying a

pool of real properties and mortgages. Investors

can then sell their investment on the

open market, the same way they would sell

a share of stock.

REIT Structure
Since their creation by Congress in the

1960s, the structure and specialization of

REITs have changed dramatically in response

to new laws and shifting market conditions.

Today, three general types of REITs

(mortgage, equity, and hybrid) exist as either

private or publicly traded entities. Many

of these REITS specialize in various property

types. REITs that have a diverse profile

of properties are traded alongside REITs

that specialize in one specific property type,

such as hotels, self-storage, multifamily residential,

or health care properties.

Health Care REITs
Health care REITs are a specific subsector

of REITs that invest in real estate primarily

serving the health care industry. The most common

property types that health care REITs invest

in are senior housing, independent living, assisted

living, hospitals, skilled nursing, medical

office buildings, rehabilitation facilities,

and life science facilities.

Top Health Care REITS