This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ready for Retirement: 3 Health Care REITs That Outperform

NEW YORK ( TheStreet) -- When it comes to retirement and savings, REITs are well positioned to play an important role -- both as an investment to help build a retirement portfolio and also to provide income to meet living expenses. It's important to remember that REITs are forced, by law, to payout at least 90% of their taxable income to their shareholders in dividends -- a crucial differentiation that makes the income highly sustainable, in good times and bad.

Another key differentiator is that REITs are low to moderately correlated with non-REIT stocks and bonds; conversely, over the long term, REITs help to reduce overall portfolio volatility and cushion the "zigs and zags" caused by Mr. Market, prior to and during the retirement years. Also, REITs are a proven and effective hedge that can help shield portfolios against inflation. As you know, rising inflation can sap the sweetness out of a retirement portfolio faster than my daughter can spend $300 at Forever 21. (Sorry Lauren, but you know it's true).

Speaking of inflation, I really like the Health Care REITs. The growing sector -- fueled by The Affordable Care Act and the expected increase in utilization of health services -- will continue to be a durable and defensive REIT class. It's a fact that people don't tend to change their health care spending patterns, regardless of economic conditions. The demand for patience is expected to rise considerably as an additional 35 million to 45 million insured patients make their way into the buildings occupied by the health care operators. That trend will bring meaningful exposure to hospitals, medical office buildings, lab space and assisted living facilities.

Health Care Outperforms

Over that last year, the Health Care REITs have outperformed all of the other REIT sectors. The prized performer -- the Health Care REITs -- returned a whopping 25.89% year over year, while the silver medal went to the Shopping Center sector (23.91%) and the bronze medal went to the Industrial sector (23.81%). The runner-up finalists were Malls (20.44%) and Self-Storage (19.54%). The S&P 500 trailed, with a year-over-year return of 15.74%.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HTA $28.89 -0.86%
MPW $13.30 -1.60%
OHI $33.77 -0.62%
AAPL $93.75 -1.10%
FB $117.53 0.69%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs