Both of these healthcare REITs, despite short-term blips, are in position to benefit from long-term growth and have shown the ability to increase funds from operations. In the meantime, they offer high-yield dividends with relatively little risk. They are focusing on the bottom line, increasing margins instead of just growing revenue. They have come through the pandemic relatively healthy and are poised to grow.
Higher interest rates are generally not good for real estate investment trusts (REITS), as they have to pay more for financing, which can cut into their profit margins. However, Omega Healthcare Investors (OHI) and Sabra Health Care REIT (SBRA), two REITs with exposure to skilled nursing and assisted-care facilities, are beating the market this year, with the S&P 500 down more than 18%.
Source: Motley Fool
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