HREI Index increased 7.6% in January, but all shares are still below their highs
By Murray W. Wolf
The new year got off to a great start for the healthcare real estate investment trusts (REITs) that comprise the Healthcare Real Estate Insights™ REIT Index. Share prices increased 7.6 percent in January, on a weighted average basis. Healthcare REITs outperformed both the overall U.S. REIT Index, which was up 3.4 percent last month, and the S&P 500 Index, which was down 3.5 percent.
But the share prices for most publicly traded healthcare REITs remain well below their 52-week highs. Prices for most REITs sank last year, primarily due to concerns about the Federal Reserve’s economic stimulus strategy and how that could affect interest rates. REIT share prices are particularly susceptible to interest rate increases because their relatively high dividend yields are what make them attractive to many investors.
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