Skip to main content

Market Overview

The 'Not-Big-Three' Healthcare REITs Just Got More Interesting

The 'Not-Big-Three' Healthcare REITs Just Got More Interesting

Mizuho Securities analyst Richard Anderson recently took a close look at the three senior housing/skilled nursing healthcare REITs under the firm’s coverage: LTC Properties Inc (NYSE: LTC), National Health Investors Inc (NYSE: NHI) and Sabra Health Care REIT Inc (NASDAQ: SBRA).

According to Anderson, once markets stabilize a bit from the recent volatility, the stage could be set for consolidation in the healthcare REIT world.

Quick Take

Anderson sees Sabra as the REIT with the most upside from current levels. He noted the REIT’s valuation discount and experienced management as two key advantages.

In the past, National Health Investors was perceived to be the “darling” of the bunch, but Anderson believes that the departure of CEO Justin Hutchens has opened the door for a new gold standard.

Related Link: To Healthcare, With Leverage

He now sees LTC as the REIT with the “pristine” balance sheet and the consistent record of performance and smart acquisitions. However, while Anderson deems LTC as the most stable of the three names, he noted that its valuation premium limits its upside from current levels.

Consolidation Coming?

Anderson believes that the table may be set for consolidation among the three REITs mentioned above and the three REITs not covered by Mizuho: Care Capital Properties Inc (NYSE: CCP), Omega Healthcare Investors Inc (NYSE: OHI) and Senior Housing Properties Trust (NYSE: SNH).

He sees the recent merger of Omega and Aviv and the spinoff of Care Capital creating a very crowded environment in the senior housing REIT space.

“This comment is not intended to make specific M&A predictions, but it seems to us that six relevant REITs in the senior housing/skilled space is possibly one or two too many,” he explained.


In the report, Mizuho upgrades Sabra from Neutral to Buy with a $29 price target. The firm has a Neutral rating and $44 target for LTC and a Neutral rating and $59 target for National Health Investors.

Latest Ratings for LTC

Mar 2021Capital One FinancialDowngradesOverweightEqual-Weight
Sep 2020StifelReinstatesHold
Jun 2020Wells FargoMaintainsUnderweight

View More Analyst Ratings for LTC
View the Latest Analyst Ratings


Related Articles (LTC + SBRA)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas REIT Upgrades Health Care Price Target Top Stories Analyst Ratings Best of Benzinga

Latest Ratings

GDWolfe ResearchDowngrades
QRTEAB of A SecuritiesInitiates Coverage On
ABB of A SecuritiesDowngrades42.0
VCTRB of A SecuritiesUpgrades32.0
BSIGB of A SecuritiesUpgrades27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at