Investors Are Offering More Capital To So-Called REITs

NNN  Lease Market News

Blockbuster NNN lease transactions this week for seniors housing, skilled nursing and other post-acute care assets by Ventas Inc. and Healthcare REIT Inc. underscore the expansion and growth potential of health-care REITs. The deals also demonstrate that investment in the seniors care subsector has picked up as public companies deploy hundreds of millions in equity capital raised over the last 12-18 months.
Investors are offering more capital to so-called REITs, with dividends averaging 13 percent, because their borrowing costs are being held at close to zero by the Federal Reserve while they buy higher yielding, mostly U.S.-guaranteed securities. One measure of the potential profits from such investing reached the highest in 10 months in February.


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