Healthcare real investment investment trusts have reported the largest yearly increase in earnings among all sectors tracked by the National Association of Real Estate Investment Trusts.
Data from Nareit’s third-quarter T-Tracker report, released last week, show that healthcare REITs delivered outstanding financial results. Seeking Alpha noted that Omega Healthcare Investors, Welltower, American Healthcare REIT and National Health Investors led the pack.
More than 60% of all REITs tracked (not just those in healthcare) reported year-over-year increases in funds from operations and net operating income.
Aggregate FFO across all REITs tracked increased 17.3% year-over-year to $20.9 billion in the third quarter and increased 5.7% quarter-over-quarter. Meanwhile, healthcare REITs reported $7.4 million in FFO in the third quarter, up from $5.5 million in the second quarter.
Average FFO per share among all REITs tracked was up 13.49%, to $0.80, from the third quarter of 2024.
Same-store NOI across all REITs tracked was up 2.8% from last year, and average occupancy across all property types was 93%.
“Overall, REIT earnings results were a bit better than consensus expectations despite a handful of high-profile flops that overshadowed some impressive individual results across a balanced mix of sectors and market cap sizes,” according to Hoya Capital, as reported by Seeking Alpha.