Best Healthcare REITs: Top Real Estate Investment Trusts for Property Investors

Investing in healthcare REITs (Real Estate Investment Trusts) is an effective way to gain exposure to real estate assets tied to healthcare properties — such as hospitals, senior living communities, medical offices, and specialized care facilities — without owning physical buildings directly. Healthcare REITs often appeal to investors seeking stable dividend income, diversification, and defensive growth, especially during economic uncertainty.

Below is a guide to some of the best healthcare REITs that many investors consider when building diversified portfolios.

What Makes Healthcare REITs Attractive

Before jumping into specific names, here’s why healthcare REITs are often ranked among strong real estate investments:

• Stable Demand: Medical services, senior care, and outpatient facilities are needed regardless of economic cycles.

• Defensive Nature: Healthcare properties often maintain occupancy and rental income during downturns.

• Demographic Trends: Aging populations and increased healthcare usage support long‑term demand.

• Dividend Potential: Many healthcare REITs pay consistent dividends backed by lease revenue.

These characteristics make healthcare REITs a strong complement to traditional real estate sectors like retail or office space.

Top Healthcare REITs to Consider

The following healthcare REITs are widely regarded for property quality, management track records, and market presence:

1. Healthpeak Properties

Focused on life science, medical offices, and senior housing, Healthpeak combines diversified healthcare property types and strong tenant demand. It is known for solid dividend distributions and strategic investment into growth segments like laboratory space.

2. Ventas, Inc.

One of the largest healthcare REITs, Ventas owns a mix of senior living communities, medical office buildings, and research facilities. Its diversified portfolio and strong market footprint make it a frequent pick for income‑oriented investors.

3. Welltower Inc.

Welltower specialises in senior housing, post‑acute care facilities, and medical office buildings. It emphasises partnerships with experienced healthcare operators and tends to offer reliable dividend yields.

4. Medical Properties Trust

This REIT focuses on hospital real estate, particularly acute care hospitals and specialized facilities in the U.S. and select global markets. Its niche focus differentiates it within healthcare real estate.

5. Physicians Realty Trust

Physicians Realty centres on medical office buildings, leased to physicians and healthcare providers. These properties often benefit from long‑term leases and strong tenant relationships.

How to Evaluate Healthcare REITs

When choosing healthcare REITs, consider the following factors:

1. Dividend Yield & Payout Sustainability
Compare current yields and look at how consistently the REIT has maintained or grown payouts.

2. Property Mix & Location
Diversified portfolios across multiple healthcare segments and regions often show resilience.

3. Lease Terms & Tenant Quality
Longer leases with creditworthy operators reduce vacancy risk.

4. Management Track Record
Experienced teams with sensible capital allocation and property acquisition strategies often deliver superior returns.

5. Demographic and Market Trends
Growing demand for medical services and senior care supports long‑term occupancy and rental stability.

Healthcare REITs and African Investors

While the healthcare REIT landscape is more developed in markets like the U.S. and Europe, African investors can still gain exposure through listed REITs or international brokerage accounts. Benefits include:

• Dollar‑oriented income streams

• Portfolio diversification outside local property markets

• Exposure to stable, essential service real estate

African investors may also explore local or regional healthcare property funds as markets evolve.

How African Land Supports REIT‑Based Strategy

African Land helps clients integrate healthcare REITs into broader property investment strategies by:

• Explaining how REITs complement direct property ownership

• Analysing income potential and long‑term growth trends

• Aligning REIT holdings with lifestyle, retirement, or income goals

• Providing insights into cross‑market diversification

By combining REIT exposure with direct estate, commercial, or land investments, African Land helps build balanced, resilient property portfolios.