Healthcare REITs reached a $178.5 billion market value in 2025, with the top five accounting for 65% of the sector’s capitalization. These REITs offer an average yield of 4.8%, outperforming broader REIT indexes by 90 basis points. Key trends driving this growth include an aging population’s demand for senior housing and the rise of telemedicine. Here’s an overview of the top players:
- Welltower (WELL): Largest REIT with a market cap of $95.77B, focusing on senior housing and outpatient care.
- Ventas (VTR): Second-largest, valued at $27.11B, with a diversified portfolio including senior housing and life sciences.
- National Health Investors (NHI): A mid-cap REIT with $3.06B market cap, offering a high 7.19% yield.
- Medical Properties Trust (MPW): Specializes in hospital real estate, valued at $2.91B, with a 7% yield.
- Sabra Health Care REIT (SBRA): Focuses on skilled nursing facilities, with a market cap of $3.89B and a 6.95% yield.
Quick Comparison
| REIT | Market Cap ($B) | Dividend Yield | Focus Areas |
|---|---|---|---|
| Welltower (WELL) | 95.77 | 1.87% | Senior housing, outpatient |
| Ventas (VTR) | 27.11 | 3.60% | Senior housing, life sciences |
| National Health (NHI) | 3.06 | 7.19% | Specialty care, retirement |
| Medical Properties | 2.91 | 7.00% | Hospitals |
| Sabra (SBRA) | 3.89 | 6.95% | Skilled nursing |
For stable income, Welltower and Ventas are strong picks. For higher yields, consider NHI, MPW, or Sabra, but with added risk. Tailor your investment strategy to balance stability and growth.
Senior living REITs: Welltower and Healthcare Investors Analysis
1. Ventas Inc. (VTR): Portfolio and Performance
Ventas Inc. ranks as the second-largest healthcare REIT, with a market value of $27.11 billion in 2025 – a 7% increase from the prior year. This growth mirrors sector trends, particularly the rising demand for senior housing due to aging populations. Ventas has built a diverse portfolio, with 60% of its net operating income coming from senior housing and medical office buildings (MOBs). Meanwhile, investments in life science and innovation centers have grown to 15% of the portfolio, up from 10% in 2023.
| Property Type | Portfolio Share | Performance Metrics |
|---|---|---|
| Senior Housing & MOBs | 60% | 92% Occupancy Rate |
| Life Science Centers | 15% | – |
In 2024, Ventas reported $3.15 in normalized FFO per share, reflecting a 5% year-over-year increase, alongside a 3.8% rise in same-store NOI. The company holds a BBB+ credit rating from S&P and has maintained over two decades of consistent dividend payments, offering a current yield of 3.16%.
Geographically, 85% of Ventas’ assets are located in high-growth U.S. metropolitan areas, with the remaining 15% spread across the UK and Canada.
The company has also focused on integrating smart building systems and telemedicine infrastructure. Its Ventas OI platform has enhanced operational efficiency, contributing to $1.287 billion in operating revenue for 2024 – a 10.59% annual increase. These advancements strengthen its position in the healthcare real estate market, aligning with the strategic priorities outlined in our analysis.
With its strong portfolio, disciplined financial management, and focus on modernization, Ventas is well-positioned to benefit from the growing demand for senior housing and specialized medical facilities driven by demographic trends.
2. Welltower Inc. (WELL): Business Overview
Welltower stands out as the largest REIT in its sector, boasting a market cap nearly 3.5 times larger than its closest competitor. With a $95.77 billion market capitalization in 2025, the company showcased strong results, generating $7.99 billion in revenue for 2024. Net income jumped an impressive 179.8% to $951.68 million, thanks to efficient operations and smart capital management.
Welltower’s portfolio is strategically spread across three key healthcare segments:
| Property Type | Portfolio Share | Key Features |
|---|---|---|
| Senior Housing | 60% | Focus on private pay, premium locations |
| Outpatient Medical | 30% | Presence in high-growth markets |
| Post-Acute Care | 10% | Offers specialized healthcare services |
Geographically, the company is concentrated in the U.S., with 80% of its net operating income (NOI) coming from states like California, Texas, and Florida. The remaining 20% is split equally between the UK and Canada.
Welltower has also made strides in reducing its environmental impact, achieving a 30% cut in carbon emissions since 2020 through energy-efficient building upgrades.
On the financial front, Welltower has delivered 37 consecutive quarters of dividend growth. The current annual payout is $2.68 per share (yielding 1.87%), supported by a manageable 80% payout ratio.
However, the company faces challenges, including sensitivity to interest rate changes and evolving healthcare reimbursement regulations. These factors could pressure its financial stability, though the 80% payout ratio provides some flexibility. Additionally, the rise of telemedicine presents both opportunities and risks, potentially shifting demand away from physical healthcare facilities.
3. National Health Investors (NHI): Company Profile
National Health Investors (NHI), with a market capitalization of $3.06 billion as of 2025, stands out as a mid-cap REIT focused on specialized investments and high-yield returns. In 2024, the company reported $1.287 billion in total operating revenues, reflecting a 10.59% year-over-year increase.
Property Portfolio Breakdown
NHI’s portfolio is primarily divided into two key property types:
| Property Type | Portfolio Share | Description |
|---|---|---|
| Entrance-Fee Communities | 45% | Premium retirement communities |
| Specialty Care Facilities | 55% | Behavioral health centers |
Though smaller than some industry leaders, NHI offers an annual dividend of $3.60 per share, translating to a 7.19% yield as of March 2025. This yield surpasses the finance sector average of 5.71%, while maintaining a manageable payout ratio of 76.92%.
Growth Strategy and Financial Strength
NHI focuses on two main growth areas:
- Expanding its portfolio in specialty care facilities
- Incorporating advanced technology to improve operations
The company demonstrates strong financial discipline, with moderate leverage and annual FFO growth of 4-5%. Geographic diversification further reduces operational risks, ensuring a stable and balanced approach to growth.
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4. Medical Properties Trust (MPW): Investment Analysis
Unlike NHI’s focus on specialty care, Medical Properties Trust (MPW) zeroes in on hospital real estate, boasting a market cap of $2.91 billion. MPW owns 444 properties, with its portfolio divided among acute care (65%), behavioral health (25%), and rehabilitation hospitals (10%).
Key Metrics
In 2024, MPW reported $1.54 billion in total operating revenue, marking a 5.2% increase from the previous year. Its funds from operations (FFO) per share rose to $1.62, compared to $1.58 in 2023. MPW also stands out with a 7% dividend yield, surpassing CareTrust REIT‘s 4.34%. This is supported by a manageable 1.80 debt-to-EBITDA ratio, which is below the industry average.
Risk Assessment and Growth Strategy
MPW’s focus on hospitals introduces higher tenant concentration risks but provides targeted exposure to critical healthcare facilities. To strengthen its position, MPW emphasizes:
- Expanding its portfolio through selective acquisitions
- Utilizing sale-leaseback transactions to grow assets
- Broadening its geographic footprint in high-growth markets, similar to Ventas’ approach
Market Position and Outlook
MPW faces challenges like shifts in healthcare policies and tenant financial stability. However, its large-scale operations and long-term leases offer a layer of protection. By concentrating on essential-care facilities, MPW addresses key infrastructure needs while complementing the sector’s focus on senior housing. Analysts currently rate the trust as a "Hold", reflecting a balanced view of its prospects. With a low debt ratio and a specialized portfolio, MPW demonstrates resilience in navigating market uncertainties.
5. Sabra Health Care REIT (SBRA): Market Review
Sabra Health Care REIT (SBRA) rounds out the top five with a market capitalization of $3.89 billion. The company manages 416 healthcare properties spread across 41 states and Canada.
Portfolio Overview and Focus Areas
Sabra’s portfolio of 416 properties leans heavily on skilled nursing facilities as its core focus, while senior housing accounts for 35% of its net operating income (NOI). The portfolio also includes behavioral health centers and specialty hospitals, creating a mix designed to meet the growing demand for healthcare services driven by a rising 65+ population, which is increasing skilled nursing demand by 3% annually.
Financial Highlights and Shareholder Returns
Financially, Sabra is in a strong position, generating $682.32 million in revenue and offering a forward dividend yield of 5.80%. Its debt-to-equity ratio stands at 0.96, which is better than competitors like Omega Healthcare Investors (1.23) and Healthpeak Properties (1.30). This disciplined financial management supports its ability to deliver value to investors.
Risks and Sector Challenges
Sabra faces typical sector challenges, including sensitivity to interest rate changes and policy shifts in reimbursement. Its 90% payout ratio, higher than NHI’s 76.92%, warrants attention. Additionally, despite its efforts to diversify, skilled nursing facilities still account for 58% of its NOI, making it somewhat exposed to fluctuations in this segment.
Growth Strategy and Competitive Edge
Sabra’s growth plan revolves around:
- Reshaping its portfolio through strategic transactions
- Increasing investments in behavioral health facilities
- Collaborating with leading healthcare operators
- Leveraging a 78% occupancy rate in skilled nursing facilities
These strategies align with broader industry efforts to modernize while addressing gaps in acute care services often overlooked by larger competitors. Sabra’s focus on operational efficiency and targeted investments helps position it effectively in the healthcare REIT space.
Investment Comparison Table
Here’s a detailed breakdown of key financial and operational metrics for five major healthcare REITs:
| Metric | Ventas (VTR) | Welltower (WELL) | National Health Investors (NHI) | Medical Properties Trust (MPW) | Sabra (SBRA) |
|---|---|---|---|---|---|
| Market Cap (Billion $) | 27.11 | 95.77 | 3.06 | 2.91 | 3.89 |
| Dividend Yield | 3.60% | 1.87% | 6.60% | 7.00% | 6.95% |
| Debt-to-EBITDA | 0.58 | 0.58 | 0.99 | 1.80 | 0.96 |
| Price/FFO Ratio | 16.8x | 18.2x | 12.5x | 8.7x | 10.3x |
| 1-Year Total Return (2024-2025) | 15.2% | 18.6% | 9.8% | -5.3% | 11.5% |
Key Performance Insights
Welltower and Ventas stand out with their strong balance sheets, reflected in their low debt-to-EBITDA ratios of 0.58. This financial stability supports consistent dividend payouts, making them reliable choices for income-focused investors. Additionally, their diversified portfolios help them navigate sector fluctuations effectively. Their higher Price/FFO ratios (18.2x for Welltower, 16.8x for Ventas) highlight the market’s confidence in their leadership positions.
On the other hand, REITs like National Health Investors, Medical Properties Trust, and Sabra offer higher dividend yields (6.60%, 7.00%, and 6.95%, respectively) but come with greater risk. The data underscores a clear trend: higher yields often accompany less stability, while diversified market leaders like Ventas and Welltower trade off some yield for stronger financial health and resilience.
Investment Summary and Recommendations
Looking at the comparative metrics from our earlier analysis, here’s a breakdown of investment strategies tailored to various investor profiles and risk levels:
For Conservative Income Investors: Welltower (WELL) and Ventas (VTR) stand out as strong options. These REITs provide steady income growth and stability, thanks to their leadership positions and diversified portfolios in senior housing and medical office properties. This combination ensures reliable income streams.
For Growth-Oriented Investors: Those seeking higher returns might explore REITs tied to demographic shifts. Medical Properties Trust (MPW) and Sabra (SBRA) show promise, focusing on specialized care and senior care, respectively. Sabra, for instance, offers a 6.95% dividend yield. However, these sectors come with added risks, so careful evaluation is essential.
Suggested Portfolio Strategy:
- Allocate 50-60% to WELL and VTR for stability.
- Dedicate 25-30% to MPW and SBRA for growth potential.
- Keep 15-20% in cash or liquid assets to adapt to interest rate changes or shifts in healthcare policies.
Key Points to Keep in Mind:
- Diversify your holdings across healthcare property types to reduce risks tied to specific sectors. For example, Ventas’ expansion into life sciences and Welltower’s outpatient care focus are good models for diversification.
- Look for operators incorporating technology into outpatient care and medical office facilities, as this can drive efficiency and appeal to modern healthcare demands.
- Stay alert to interest rate fluctuations and healthcare policy changes, as these factors heavily influence the performance of healthcare REITs.
The aging population and the critical role of healthcare real estate continue to present opportunities for investors who take a disciplined and informed approach.
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