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Health care REITs: Investor booster shot

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Health care REITs posted respectable returns in 2007, and, according to Kevin Fischbeck at Lehman Brothers, will probably continue to do well in 2008. He attributes the sector’s resiliency to long lease terms and to tenants that are less economically sensitive.

As the baby boomer population ages, demand for health care facilities will grow and government regulations curb nursing home development. According to Forbes, a bill under review in the U.S. House of Representatives could boost REIT revenue by allowing them to operate health care facilities and collect revenue and expenses related to residents’ lodging.