U.S. healthcare REITs with substantial senior housing investments face the greatest risks from the coronavirus outbreak, according to Moody’s Investors Service.
Occupancy is already declining due to safety concerns, while operators are also contending with higher costs. Healthcare REITs with well-diversified portfolios will fare better, with the credit profiles of many supported by medical office and life sciences assets.
“U.S. healthcare REITs will feel the effects of the coronavirus outbreak most acutely in their senior housing operating portfolios, with safety concerns already lowering the number of move-ins and raising staffing and supply costs,” said Lori Marks, a Moody’s vice president and senior credit officer. “REITs’ triple-net lease investments won’t be as affected by the outbreak, though weak property cashflow increases the risk of rent deferrals and other types of restructurings.”
Skilled nursing facilities and acute care hospitals ar
