American Healthcare REIT-2 Healthcare REIT Stocks to Buy Before Moving Into 2025

Industry Overview - The US healthcare REIT industry is poised for robust growth due to the aging population, rising healthcare expenditure, and technological advancements [2] - Senior citizens aged over 65 in the US population are expected to rise 20% (70 million) by 2030 from 17% (61 million) in 2024, driving a 31% increase in total outpatient healthcare spending to approximately $2 trillion [3] - The healthcare sector is relatively immune to macroeconomic uncertainty, with inflation-adjusted consumer spending on healthcare goods and services expected to grow by 2.5% in 2025, surpassing the 1.9% growth rate for consumer spending on all goods and services [4] - Advancements in technology, such as telehealth services and electronic health records, are shaping the future of healthcare real estate, with REITs investing in properties with advanced technology infrastructure expected to see increased demand and improved occupancy rates [5] - The rising demand for outpatient services, specialty medical practices, and home care services is contributing to healthcare employment growth, which is anticipated to surpass total US job growth in the coming years [6] - Rent growth in the healthcare real estate sector is anticipated to range from 1.4% to 1.8% over the next two years, while the vacancy rate is likely to decline below 9.5% [7] Company Analysis American Healthcare REIT, Inc (AHR) - AHR is engaged in the acquisition, ownership, and operation of a diversified portfolio of clinical healthcare real estate properties, including senior housing, skilled nursing facilities, outpatient medical buildings, and other healthcare-related properties across the US, UK, and Isle of Man [8] - The company is expanding through strategic acquisitions, such as gaining full ownership of Trilogy Holdings, and is well-positioned for future growth in the healthcare real estate sector [9] - The Zacks Consensus Estimate for AHR's 2024 and 2025 FFO per share has witnessed upward revisions to$ 1.42 and $1.71, suggesting a 1.4% and 20.1% increase year over year, respectively [10] CareTrust REIT, Inc (CTRE) - CTRE is engaged in the acquisition, ownership, financing, development, and leasing of seniors housing and other healthcare-related properties, including skilled nursing facilities, assisted living facilities, independent living facilities, and multi-service campuses [11] - The company is committed to investing in and developing more healthcare and senior housing properties, leveraging its relationships to find attractive opportunities and maintain a steady pipeline of investments [12] - The Zacks Consensus Estimate for CTRE's current year and 2025 FFO per share has witnessed upward revisions to$ 1.50 and $1.75, indicating a 6.4% and 16.5% increase year over year, respectively [13]