Core Insights - Dividend stocks are favored by investors, particularly Boomers and older Gen X, due to their ability to provide steady passive income and total return potential [1][2] - Total return includes interest, capital gains, dividends, and distributions, exemplified by a stock purchased at $20 with a 3% dividend yielding a total return of 13% when the price rises to $22 [1] - Anticipation of two rate cuts in 2026 suggests that investors should consider high-yield dividend stocks now [1] Dividend Stocks Overview - Since 1926, dividends have contributed approximately 32% to the S&P 500's total return, with capital appreciation accounting for 68% [4] - A study indicates that dividend stocks delivered an annualized return of 9.18% from 1973 to 2023, significantly outperforming non-payers at 3.95% [4] Featured Companies - **Altria Group Inc.**: Offers a 7.30% dividend yield and is a major player in the tobacco industry, selling primarily through wholesalers [5][6] - **Apple Hospitality REIT Inc.**: Owns a large portfolio of upscale hotels, providing an 8.10% monthly dividend [9][10] - **Energy Transfer L.P.**: A leading midstream energy company with a 7.97% distribution, owning over 114,000 miles of pipelines [11][12] - **Healthpeak Properties Inc.**: Focuses on healthcare real estate with a 7.56% dividend, managing properties across various healthcare segments [17][18] - **Verizon Communications Inc.**: A telecommunications giant with a 6.71% dividend, showing strong financial metrics and consistent dividend growth over 20 years [19][20]

Company Overview - Northwest Healthcare Properties Real Estate Investment Trust (REIT) offers investors access to a diversified portfolio of high-quality international healthcare real estate infrastructure, consisting of 167 income-producing properties and 15.7 million square feet of gross leasable area as of November 11, 2025 [2] - The portfolio includes medical outpatient buildings, clinics, and hospitals characterized by long-term indexed leases and stable occupancies [2] - The company operates in major markets across North America, Australasia, Brazil, and Europe, leveraging a global workforce in eight countries to partner with leading healthcare operators [2] Financial Results Announcement - Northwest will release its financial results for the fourth quarter and year ended December 31, 2025, on February 24, 2026, after market close [1] - A conference call to discuss these results is scheduled for February 25, 2026, at 10:00 a.m. ET, with specific dial-in numbers provided for U.S./Canada and international participants [1] - A replay of the conference call will be available until March 4, 2026, with access codes for participants [1]

Core Insights - Healthpeak Properties (DOC) shares have increased by 13.5% over the past month, significantly outperforming the industry average of 2.8% [1][7] - The company is well-positioned for growth due to strong demand for lab assets and an anticipated increase in healthcare spending among senior citizens [1][4] Financial Performance - Healthpeak reported transaction activity of approximately $925 million, indicating progress in its capital allocation strategy [2][7] - As of October 23, 2025, the company had available liquidity of around $2.7 billion and a net debt-to-adjusted EBITDAre ratio of 5.3X [8] - The Zacks Consensus Estimate for Healthpeak's 2025 FFO per share has been revised upward to $1.83, while estimates for 2026 have decreased by 2.1% to the same figure [9] Strategic Focus - Healthpeak's strategic focus on lab, outpatient medical, and continuing care retirement community (CCRC) assets is expected to drive future growth [6][4] - The CCRC portfolio had an occupancy rate of 86.7% in the third quarter of 2025, reflecting strong demand in this segment [5][7] - The company has made significant acquisitions, including $600 million in assets in late 2025 and early 2026, and $325 million in outpatient medical dispositions in Q4 2025 [6][7] Market Trends - The increasing life expectancy and growth in biopharma drug development are enhancing the fundamentals of the lab real estate market [4] - The use of artificial intelligence and machine learning in drug research is expected to boost healthcare spending by research institutes in the coming years [4]

Key Takeaways VTR shares climbed 10.9% in three months, outperforming an industry that fell 1.3%.Ventas' SHOP portfolio is seeing strong demand, aided by aging demographics and 15.9% cash NOI growth.VTR recycled capital by selling non-core assets and acquiring communities; maintained $4.1B of liquidity.Shares of Ventas (VTR) have gained 10.9% over the past three months against the industry’s 1.3% fall.Ventas’ diverse portfolio of healthcare real estate assets in key markets, including the United States and ...

Core Viewpoint - Northwest Healthcare Properties Real Estate Investment Trust has declared a distribution of $0.03 per unit for January 2026, which annualizes to $0.36 per unit, payable on February 13, 2026, to unitholders of record as of January 30, 2026 [1]. Company Overview - Northwest Healthcare Properties REIT provides access to a diversified portfolio of 167 income-producing properties and 15.7 million square feet of gross leasable area across major markets in North America, Australasia, Brazil, and Europe as of November 11, 2025 [2]. - The REIT's portfolio includes medical outpatient buildings, clinics, and hospitals characterized by long-term indexed leases and stable occupancies [2]. - Northwest leverages a global workforce across eight countries to serve as a long-term real estate partner to leading healthcare operators [2].

Core Insights - Investing in healthcare companies can provide both financial returns and ensure these companies are well-funded for future needs [1][2] - The rising demand for healthcare services, driven by increasing household wealth, is likely to lead to higher prices in the sector [3] - Many healthcare companies offer attractive dividends, making them appealing as income-producing assets [4] Company Highlights - GlaxoSmithKline (GSK) has evolved from a specialist in gastrointestinal ailments to one of the top 10 vaccine manufacturers globally, also focusing on drug-resistant superbugs [5] - GSK's spin-off of its Haleon consumer healthcare business allows shareholders to benefit from both segments, with Haleon focusing on oral healthcare and over-the-counter products [6] - Smith & Nephew has a strong presence in consumer healthcare, particularly in orthopaedics, which is expected to grow due to an aging population [7] - Abbott Laboratories offers a diverse range of products, including infant formula and diabetes management solutions, catering to various age groups [8] - Haw Par, known for its Tiger Balm brand, and Reckitt, with products like Nurofen, are also significant players in the consumer healthcare market [9] Market Trends - DFI Retail's shift from low-margin food retailing to focus on 7-Eleven and Guardian pharmacies highlights the higher revenue potential in regulated pharmacy businesses compared to supermarkets [10] - IHH Healthcare operates a large network of upscale hospitals, generating stable revenue, although cash flow can be inconsistent [12] - Parkway Life Real Estate Investment Trust, a major healthcare landlord in Asia, provides a reliable income source by managing hospitals and nursing homes [13] - Health insurance companies, such as AIA and Prudential, play a crucial role in risk management and can invest premiums to generate returns before claims are paid out [14][15] Industry Outlook - The healthcare industry is continuously evolving, with companies needing to adapt to changing consumer demands to remain relevant [15] - Many established healthcare companies have a long history of producing valued products, suggesting they are likely to endure for many more years [16] - A healthcare REIT has secured rental escalations until around 2042, indicating strong income visibility, which is rare in today's market [17]

Core Viewpoint - Northwest Healthcare Properties Real Estate Investment Trust has successfully completed the internalization of the management of Vital Healthcare Property Trust, enhancing its operational control and strategic direction [1][2]. Group 1: Transaction Details - The internalization transaction was first announced on November 9, 2025, and has now received all necessary external and regulatory approvals, leading to its closure [1]. - Upon closing, Northwest received cash consideration of NZ$214 million (approximately $170 million), which will primarily be used for debt reduction and other capital allocation priorities [2]. Group 2: Ownership and Portfolio - Following the internalization, Northwest remains the largest unitholder of Vital, holding approximately 24% of its shares [2]. - As of November 11, 2025, Northwest's portfolio includes 167 income-producing properties with a total gross leasable area of 15.7 million square feet, located in major markets across North America, Australasia, Brazil, and Europe [3]. - The portfolio is characterized by long-term indexed leases and stable occupancy rates, focusing on medical outpatient buildings, clinics, and hospitals [3]. Group 3: Strategic Focus - The company aims to strengthen its balance sheet and support long-term value creation for unitholders through the proceeds from the internalization [2]. - Northwest leverages its global workforce across eight countries to serve as a long-term real estate partner to leading healthcare operators [3].

Industry Overview - Asia is projected to become the world's fastest-growing healthcare market, reaching US$5 trillion by 2030, driven by aging populations and a growing middle class [1] - The increasing demand for healthcare products and services is expected to benefit healthcare providers, health-tech innovators, and health-related infrastructure across the region [1][13] Raffles Medical Group (SGX: BSL) - Raffles Medical Group reported a revenue growth of 3.5% year-on-year to S$378.4 million for the first half of 2025 [2] - The Raffles Health Insurance segment saw a revenue increase of 10% year-on-year to S$94.9 million, while Hospital Services experienced a gain of 3.8% year-on-year to S$174 million [2] - Profits rose by 5% year-on-year to S$32.5 million, primarily driven by Hospital Services segment profits increasing by 24.3% year-on-year to S$17.7 million [3] - The company is expanding its presence in China through strategic partnerships with Shanghai Renji Hospital and Chongqing's First Affiliated Hospital [4] - RMG has a trailing price-to-earnings (PE) ratio of over 29, indicating investor optimism regarding its future growth [4][5] Abbott Laboratories (NYSE: ABTT) - Abbott Laboratories reported a 6.9% year-on-year revenue gain to US$11.4 billion for the third quarter of 2025 [6] - The diabetes care medical devices segment contributed significantly, with sales growth of 19.3% year-on-year to US$2 billion, driven by the success of the FreeStyle Libre continuous glucose monitors [7] - Abbott launched new products in India, including the FreeStyle Libre 2 Plus and AVEIR™ DR, to capture the growing demand for medical devices in Asia [8] - The company maintains a healthy dividend yield of 1.9% and a PE ratio of 16, reflecting solid fundamentals [9] ParkwayLife REIT (SGX: C2PU) - ParkwayLife REIT experienced an 8.2% year-on-year increase in gross revenue to S$117.3 million for the first nine months of 2025 [10] - Net property income rose by 8.1% year-on-year to S$110.7 million, while distribution per unit (DPU) increased by 2.3% year-on-year to S$0.1156 [10] - Growth is attributed to step-up lease agreements and acquisitions, including nursing homes in France and Japan [11] - The REIT has a healthy gearing of 35.8%, well below the regulatory limit, indicating a strong balance sheet [12] Investment Opportunities - The Asia healthcare boom represents a long-term market shift rather than a cyclical upswing, driven by increased purchasing power and an aging population [13] - The three highlighted companies tap into different aspects of the healthcare value chain, presenting early investment opportunities in resilient stocks with structural upside [14]

Core Insights - Ventas (VTR) shares have increased by 24.5% over the past six months, significantly outperforming the industry, which saw a decline of 0.2% [1][8] Group 1: Company Performance - Ventas has a diverse portfolio of healthcare real estate assets in key markets, including the U.S. and the U.K., which positions the company to benefit from favorable industry fundamentals [2] - The senior housing operating portfolio (SHOP) is expected to see growth due to an aging population and increased healthcare spending by seniors, with the U.S. population aged 80 and above projected to grow by 28% over the next five years [5][6] - In Q3 2025, Ventas reported a 15.9% year-over-year growth in same-store cash NOI within the SHOP portfolio, indicating strong demand and healthy occupancy levels [6][8] Group 2: Financial Position - As of September 30, 2025, Ventas had approximately $4.1 billion in liquidity and improved its net debt to further adjusted EBITDA ratio to 5.3X from 6.3X year-over-year, enhancing its financial strength [10] - The company follows a disciplined capital-recycling strategy, selling non-core assets and reinvesting in premium acquisitions, which supports its financial position [9] - In Q3 2025, Ventas sold properties in its OM&R segment for $9.8 million and five senior housing communities for $68.1 million, while acquiring 20 senior housing communities for $1.1 billion [9] Group 3: Market Trends - The outpatient medical (OM) portfolio is well-positioned to benefit from increasing outpatient visit trends, with the 65+ aged population expected to grow by approximately 30% from 2020 to 2030 [7] - Analysts have a positive outlook on Ventas, with the Zacks Consensus Estimate for its 2025 FFO per share revised to $3.48, reflecting a marginal upward adjustment [3]

16 December 2025 Estimate Change Property/Real Estate Real Estate: 2026 Outlook Valerie Jacob +44 20 7762 4885 valerie.jacob@bernsteinsg.com Marios Pastou +44 20 7676 6881 marios.pastou@bernsteinsg.com Nikita Talwar +44 20 7676 8785 nikita.talwar@bernsteinsg.com Specialist Sales Sara Bellenda +44 20 7762 1867 sara.bellenda@bernsteinsg.com Whilst the recovery in asset values is well underway this has not yet been rewarded in the listed sector overall, although there have been some large divergences in stock ...