Berenberg views Healthcare REITs as valuable stable assets
10/05/2022 13:39
** Berenberg analysts believe among U.S. Healthcare REITS,
Healthcare Trust of America HTA.N , Healthcare Realty Trust
HR.N and Physicians Realty Trust DOC.N offer a valuable
degree of stability in the current environment
** "We believe the combination of relatively limited supply
and strong rent coverage is such that Municipals-Over-Bonds
spread assets should continue to exhibit stability, even in the
event of further softening macro conditions" - Berenberg
** Berenberg upgrades HTA to "buy" from "hold" saying HTA is
highly likely to be bought out by end of 2022 and offers the
best opportunity for upside at current price levels
** HR downgraded to "hold" from "buy", based on the
assumption that even if the deal with HTS goes through, lower
implied cap rate for HR vs HTA indicates a potential buyer would
be more likely to view HTA as a potential acquisition target
** Broker raises DOC PT to $20 from $19
** Median rating for DOC and HTA is a "hold", while HR has 5
analysts out of 10 rating it at "hold" - Refinitiv Eikon
** YTD performance: DOC down ~6%, HTA down 13.5% and HR off
3%
(Reporting by Aatrayee Chatterjee in Bengaluru)
((Aatrayee.Chatterjee@thomsonreuters.com;))