Top 15 Healthcare Facilities REIT Stocks
Marvin's rules rank 15 healthcare facilities REITs by Overall score within their industry. CareTrust REIT leads, followed by LTC Properties and Omega Healthcare Investors. Scores compare peers; they do not predict returns.
Healthcare facilities REITs are real estate companies that own properties such as senior housing, nursing facilities, hospitals and medical buildings, and they collect rent or operating income from them. This list shows 15 of them, ordered by Marvin's Overall score, with CareTrust REIT at the top.
When you read the picks, look at a few simple figures. Revenue growth shows whether the business expanded last fiscal year. Operating margin shows how much of each revenue dollar remains after running costs. Return on equity shows how much profit the company earns on shareholders' capital. Debt-to-equity shows how much the company relies on borrowing.
Some figures are missing for some companies, and the blurbs say so. A high score only means a company compares well with other healthcare facilities REITs today. It is not a forecast and not a recommendation.
The list
How Marvin ranked these stocks
Marvin included companies above a minimum size cutoff in the REIT - Healthcare Facilities industry and ranked them by Overall score, highest first. Each score runs on a scale from low to high and is relative to the company's own industry, so a high score means the company looks strong compared with other healthcare facilities REITs, not compared with every stock in the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The REIT - Healthcare Facilities industry, highest Overall score first.
The stocks, one by one
CareTrust REIT, Inc. CTRE
CareTrust REIT has the top Overall score of 96, with a quality score of 96. Revenue grew 60.8% last fiscal year, and debt-to-equity is a low 0.27. Caution: return on equity of 7.9% is modest, and operating margin data is not available.
LTC Properties, Inc. LTC
LTC Properties scores 89 overall. Its operating margin of 62.6% is strong, revenue grew 25.3% last year, and return on equity is 10.7%. Caution: debt-to-equity of 0.61 is a moderate level of borrowing, higher than the top-ranked CareTrust.
Omega Healthcare Investors, Inc. OHI
Omega Healthcare Investors has an Overall score of 83 and a quality score of 89. Operating margin is a strong 70.4%, and return on equity is 15.9%. Caution: revenue growth of 13.2% is steady rather than fast, and debt data is not available.
National Health Investors, Inc. NHI
National Health Investors scores 77 overall, with revenue growth of 12.1% and return on equity of 10.6%, both reasonable. Caution: debt-to-equity of 0.81 is on the higher side of the top group, and operating margin data is missing.
Universal Health Realty Income Trust UHT
Universal Health Realty Income Trust has an Overall score of 71, an operating margin of 35.3% and return on equity of 13.4%. Caution: revenue growth of 0.2% means sales were essentially flat last year, and debt data is not available.
Chiron Real Estate Inc. XRN
Chiron Real Estate scores 65 overall, helped by an opportunity score of 77. Revenue grew 6.8% and return on equity is 9.5%. Caution: its quality score of 36 is low, and margin and debt figures are not available.
Community Healthcare Trust Incorporated CHCT
Community Healthcare Trust has an Overall score of 59, with revenue growth of 4.7%, a modest pace. Caution: return on equity of 5.1% is low, and debt-to-equity of 1.36 shows heavier reliance on borrowing than most higher-ranked names.
Welltower Inc. WELL
Welltower scores 53 overall. Revenue grew a fast 35.6%, gross margin is 39.8%, and debt-to-equity is a fairly low 0.46. Caution: return on equity of 3.3% is small, so profit on shareholder capital is thin.
Healthpeak Properties, Inc. DOC
Healthpeak Properties has an Overall score of 47 and an operating margin of 15.1%, which is modest for this industry. Revenue grew 4.5%. Caution: return on equity is only 3.1%, and debt-to-equity of 1.32 is relatively high.
Sabra Health Care REIT, Inc. SBRA
Sabra Health Care REIT scores 41 overall, with revenue growth of 10.2%. Caution: operating margin of 7.0% and return on equity of 2.4% are both thin, and its opportunity score of 18 is low.
Ventas, Inc. VTR
Ventas has an Overall score of 36, a quality score of 59 and revenue growth of 18.5%, a healthy pace. Caution: return on equity of 1.9% is very low, and its opportunity score of 7 pulls the overall ranking down.
American Healthcare REIT, Inc. AHR
American Healthcare REIT scores 30 overall, with operating margin of 19.2% and revenue growth of 9.1%. Caution: return on equity of 3.3% is low, its opportunity score is only 13, and debt data is not available.
Medical Properties Trust, Inc. MPT
Medical Properties Trust has an Overall score of 24 and a gross margin of 89.4%. Caution: revenue growth was -2.4%, a decline, return on equity was -2.8%, a loss, and debt-to-equity of 2.13 is the highest in this list.
Healthcare Realty Trust Incorporated HR
Healthcare Realty Trust scores 18 overall, with debt-to-equity of 1.04, a moderate level. Caution: revenue growth was -6.9%, meaning sales shrank, and return on equity of -2.1% is negative, so profit on shareholder capital was a loss.
Diversified Healthcare Trust DHC
Diversified Healthcare Trust has the lowest Overall score here at 12, with a quality score of just 5. Revenue grew 2.8%. Caution: return on equity of -16.8% is deeply negative, and debt-to-equity of 1.55 is high.
Common questions
What is a healthcare facilities REIT?
It is a real estate investment trust that owns healthcare-related properties, such as senior housing, nursing facilities, hospitals and medical buildings, and earns income from rent or from operating them. REITs generally pass much of their income on to shareholders.
Does a higher Marvin score mean a stock will perform better?
No. The scores describe how a company compares with other companies in its industry today, based on its financial figures. They are not predictions, and they are not advice to buy, sell or hold.
Why are some figures missing for certain companies?
Not every company reports every measure in a form Marvin can use, and some measures, like gross margin or free cash flow margin, fit REIT business models poorly. Where a figure is missing, the blurb says so, so you know to check other sources.
Keep reading
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- Top 15 Real Estate Stocks Marvin Rates Most Attractive Now
- Top 20 REIT Stocks by Marvin Score
- Top 15 Real Estate Companies With the Strongest Businesses
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.