Healthcare REIT Update – April 2026

April 20, 2026

Healthcare REIT Update: Strong Fundamentals Position the Sector for Stability in 2026

Capright is pleased to release its latest Healthcare REIT Market Update – April 2026. This update is a comprehensive analysis of performance trends, capital markets activity, and investment outlook across the healthcare real estate sector.

A Resilient Sector Backed by Demographic Demand

The healthcare REIT sector continues to demonstrate operational resilience and stable fundamentals, supported by sustained demand for healthcare services and improving capital market conditions.

Through year-end 2025, key indicators point to a sector that is not only stable, but strengthening:

• Occupancy has rebounded from the low–mid 80% range in 2022 to the high-80% range by late 2025
• Rent collections remain consistent across property types
• Expense discipline has supported steady NOI growth
• Investor sentiment remains constructive due to defensive cash flows and long-term demographic tailwinds

Senior Housing Continues to Lead Performance

Senior housing now represents the largest share of revenue across leading healthcare REITs, driven by:

• Aging U.S. population trends
• Strong private-pay demand models
• Improving occupancy and pricing power

At the same time, REITs are actively repositioning portfolios to capture this growth:

• Increasing exposure to senior housing operating platforms
• Reducing reliance on medical office and triple-net lease structures

Supply Constraints Supporting Fundamentals

New development remains limited due to:

• Elevated construction costs
• Tight financing conditions

This constrained supply environment plays a critical role in:

• Supporting rent growth
• Reducing vacancy pressure
• Enhancing asset-level performance across healthcare property types

M&A Activity Accelerates Strategic Repositioning

Transaction activity surged in 4Q25, signaling renewed confidence and strategic clarity across the sector.

Notable trends include:

• Increased acquisitions of senior housing operating assets
• Capital recycling out of lower-growth medical office portfolios
• Continued expansion through joint ventures and partial-interest deals

Top 5 Healthcare REITs: A Changing Landscape

As of December 31, 2025, the composition of the top healthcare REITs has evolved:

• American Healthcare REIT (AHR) entered the Top 5 following strong performance
• Healthcare Realty Trust (HR) fell out of the top tier after underperformance

This shift highlights how strategic positioning and asset mix are driving investor returns in today’s market.

📬 Let’s Talk

At Capright, we are uniquely positioned to support institutional investors, operators, and developers navigating this evolving environment. As an independent valuation and advisory firm, we provide clarity, accuracy, and confidence, especially where the stakes are highest.

If you’d like to discuss the findings or need support with your commercial real estate valuation or strategy, reach out to: