Top healthcare REITs for your portfolio

Healthcare REITs managing facilities, such as GP practices or hospitals, look appealing. Should you invest?

Healthcare diagram made out of many syringes
(Image credit: Getty Images)

I’ve been researching companies poised to benefit from the new government. In my last column, I highlighted Mercia Asset Management, the fund manager charged with allocating billions to UK small and medium-sized businesses, as an interesting, undervalued play on Labour’s investment plans. Two other companies worth a look are Assura (LSE: AGR) and Primary Health Properties (LSE: PHP). These real-estate investment trusts (REITs) specialise in building, managing and leasing healthcare facilities, such as GP practices and hospitals. The demand for these facilities is expanding, owing to the country’s ageing population. The locations are largely rented out to the NHS, which is, of course, backed by the UK government. 

Despite setting out to be a pro-growth government, within weeks of walking into number 11, the chancellor, Rachel Reeves, announced she was going to axe former premier Boris Johnson’s scheme to build 40 new hospitals around the country. Cutting investment might be a quick way to balance the books, but it’s not pro-growth, and it’s certainly not what the country needs after decades of underinvestment. Record waiting lists aren’t going to vanish, and the pressure on the NHS is only going to grow. With the government cutting investment, private providers are likely to have to step in to fill the gap.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.