Welltower Stock News

Not all REIT property sectors are equally attractive. Some are oversupplied and expensive, even as others enjoy steady growth and trade at low valuations. I highlight my three favorite property sectors going into 2026.

American Healthcare REIT (AHR) offers the most attractive pure-play exposure to the senior housing megatrend, outperforming even data center REITs recently. Senior housing fundamentals are exceptionally strong, with surging 80+ demographics and historically low new supply, driving occupancy and rent growth. AHR trades at a more reasonable valuation than Welltower (WELL), with similar double-dig...

REITs remain attractively valued, with many trading at near 10-year high dividend yields. AFFO yield plus AFFO growth is utilized as a scoring system in this article. ARE leads in value but faces risks from declining occupancy and potential AFFO contraction. Others in the top 5 include VICI, IRM, EQIX and PSA.

Digital Realty Trust generates high cash flow and is positioning itself for the long-term AI data center boom. Welltower is a leading owner of senior housing properties that will benefit from rising demand as baby boomers get older.

I plan to diversify my REIT-heavy portfolio by systematically allocating to four dividend-focused ETFs in 2026. US economic growth remains steady but subdued, while equity valuations are elevated, suggesting muted long-term returns. REITs appear attractively valued with fading headwinds, offering plausible outperformance as fundamentals improve and rate cuts loom.

The REIT sector returned to positive territory in November (+1.02%) after back-to-back months in the red. Mid caps (+3.53%) led the REIT sector in November followed by small caps (+3.38%) and large caps (+0.32%); micro caps (-8.76%) badly underperformed. 68.15% of REIT securities had a positive total return in November.

The price-to-net asset value valuations for publicly listed US equity real estate investment trusts rose in November, after two consecutive months of decline. US equity REITs closed November at a median 18.2% discount to their consensus NAV per share estimates, according to S&P Global Market Intelligence data. Healthcare REITs posted the highest median premium to NAV.

Demand tailwinds from the aging Baby Boomer cohort and record-low new construction underpin a multi-year runway for double-digit internal and external growth. Premiums to NAV enable accretive acquisitions, and current valuations underestimate the durability and longevity of the SH cycle for these REITs. VTR, WELL, and AHR are best positioned to benefit from exceptional internal growth combined ...