REITs face increasing costs which will lower returns from healthcare sector

NEW YORK: REITs are only attracting capital because they promise investors better returns than bank interest.

But healthcare in 2015 is being subjected to significant cost pressures.

Living wage imposts; staff ratio discussions; the cost of continuous education programs; dealing with ever tightening regulatory supervision; bloated hierarchical executive structures; building additions and maintenance and adapting to a constant upgrading as a result of ever changing innovation will tighten margins and trim profits…

Full story covered in the Seniors Housing & Healthcare Trends.

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