In a new report, Goldman Sachs analyst Andrew Rosivach combines healthcare REITs and triple net REITs into a single “net lease” category. Overall, Goldman maintains a neutral outlook for the 10 names in the category, but believes that REITs with smaller balance sheets represent the best opportunities for growth.

Goldman is most bearish on some of the names with the largest number of assets, including Ventas, Inc. VTR 0.43%, Realty Income Corp O 0.42% and HCP, Inc. HCP 0.09%.

“Within the group, we downgrade VTR to Neutral from Buy and keep O and HCP at sell, as each of these companies should have slower growth given current size,” Rosivach explains.

Goldman doesn’t have a single Buy rating on any net lease REITs with market caps greater than $10 billion. Roivach adds that REITs with smaller balance sheets tend to have stronger growth and net lease REITs tend to have stronger tenants and balance sheets.

Goldman’s top Buy-rated picks in the space are…

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