Mizuho Securities analyst Richard Anderson recently took a close look at the three senior housing/skilled nursing healthcare REITs under the firm’s coverage: LTC Properties Inc LTC 1.12%, National Health Investors Inc NHI 0.98% and Sabra Health Care REIT Inc SBRA 1.61%.

According to Anderson, once markets stabilize a bit from the recent volatility, the stage could be set for consolidation in the healthcare REIT world.

Quick Take

Anderson sees Sabra as the REIT with the most upside from current levels. He noted the REIT’s valuation discount and experienced management as two key advantages.

In the past, National Health Investors was perceived to be the “darling” of the bunch, but Anderson believes that the departure of CEO Justin Hutchens has opened the door for a new gold standard.

He now sees LTC as the REIT with the “pristine” balance sheet and the consistent record of performance and smart acquisitions. However, while Anderson deems LTC as the most stable of the three names, he noted that its valuation premium limits its upside from current levels.

Consolidation Coming?

Anderson believes…

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