This is Jefferies top 2026 real estate play on an aging population. It also pays a solid dividend
Investors should stick with durable earnings growth themes for real estate stocks, including the aging population. This senior housing provider is its top pick.
TL;DR
- Jefferies names American Healthcare REIT (AHR) its top real estate play for 2026, anticipating outperformance due to the aging population trend.
- AHR is noted for its leading exposure to RIDEA senior housing, low cost of equity, and a growing investment pipeline, suggesting upside from acquisitions.
- The aging demographic in the U.S., particularly the projected growth in the 80+ population, is expected to significantly benefit senior housing.
- Low new construction relative to inventory in senior housing suggests potential for increased occupancy and pricing power for existing properties.
- Jefferies also recommends Welltower and Ventas, rating both as buy, expecting them to benefit from the same demographic trends.