There are three large healthcare real estate investment trusts (REITs): Welltower (NYSE: WELL), (NYSE: VTR), and Healthpeak (NYSE: PEAK). The first two have yields of 3.1% and 3.8%, respectively. Healthpeak's yield is 5.8%. What's going on here? And more important, can Healthpeak support that elevated yield?

Historically speaking, Welltower, Ventas, and Healthpeak are considered diversified healthcare REITs. That's still true of Welltower and Ventas, which both have exposure to a broad range of healthcare property types, including senior housing. A few years ago Healthpeak chose to get out of senior housing, instead focusing largely on medical office and medical research assets. It still gets lumped in with the other two more diversified REITs, but it isn't exactly the same anymore.

Image source: Getty Images.

Continue reading

Source Fool.com