Is Healthpeak Properties Stock a Buy?
Shares of diversified healthcare real estate investment trust (REIT) Healthpeak Properties (NYSE: PEAK) are down 30% so far in 2020. When the market bounced back from its March lows, Healthpeak didn't really go along for the ride. Yes, it rose off of its lows -- but the S&P 500 Index is only down about 8% for the year.
Clearly something bad is going on at this REIT, which is true. But that doesn't mean investors should avoid it. Here's a deeper look at Healthpeak Properties, and why investors might actually want to buy despite the painful share price decline.
There's no way to sugarcoat the problem that Healthpeak faces right now. The real estate investment trust owns facilities in which senior citizens live. That means that its properties are purpose-built to bring the elderly together into group settings, and a large number of these people move into senior housing because they needed extra assistance for some reason, often because of pre-existing medical conditions. This is the exact demographic that is most at risk from COVID-19, and they're living in a setting that facilitates the coronavirus' spread.
Source Fool.com
