UBS expects upbeat summer earnings for senior housing REITs; raises targets on American Healthcare REIT and Welltower

According to CNBC, UBS analyst Michael Goldsmith said senior housing and skilled nursing REITs should deliver favorable financial results this summer, citing muted supply growth, demographic tailwinds and an active acquisitions backdrop. He said occupancy neared 90% in the second quarter based on NIC MAP data, and noted UBS has buy ratings on American Healthcare REIT, CareTrust REIT, Omega Healthcare Investors and Welltower. Goldsmith raised his price target on American Healthcare REIT to $63 from $60, implying 17% upside from Thursday’s close, and said the company recently raised about $700 million of equity to fund an awarded SHOP pipeline exceeding $1 billion; he estimated 2026 core funds from operations of $2.10 per share versus a $2.07 consensus. He also lifted his Welltower target to $271 from $249, also implying 17% upside, and estimated 2026 core FFO of $6.27 per share versus $6.29 consensus; Welltower is expected to report earnings on July 27. He maintained price targets of $48 for CareTrust REIT and $54 for Omega Healthcare Investors, implying 17% and 11% upside, respectively; Omega is set to report on July 30.