Alternative investment assets have become more important in the wake of a 17-year low in Canadian mortgage growth rates, according to The Motley Fool columnist Andrew Button.
A resilient option that Canadians should consider is the healthcare sector, as assets in this sector would almost certainly remain evergreen: There will always be a need for facilities such as hospitals, offices, and medical clinics.
Button cited Northwest Healthcare Properties REIT as a strong choice for those contemplating to enter. The trust offers multiple inroads to this space with its portfolio of 149 income-producing healthcare assets.
“This highly specialized niche provides a kind of moat, as the company is one of the few in Canada that focuses specifically on healthcare,” Button wrote in a recent column. “The company’s high geographic diversification also provides a buffer against losses in any one market: it owns properties in Canada, Brazil, Germany, Australia and New Zealand.”
Moreover, the avenue boasts of significant stability and exceptionally bright near-future prospects.
“Not only does it have a high dividend yield, but it’s also up 25% this year, so it has rewarded investors richly. The REIT’s high occupancy rate is a major plus and its financial stability is better than average,” the markets analyst added.
“The healthcare sector is noted for its stability. In Canada, it is largely government funded, and what isn’t funded is usually covered by private insurance, which makes the healthcare industry very reliable in terms of income and, by extension, demand for office/clinic space.”