Healthcare Capital Markets 2025 Outlook

Healthcare REITs Have Improved Still 4% below 2022 peak

Recovery Indicator

• REIT performance is a leading indicator for private CRE pricing trends. As REIT pricing improves and recovers, the outlook for private market CRE recovery strengthens. • Cross-sector REIT pricing has bounced from trough thresholds and is steadily recovering toward pre-rate hike levels. • Healthcare REIT pricing is 38% above its trough level and just 4% below peak 2022 levels, pointing to continued recovery in the sector. This tracks with the other alternatives sector, self storage, which is 7% off the 2022 peak.

170%

150%

120%

94%

70%

41% 38%

34%

34%

32% 32%

22%

20%

9% 7%

-30%

-80%

Peak to Trough Trough to Current

22 Peak to Current

Source: Dow Jones REIT Index, Moody’s Analytics and Cushman & Wakefield Research, updated January 2024.

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