Real estate investment trusts, including those largely involved in healthcare facilities, may be under increasing pressure from investors anxious over the current state of the commercial real estate market.
The recent surge in interest rates and declining tenant volumes have led to both institutional and individual investors seeking fund withdrawals from REITs as they seek value in other types of investments, a Dec. 6 Wall Street Journal report said.
Some REITs, including ones belonging to BlackRock, have moved to blocking such redemptions, the report said. Blackstone's $69 billion fund, known as the Blackstone Real Estate Income Trust, has a quarterly redemption limit of 5 percent of the fund's net assets, but redemption requests exceeded the cap last week, causing the company's shares to decline 7 percent, according to the report.
Large publicly traded REIT companies focused on the healthcare sector include Community Healthcare Trust (CHCT) and Medical Properties Trust (MPW), both of which have seen their stock price decline in the past week. There are 16 such publicly traded REITs focusing on the healthcare sector, according to the Motley Fool.