2 Ways to Invest in Life Science Real Estate Through Stocks

Life science facilities are perhaps the hottest subsector of the real estate sector right now, and there are some great opportunities for investors to get involved. In this Fool Live video clip recorded on September 3rd, Millionacres Senior Real Estate Analyst Matt Frankel, CFP, discusses two excellent stocks with large portfolios of life science real estate.

Matt Frankel: Would you speak to ARE what is Alexandria real estate stocks (NYSE: ARE)? You are an interesting company. They are an office REIT specializing in life science real estate, offices for life science companies. They are a nice combination between healthcare and office. Life science real estate is currently a major growth area.

Innovations in healthcare and life science as well as in the pharmaceutical industry have never been as active as they are now. I’m not just talking about the COVID vaccines and the like. The need for facilities for these companies that manufacture medical devices, manufacture therapeutics, manufacture pharmaceutical products, has grown exponentially. Much of this is concentrated in the San Francisco area. The Boston area is big where I believe Alexandria has a big presence. It’s a stock that we really like. If there is one downside, it would be the rating.

Life science real estate, I’m not saying it’s in a bubble, but valuations have grown tremendously in recent years with demand. So I’m a fan of that. I don’t own the stock myself, but it’s a really great business model. If you want to get into life science real estate without just relying on it, I’d consider a company called. watch Healthpeak properties (NYSE: PEAK). The ticker symbol is PEAK. You’re a healthcare REIT but invest primarily in life science real estate and doctor’s offices. They also have a small presence in so-called senior residence communities. But life science and doctor’s offices, which are doctor’s offices like the safety net, would probably be called life science. Life science is the growth area of ​​this business, and medical offices are the stable ones to make money from, no matter what type of property. Doctor’s offices, for example, are likely the top performing type of property during the 2020 shutdown months because there aren’t any businesses more important than a doctor’s office, and they even benefited when hospitals stopped performing elective procedures. Many of them were moved on an outpatient basis.

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