Healthcare exposure without the crowds

Livewire Exclusive

Livewire Markets

Investor demand for healthcare stocks has grown from already high levels in 2020 but an emerging asset class provides a less crowded entry point, says David Burgess of Elanor Investors Group (ASX: ENN).

He notes core differences in the ownership structure of healthcare properties in Australia versus the US as a key part of the opportunity. “It’s a very fragmented market, with a large proportion of it not in institutional hands – which distinguishes it from other markets like the US where healthcare sits alongside office, industrial and retail,” says Burgess.

In Australia, he argues healthcare property is emerging as an asset class in its own right – underpinned by solid fundamentals including:

  • Strong cashflows
  • Strong risk-adjusted returns
  • Low volatility
  • Strong macro demand.

Burgess tips an annual 15% internal rate of return for investors “and we expect that to be delivered quite comfortably, given there’s growing institutional demand for this sector.” 

In the following video, he discusses Elanor’s active investment approach to listed property and outlines the opportunity for Australian investors.

Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 stock mentioned

1 contributor mentioned

Livewire Exclusive
Livewire Markets

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment