Long-term social demographic shift favours healthcare stocks. A silver tsunami is coming over the next few decades. Due to the rapidly aging population in Singapore, hospitals and nursing homes will be in greater demand. By 2030, around 27% of Singapore’s population will be over 65 years old.
Secondly, the demand for better healthcare is increasing due to the emergence of the middle-class population in countries such as China, Indonesia and India. The rich patients from China, India and Indonesia want the best medical treatment money can buy. High-end private hospitals such as Mount Elizabeth and Gleneagles Hospital stand to benefit from this trend.
1. First REIT
Positives/ catalysts:
· Acquired 2 new yield-accretive properties in 2012. These new properties are starting to contribute rental income.
· Gearing is still at a low level of 27%. Room for future growth.
· Increase in distributable income.
Negatives/ catalysts
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