HDOCHealthpeak Properties, Inc.

Healthpeak leases buildings to clinics and research laboratories — property tied to medicine.

A medical building next to a hospital is a durable tenant: a practice is tied to its location, patients come by habit, and moving means losing part of the flow. Hence high renewal rates and predictable occupancy.

The second part of the portfolio is laboratories for biotech companies, and it behaves differently: demand there depends on the availability of venture capital, and after a construction boom several cities ended up with surplus space. Risks: biotech funding, interest rates and the cost of fitting out space for a new tenant. The trust form obliges distributing profit; the dividend is high.