On its surface, the usage of weight reduction drugs may seem to be it has little to do with the demand for office space, shopping malls and apartment buildings. But Jefferies analyst Jonathan Petersen begs to differ. He speculated that a more healthy population would have a bunch of various habits that might ripple through the economy and eventually be felt by the true estate industry — benefiting some pockets, while pressuring others. “While an instantaneous rebalance of your portfolio on this trend would likely be premature, we offer predictions on how GLP-1 drugs may transform Real Estate over the following decade,” wrote Petersen in a note to clients Monday. A latest class of weight reduction drugs generally known as glucagon-like peptide 1 receptor agonists has given individuals who struggle with obesity fresh hope that they’ll shed kilos and possibly ward off other chronic health conditions like Type 2 diabetes and heart disease. Use of those drugs, which include Ozempic, Wegovy and Mounjaro, continues to be small but analysts predict it would grow in the approaching years on account of the big percentage of people that can profit from these therapies. SPG YTD mountain Simon shares have fallen 6% yr thus far. Petersen suggests the fallout might begin with a pickup in foot traffic at malls as patients on medication shop for brand spanking new wardrobes to suit their smaller frames. That will help mall operators akin to Simon Property , Federal Realty Investment Trust and Macerich . But restaurants could lose out as consumers eat less wealthy food, a blow to corporations akin to NNN REIT that own a variety of restaurant properties of their portfolio, Petersen said. NNN YTD mountain NNN REIT shares have fallen greater than 22%. He goes on to take a position that a thinner populace is perhaps more social, and search for apartment buildings with more shared spaces and amenities like pools. If that vision involves pass, it could boost apartment operators akin to Equity Residential , Avalonbay Communities and Apartment Income REIT , amongst others. PEAK YTD mountain Healthpeak shares are down 26% since January and hit a 52-week low Tuesday. Over the long run, the usage of these drugs will boost patient well-being, and Petersen expects this might mean fewer doctor visits and longer lives, trends that might boost senior housing operators like Welltower , but pressure operators of medical office space akin to Healthpeak . Healthpeak shares hit a 52-week low on Tuesday, while Welltower shares shed greater than 2%. Welltower, which operates within the U.S., Canada and U.K., is up nearly 24% yr thus far. Healthpeak shares are down greater than 26% through the same period. Petersen is not the primary analyst to try the far-reaching implications of GLP-1 medications. Morgan Stanley predicted a reckoning for food and beverage corporations as patients on these drugs eat fewer calories. And medical device stocks needn’t wait to see the knock-on effects. Their stocks have already been hammered by investors who’re predicting fewer people will need insulin pumps, CPAP machines for sleep apnea and bariatric surgery. — CNBC’s Michael Bloom contributed to this report.
Merck (MRK) earnings Q3 2025
Merck on Thursday reported third-quarter earnings and revenue that topped estimates because it saw strong demand for its cancer immunotherapy...
