Is this man a racist?

If someone tells you that they think a certain race brings down the property values of homes and then says that people with AIDS basically deserve it, and we should not waste money on research because only addicts and s get it. Isn't that person a racist, and a bigot! So if one decides to continue to have conversations with this type of person, does that make them the same. I have two colleagues who talk often and one says he is offended by what the other says, nevertheless, he continues to talk to this racist, close minded person. I don't want to hear any more of it and am sick of the one co-worker telling me what the other one says. What should I tell him?