REITs, anyone?
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REITs, anyone?
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11-04-2015, 04:46 PM
I am looking into buying some REITs as they have been going down, down, .... down out of concerns for rising interest rates. I dont know how much more they might go down but one full year of punishing should be just about enough. I've never invested in REITs and would greatly appreciate your insight and experience. Some of the names I am looking at are OHI, HCP and VTR. Thanks a lot!
11-04-2015, 11:05 PM
(11-04-2015, 04:46 PM)jim Wrote: I am looking into buying some REITs as they have been going down, down, .... down out of concerns for rising interest rates. I dont know how much more they might go down but one full year of punishing should be just about enough. I've never invested in REITs and would greatly appreciate your insight and experience. Some of the names I am looking at are OHI, HCP and VTR. Thanks a lot! All great picks, jim. Are you only interested in healthcare REITs? Theres a lot of different subsectors to consider, but healthcare REITs are definitely one of my fav. In healthcare REIT sector - HCN is a also a good play. I wrote dividend stock analysis articles a few months ago on the four companies. Also, this Sector Overview article on my blog should help shed some light on the overall sector. Let me know if you have any specific questions. ps: I am long OHI & VTR (also hold CCP shares that were recently spun off from VTR) 
11-04-2015, 11:40 PM
Long HCP, OHI and O. Would love to add VTR and HCN anytime soon but I don't want too much weight/exposure to the sector so I'm holding off on it.
11-05-2015, 12:22 AM
HCN is the Big Kahuna in the healthcare REIT sector although VTR is playing catch up. Slow but steady grower. It focuses more on the private payers in the senior living/skilled nursing fields than the other healthcare REITs.
HCP is spread across most type of healthcare fields -- SNF, MOB, hospitals, senior living & life sciences. It's a Dividend Champion and, last I looked, the only REIT in the S&P Dividends Aristocrats list. It's been around for a long time and has weathered it's stormy past well. Over time, the ManorCare problems will be straightened out. In the meantime, HCP got some cheap ownership in some of ManorCare's own properties and collects fees from them on it. OHI is pretty focussed on the skilled nursing facility field. Although, it seems to me, more exposed to government reimbursement issues, they have continued to raise the dividend like clockwork. With the purchase of AVIV, they've raised their footprint in SNF's significantly. They've also had their debt ratings raised by S&P -- a good sign. VTR recently spun off CCP with most(?) of their SNF inventory. They've been a fast grower for the last decade. Don't know as much about them but, with R2R's link above, I'll have to look a little deeper. Long HCP (wife's portfolio) and OHI (my portfolio) along with O and WPC. If it were me, I wouldn't just concentrate on the healthcare field for REITs. O, WPC, STAG, AMT and DLR are some of the other popular names to look at. Self-storage, apartments & hospitality REITs have become more popular lately but I'm skeptical of their long-term performance compared to the retail and healthcare fields. All the REITs have come off of their lows in the Aug/Sept correction but with renewed rumors of the hike in the fed funds rate coming this December, you might have a better price waiting for a month or two. In the meantime, you may want to meander on over to the NAREIT site and get some further background and information there. (https://www.reit.com/nareit)
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan (11-04-2015, 11:05 PM)Roadmap2Retire Wrote:(11-04-2015, 04:46 PM)jim Wrote: I am looking into buying some REITs as they have been going down, down, .... down out of concerns for rising interest rates. I dont know how much more they might go down but one full year of punishing should be just about enough. I've never invested in REITs and would greatly appreciate your insight and experience. Some of the names I am looking at are OHI, HCP and VTR. Thanks a lot! Hello R2R, thanks for your information, I have been reading many of your articles before coming to this forum, they helped greatly. You did not write about SNH yet I believe, I could not find it. To be realistic the dividend growth is relatively low over the years but currently SNH is yielding over 10% and it has never cut or reduced distribution. This looks quite attractive to me especially when the prices are at the lower end of its long term trading range. I wonder what your thoughts are on SNH. Thank you, jim (11-04-2015, 11:40 PM)Rasec Wrote: Long HCP, OHI and O. Would love to add VTR and HCN anytime soon but I don't want too much weight/exposure to the sector so I'm holding off on it. Hi Rasec, O is a spectacular stock and I hope to start a position at some point, hopefully on a pullback. Thanks jim (11-05-2015, 12:22 AM)Dividend Watcher Wrote: HCN is the Big Kahuna in the healthcare REIT sector although VTR is playing catch up. Slow but steady grower. It focuses more on the private payers in the senior living/skilled nursing fields than the other healthcare REITs. Hello Dividend Watcher, thank you for the pointers, your post is really going to keep me busy for quite some time. I am looking into healthcare REITs now simply because they are something I can more easily relate to, but will try to explore other segments gradually. I asked R2R for his thoughts on SNH and wonder if you ever looked into this issue by any chance. Do you buy and hold these shares indefinitely, in general? I started to think the interest rate hike has probably been priced in these names but would wait a little longer before picking up more shares. Thank you very much jim
11-06-2015, 10:01 AM
(11-06-2015, 06:15 AM)jim Wrote:(11-04-2015, 11:05 PM)Roadmap2Retire Wrote:(11-04-2015, 04:46 PM)jim Wrote: I am looking into buying some REITs as they have been going down, down, .... down out of concerns for rising interest rates. I dont know how much more they might go down but one full year of punishing should be just about enough. I've never invested in REITs and would greatly appreciate your insight and experience. Some of the names I am looking at are OHI, HCP and VTR. Thanks a lot! Hi Jim, I havent done a full research on SNH, but if I remember correctly there were some problems in the past. I cant remember what exactly...I'll have to do some research over the weekend. Look for Brad Thomas' articles on Seeking Alpha - he writes exclusively about REITs and a quick search turned this up: http://seekingalpha.com/article/3564796-...dend-yield
11-06-2015, 01:02 PM
11-06-2015, 06:57 PM
Hard to imagine REIT stocks could be this volatile, I started to average in with OHI and VTR but looks like they are still going down more.
11-06-2015, 08:20 PM
Yeah it's interest rate expectations now. Hang in there, baby boomers will need care facilities, and need income for retirement. Both of these needs should push REITs up in the long term (especially OHI and VTR).
11-07-2015, 08:09 AM
(11-06-2015, 08:20 PM)Dividendsrule Wrote: Yeah it's interest rate expectations now. Hang in there, baby boomers will need care facilities, and need income for retirement. Both of these needs should push REITs up in the long term (especially OHI and VTR). Will continue to average in till interest rates increase. I dont think rates would go up much in this low inflation environment, commodity prices falling for years, and this business cycle is obviously maturing. |
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