OHI and CCP

[Dividendsrule]

Allright, I don't know if this is exactly the right crowd, but people who appreciate yield will certainly appreciate these names. 

With skilled nursing facilities numbered less than in prior years, and more Americans getting older, this seems to be a pretty good opportunity here. 

I think the big fear right now is that payment changes will hurt revenues, but the need is there, so these businesses will probably hustle to make money. I think larger contracts are being replaced by payment per visit or something like that. 

I've been nibbling OHI for years and more recently have fleshed out a large position in CCP as well. 

The CEO comes from Ventas with a lot of time and expertise in the field. 

Does anyone have any high level/educated thoughts here? We're talking about old school REIT yields...9% on CCP right now.

[benjamen]

The entire REIT sector is down on news of a possible FED rate hike. While I am a fan and stockholder of OHI, I am not very familiar with CCP. It seems to be still getting on its feet since being spun off from Ventas.

[Roadmap2Retire]

I had a handful of shares of CCP after the spinoff, but recently sold the CCP position. Didnt really care to hold two companies in exactly the same field in my portfolio. OHI is a much better bet than CCP imo.
There has been talk of oversupply in the market, which is why the SNF subsector saw some weakness in the last year. Still...its a good yield play. I continue to own OHI and drip each quarter. My other healthcare REIT is VTR -- probably the best run company in the business.

R2R

ps: Owning VTR also gives you a bit of an exposure to SNFs. While they spun off SNFs with the CCP, they continue to own some interest in the SNF space and run a few facilities.

[rayray]

OHI is bigger and more diverse then CCP with OHI the clear favorite among investors for the right reasons. I was going to sell CCP immediately after the spinoff but held on. I was trying to decide what to do and now it looks like I'll be getting another such spinoff from HCP in that sub-sector. It's not something I planned on and will more then likely sell the one coming from HCP...CCP? I'll probably sell that one too--just not a lot of history to go on.


Hind sight is 20/20 but the next time I'm not sure what to do with a spinoff I'm just going to dump it, I did that with South32 and it worked out in my favor.

[navyasw02]

At this point I've already lost about 20% by holding it since the spinoff and it'll cost me another $7.95 to sell it. I only got a handful of shares so I'm just holding until it rebounds.