Healthcare REIT: A Great Income Investment Despite Seemingly Mediocre Results
- Healthcare REIT is the largest US medical REIT by assets, with 1,199 facilities worth $22.6 billion. The company operates in the US, Canada and the UK.
- It has industry best nursing home occupancy rates and same store sales, yet, its other assets drag its overall performance down.
- The company has a secure dividend of 5.5% and is growing it at 4% annually. Its projected future returns are 10.55% CAGR, below competitors Ventas and Omega Healthcare.
- Healthcare REIT's trump card is the fact that 83.1% of its properties are privately funded and not dependent on Medicare or Medicaid. Its nursing homes are 98% private.
- Back in the late 90s Medicare changed its reimbursement rates and 1,600 nursing home operators went bankrupt. Ventas and Omega Health were devastated but Healthcare REIT was fine.