SA Transcripts • Nov. 5, 2014
Sabra Health Care: High-Yield Play At Attractive Valuations
- My regular readers know I use the declines caused by secondary offerings to pick up high-yield real estate investment trusts (REITs) at discounted prices.
- These secondary offerings can create temporary inefficiencies in pricing that can lead to some easy and profitable trading opportunities, which occur quite often in the market.
- This week's REIT special is an attractive high-yield play in the healthcare space that is off some 20% from recent highs and trading at a discount to peers.
Sabra Health Care's Industry, Diversification, Stability, Dividend, And Growth Look Attractive
- Sabra has been diversifying its customer base, its tenant base, and its variety of businesses to apparent success.
- Sabra's Q2 2014 results substantiate the profitability and growth of its businesses. Normalized FFO grew 39% and normalized AFFO grew 29% year over year. This is good growth.
- Sabra also pays a hefty 5.30% dividend. Read further for more details. You may find SBRA an interesting investment.
A Healthcare High Dividend Stock With 25%+ FFO Growth; Yielding Over 7%
- The aging of US baby boomers will continue to create increasing demand for healthcare facilities.
- Healthcare is the leading sector over the past year and year-to-date, but there are very few dividends paying over 6%.
- Sabra Healthcare offers income investors a well-covered 7%-plus preferred dividend yield.
A Prominent Sector Headwind Stifles The Growth Of Sabra Healthcare
- Sabra's rapid growth rate is slowing.
- Non-traded REIT money is compressing acquisition cap rates.
- Compressed spreads limit the volume of accretive growth available to Sabra.
Sabra Health Care REIT - Built On A Solid FoundationScott Low • Oct. 30, 2013
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