This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Universal Health's Sweet REIT

"We believe the value of UHT's properties is significantly greater than the value of the leases," Tsoupros said. "This is particularly true for those properties operated by Universal Health Services."

Tsoupros upgraded UHT because he viewed the recent buyout offer as an important "value-creating event." For starters, he noted, the offer has already led to a 10% increase in the company's dividend. And he said further dividend hikes could follow.

Alternatively, of course, UHT could wind up with an independent owner that might seek higher lease rates in the future. So far, the company has yet to disclose who made the first offer. But some investors believe that Ventas (VTR - Get Report) -- a much larger health care REIT -- could have been the one and, while shunned, may be unwilling to give up just yet. If so, Ventas CEO Debra Cafaro's background in real estate law could come in handy when renegotiating the Universal leases. Ventas declined to comment for this story.

Whatever happens, some -- including Tsoupros -- believe that UHT could ultimately become worth more.

"We believe the emergence of an unsolicited bid for the company could lead to value being created for shareholders," Tsoupros wrote, "either if a deal for the company is done or if UHT management chooses to unlock some of the significant value embedded in the REIT's portfolio."

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
UHS $122.23 1.60%
UHT $53.28 0.21%
VTR $72.54 0.30%
AAPL $132.82 0.13%
FB $81.34 -0.70%


DOW 18,100.43 +62.46 0.35%
S&P 500 2,112.82 +3.90 0.18%
NASDAQ 5,069.6710 +9.4250 0.19%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs