The Health Care REIT Report Cards are looking good and I especially like these three REITs that have outperformed the others (over the last 30 days). It doesn't hurt the fact that as I recommend all of these REITs, the shares are continuing to build a dominate total-return record.
The Birmingham-based REIT has returned more than 11.5% during the past 30 days.
That's not bad. But hang on.MPW, with a market cap of $1.942 billion, has returned more than 58.5% over the last 12 months. Shares are trading at $14.25 and the BB (S&P rated) REIT has a dividend yield of 5.61%.
The big monthly gainer is Omega Healthcare Investors (OHI). The long-term care REIT returned more than 13.74% in the last 30 days and a boastful 38.91% over the last 12 months. With a market cap of $3.119 billion, OHI has a modest valuation (P/FFO is 14.5) with shares trading at $27.75. Just a shade under investment grade (SP is BB+), OHI has the highest dividend yield in the sector, at 6.49%.
Finally, the "new kid" just made it on the leader board. Health Care Trust of America (HTA), a pure-play medical office building REIT, has returned more than 10.68% in the last 30 days. The Scottsdale-based REIT listed on the NYSE on June 6, 2012. Last week the company hit an all-time high of $11.68 per share. In just six months (since listing), HTA has retuned more than 26% and the company now has more analysts covering it (and more to follow). No more flying under the radar for HTA, as the $2.422 billion REIT pays a healthy dividend yield of 5.09%. (HTA is the only investment grade REIT of the three mentioned in this article. S&P rates HTA BBB-).
The above Health Care REITs are excellent candidates for your "sleep well at night" portfolio. In fact, I strongly recommend these three REITs by diversifying and even spreading your risk across tenant, property type and geography. To be properly diversified, I would not recommend that you limit your exposure to one, but instead me mindful that there are a broad number of REITs (129 U.S. equity REITs) with a full spectrum of disciplines. It is essential that diversification become a part of your DNA and perhaps any or all of these three Health Care REITs could be a part of your overall retirement portfolio. Best of luck.
The Intelligent REIT Investor. Source for Data: SNL Financial At the time of publication the author had no position in any of the stocks mentioned. Follow @swan_investor This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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