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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ready for Retirement: 3 Health Care REITs That Outperform

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.

Let's start with Medical Property Trust (MPW), a "pure play" hospital landlord that I recommended here.

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.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs