NEW YORK ( TheStreet) -- It's not every day that you come across a REIT that has it all: High quality assets, diversified properties, good management team, stable dividend, and most importantly -- upside for appreciation.
Earlier this week I interviewed Scott Peters, the CEO of Healthcare Trust of America (HTA - Get Report). Peters and his Scottsdale, Ariz.-based team listed HTA's shares on June 6 and the company has grown into a "best in class" pure-play health care REIT.
What do I mean by pure-play? Simply said, HTA invests in just one product type -- medical office buildings -- and that necessity-driven sub-sector is perhaps one of the most defensively risk-aligned categories today.
HTA broke through the $12.00 mark a few weeks ago (all-time high was $12.21 on March 15) and since that time the stock has been hanging above the $11.40 to $11.60 range. The dividend yield today is just less than 5% (4.95%) with a P/FFO of 17.6. Around ten months ago, I was the first to recommend HTA on The Street (see my article here) and since that time shares have climbed more than 16% -- add on the 5% dividend yield and you get a total return of more than 21%.
Now the institutions are getting wind of the new kid in town. Most investors have heard of the S&P 500 and the Dow Jones Industrials. These are examples of funds that invest in companies based on a broad-based index rather than individual stock fundamentals.