This morning, stocks inched higher after another record-breaking session where the Dow and S&P 500 closed at new records. With only two trading days left in 2021, the major indices are on track for a green December and a positive end to a strong year.
Moving into 2022, many investors are re-accessing their portfolios to shore their 2021 gains. Investing in a hospital REIT or nursing home REITs could add stability to a portfolio over the long term. Because real estate is an asset class that’s not directly tied to traditional markets, REITs can bolster your portfolio when markets take a plunge.
“Health care REITs provide investors with a useful diversification tool with a robust long-term performance that will typically reduce the volatility of a portfolio because of how much returns differ from those of the S&P 500,” says Andrew Latham, managing editor of SuperMoney.
Today we’ll discuss a healthcare REIT that has maintained strength through the worst of the pandemic and is looking toward expansion which could mean significant rewards for investors in the years to come.
New in Biotech:
The Guardian: “New pill could spell the end of all disease.”
This pill is set to completely change the lives of millions of Americans.
And because just one tiny Brisbane company has virtually monopolized this technology with 140 foolproof patents…
Investors who get in on the ground floor stand to become rich beyond their wildest dreams. [Full Story…]
Healthpeak Properties (PEAK) owns 633 properties, balanced across the life sciences, senior housing, and medical office sectors. The life sciences portfolio consists of lab and office space focusing on three leading medical research markets (San Francisco, San Diego, and Boston), with properties typically located in a business park or campus settings. Medical office properties are located adjacent to hospitals and leased to hospitals or physician groups.
Income from senior housing properties declined in 2021 due to pandemic effects but was offset by strength in the life sciences and medical office portfolios, which grew income 5.7% and 2.3%, respectively.
The company has better-than-average liquidity to ride out further COVID-related disruptions. Total liquidity is $2.6 billion, including $2.4 billion available on its $2.5 billion revolving credit facility, as well as $150 million in cash and cash equivalents and no material debt maturities before 2023.
Longer-term, this high-yield REIT should benefit from demographic trends that include aging baby boomers demanding new treatments and medical devices, increased outpatient services, and more seniors requiring daily living assistance. In addition, the company boasts a $1.2 billion development pipeline that is already 63% pre-leased.
Healthpeak cut its dividend in 2017 after spinning off its nursing home business, marking the REIT’s only dividend cut in 25 years. Since then, the company has paid a steady $1.48 annual dividend. The payout ratio rose to about 90% in 2020 because of COVID, but it has averaged a safe sub-80% over the past four years. The current 82% payout ratio is comfortable enough to suggest that PEAK’s 3.32% dividend yield isn’t going anywhere anytime soon.
Where to invest $1,000 right now...
Before you consider buying Healthpeak, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Healthpeak.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]