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Welltower Inc. Message Board

  • dar200 dar200 Aug 7, 2012 3:42 PM Flag

    Buy the bargain

    It ain't often that retails can buy in at less than 1% above the tutes and bigshots.

    This is typical dilution freak selloff. HCN already has the deals to close in 3Q for this new equity. They will be accretive. The pps will soon be back to 62. The dividend will be increased for 1Q.

    HCN is just a giant, slowly (but safely) growing fad. A great, safe annuity, imo.

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    • dar-you are 100% correct

    • I think their problem that you are overlooking is that they are overpaying for this aquisistion. It may be alright in the long run but the cost of financing right now is cheap. As interest rates rise in the future so will their cost of capital and thus decrease their income and possibly lower the divi and stock price.

      • 2 Replies to darnoc1111
      • Yeah, a 6% cap rate is a high price to pay, but these are premium properties plus the deal gives them options to buy (or first right to buy)another 2 billion.

        Per CC, this will be initially neutral to ffo and fad so I don't see a dividend stall or reduction. I have plenty of time for accretion.

        Typical lemming panic today. The dilution freaks are panicked over an offering which may happen next year.

        I bought another 1,000 under 58 on the knee-jerk. I'm satisfied with a safe more than 5% yield while I wait. Nothing will stop the aging of baby boomers. Demographics insure this is a safe, long term investment for yield which is likely to keep up with inflation.

      • The smart HREITS are using cheap money to their advantage and are buying.Interest rates in the future have little or no effect on deals that are made now.There is a fire sale going on in this industry now.

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