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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be...
We run Medical Properties Trust through our dividend-metric gauntlet to see whether the healthcare REIT can maintain its payout pace.
It's fun chasing the "next big thing", but it's also prudent investing to have a few strong yielding dividend plays in the portfolio. Here are a few I like.
Executive Vice President & COO of Medical Properties Trust Inc (30-Year Financial, Insider Trades) Emmett E Mclean (insider trades) sold 100,000 shares of MPW on 08/19/2019 at an average price of $18.37 a share. Continue reading...
Executive Vice President & CFO of Medical Properties Trust Inc (30-Year Financial, Insider Trades) R Steven Hamner (insider trades) sold 70,000 shares of MPW on 08/07/2019 at an average price of $17.77 a share. Continue reading...
Income investors have to be smiling right now. And the reason may be a bit shocking or counterintuitive. But those looking to score some high yielding REITs, the time to pounce could be now. The opportunity comes courtesy of the Federal Reserve. Yesterday, the Fed cut rates by 0.25 basis points.For high-yielding REITs, this cut could be a godsend.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo start, with rates lower, high-yielding securities become more in demand and often see their share prices rise. Investors simply can't get high income from "safe" asset classes as rates dip. That means there are plenty of total returns to be had. Secondly, REITs benefit from lower rates as it reduces their borrowing costs on mortgages and other loans. That leaves plenty of extra cash for investors to pay as increasing dividends.It's a win-win. And now could be the best chance to buy some high-yielding REITs before the Fed really starts to make its move. For those looking to boost their income, now is the time to buy. * 7 A-Rated Stocks Under $10 With the Fed cut coming, here are three high-yielding REITs to buy today. AGNC Investment Corp (AGNC)Dividend Yield: 11.10%While most people think of REITs as property owners, they do come in another flavor. And that's owning loans, mortgages and other debt tied to various properties. These mortgage REITs (mREITs) essentially own paper tied to either commercial or residential properties. Or sometimes even both. Playing in this pool is high yielder AGNC Investment Corp (NASDAQ:AGNC).AGNC invests in mortgage bonds and collateralized mortgage obligations tied to residential properties. The kicker is that the mREIT only invests in mortgage-related securities backed by government-sponsored agencies or "agency" bonds. Hence, its ticker symbol. Fannie Mae, Freddie Mac, and Ginnie Mae backed bonds are considered safer as they either come with explicit government backing or extra requirements to get the loan written in the first place.Lower rates from the Fed are a huge win for AGNC. Mortgage REITs often borrow money at low rates and then invest them in these higher-yielding mortgage bonds. With rates now trending lower, AGNC's operating costs are decreased and provide with a larger spread of profits. As a REIT, AGNC kicks out much of that cash flow back to investors. And in this case, the stock does so monthly and yields nearly 11%.With rates falling, AGNC's dividend is getting that much stronger. That could make it a prime buy in the months ahead. Medical Properties Trust, Inc. (MPW)Source: Shutterstock Dividend Yield: 5.65%Rising healthcare and demand could be one of the biggest mega-trends in the world. A subset issue to all of that is providing locations for all those doctors, research facilities, and hospitals to operate. Those REITs that do operate in this niche can be powerful income plays and Medical Properties Trust (NYSE:MPW) could be one of the highest yielding ones at 5.67%.As its name implies, Medical Properties Trust focuses its attention on owning healthcare facilities. This includes everything from standard regional/community hospitals to more specialized acute care, ambulatory surgery and children's hospitals. Moreover, MPW is also considered a hybrid REIT. The firm owns both physical properties and provides financing or invests in loans tied to new hospital construction. That combination provides for a very nice income stream for MPW. The firm has continued to see rising FFO numbers.That FFO number could keep growing. MPW has continued to expand not only here in the U.S., but overseas as well. The REIT has added properties in the U.K., Germany and even Australia in recent years. And it just announced a big $1.75 billion acquisition that will add another 24 hospitals into its mix. That deal will be instantly accreditive to its cash flows. With rates falling, MPW will be able to make more deals at lower costs. * 8 Monthly Dividend Stocks to Buy for Consistent Income In the end, MPW could be a powerful high-yielding REIT to own in the quarters ahead. Tanger Factory Outlet Centers Inc. (SKT)Dividend Yield: 8.76%Some of the highest-yielding REITs can be found among the retail wreckage. The rise of e-commerce has hurt many brick-and-mortar retailers. This has resulted in plenty of bankruptcies and store closings across the country. For those investors that own the malls, shopping plazas, and other power centers, this has been a kick right to the head. But not all malls and shopping centers are the same. There are plenty of shopping-focused REITs that have been cast aside in the wreckage.Tanger Factory Outlet Centers (NYSE:SKT) is one such stock.For Tanger, the secret is in its operating model. SKT focuses on outlet shopping and in fact, is the largest owner/operator of such assets. The kicker is that outlet shopping tends to be more "destination shopping" in that, consumers plan and make special trips to Tanger's portfolio of 40 properties. As a result, its product mix is a bit different and the firm's properties feature a wide range of amenities. Restaurants, movie theaters, and entertainment aren't replicable via online means. This keeps luring shoppers back for the bargains.And with many of SKT's properties being in higher-income areas, people are shopping in spades and will continue to do so if rates are cut. Excluding the sale of four non-core properties last quarter, Tanger's critical FFO metric increased. Rising FFO/cash flows directly translate into higher dividends.With a nearly 9% yield, Tanger is a high-yielding REIT that has been wrongfully cast aside.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks Under $10 * 8 Monthly Dividend Stocks to Buy for Consistent Income * 7 Disruptive Biotech Stocks to Buy for 2025 The post 3 High-Yielding REITs to Buy After the Fed Rate Cut appeared first on InvestorPlace.
Medical Properties (MPW) delivered FFO and revenue surprises of 0.00% and 3.44%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
While Medical Properties' (MPW) acquisition-driven growth strategy will be accretive for bottom-line growth in Q2, high tenant concentration may make its performance volatile.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Medical Properties Trust, Inc. New York, July 26, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Medical Properties Trust, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
With the U.S. stock market up so much year to date, investors should also be focusing on investments that will be sustained even if the S&P 500 Index takes a pause. And real estate Investment Trusts (REITs) are stocks that are literally based on solid foundations.When most investors think about growth in the stock market, REITs don't immediately come to mind. After all, how can sleepy bits of real estate compete with all of the other facets of the stock market?But real estate has a few things going for it. To start, as the adage goes: when it comes to land, they aren't making any more of it. Well, that's mostly true except for certain markets such as the territories around Hong Kong and Victoria Harbour.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen there are the many adaptations of land -- from residences for technology workers to housing the actual technology, from residential to office and of course data centers.And of course, there is the income that comes from real estate. And for REITs, the dividends are in general much higher than the general market. The yield for the S&P 500 Index is currently 1.87% while the yield for REITs are tracked by the Bloomberg U.S. REIT Index is much higher at 4.15%. * 7 Stocks to Sell This Summer Earnings Season Moreover, thanks to the Tax Cuts & Jobs Act of 2017, REIT dividends are worth even more on an after-tax basis. This comes from a line-item in the TCJA whereby investors get to deduct 20% of the dividend income from their taxable income. Growth & Income from REITsThe great combination of underlying property value improvement and tax-advantaged income continues to result in better performance in REITs.For the past trailing year, REITs -- as tracked by the Bloomberg REIT Index -- have earned a return of 14.8%, which is significantly higher than the return for the S&P 500 Index at 9.24%. In addition, during the big sell-off in stocks during the fourth quarter of last year, REITs did drop in return by 6.1% -- but that was way better than the drop in the S&P 500 Index of 13.5%.Bloomberg US REIT Index & S&P 500 Index Source BloombergNow, the same question has to be asked of REITs as of the S&P 500 Index -- is the market still a value?Well, to start, the REITs reporting so far for the second calendar quarter have shown revenue gains averaging 14.6%, with earnings advancing by 17.2%. That's significantly better than for the general stock market reporting so far.But what about value? On a price-to-book basis REITs are sitting on average at 2.56 times which is well-below highs seen early this year and highs over the past five years. And the underlying book value itself has been strongly on the rise. This is important as buying REITs just like for individual properties means not paying too much for the land and buildings.Bloomberg US REIT Index Price to Book Value (Orange) and Underlying Book Value Per Share (Olive) Source BloombergI have a large and diverse collection of REITs in the model portfolios of Profitable Investing. And from a value standpoint, the average price to book value for all of them is at a bargain level of less than 2 times. This means that my REITs are even better buys right now than even the value-priced general REIT market.And as noted above, REITs are reporting higher revenue and earnings so far for the quarter. But one of the specific metrics for profitability comes from the rate of return from funds from operations (FFO). This measures the profits that REITs make from just the core business of collecting rents from their tenants.There are several REITs with significantly higher FFO returns, but on average for our collection the FFO return is running at over 10%, which remains quite positive and is supportive for higher dividend payments. 3 REITs to RecognizeAs noted above, I have a collection of REITs in my model portfolios. All make for great buys. But here are three to recognize for their particular opportunities.I'll start off with American Campus Communities (NYSE:ACC). This REIT has educational properties focused primarily on dorms for colleges and universities. This is an attractive market since it has a captive market for students that need or want to live near where their classes and activities are happening. The space has been so good that one by one, the leading public REITs in this market have been bought out by non-public investments and private equity.American Campus Communities (ACC) Total Return Source BloombergACC is the one focused REIT still here. And it is performing with the trailing-year return of a much better 20.7%. Revenues are up by 10.6% with a return from funds from operations (FFO) at a nice 10%.It is a value too at only 1.91 times its book of business, including its properties. And the dividend is an attractive 4% and has been climbing over the past five years by an average of 4.85%.Next is WP Carey (NYSE:WPC) which I've followed since it came to the public market back in the late 1990's. WP Carey is a large, diversified REIT with assets around the U.S. and the globe. Its focus is on doing sale-lease-back transactions, which have owners and occupiers sell their properties and in turn lease them back from WPC. And it also focuses on triple-net leases, whereby tenants pay insurance, upkeep and taxes leaving WPC to avoid these costs and risks.WP Carey (WPC) Total Return Source BloombergThe return over the past trailing year is a whopping 38.7%. And while revenues have slowed a bit recently to a gain of 4.4%, the FFO return is better at 11.6%. And it is also a bargain at only 2.05 times its book value.And the dividend which keeps rising every quarter by policy is even more attractive at 4.9%.And last up is Medical Properties Trust (NYSE:MPW) which I added to the Total Return Portfolio in the March Issue. This REIT is focused on health care properties from hospitals to other facilities. And like WP Carey, MPW focuses on net leases, which lowers costs and operating risks.Medical Properties Trust (MPW) Total Return Source BloombergThe trailing year return is running at 32.9%, and yet the stock is only trading at 1.42 times its book value. Revenues are rising at 11.3% and the FFO return is running at 10.9%. And it has a dividend distribution yielding 5.7%, with the distribution rising on average over the past five years by 3.8%.Now that I've presented my way to invest in the solid and lucrative real estate investment trust market, perhaps you might like to see more of my market research and recommendations for further safer growth and bigger reliable income. For more, look at my Profitable Investing. Click here to learn more.In addition, if you find yourself in San Francisco on Aug. 15-17, please join me at the MoneyShow, where I'll be presenting my economic and market analysis and my latest investment themes and recommendations. For more information, click here.Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above, but they may be held in his model portfolios. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post 3 REITs to Buy to Build a Solid Foundation appeared first on InvestorPlace.
Moody's Investors Service commented that Prospect Medical Holdings, Inc.'s ("Prospect Medical") announcement that Medical Properties Trust, Inc.will invest $1.55 billion in it through a sale-leaseback of the majority of Prospect Medical's facilities provides a meaningful liquidity boost. Prospect Medical expects to use the funds to retire the company's existing term loan debt, which stood at $1.1 billion as of March 31, 2019. At this time, there is no immediate impact on Prospect Medical's B3 Corporate Family Rating or its negative rating outlook.