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8% Yield From A High-Quality Seniors Housing Real Estate Company With A Clear Growth Strategy

Published Tue, 10 Jan 2017 17:14:07 -0500 on Seeking Alpha

Investment Thesis
Mainstreet Health Investments (OTC:MHIVF) provides investors with an opportunity to invest in a highly-focused U.S. based senior housing real estate company with triple-net leases and high-quality tenants, while providing a stable income stream (dividend yield of ~8%) and visible cash flow growth.
About Mainstreet Health Investments
Mainstreet Health Investments completed its Initial Public Offering on June 2, 2016, raising US$103 million at US$10.00 per share. The IPO proceeds were used to partly fund the acquisitions of an additional 13 seniors housing facilities in the U.S., which combined with the 11 properties already owned by Mainstreet Health, comprise the 'IPO portfolio'. The 24 seniors housing assets in the IPO portfolio total 3,332 beds/suites and were acquired for US$442 million, equating to a cap rate of ~8.%.
All the properties in the IPO portfolio are located in the U.S., primarily in the Chicago area in Illinois (74% of beds/suites across 11 properties) and Pennsylvania (9% of beds/suites across seven properties).
Mainstreet has a proven strategy with a portfolio of solid income producing senior housing properties:

Source: Mainstreet Investor Presentation.
In 2016, Mainstreet successfully executed the following transactions:
Raised US$183 million of equity and US$45 million of convertible debentures (through public offerings). Acquired 35 senior housing properties in the U.S. and Ontario, Canada. Funded... Read more