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Why You Shouldn't Buy This 4.1%-Yielding Healthcare REIT

Published Wed, 11 Jul 2018 12:17:51 -0400 on Seeking Alpha

Healthcare Realty Trust, Inc. (HR) is a MOB-focused healthcare REIT with a growing property portfolio and a stable dividend distribution. The healthcare REIT is acquiring medical office buildings at a fast clip and is essentially a bet on higher projected healthcare expenditures in the United States. Healthcare Realty Trust has a moderate FFO payout ratio, but shares are expensive, and the risk-reward is not that favorable, in my opinion. An investment in Healthcare Realty Trust yields 4.1 percent.
Healthcare Realty Trust - Portfolio Overview Healthcare Realty Trust focuses on medical office buildings in the healthcare sector. At the end of the March quarter, Healthcare Realty Trust's real estate portfolio included 196 properties, representing 14.5 million square feet. The majority of properties are multi-tenant properties.

Source: Healthcare Realty Trust Q1-2018 Supplement
Healthcare Realty Trust's properties are spread out all over the United States but are nonetheless concentrated in big cities with strong economic fundamentals and growing populations.
Source: Healthcare Realty Trust
Healthcare Realty Trust's most important market right now is Dallas which consolidates 15.9 percent of the REIT's total real estate investments.
Here's a breakdown of Healthcare Realty Trust's top markets.
Source: Healthcare Realty Trust
The majority of the REIT's properties are also strategically located either on campus or... Read more